30th Jan 2009 07:00
KCOM Group PLC Interim Management Statement
KCOM Group PLC ('KCOM') today publishes its Interim Management Statement for the period 1 October to 31 December 2008.
Current trading
Group financial performance for the nine months ended 31 December 2008 has benefited from a continuing improvement in the performance of its Telecoms & Internet Services business ("T&IS"). That improvement has contributed to a year over year increase before exceptional items in both Group operating profit and profit before taxation, in the nine month period.
The current trading environment remains challenging for the Integration and Managed Services ("I&MS") business, which has seen revenue decline year on year by 10 per cent.
In the light of the ongoing economic uncertainty, and its effect in particular on the I&MS business, the Group is undertaking a further headcount reduction of 150 employees within I&MS.
That reduction, in addition to reducing the overall cost base, is a key component in the transformation of I&MS that will see its focus shift to higher margin and recurring services. As a result, I&MS is expected to return to overall net profitability, before exceptional items, during the final quarter of the financial year.
Following the peak net debt reported in September 2008, we also anticipate a reduction in Group net debt as at 31 March 2009.The Group has a solid financial base with a committed bank facility in place until 2012.
Outlook
In spite of the current economic climate and exceptional items associated with the transformation process, the Board believes the Group will end the financial year in a stronger position to deal with the current challenging trading conditions.
KCOM announces its preliminary results on 2 June 2009.
ENDS
For further information please contact:
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KCOM Group PLC: |
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Paul Simpson, CFO |
Tel: 01924 882952 (PA: Annette Watling) |
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The Maitland Consultancy: |
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Colin Browne |
Tel: 020 7379 5151 Mobile: 07733 103800 |
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