30th Mar 2007 07:00
Kingston Communications(Hull)PLC30 March 2007 Kingston Communications (HULL) PLC30 March 2007 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 preliminary resultsannouncement on 22 May. Trading Update-------------- Overall Group performance for 2006/07 is expected to be in line withexpectations. Kingston Communications ("KC") continues to perform strongly across both itstraditional and broadband businesses, with improved margins. These, combinedwith tight control on capital expenditure, continue to deliver strong cashflows. We anticipate that our broadband customer base will exceed 179,000representing growth of 49 per cent on the prior year. Recent success at theInternet Service Providers Awards 2007, reflects the focus we place on thequality of experience delivered to our customers. The reshaping of our Affiniti business continues as we reduce our dependency ontraditional capital intensive network services and increase our capability todeliver integration projects and managed solutions into the enterprise andpublic sector markets. A good example of this transition is the announcementtoday of Affiniti's £3.5 million deal with Lloyds TSB Corporate Markets for aCisco converged communications project at its flagship premises in London. As wego through this progressive transition in our business model, we will experiencesome volatility in business performance depending on the relative growth ratesin our solutions-based revenues compared to the decline in traditional networkservices. All our recent acquisitions, completed in the second half of the year, areperforming in line with our expectations and are earnings accretive. We havedeepened and strengthened our service proposition to the large enterprise marketwith the acquisition of Smart 421 and JAM IP. The more recent acquisition ofMistral Internet increases the scope of KC's internet operations, deepening ourexpertise in the managed services sector of the fast growing broadband internetservices market. The strength of the Group's overall performance will, as expected, deliverimproved operating cash flow generation in the second half of the year.Following both this improving cash profile, and the recent all-cash financedacquisitions, the Group has taken the opportunity to refinance its current debtfacility through a new £250 million 5 year revolving facility. Commenting on the Group's overall performance, Chief Executive, Malcolm Fallen,said: "We remain confident in our strategy to reposition the Groupprogressively. Our focused and firm commitment to the execution of this strategywill deliver full year results in line with expectations. During the second halfwe have accelerated our ability to move the business into higher added valueareas of the market through our recent acquisitions. Continued strong cashgeneration and improving earnings position us well for dividend growth." ENDS For further information, please contact: Kingston Communications (HULL) PLC Corporate CommunicationsAnita Pace Tel: 01482 602666 Mobile: 07770 744322 The Maitland ConsultancyColin Browne Tel: 020 7379 5151 Mobile: 07733 103800 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
KCOM