KCOM sees Smart results from cloud consultancy arm

Smart421 enjoys big jump in sales as the integration of businesses continues within the KCOM Group

Cloud consultancy Smart421 was the blue-eyed boy in KCOM Group's latest results as the London-listed comms firm announced plans to sell off its national infrastructure.

For the six months to 30 September, Smart421's EBITDA was £1.8m, up from £1.5m in the same period last year, on sales of £16.6m, up from £12.8m over the same period.

This boost to the Amazon Web Services (AWS) partner was driven by "both new customer wins and extensions to existing relationships", KCOM Group said.

The Kcom brand, which also sits in the KCOM Group, saw less glowing results, with revenues largely flat at the Cisco Gold partner. Kcom's six month EBITDA was £7.4m, up from £6.9m, in the same period last year, on sales of £92.7m, up from £92m over the same period.

In June, parent company KCOM Group, said it is going to integrate its brands, including Kcom and Smart421, to serve the enterprise, SMB and consumer markets.

Bill Halbert, KCOM CEO, said the results show that the firm is in good shape for its integration process.

"The Group has delivered improved performance across all target segments. The results are clear evidence of the potential of our strategy and of the level of opportunity we have in our chosen markets," he said.

"Our focus on generating targeted organic revenue growth, coupled with further steps to simplify the operating structure of the business, places us in a strong position to create a single, unified and simplified business by the end of this financial year."

The London-listed firm also announced that it is putting its national network infrastructure (excluding Hull and East Yorkshire) up for sale, as "consistent with our wider transformation journey".

For the overall KCOM Group, its EBITDA was £37.2m on sales of £177.9m, for the six months to 30 September.