Kcom Share Discussion Threads

[dealit] 29/1/2018 14:13

Cheers "Skinny" but past experience of Broker expectations mean nothing IMHO.

[skinny] 29/1/2018 13:37

Peel Hunt Buy 89.75 150.00 150.00 Reiterates

finnCap Corporate 89.75 120.00 120.00 Reiterates

[dealit] 29/1/2018 13:24

Feel that the next results will be ok, after that Kcom will be a shrinking violet IMHO.

[leadersoffice] 29/1/2018 10:32

That has been the case for some years. However, I'm not sure this will continue, all eyes will be on full year results.

[dealit] 29/1/2018 08:48

Not all that positive here. Quicker the fibre roll out is completed the better Kcom will look more attractive to the bigger players IMHO

[solarno lopez] 29/1/2018 08:20

Unfortunately the only thing now going for investors in KCOM is the yield

[skinny] 29/1/2018 07:08

KCOM Group PLC (KCOM.L) (the "Group") issues the following update on trading ahead of the Capital Markets Day it will host on Thursday, 1 February.

The Group remains on track to deliver an overall EBITDA performance that is slightly ahead of the Board's expectation, and a revenue performance slightly behind, for the financial year ending 31 March 2018.

Hull and East Yorkshire continues to enjoy a successful year, with revenue tracking in line with the Board's expectations. EBITDA for the period will benefit from a multi-year rebate on hereditament (rateable value) relating to the Hull and East Yorkshire network infrastructure. In December, we achieved our target of making fibre available to 150,000 premises. We have now started the second wave of our fibre deployment to make it available to the remaining premises in our addressable market. Fibre take up remains strong and we expect by the end of February to reach a point where more of our broadband customers are taking the service on fibre than on copper ADSL.

The Group also announces today that Gary Young, the Executive Vice President responsible for Hull and East Yorkshire, is leaving the Group to pursue another opportunity. A process to find his successor is underway and Mr Young will remain with the business whilst an orderly handover of his responsibilities takes place. The Board wishes to thank Gary for his significant contribution over his years with the Group and particularly the past 6 years leading the Hull & East Yorkshire business.

In Enterprise, our contract with NFUM has been renewed and extended to include the provision of additional cloud services. In December, we were selected by a large automotive manufacturer to develop a platform solution using our Cloud Native skills. Also in December, we signed a 12 month extension to our contract with HMRC, taking this contract through to 2020. As recently reported by the Public Accounts Committee, HMRC is re-phasing the timeline for its internal transformation programme and we expect this re-phasing to have a negative impact on project-based revenue for Enterprise in the final quarter of this financial year. This, together with delays to the finalisation of certain contracts, is expected to have a flattening effect on revenue and consequently reduce EBITDA performance in Enterprise for the full year compared to last year. We do not expect these factors to affect the long term growth prospects of the segment.

National Network Services has continued to perform in line with the Board's expectations and we maintain our view that revenue and EBITDA will begin to stabilise going into next year.

Bill Halbert, Chief Executive said:

"We continue to execute against our strategy, bringing fibre to the final corners of Hull and East Yorkshire, refining our propositions in Enterprise and winning the trust of new and existing customers, and managing National Network Services for value. I would like personally to thank Gary Young for his significant contribution to our Group. I've worked closely with Gary over the past 6 years, a period in which he has led successfully our Hull and East Yorkshire business and overseen our successful deployment of fibre broadband. All of us at KCOM wish him every success in his new role."

The Group expects to announce its preliminary results for the year ending 31 March 2018 on 5 June 2018.

[grahamite2] 25/1/2018 12:02

Thanks for taking the trouble, Septimus.

I still like the business but the company is not investable until the position clarifies.

[septimus quaid] 25/1/2018 11:56

I jumped (out) @ 96p.

KCOM dividend cover, year on year, has been getting thinner and thinner (against a policy of increasing dividend).

Similar pattern to TALK (although KCOM cover not as thin), eventually they had to cut the dividend (with possibly more to come).

KCOM:

Year ending: 31/03/2018, 31/03/2017, 31/03/2016, 31/03/2015, 31/03/2014 and 31/03/2013

Dividend cover: n/a, 1.02, 1.28, 1.47, 1.55 and 1.66

[grahamite2] 25/1/2018 11:38

Did anyone jump in at 90?

Seems to me the concerns about adequacy of dividend cover discussed here a while ago remain.

[solarno lopez] 19/1/2018 08:10

and still do

[solarno lopez] 18/1/2018 13:15

Personally I think it is ex growth

[solarno lopez] 18/1/2018 08:13

Ex growth ?

[arf dysg] 16/1/2018 13:47

This KCOM BB has all the graphs, fundamental data and RNS news. Much more useful:

[toffeeman] 05/1/2018 15:50

Or another H&S?

[skinny] 05/1/2018 15:04

Consistent! Peel Hunt Buy 90.70 150.00 150.00 Reiterates

[solarno lopez] 05/1/2018 14:25

A very nice double bottom has formed

[topdek] 15/12/2017 15:45

I wish I was in your position lol - I'm a longterm holder, and for reasons to do with admin changes I could not have sold or reduced my holding over the last month even if I had wanted to, but not sure I would have anyway. Hindsight is great.

I hope you're right about double bottom, and based on volumes which have been relatively small, sellers look to have been more PIs than IIs. And while broker forecasts can be wrong we have three brokers suggesting better times ahead and two IIs that have increased their stakes: on 28 November following results Finncapp reiterated its recommendation albeit with a slightly lower target price of £1.20 and Peel Hunt reiterated its buy recommendation with a target price of £1.50 and on 29th November Barclays Capital reiterated its equal weight stance with a slightly lower target price of £1.00. And on 4th Dec, less than a week later, Peel Hunt again reiterated its buy recommendation and target of £1.50. And as we know Telios have increased their take to 6% and earlier this year PrimeStone Capital increased their stake to 7%, so these stakes were taken in the full knowledge of what KCOM is doing in terms of restructuring, which gives me some hope and confidence.

[toffeeman] 15/12/2017 12:49

Double bottom at 88?

still not bought back in - yet

[grahamite2] 15/12/2017 11:57

If you're right, riskvsreward, they're between a rock and a hard place - because if they slash the dividend, the effect on the share price will be catastrophic.

I did nicely out of this stock but for now it's one to avoid.

[riskvsreward] 14/12/2017 17:41

Kcom is forecast to earn about 4.5 p this year and then 4 p next year. Its balance sheet seems to show that it is paying the uncovered dividend from debt. How can this continue? How can this make sense as if it takes debt to pay dividend, it will pay higher interest on debt than the shareholder can get from saving their dividends in a bank account and the dividend is also often subject to income tax.

[toffeeman] 11/12/2017 15:59

Only if the dividend is safe

[grahamite2] 11/12/2017 14:51

And there's the big question - would it be wise to get back in even at 90?

[toffeeman] 11/12/2017 14:31

Looking more likely to get in at 90?