Kingston Communications is an established UK communications company. The Group's national business-to-business capabilities encompass the provision of fully integrated and managed network solutions, complemented by the delivery of voice, data and call handling services in the towns and cities served by the Kingston Communications network. This infrastructure comprises twenty-five metropolitan fibre networks and a long distance broadband network, which was initiated for service in May 2001. Kingston's new media activities include the DSL-based interactive television service, KIT, and satellite broadband content, storage and distribution arm, Kingston inmedia. The Group's East Yorkshire network operation has served business and residential customers since 1904.

Hi Optomistic, and others.

Nice to see some company on this thread.
KC start their new roll out on Monday for faster speed broadband. Although not the cheapest package on it's own, if you calculate it with it's phone package which I understand you have to have it's comparable.
My speed will increase from 2.3 Mbps to at least 5 Mbps, with a possible max to 8 for those living nearer the exchanges. For me to increase to 5+ the monthly package price stays the same. I have no idea how the roll out is going re number of customers signing up (existing and new) but when I get chance I will make some enquiries re any engineer who I see working on the connection boxes.

Not a bad picture:

As most of us know, a rumored take over of KC has been doing the rounds for some time.
But the following is a snippet from the Hull Daily Mail of yesterday.

Kingston Communications could be the target of a fresh takeover bid after a surge in interest in its shares, experts said today.
The fresh speculation comes after millions of KC shares were bought and sold each day for the past few days.
About one million KC shares would be traded in a typical day, but Tuesday saw almost 15 million shares sold.
And earlier this month more than 21 million shares were sold in one day.
Hull City Council is still KC's controlling shareholder, and its consent is needed for any deal to happen.
The sort of companies private equity firms tend to favor are those with predictable income streams. KC has that in its Hull business.
Hull City Council is still KC's controlling shareholder, and its consent is needed for any deal to happen.


My comment.... The massively expensive Hull Ferensway redevelopment is nearing completion.
Just a thought but don't these projects always massively over run in cost.
Hull City Council, are well known for making a mess of just about everything they touch, hence the council having a government watch dog to over see it.
As the council is still the largest share holder in KC, they would still have to okay any takeover. Last time a deal fell through, will the next one fair any better. My guess is YES. Don't forget KC announces its half-year results next Tuesday, with analysts expecting the company to show a solid performance.
Maybe things could start to move after that.

Dresdner Kleinwort downgrades KCOM to hold from buy ....... then says:

"In a note this morning, Dresdner Kleinwort said it was lifting its target price to 75 pence from 69 pence to account for the Affiniti unit, which has exposure to what the broker believes is the most attractive subset of the communications integration market.

Dresdner Kleinwort added that the group's unique combined telecom and integration service offering has not proven strong by market share gains, but noted that strong financial outperformance could result in upward re-ratings"

Will add this as a post script, note the day for the results. Was this put together by the office junior:

"Shares in Kingston Communications have been downgraded to 'hold' from 'buy' by Dresdner Kleinwort on valuation grounds ahead of the group's interim results next Monday, dealers said".

Results more or less as expected.
Will be interesting to see market reaction, as obviously already priced in.
To me they look a bit better than expected.
If there is any substance to all those takeover rumors flying about this will bring them to the fore.

RNS re voting rights.
Are KC expecting an imminent take over bid.
Voting rights...Take over, or am I being too suspicious.

market is clearly underwhelmed

Acquisition looks good as a build up of KC portfolio in the IP contact center
solutions market. Would like to see figures, suppose they will be released later.

Just got home, noticed the deal..... 21 times forward earnings looks to me a 'bit' on the expensive side...seller laughing all the way to the bank!
I would like someone to buy KCOM and send me laughing as well.

all you know is that HCC turned down 85p about a year ago ...... without their agreement to sell, any deal is dead in the water ...... big Q for you guys is whether or not you believe the company is worth any more and, more imporatntly, whether or not there is someone (stupid enough?) to pay it ....... PXC has been arguably a better target for a long long time, and still no one wants to buy them!

Optomistic,

I do agree on first look it is expensive, but it will fit very well into KC's plans.
Anything to do with Telecom and/or IT if you look at future earings to cash paid always appears high.
Time will tell, if it's a good deal or not.

Well thats it for me pre Xmas, off out.
Merry Xmas to all.
Greek.

Merry Xmas to you greekman (and the rest) :-)
Looks like a few others haver gone out as well...... 134 shares traded so far!

KC continue to expand. It looks a good buy considering the asset value level.
Time will tell.

Nice liitle write up by the Independent.

See link for full article...http://news.independent.co.uk/business/analysis_and_features/article2208340.ece

Kingston Communications

Our view: Buy

Share price: 79.5p (+1.5p)

Kingston Communications shares touched 1,579p during the dotcom boom in 2000. It is pretty safe to say that they will never get anywhere near that level again. However, in recent months the stock has enjoyed a modest rally as the Hull-based group has gone on the acquisition trail in an attempt to reduce its dependence on its traditional landline telephone business.

Are Hull City Council about to Bale.

Over the last few years/months several rumors have been doing the rounds.
But the latest comments made by certain councilors looks to me like the councils holdings are now tenuous.
It was reported in the Hull Daily Mail yesterday, that the council is split to whether they sell their 30.6% or not.
Two councilors appear to be pushing for a re think of the attachment with KC.
Both councilors, Colin Inglis and Terry Geraghty are both wanting a serious debate on the subject. Both these councilors have a lot of pull on the council and are (in my opinion) likely to get their way.
Hull City Council are and have been for a long while very short of money.
The council gained 255mill on the flotation of KC in 1999, so will they be tempted to completely sell off this golden goose.

I posted several months ago that the regeneration of the city center would go well over budget (doesn't everything council related). Since then there has been an abundance of evidence that the council are attempting to save money and cut services at every turn.
It is well know that HCC are incompetent and that they couldn't organize a raffle.
A couple of years ago they had their powers greatly reduced due to scoring so low on the council league tables, it was stated that they were, what the term would be now as unfit for purpose.
Last months the London Brokers, Seymour Pierce went on record stating that "The big issue is the councils shareholding. It has got a blocking share on things".

So will HCC jump ship and dump the shares on the market or make it clear that they are pro an offer, thus removing the potential of a block move.

My opinion (for what its worth) is that they will decide to make it known there is no longer a KC never goes culture in the council.

Small independent Telecom Companies such as KC are forever fighting to keep up with the big boys, and whilst I appreciate that in several areas they are improving services, and efficiency, they still face stiff competition against the conglomerates.

Don't often give set predictions, but I think that KC have only a couple of years left at best, and that even by end of this year, they will be no longer.

Looking at the last offer from Carlyle in 2005 at a rumored price of 85 a share, a sp offer price of 1 would not be out of the question, and could/would HCC be able to avoid the temptation.

They need the money, and as the saying goes. When Needs Must.

Greek.

All IMHO of course.

the above story takes us back about 18 months when KC were effectively or even actually offered 85p but HCC refused to accept .... and again I think that was a split decision ....... to my mind, with sp already hovering around 80p, there is no great reason to keep holding

Not thinking of exiting at 80p!!

you could be holding for a long time before t/o actually materialises