Kcom hails profit rise

Unaudited year-end financials reveal net debt has also shrunk as Group remains focused on growth strategy

Kcom Group has seen profit shoot up 24 per cent for its unaudited financials for the year ended 31 March 2012, despite a drop in turnover.

The firm, which incorporates telecoms integrator Affiniti Integrated Solutions, released its unaudited accounts for the year ended 31 March 2012.

Turnover for the year actually slipped two per cent to £387.3m, compared with £395.4m the previous year, and pre-tax profit hit £51.1m, compared with £41.2m in FY 2011. Net debt was reduced to £75.3m compared with £82m in 2011.

Bill Halbert, executive chairman of the group, said in a statement: “The Group continues to perform well, making good progress against its longer-term objectives. We remain focused on executing our growth strategy and we expect the performance of the Group to continue to reflect this during the current financial year.

“The strength in earnings and associated strong conversion into cash emphasises the quality of the service we provide and forms a stable foundation for increasing shareholder returns and the pursuit of growth.

“Based on another strong set of results, we are pleased to be recommending a final dividend of 2.67p per share, giving a full-year dividend of 4.00p per share. We reiterate also our commitment to a minimum 10 per cent dividend growth in the coming year, reflecting the Board’s confidence in future financial performance," he said.

The firm said it continues to deliver growth in profits and generate cash conversion, which in turn enables it to continue investing in its chosen markets.

“The Board expects the Group to continue to perform in line with market expectations in the current year,” the statement said.