30th Sep 2005 07:01
Kingston Communications(Hull)PLC30 September 2005 Kingston Communications (HULL) PLC30 September 2005 KINGSTON COMMUNICATIONS (HULL) PLC (KCOM.L) PRE-CLOSE STATEMENT Kingston Communications (HULL) PLC (KCOM.L) is holding its normal series ofpre-close period meetings with analysts, ahead of its interim resultsannouncement on 29 November. Trading Update The Group continues to make progress in line with full year market expectations. As indicated at the time of our Preliminary Results, during the first quarter ofthe year our focus has been on the creation of Affiniti, our national businesscommunications integrator, and the initial realignment of the business.Following this traditionally quieter period, activity levels have increasedduring the second quarter with a strengthening order intake and some significantnew contract wins including The Press Association, Thames Valley Police,Reuters, Glasgow Caledonian University and Britannic Asset Management. Through the creation of Affiniti, we have executed our strategy to shift the mixof business towards the delivery of integrated communications solutions. Thevalidity of this decision has been underpinned by the reduced activity we, andother operators, have seen around certain low margin/high revenue services, areflection of the overall market decline in this area. Our drive to reduce the dependency on traditional voice revenues in EastYorkshire has seen us deliver further growth in our broadband customer basewhich now stands at approximately 94,000 (31 March 2005: 74,000). In addition,the programme to extend the reach of our local East Yorkshire network intoLincolnshire has seen early success with new contract wins from HumbersidePolice, Raw Power and Linkwave. Our new all inclusive call packages ('KC Talk')have been introduced to our residential customer base and include free fixedline to mobile calls at weekends, an industry first. Operating cash flow, after financial charges, has continued to improve year onyear which, combined with the proceeds from the sale of Arche Communications SASreceived in June, will see net debt reduce from the year end level of £163.6million. IFRS ('International Financial Reporting Standards') The Group also publishes its audited results today, restated under IFRS, for thesix months ended 30 September 2004 and the year ended 31 March 2005. Theseresults were previously published under UK GAAP on 29 November 2004 and 24 May2005 respectively. The principal areas of impact under IFRS are: •accounting for share based payments; •pensions accounting; •intangible assets and goodwill amortisation. The overall impact of these changes on the reported earnings of the Group is notmaterial. The restated primary financial statements for the six months ended 30September 2004 and the year ended 31 March 2005 are set out in a detailedpresentation published today on the Group's website. The interim results, which will be announced on 29 November 2005, will bereported under IFRS. ENDS For further information, please contact: Kingston Communications (HULL) PLC Corporate Communications Tel: 01482 602 666 Mobile: 07770 744 322Anita Pace The Maitland Consultancy Tel: 020 7379 5151 Mobile: 07733 103 800Colin Browne Note to editors About Kingston Communications Kingston Communications is a leading provider of communications solutions tobusinesses and public sector organisations throughout the UK. The Kingston Group includes Affiniti, the communications integrator created fromthe coming together of Kingston Communications' Business Services division,Omnetica and Technica in 2005. Affiniti provides secure voice, data, video,mobile, wireless and storage solutions that enable businesses to exploit theopportunities that come with converged communications. Kingston's national capabilities have been built on its strong foundationswithin East Yorkshire, where the company has been providing leading edgeservices to residential and business customers for over 100 years and where ithas been a pioneer in the use of ADSL technology. The Kingston Group also includes Eclipse Internet, an established and growingbroadband ISP that delivers internet connectivity and services to businesses andconsumers throughout the UK. www.kcom.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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