Kcom chairman to become CEO as profits fall on continued investment
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Communications and IT provider Kcom says it is to split the roles of chairman and chief executive, as its transformation programme, which it started in 2008, is almost complete. The company also said that executive director Kevin Walsh is to retire, after 14 years with the business.
In a separate report, the Yorkshire-based business reported a 1.5 per cent fall in profit before tax to £25.8m. Group revenue was down two per cent in the period year-on-year at £185.5m. Earnings before interest, taxes, depreciation and amortisation for the period was £13.9m, from £14.5m in 2012, as a result of continued investment in the brand, coupled with slightly lower revenue.
Executive chairman Bill Halbert (pictured) remained upbeat about the results, saying that they represent "further good progress towards achieving our strategic ambitions".
The company won preferred supplier status for providing hosted contact centres in a substantial government department contract, which will be finalised during the second half of the year.
Bill Halbert will take on the role of group chief executive, and Graham Holden will assume non-executive chairman. Holden has been an independent non-executive director (NED) at Kcom for the past six years. As part of the shakeup, an additional NED will be recruited.
The company warned that certain regulatory changes, including the outcome of Ofcom's wholesale narrowband market review "may reduce revenue from actives by up to £5m". It expects earnings before interest, taxes, depreciation and amortisation to be £2m.