KCOM plans for growth as profits rise
Revenues might have dipped but profits for the first half of its fiscal year increased at KCOM as the firm announced a fresh banking facility and ambitions for growth.
In interim results for the six months ended 30 September revenue dropped by 7.6% to £194.8m but pre-tax profits increased by 35% to £22m compared to the same period a year earlier.
The business has been restructuring this year following the sale of some of its break-fix contracts to Phoenix IT group back in January and the changes to its banking arrangements.
Bill Halbert, executive chairman at KCOM, said that its results were in line with expectations and it indicated that the decisions made in the last eighteen months "to simplify and
strengthen the Group" were paying off.
At the same time as announcing the half year interims a fresh banking credit line was unveiled that replaces the existing £250m credit facility which expires in March 2012.
The new £200m revolving credit facility will run to July 2015 provided by six banks which include those that had already been supporting the company, RBS, Barclays and Lloyds as well as the addition of Yorkshire Bank, HSBC and Santander.
"The signing of our new banking facility to July 2015, coupled with greater visibility of our pension commitments, means that financial stability is assured," said Halbert.
"This stability and strengthened competitive position gives us the ability and confidence to commit to increased shareholder returns whilst also forming a platform for future organic growth," he added.
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