Join our community of smart investors

KCom returns to sales growth, speeds up fibre investment

The telecoms specialist plans to use the funds raised from the £90m disposal of its national business to invest heavily in local infrastructure.

Strip out the big gains generated from KCom 's (KCOM) disposal of its national network infrastructure business, and the pre-tax profit increase in the table becomes a humbling 7 per cent decline. An investment strategy focused on selling high-speed fibre internet services to businesses was mainly to blame for this fall, as the telco tapped into its much healthier war chest in a bid to upset BT 's (BT.A) monopoly.

IC TIP: Buy at 109p

The nation's thirst for speedy broadband was boosted by the government's initiative to deliver 'superfast' broadband. Some 26,000 premises in the group's Hull and East Yorkshire heartland were connected by the end of the period, out of a possible network of roughly 78,000. That success, coupled with several big contract wins for the enterprise division following its landmark deal with HMRC, spurred KCom to post sales growth, albeit slight, for the first time in years.

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in