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.

Proposed sale of UK network infrastructure to CityFibre for a total cash consideration of £90 million

KCOM Group today announces the sale of its national network infrastructure1 (outside of Hull and East Yorkshire) to CityFibre Infrastructure Holdings plc ('CityFibre') for an all cash consideration of £90.0 million ('the Transaction'), subject to approval by CityFibre shareholders.

- Sale of 'national' network assets1 for £90.0 million all cash consideration (subject to CityFibre shareholder approval)
- Parallel arrangement with CityFibre for continuing access to the assets post disposal
- Proceeds to be used to reduce net debt
o Results in KCOM Group pro-forma net debt of £13.0 million as at 30 September 2015

The Board has announced its intention to dispose of the physical infrastructure of the Group's national network to CityFibre, for a cash consideration of £90.0 million, subject to approval by CityFibre shareholders. The General Meeting to approve the Transaction by CityFibre shareholders is anticipated by 12 January 2016, with contract completion shortly thereafter. Under the arrangement, ownership of all KCOM Group's national physical network infrastructure (excluding that in Hull and East Yorkshire) will transfer to CityFibre.

In parallel with the Transaction, the Group has entered into an arrangement with CityFibre for certain services to support existing commitments and customer arrangements. The cost of this arrangement, over a five year term, is £5 million per annum. Furthermore, under this arrangement certain operational costs of approximately £1 million per annum will transfer to CityFibre, resulting in a net cost to the Group of approximately £4 million per annum. The Group has the option to extend the term of this arrangement up to 15 years.

As at 30 September 2015, these assets had a Net Book Value of £41.8 million. There was no ongoing associated depreciation charge in the six month period to September 2015 (2014: £NIL million).

Outlook

As detailed in the Group's interim results on 30 November, performance across the business during the first half of the financial year has been encouraging, reflecting our focus on growing areas of strategic importance, where we believe longer term returns can best be maximised. The proceeds from the Transaction strengthen significantly the Group's financial position and increase its ability to invest further and continue to transform the Group, while at the same time as providing shareholders with a clear medium term dividend commitment.

Commenting on the announcement, Bill Halbert, Chief Executive, said "Today's announcement unlocks considerable value in relation to an under-utilised asset, built more than ten years ago and which is no longer core to our strategy. Over the first half of the financial year, there were encouraging signs that our business transformation is starting to deliver results and the proceeds from this transaction offer us the opportunity to accelerate investment in those plans, without the need for any material increase in our indebtedness."

13 year high - 110.25p.

what is the KCOM movement? worth to keep-buy- sell or stay away?
someone follow KCOM?

Nothing that I can see Ciao, maybe the answer may become apparent later in the day somewhere.

ok thanks Stan

Just seen this Ciao, well worth a read http://www.fool.co.uk/investing/2015/12/17/could-vodafone-group-plc-kcom-group-plc-and-bt-group-plc-jump-start-your-portfolios-returns/?source=etxeutit1al0001

As a local to KC I often talk to any engineers that I see working in the area as they know how busy or not they are re the order book.

They are looking to rollout fibre optic in the outlying villages round Hull a bit quicker than they had indicated about a year ago and as the local network is the main money maker for KC as they have a total monopoly in that area they can charge as much as they can get away with, which is far higher that other communication companies.

So with that and the paying down debt, it looks like KC are on the up as far as the sp is concerned. Also of course they have the ever increasing, promised dividend.

No negatives for share holders as far as I can see.

Stan thanks for the link... yes worth a read
found this as interesting as well http://www.fool.co.uk/investing/2015/12/03/could-kcom-group-plc-be-a-better-investment-than-bt-group-plc/#

Greekman thanks for your interesting post

now I got a clearer mind... divi good ;-))

Two months ago KC shares were 90p, a month ago they were 98p and they closed last night at 119p which is a hell of a rise of 43% over 2 months.

Whilst we know they have trimmed their services and paid down their debt, am I the only one suspecting that there is more to this, 'A takeover perhaps'.

Greek,
A rise from 90p to 119 is 32% not 43%. Sorry to be pedantic. Still a good rise and very happy to hold for the ongoing dividend.

Hi Lord Gnome,

No prob, your right of course and believe it or not maths is my strongest subject.

Regards Greek.

KCOM strengthens its board

StockMarketWire.com

KCOM Group has appointed Patrick De Smedt as a non-executive director with effect from 28 January and as senior independent director from Tony Illsley's retirement in July.

