Watch Kingston Communications (KCOM)..

Riz

Experienced member
1,266 5
KCOM up +4.75 (4.1%) to 120.75 today after their results turned out to be +ve over all...

Brokers are positive; UBS Warburg reiterated a 'buy'.
Noting the in-line results mean no changes to forecasts, but adding that the sequential improvement in EBITDA in the second half means "our confidence in our forecasts has increased post these results."
Though saying "Kingston still has much to prove, especially when it comes to plotting the path to profitability, but this is an encouraging first step".

ABN Amro, rated Kingston an 'add', so did Old Mutual saying slightly light revenues were made up for by higher than expected margins.

Williams de Broe and SG Securities both rated Kingston a 'hold'.

I got in at 118...

Riz


Following news/comment is from citywire:

08:55, Tue 22 May 2001
Kingston marches on
Kingston Communications has, as planned, continued to spend to expand its national network, but has seen strong growth and, unlike many telcos, is adequately funded.

Share rose 8p to 124p, off a high of more than £15 last March.

Group turnover for the year to 31 March rose 26% to £232 million, but earnings before interest and depreciation (EBITDA) were down on last year at £16.7 million after what the company terms ‘an intensive investment phase’.

Kingston (KCOM) ended the year with £1.2 million of net debt, and a £250 million facility in place. The company also said the major infrastructure investment phase, during which it has been building a national network, is now complete.

So far, Kingston seems to be delivering on its promises, and these results are no big surprise after what the company said at the interim stage in November.

Kingston said building its own infrastructure, as opposed to leasing capacity from another carrier, has been a key element of its strategy. In the longer term it will enable it to keep operating, leasing and interconnect costs down as low as possible. It also gives the company full control of its own destiny.

Kingston has also completed a restructuring which includes bringing together several of its divisions, Torch, Kingston business communications, Kingston Voiceware, Kingston Internet and Kingston Mobile into one business known as Kingston inbusiness.

During the year the number of business customers serviced by Kingston grew by 91% to 2,269. Kingston has put in place an IP (Internet Protocol) overlay for its network that will enable it to offer combined voice and data services to business customers.

The end game is to become a fully national communications company that offers broadband access and services on top of that to business customers. This is underpinned by Kingston’s bread and butter business, its East Yorkshire franchise, where it saw strong growth despite being an established traditional telecoms player in the region. Turnover for Kingston Communications, the East Yorkshire network, rose by 11% to £72.8 million, with EBITDA up to £29.4 million.

The newly combined Kingston inbusiness saw turnover up 40% to £127 million, and second half revenue growth was up 62%. The division has also been supplemented by Kingston’s acquisition in March of network and data specialist Milgo Solutions.

Riz
 

shelman

1
439 1
I'm holding as part of my longer term strategy.
I originally bought early April for 118 , sold at 136 on 8/5 and bought back for 119 on the 16th.
Might as well play the game even when one thinks a share is a good investment at the right price.

Steve
 
 
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