Internet provider Kcom admits to debt rise in first half results

 
Oliver Smith
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COMMUNICATIONS and IT services provider Kcom Group yesterday said that it has performed in line with expectations ahead of its interim results due on 26 November.

The Yorkshire-based company said that its net debt has increased since 31 March (reported at £88.2m), but that it expects to reduce its debt in the second half of the year.

“I am pleased to report that the group continues to make progress towards achieving its longer term objectives. The cash generative capacity of the group means it is able to continue with its progressive dividend policy while continuing to invest in those areas that support the group’s ambition to achieve market leadership positions across all four brands,” said Kcom chairman Bill Halbert.

Kcom operates in and around Hull, one of the few areas where BT – and companies such as Sky and TalkTalk that use BT’s network – does not have a presence.

Its only competition comes from mobile broadband services in the area.

Kcom’s yearly results to 31 March 2013 showed profits up 3.1 per cent to £52.7m on revenues of £372.9m.

In June the company maintained its dividend increase of 11 per cent to 4.44p a share, and committed itself to at least 10 per cent dividend growth per annum until 2016.