De Smedt held a number of senior positions in Microsoft between 1983 and 2006. During this time he founded the Benelux subsidiaries, led the development of its Western European business and served as chairman of Microsoft for Europe, Middle East and Africa. He has subsequently undertaken a range of non-executive roles with a number of European and private organisations.

The group said Illsley has indicated his intention to retire from the board at the annual general meeting on 22 July after seven years with the business. De Smedt will be appointed as SID with effect from Tony's retirement.

Final Results

Highlights
· Progress in all key focus areas leads to year on year growth
· Important progress with our enterprise customers, increasing our services to HMRC and securing further new business including ATOC, BUPA and Shoosmiths
· Accelerated fibre deployment and strong take-up, making ultra-fast broadband available in Hull and East Yorkshire. Approximately 150,000 premises will be passed by December 2017
· Successful launch of single business under new KCOM brand
· National network asset disposal for £90.0 million strengthening the balance sheet, supporting accelerated investment and underpinning medium term dividend commitment
· Pre-exceptional EBITDA ahead of prior year at £74.9 million. Depreciation and amortisation from increased investment reduces pre-exceptional operating profit to £50.9 million (2015: £57.2 million). Reported operating profit is £91.8 million (2014: £22.4 million)
· Adjusted basic EPS 7.54 pence (2015: 7.91pence)
· Proposed final dividend of 3.94 pence (2015: 3.58 pence), resulting in full year dividend of 5.91 pence (2015: 5.37 pence). Dividend guidance of no less than 6.00 pence per annum for each of the next two financial years reiterated
· Strong year end net funds position of £7.4 million, reflecting network sale proceeds and increase in net cash inflow from operations

Consistent!

finnCap Corporate 105.88 130.00 130.00 Reiterates

Peel Hunt Buy 115.00 - 150.00 Initiates/Starts

KCOM Group appoints Jane Aikman as Chief Financial Officer


KCOM Group today announces that Jane Aikman has been appointed as Chief Financial Officer and will join the Board with immediate effect.

Jane has held a number of Executive level positions, including her most recent role as Chief Financial Officer and Chief Operating Officer for Phoenix IT Group Plc up until its acquisition by, and merger with, Daisy Group.

Previously, she was Chief Financial Officer of Infinis plc, Wilson Bowden plc and Pressac plc. She spent five years in South East Asia with Asia Pulp and Paper Co Limited and three years as an internal audit manager with GEC Alsthom. She qualified as a Chartered Accountant with Ernst & Young.

Bill Halbert, Chief Executive said "I am delighted to welcome Jane to the company and to the Board. She brings with her a wealth of relevant industry experience and will give fresh perspectives to discussions at both a Board and senior leadership level. I look forward to working with her."

Jane will stand for election by the shareholders at the company's AGM in July 2017.

As previously announced, Paul Simpson resigned from the company's Board as planned on 30 September 2016. The Group will announce its interim results on 29 November 2016.

For the purposes of Listing Rule 9.6.13, Jane was a Director of Infinis Plc from July 2007 to March 2012, Halma Plc from August 2007 to July 2016 and Phoenix IT Group Plc from August 2012 to July 2015. Jane was a Director of Pressac plc and Pressac Investments Limited when an administrative receiver was appointed to each of those companies on 17 March 2006. Jane has confirmed that, other than as set out in this announcement, there are no further disclosures to be made under Listing Rule 9.6.13.


- ends -

From yesterday :- KCOM GROUP PLC (KCOM.L) ANNOUNCES UNAUDITED INTERIM RESULTS TO 30 SEPTEMBER 2016


Highlights

· Further progress with our strategy:
· Shift in Enterprise focus towards high value integration and cloud based solutions
· Accelerated fibre deployment in Hull and East Yorkshire, with market leading take-up
· Integration of the business behind a single brand, enabled by investment in systems and processes
· Banking facility extended giving 5 year period on existing terms
· Interim dividend of 2.00 pence (2015: 1.97 pence)
· Reconfirming dividend commitment of no less than 6.00 pence per annum for current and next financial year

30 Nov finnCap Corporate 100.25 130.00 130.00 Reiterates


29 Nov Peel Hunt Buy 100.25 150.00 150.00 Reiterates

Barclays Capital Equal weight 90.25 105.00 105.00 Upgrades

From yesterday :-

The Board of KCOM is pleased to announce that it has appointed Investec Bank plc ("Investec") as the Group's Joint Financial Adviser and Joint Corporate Broker with immediate effect. Investec will act alongside Joint Broker Peel Hunt LLP.

Preliminary results 6th June.