Partner Article

Humber’s KCOM secures £200 million finance package from banking syndicate

KCOM Group plc, the communications company headquartered in Kingston upon Hull, has secured a new finance package worth £200 million from a banking syndicate comprising Lloyds Bank Commercial Banking, Barclays, HSBC, Santander and RBS.

The Hull-based group, which has been in existence for over 100 years, has also agreed an uncommitted accordion facility of £50 million if required.

This comes as they also report a marginal fall in pretax profit , to £49.9 million pounds ($83.8 million) for the year ended March 31, from £50 million the year before. Revenue also fell marginally to £370.7 million.

The banking facility supports KCOM Group’s plans to grow by investing in selective organic and inorganic opportunities to strengthen its position in its target markets.

KCOM Group provides value-added services to the enterprise market as well as consumers and businesses in East Yorkshire. British Airways, NFU Mutual and Network Rail are amongst the businesses that use its services.

The financial year ending 31st March 2014 saw KCOM post a turnover of £370.7 million and record pre-tax profits of £50.5 million. It operates from eight UK-wide locations in addition to Hull – in Brighton, Exeter, Hemel Hempstead, Ipswich, London, Reading and Wakefield – and employs over 1,800 people.

Paul Simpson, chief financial officer for KCOM Group plc, said: “We’ve made considerable investment in our fibre services in the past 18 months. Because of this, more than 129,000 homes and businesses in Hull now have access to superfast fibre broadband services making Hull and East Yorkshire the UK’s broadband capital.

“Our new banking agreement boosts our financial position and ensures a solid platform for our ambitious plans to build a leadership position in our chosen markets. We’re delighted to continue our relationship with Lloyds who have supported us over the last eight years.”

Richard Townsend, relationship director for Lloyds Bank Commercial Banking, said: “Lloyds Bank has enjoyed a long-standing relationship with KCOM Group. Our Hull-based team are committed to continue supporting the company and excellent senior management team.

“It plays a significant role in the economy, both in Hull and East Yorkshire where it is a substantial employer and nationally, thanks to its strong market position.”

This was posted in Bdaily's Members' News section by Clare Burnett .