This time last year internet provider KCOM (KCOM) wanted to reach 150,000 homes and businesses by the end of 2017. It’s now surpassed this goal, having rolled out fibre-to-the-premises broadband to 164,000 sites during the year to March 2018. As for the current financial year, it wants to reach the entire market in Hull and East Yorkshire, which would bring the total to just over 200,000 sites. Chief executive Bill Halbert said KCOM is comfortably on track to meet this goal as consumers and businesses realise the benefits of the faster and more reliable fibre service compared with traditional copper connections.
However, analysts still expect a fall in pre-tax profit in FY2019 due to continued conservatism in the public sector, which affects the group's enterprise business. This division saw sales decline by 3 per cent after the general election caused delays to public sector work.
Analysts at Peel Hunt expect adjusted pre-tax profit of £27.4m in the year to March 2019, giving EPS of 4.4p, down from £33.3m and 5.2p in FY2018.
| KCOM (KCOM) | ||||
| ORD PRICE: | 97.7p | MARKET VALUE: | £505m | |
| TOUCH: | 97.4-98.2 | 12-MONTH HIGH: | 111p | LOW: 85p |
| DIVIDEND YIELD: | 6.1% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 19.6p* | NET DEBT: | 62% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 371 | 50.5 | 7.6 | 4.88 |
| 2015 | 348 | 16.7 | 2.5 | 5.37 |
| 2016 | 349 | 88.7 | 14.0 | 5.91 |
| 2017 | 331 | 30.5 | 4.9 | 6.00 |
| 2018 | 302 | 34.0 | 5.4 | 6.00 |
| % change | -9 | +12 | +11 | - |
| Ex-div: | 21 Jun | |||
| Payment: | 3 Aug | |||
| *Includes intangible assets of £88.2m, or 17p a share | ||||
