29th Jan 2010 07:06
KCOM Group PLC (KCOM.L) Interim Management Statement
KCOM Group PLC ("the Group") today publishes its Interim Management Statement.
Current trading
Group performance continues to be in line with expectations, with continued good cash performance resulting in a stronger overall financial position at the end of December. This performance is underpinned by the continued resilience of our Kingston Communications business, and is benefiting increasingly from the improving performance of our managed communications business, Kcom.
Kcom has begun to benefit from its tightened focus, as we continue to strengthen customer relationships and margins, by exiting lower value-add activities. That progress is evidenced by our announcement today of a new managed service contract with Phones4U (see separate announcement).
Outlook
The Board remains confident that the actions it has undertaken over the past 18 months will see continued improvement in the overall quality of the Group's activities. The progress we have made will see us exit the year in a stronger financial position and with an improved competitive position from which to exploit the market opportunities now available to us.
Commenting on today's announcements, Executive Chairman Bill Halbert said, "The Group continues to make good progress, focusing on strengthening the profitability of the activities that we undertake and the delivery of higher value-added, recurring revenues.
"Our contract win with Phones4U is as an example of our strategy of focusing our managed communications services business direct sales efforts on higher value added services, contracted on a multi-year basis. The contract illustrates the new opportunities available to us following our agreement with BT."
The KCOM Group announces its preliminary results on 25 May 2010.
For further information please contact:
KCOM Group PLC:
Bill Halbert, Executive Chairman
Paul Simpson, CFO Tel: 01924 882952 (PA: Annette Watling)
Maitland:
Brian Hudspith/ Amanda Martyr Tel: 0207 379 5151
About KCOM Group PLC
The KCOM Group delivers communications services to a range of businesses and consumers, with an emphasis on exceptional service delivery.
Its Kcom business provides communications services for national multi-site enterprise and public sector organisations across the UK. As an independent provider of these services, supported by its BT Wholesale partnership, Kcom is able to offer advanced network capability and related added value services, coupled with a flexible approach to delivering its customers' requirements.
Its Kingston Communications business provides a range of communications services to businesses and consumers in Hull and East Yorkshire. Eclipse Internet delivers a portfolio of internet based communications services. These are designed to help small businesses and home based workers to exploit the power of the internet to achieve business success.
For more information on the KCOM Group, please go to www.kcomplc.com.
Forward-looking statements
Certain statements in this interim statement are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.
We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
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KCOM