Feeds

Kingston Comms cops £111m loss

Network write down blamed

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Kingston Communications - the telco which operates in Hull - racked up losses of more than £100m last year after the company reassessed the value of its network.

The telco decided to write down the value of its network by a whopping £97.6m. According to a statement yesterday Kingston made the decision "in light of the current market conditions, which have changed significantly since the original investment was made in our network."

As a result, Kingston ran up a pre-tax loss of £111m in the year to the end of March, compared to a pre-tax loss of £20.8m last year. "This is largely due to the accelerated write down of assets and restructuring costs," said the company.

Revenues climbed 4.5 per cent to £293.6m up from £281m in the previous year.

In a bid to drag the telco back into profit Kingston has managed to meet its target to cut costs by £10m. Kingston's done this by "streamlining management structure" and reducing its cost base and other internal re-organisations.

Oh, and Kingston's cost savings have "predominantly been achieved through reducing overall headcount by around 240".

Said chairman Michael Abrahams: "We have taken the decision to accelerate the write down of our network assets, reflecting the significant changes in the market place since the original investments were undertaken."

Kingston now believes it is well placed to deliver a sustainable return to profit by concentrating on the provision of terrestrial telecommunications services, said the company. ®

Related stories

Kingston Comms rejects buy-out talk
VoIP to transform telecoms market
Thus swells - thanks to ADSL

Internet Security Threat Report 2014

More from The Register

next story
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
FCC, Google cast eye over millimetre wireless
The smaller the wave, the bigger 5G's chances of success
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.