The Hull telecoms specialist says it ‘reflects our success in serving customers, setting ourselves up for the future, and leading the way as the UK’s most reliable network’
Centre, Richard Schafer, chief executive of KCOM(Image: Donna Clifford – staff)
Bosses at major Hull employer KCOM say profits are on the up this year after a challenging time last year saw losses widen to £31.2m. The broadband and telecoms business employs just under 700 people across the business including at its Carr Lane head office.
KCOM has recently published accounts for its year ended March 2025, which show its turnover dropped 5.6% to £96.2m, while its pre-tax loss widened from £1.6m to £31.2m. However, the firm said it had carried out a number of cost savings initiatives including selling off surplus assets – IP addresses that are no longer used – a move which brought in £5.023m.
That led to its operating profit before exceptional items actually jumping by £8.185m, to £18.6m. After exceptional items though – including exceptional restructuring costs of £3.9m, consultancy costs of £2.8m, restructuring costs relating to employees of £1.025m, the operating loss figure was £40.3m, considerably larger than the 2024 loss of £3.26m.
More than a year has passed since the accounts’ financial year has passed, however, and bosses say the firm is in a much stronger position. KCOM, which provides telecommunications and broadband across Hull, East Yorkshire and North Lincolnshire, is now poised to launch a huge campaign promoting the fact it has the UK’s most reliable broadband according to Ofcom.
Directors say the company – famed for its unique cream phone boxes – has delivered solid results, despite seeing profits fall in a tough trading year, telling how they have invested in taking telecoms to hard-to-reach areas while also celebrating its 120th anniversary during the financial year – officially marking the day on November 28 2024.
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In its accounts the firm, which saw employee numbers drop from 765 to 697 during the year, directors said: “Looking forward both executed and planned transformation projects leave the group in a strong position. The FY25 (financial year 2025) year saw the culmination of our 120th anniversary celebrations, an opportunity to celebrate our history and look ahead to future possibilities
“During the year, KCOM strengthened performance, built on exceptional customer satisfaction and contributed to greater digital inclusion in our region. KCOM’s operating landscape has changed significantly in recent years. Our business continues to successfully navigate this environment and put outstanding experience for customers at the heart of our strategy. Performance for the year reflects our success in serving customers, setting ourselves up for the future, and leading the way as the UK’s most reliable network.
“KCOM’s fast, secure and reliable full fibre network underpins the Company’s position as the leading connectivity provider in our region. We look to continue to provide exceptional customer experience, invest in our network to future-proof full fibre, and launch innovative new products and services.”
During the year KCOM launched its Hometown Heroes campaign, celebrating local heroes as it marked the 90th anniversary of the iconic cream K6 phone box. Earlier this year it was also revealed that new advisors in the US have been appointed by the firm’s owners in fresh efforts to sell the business.
KCOM was acquired up by Australian investment firm Macquarie Asset Management in a £627m deal back in 2019, and it remains an independent operator within the region. Two years after Macquarie appointed advisors PJT Partners to carry out a strategic review as it considered a potential sale or merger it is said to have drafted in New York business advisors Perella Weinberg Partners (PWP).
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