2 Apr 2012 07:00
KCOM Group PLC (KCOM.L) Pre-close Statement
KCOM Group PLC (KCOM) issues the following statement for the period ending 31 March 2012, prior to entering the close period for its preliminary results.
Current Trading
Current trading remains consistent with trends reported at the interim results in November.
Our KC brand continues to benefit from sustained growth in broadband penetration across the East Yorkshire network area, with customers attracted to bundled offerings in particular. In addition, and three years ahead of the Government's 2015 targets, we are able to provide broadband services with a minimum 2Mbps download speed to all households and businesses across our KC network.
The Kcom brand continues to see progress on securing multi-year recurring revenues to support longer term sustainable growth. Our focus on opportunities within the emerging Public Services Network (PSN) market has been maintained, as confirmed by the recent signing of the contract for East Midlands PSN. Progress has also been seen within the enterprise market, where we have recently signed contracts with Molson Coors, United Utilities and iPSL for a range of communications and managed services.
Our Smart421 and Eclipse brands continue to make good progress with their own growth momentum.
Accelerated Pension Payments
The strength of the Group's financial position is such that we have taken the decision to make an accelerated payment of £10.0 million to the Group's defined benefit pension schemes. This comprises £6.9 million of advance payment to FY13's previously committed deficit contributions and an additional one-off contribution for FY12, of £3.1 million.
As well as reflecting the wider financial strength of the Group, making these payments in the current financial year allows the Group to benefit from the higher corporation tax rates of 26% in FYE March 12, compared to 24% in FYE13. We expect the resulting net debt to be no greater than £80.0 million at 31 March 2012 (31 March 2011: £82.0 million).
Outlook
We expect the Group's full year results to be in line with market expectations.
In addition, the Board reiterates its commitment to delivering a minimum of ten per cent per annum dividend growth in this, and the subsequent financial year, reflecting its confidence in the Group's future cash generation and performance.
KCOM Group will announce its preliminary results on 22 May 2012.
Enquiries:
KCOM Group PLC:
Bill Halbert, Executive Chairman Paul Simpson, CFO Tel: 0207 422 8707 (PA: Clair Morris)
Investor relations
Cathy Phillips Tel: 07778 335735
Brunswick:
Jon Coles Tel: 0207 404 5959