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KCOM guarantees 10 per cent dividend growth

RESULTS: Hull-based telecoms group KCOM has committed to an inflation busting dividend payout for the next three years - leaving the shares worth snapping up for income

Management at Hull-based telecoms group KCOM (KCOM) is sufficiently confident in the performance of its telephony and broadband business that it has committed to grow the dividend by 10 per cent every year until 2016. That helped the shares jump about 8 per cent on the day these full-year figures appeared.

IC TIP: Buy at 82.8p

That confidence doesn't look especially misplaced, either. The KC unit - which offers telephony and broadband services in Hull and East Yorkshire - increased cash profits by 2.4 per cent in the year to £54.5m. While penetration of higher-margin bundled services among customers increased from 25 per cent to 42 per cent in the year - that's quite a pace given that KCOM only received regulatory approval to sell bundles in 2010.

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