Bosses at major Hull employer KCOM say profits are on the rise this year following a difficult period in which losses widened to £31.2 million. The broadband and telecoms firm employs just under 700 people across its operations, including at its Carr Lane head office.
Financial Performance
KCOM has recently filed accounts for its year ended March 2025, revealing that turnover fell 5.6% to £96.2 million, while its pre-tax loss grew from £1.6 million to £31.2 million. Nevertheless, the company confirmed it had undertaken a series of cost-cutting measures, including the disposal of surplus assets – IP addresses no longer in use – a move that generated £5.023 million.
This contributed to its operating profit before exceptional items surging by £8.185 million to £18.6 million. After exceptional items, however – including exceptional restructuring costs of £3.9 million, consultancy costs of £2.8 million, and employee restructuring costs of £1.025 million – the operating loss stood at £40.3 million, considerably higher than the 2024 loss of £3.26 million.
Current Position and Future Outlook
More than a year has now elapsed since the close of that financial year, and senior figures at the firm insist it is in a considerably stronger position. KCOM, which delivers telecommunications and broadband services across Hull, East Yorkshire and North Lincolnshire, is now preparing to launch a major campaign highlighting that it holds the title of the UK's most reliable broadband provider, according to Ofcom.
Directors report that the company - renowned for its distinctive cream telephone boxes - has achieved steady results, despite experiencing a decline in profits during a challenging trading period. They explained how they have committed resources to extending telecoms coverage to remote locations while also commemorating its 120th anniversary during the financial year - formally marking the occasion on November 28, 2024.
In its accounts, the firm, which saw staff numbers decrease from 765 to 697 throughout the year, directors stated: "Looking forward both executed and planned transformation projects leave the group in a strong position. The FY25 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."
Community and Historical Milestones
Throughout the year, KCOM rolled out its Hometown Heroes campaign, honouring local heroes while commemorating the 90th anniversary of the iconic cream K6 telephone box. Earlier this year, it emerged that the firm's owners have brought in new advisors in the US as part of renewed attempts to sell the business.
KCOM was purchased by Australian investment firm Macquarie Asset Management in a £627 million transaction in 2019, and it continues to operate independently within the region. Two years after Macquarie appointed advisors PJT Partners to undertake a strategic review while considering a possible sale or merger, it is understood to have enlisted New York business advisors Perella Weinberg Partners (PWP).
