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Keycom PLC (KCO)

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Thursday 07 April, 2011

Keycom PLC

Pre-close Trading Update

RNS Number : 4365E
Keycom PLC
07 April 2011
 

7 April 2011

 

Keycom plc (Keycom or the Company)

Pre Close trading update for the six months ended 31 March 2011

 

Keycom provides the following pre close trading update ahead of the announcement of the Company's interim results for the six months ended 31 March 2011 which are expected to be published on 8 June 2011.

 

·     27% EBITDA improvement to £940,000 (2010: £740,000)

 

·     A trebling of profit to £200,000 (2010: £68,000)

 

·     10% rise in revenue to £3.4million (2010: £3.1million)

 

·     Gross profit margin maintained at 64% (2010: 64%)

 

·     EBITDA now 28% of revenue (2010: 24%)

 

The Board is pleased to announce that the group has continued to make further progress and it expects the results for the six months to 31 March 2011 to be ahead of last year and ahead of market expectations.

 

Revenue for the first half of the year exceeded £3.4m and is up 10% on the prior year (2010: £3.1 million).  Broadband services revenue is up 14% with the increase arising primarily from the delivery of broadband services to the military sector, where revenue has grown five-fold to £360,000 (2010: £67,000).  Revenue from the military sector is much less seasonal than that derived from the education sector so, as a result, for the first time in its history the Company expects second half revenue to exceed that of the first half year.

 

While the gross profit margin has been maintained at 64% of revenue, EBITDA margin has grown to 28% (from 24% in 2010) with EBITDA at £940,000 for the period (2010: £740,000).

 

The Company expects to report a substantially increased profit for the six months to 31 March 2011 of approximately £200,000 (2010: £68,000) and has finished the half year with cash balances of £160,000 at 31 March 2011 (2010: £10,000).

 

The Directors are pleased with the continuing positive progress being made by the Company and look forward to the second half of the financial year with confidence.

 

Contacts:

 

Keycom plc:

 

Rod Matthews (Executive Chairman and CEO)                    07775 755 500

Graham Robertson (Finance Director)                                  01785 717 411

 

Seymour Pierce Limited:

 

John Cowie / Tom Sheldon (Corporate advisers)                  020 7107 8000

Paul Jewell (Broking)                                                             

 

ENDS


This information is provided by RNS
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