KCOM churning out cash

31st Jan 2012 09:12

It is a case of steady as she goes for Hull based telecoms firm KCOM, which continues to trade in line with expectations.Not much has changed since the group's interim results announcement back in November, with the business still churning out cash, leading to a further reduction in net debt.The firm said its initiatives to drive growth, including the roll out of fibre-based 100 megabytes per second (mbps) broadband within its East Yorkshire network area, continue to make progress. There was good news for income investors, as the board reiterated its commitment to deliver a minimum increase in the annual dividend of 10% in the current and next financial year, reflecting its confidence in maintaining current performance.Market expectations are for full-year pre-tax profits of £49.64m, and the board said it currently expects to meet those expectations.The shares were little changed on the brief trading update, just 0.4p higher at 71.4p.jh