Thus integration going to plan
Which is nice
Plans to fold Your Communications and Legend Communications into Thus are going just swimmingly.
Two months ago, Thus announced plans to splash out more than £70m on the pair to bulk up its business.
And it seems Thus, which is perhaps best known for its Demon internet brand, is happy at the way the integration is proceeding. It also confirmed it was still on target to reap more than £25m in annual operational cost synergies, even though it means a one-off cost of around £30m over the next 12 months.
Of course, those "operational cost synergies" include the airbrushing of some 280 jobs (around 15 per cent of the enlarged workforce) to erase any duplications.
According to a trading update issued by the Scottish telco today, total revenue for the year is anticipated to exceed £370m, an increase of around 10 per cent compared to revenue from continuing operations last year.
EBITDA before exceptional integration costs is expected to be in the region of £40m compared to £38m the previous year.
"The company is experiencing increased demand for new generation services but remains cautious on the market structure and pricing for telecommunication services in the UK market," it said today. "Nevertheless, the board remains confident that trading within the enlarged group remains in line with its expectations for the next financial year." ®
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