Keycom reports 4.7m pound net loss for year

Broadband provider Keycom has reported a net loss for the year of 4.7m pounds, which it said was underpinned by exceptional write-offs and a substantial impairment goodwill.

The group said it had undertaken a review of the goodwill associated with previous acquisitions and decided to reduce this by £3.7m to bring it to a figure that it believed would be more realistic.

In spite of the overall loss, the group reported that its total group revenue had increased by 5.0 per cent in 2012 to £7.1m.

The core activity of broadband accounted for 77% of revenue, with the revenue from managed broadband services increasing 9.0% to £5.4m.

Reductions in higher education broadband revenues were offset by the growth in the military sector where Keycom increased revenue by 76% to £1.4m.

The number of student rooms fell during the year reflecting the loss of two contracts for 4,500 rooms and the securing of contracts for 3,300 new rooms.

Gross profit for the year after exceptional costs decreased by 3.6% to £4.0m. Wages and salary costs increased by 5.6% due to the need for additional staff on the introduction of 24-hour customer support seven days a week and higher senior management costs.

MF