Phones4U deal 'significant' landmark for Kcom

TELECOMS firm KCom has signed a five year contract with leading high street retailer Phones4U.

The news comes as the Hull-based group announces that the performance of its managed communications business is improving and that it has a stronger overall financial position.

The agreement between KCom and Phones4U includes the provision of a new wide area network for data for all the stores, internet access, leased lines, inbound and outbound switched voice calls and conferencing facilities.

It also includes support and maintenance to Phone4U's corporate network.

KCom said that contract was a "significant" landmark deal following the group's strategic agreement with BT Wholesale.

Commenting on the deal, Bill Halbert, executive chairman of KCom Group, said:

"We are delighted to be announcing this important contract win with Phones4U, which is an example of our strategy of focusing our managed communications services business direct sales efforts on higher value added services, contracted on a multi-year basis.

"The contract illustrates the new opportunities available to us following our agreement with BT."

KCom said that it was beginning to benefit from its tightened focus as it continued to strengthen customer relationships and margins by exiting lower value-add activities.

In November last year it announced a return to profit as a result of a restructuring programme and focus on reducing debt.

It reported that profit before tax and exceptional items rose 71.2% to £16.2m for the half year ended September 30.

The group said today that it remained confident that actions undertaken over the past 18 months would see continued improvement.

Mr Halbert added:

"The group continues to make good progress, focusing on strengthening the profitability of the activities that we undertake and the delivery of higher value-added, recurring revenues."