Orders disappoint at KCOM - UPDATE

5th Oct 2012 09:15

Broadband and communications provider KCOM has fallen following a downbeat trading statement prior to its interims.It announced that it is trading "in line with expectations", but orders in its enterprise division have been below expectations.KCOM also revealed that first-half net debt has increased as a result of share scheme purchases and planned increases in capital expenditure. At the last year-end (March 31st), net debt was reported as £75m.Bill Halbert, Executive Chairman, commented: "The continuing macro-economic uncertainty is resulting in slower new business investment decision making and this is likely to remain the case through the second half of the year."When questioned, a company spokesperson denied that this was a veiled profits warning and Halbert himself has restated the company's "commitment to delivering a minimum 10% increase in full-year dividend".Earlier this week Oriel Securities downgraded KCOM and issued a 'hold' recommendation. The group's interims for the half year ending September 30th are due to be announced on November 27th.CM