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KCOM Group PLC (KCOM.L) AGM and Interim Management Statement 2010

KCOM Group plc ("KCOM") today publishes its Interim Management Statement for the period from 1 April to 30 June 2010. This update will also be provided to shareholders attending the Company's AGM at 11am today.

Current trading

KCOM Group's trading for the three months to 30 June 2010 has been in line with expectations, as set out in our preliminary results announcement on 25 May 2010. Following the substantial change and progress last year, our emphasis is on a return to growth in this, the second year of transformation. We will achieve this by exploiting our core strengths and capability, together with those of our new strategic partnerships.

Pensions update

As announced in May, in parallel with the funding discussions, we undertook consultation on proposals to close KCOM's two defined benefit pension schemes to future accrual whilst breaking the link to final salary alongside other changes to our pension arrangements. This consultation is now concluded and both schemes are due to close to future accrual in September 2010. From 1 October, the Group will provide a single defined contribution scheme for all employees.

The tri-annual valuation of the Kingston Communications Pension Scheme commenced on 1st April 2010. We have reached an agreement, pending the final outcome of the actuarial valuation, that KCOM will make total deficit repair payments to this Scheme of £21 million over the three years to March 2013 (previous deficit funding had been £2.9m per annum). Of this, £9.2 million will be paid during the current financial year with the remainder spread equally over the subsequent two years.


As previously stated, our aims for this year are to return to growth and to provide medium term certainty with regard to our pension funding position.

We continue also to improve further the overall financial position of KCOM through a combination of measures, including debt and working capital management and rigorous cost control. KCOM Group expects to announce its interim results on 23 November 2010.

Forward-looking statements

Certain statements in this statement are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

We undertake no obligation to update any forward-looking statements whether as result of new information, future events or otherwise.


KCOM Group PLC is a leading provider of communications services to organisations and consumers, serving customers through four market focused brands.

KC provides a range of telephony and broadband services to consumers and businesses in Hull and East Yorkshire. Our other three brands serve organisations throughout the UK. Eclipse provides communications services to small and medium businesses across the UK, connecting them to customers, partners and suppliers and improving their productivity and flexibility, and helping them to grow. Kcom works with some of the UK’s biggest names, delivering communications services that enable them to be flexible, efficient and more responsive to their customers. Smart421 delivers high-end consultancy, integration and management of business-critical systems for enterprise customers.

We apply the collective knowledge and expertise of our people and our partners to help our customers harness the power of communications. Our focus is on the delivery of inspiring customer experiences, and finding new and better ways to connect people.

For further information please contact:

Paul Simpson, CFO (PA: Annette Watling)
01924 882952 

Jon Coles
0207 404 5959