KCOM Group PLC issues the following trading update, ahead of its interim results for the half year ending 30 September, due to be announced on 27th November.
Also the Group will hold a sell-side analyst update on its Kcom brand.
During the first half year, despite prevailing market conditions, the Group has performed in line with expectations. As anticipated, first half net debt has increased, as a result, among other things, of share scheme purchases and planned increases in capital expenditure.
KC continues to make a strong contribution to Group results. The ability now to offer bundled services is allowing us to deliver more value to our customers and the response continues to be positive.
Kcom, our enterprise business, has delivered year over year growth in its multi-year order backlog, albeit lower than previously anticipated due to the uncertain environment for business investment decision making.
Commenting on trading, Bill Halbert, Executive Chairman stated, “I am pleased to report that, despite challenging market conditions, the Group continues to make progress towards achieving its longer term objectives. The continuing macro-economic uncertainty is resulting in slower new business investment decision making and this is likely to remain the case through the second half of the year. Nevertheless, we remain confident about the underlying strength and continuing cash generative capacity of the Group and are pleased to reconfirm our commitment to delivering a minimum 10% increase in full year dividend.”