(Alliance News) - Takeover target KCOM Group PLC on Wednesday said, as expected, its two UK business segments performed well below expectations.
On Friday last week, shareholders approved a GBP627 million takeover by MEIF 6 Fibre Ltd, which is managed by Macquarie Infrastructure & Real Assets Europe Ltd. Shares were down 0.2% on Wednesday at 120.00 pence, with Macquarie set to pay 120.3p a share.
For the year to March, telecommunications firm KCOM posted a 5% decline in revenue, adjusted for accounting changes, to GBP285.9 million, with adjusted pretax profit falling 27% to GBP24.2 million.
On a reported basis, KCOM posted a pretax loss of GBP31.6 million, after a GBP34.0 million pretax profit the year before.
KCOM is not paying a final dividend, though did pay a 1.00 pence interim dividend. This means the total for the year, 1.00p, is 83% down on the 6.00p returned a year before.
The Enterprise segment's revenue was flat, and adjusted earnings before interest, tax, depreciation, and amortisation fell in a "challenging" environment, and KCOM has lowered expectations for the unit.
National Network Services also struggled, with revenue down due to a "performance well below the underlying market".