KCOM Group PLC Annual Financial Report (9142I)
June 22 2017 - 08:33AM
UK Regulatory
TIDMKCOM
RNS Number : 9142I
KCOM Group PLC
22 June 2017
KCOM GROUP PLC
ANNUAL FINANCIAL REPORT
22.06.2017
Publication of 2016/17 Annual Report
KCOM Group PLC announces that the Annual Report and Accounts for
the year ended 31 March 2017 was posted or otherwise made available
to shareholders from 20 June 2017:
The document is also available on the Company's website at
www.kcomplc.com and, in accordance with Listing Rule 9.6.1, a copy
has been submitted to the National Storage Mechanism and will
shortly be available for inspection at www.hemscott.com/nsm.do.
A condensed set of the Company's consolidated financial
statements (including related party transactions) and information
on important events that have occurred during the financial year
and their impact on the financial statements was included in the
Company's announcement of its preliminary results on 6 June 2017.
That information, together with the information set out below,
which is extracted from the Company's 2016/17 Annual Report,
constitutes the information required to comply with DTR 6.3.5.
Principle Risks and Uncertainties
Area Change Why is it important? What are we doing
in to mitigate the risk?
level
of
risk
--------------------- ------- ----------------------------- -----------------------------
Growing As noted last There has been a
revenue year, we continue lot of focus internally
in our to move away over recent years
Enterprise from the delivery on clearly defining
segment of network-based the strategy for
to offset services and the business. The
the decline are focused Executive Leadership
of network-based strategically Team has participated
revenues on the provision in a number of strategy
of complex communication days where the strategy
solutions and has been discussed
cloud-based and tested using
services. There various scenarios.
is a risk that, There has also been
during this strategic advice
transition from sought externally
old to new technologies, from industry experts,
revenue from all of which has
legacy activities supported the strategic
may decline direction of KCOM.
faster than We believe that our
revenue from experience and skill-set
the new services give us a unique
grows. position in the market
to provide our customers
with new and more
efficient ways to
collaborate and interact,
which in turn will
lead to significant
growth in the Enterprise
segment, to offset
the decline of legacy
revenues.
We have updated our
reporting in the
year to separate
out the legacy network
customers from the
complex IP solutions
customers, which
gives us greater
transparency in relation
to the progress being
made in the strategic
focus area.
--------------------- ------- ----------------------------- -----------------------------
Substitute Much of our We are always seeking
technologies consumer business to improve our services
entering is currently to our consumers
the consumer based on the and to provide a
market provision of speed and quality
services over of service that would
a fixed-line not be achievable
network. If over a wireless network.
substitute technologies Our fibre deployment
were developed is part of this aim.
to the extent We also provide bundles
where similar of products and services
services could that offer our consumers
be provided value for money and
without the which would provide
use of a fixed-line a clear alternative
network then to a substitute technology,
this would clearly should one enter
present a competitive the market. We have
threat to the also appointed a
consumer part Director of Product
of our business. and Technology Innovation
in the year to drive
our thinking around
new and innovative
products and services
that we can offer
to our consumers,
either on our own
or through our partnership
arrangements.
--------------------- ------- ----------------------------- -----------------------------
Upgrading The equipment We are continuing
of our used to run with our investment
network our network plan to mitigate
equipment in Hull and the risk of service
East Yorkshire, failure from obsolete
and to provide equipment. At the
some of our same time we are
national network-based investing in the
services, requires continued deployment
upgrading as of our superfast
demand for broadband fibre-based broadband
and cloud-based in Hull and East
services continues Yorkshire which provides
to increase market leading broadband
at a fast pace. speeds and which
is on track to be
available to approximately
150,000 properties
by the end of December
2017.
--------------------- ------- ----------------------------- -----------------------------
Accuracy, The security, We have clear and
security confidentiality comprehensive policies
and confidentiality and accuracy in place and have
of customer of our customer run mandatory training
data data is of paramount in this area for
importance to all employees. The
us and to our forthcoming implementation
customers. of the General Data
Protection Regulation,
in May 2018, means
that there will be
more stringent requirements
in this area and
we have formed a
Steering Group, consisting
of representatives
from across the business,
to focus on compliance
with the new requirements.
We also have a Data
Strategy team in
place to look at
other data matters
across the business,
whose primary focus
in the year has been
the accuracy of customer
data.
--------------------- ------- ----------------------------- -----------------------------
Customer Our aim is to Last year we reported
service provide exceptional that we were aware
and delivery service wherever of some issues in
we can. The the customer experience
risk of not we were providing
achieving this in our Hull and East
is therefore Yorkshire business.
a key risk for During the year we
the business. have implemented
new technology in
our call centres
and provided additional
training to our people
which has resulted
in a reduction in
our call waiting
times. Our fibre
deployment is key
to ensuring the service
received by our customers
meets or exceeds
expectations but
we also continue
to invest in our
copper network to
improve the experience
for all of our customers
where possible.
--------------------- ------- ----------------------------- -----------------------------
Security We need our We hold a number
and resilience networks and of standards that
of our IT systems to relate to security
networks continue operating and resilience, including
and IT in order to ISO 27001, the Information
systems continue to Security Management
provide service standard, and ISO
to our customers. 22301, the Business
It is therefore Continuity Management
essential that standard. We have
we have secure a Head of Security
and resilient and Compliance who
systems and is responsible for
networks in ensuring a consistent
place. approach to security
and resilience across
the business and
we have detailed
policies and processes
in place. We regularly
test our resilience
plans and have held
a specific test in
relation to our systems
resilience in the
year. Any lessons
learnt from such
tests are fed back
into the resilience
planning process,
which in turn is
continually reviewed
and updated on an
ongoing basis.
--------------------- ------- ----------------------------- -----------------------------
A breach As a provider We have an in-house
of our of telecommunications Regulatory team which
regulatory services, we is responsible for
obligations are regulated ensuring we understand
by Ofcom and our obligations and
there are multiple that these are communicated
conditions and to the appropriate
regulations people across the
with which we business so that
need to comply. we can ensure the
We take our necessary controls
regulatory responsibilities are in place. We
extremely seriously have undertaken a
and seek to number of internal
ensure we are reviews in the year
compliant in to check our compliance
all regards. and also work closely
with our suppliers
to make sure that
our obligations are
passed on and complied
with in areas where
we are reliant on
third parties for
the provision of
services.
--------------------- ------- ----------------------------- -----------------------------
Health The health and We have an in-house
and safety safety of our Health and Safety
people is of team which has significant
paramount importance experience in the
to us and we health and safety
have a number issues specific to
of people who our industry. We
undertake high have a comprehensive
risk activities, training programme
such as climbing in place which provides
telegraph poles, general training
working in confined to all of our people
spaces, working through mandatory
alone or working e-learning and specific
next to roads. training to those
It is important who undertake higher
to us to mitigate risk activities,
health and safety which is then followed
risk as far up by on-the-job
as possible checks to ensure
to try to prevent our engineers are
incidents from practising what they
occurring. have learnt. For
large projects which
contain increased
health and safety
risks, such as our
fibre deployment,
we have brought in
external health and
safety advisors to
work on the project
full-time to ensure
we are complying
with all of the appropriate
health and safety
requirements.
--------------------- ------- ----------------------------- -----------------------------
Flooding Flooding has Prior to the 2007
become an increasingly floods we had already
regular occurrence sought to mitigate
in many parts the risk of flooding
of the country in the design of
in recent years our telephony network
and Hull, where and through using
much of our raised floors in
business is some of our buildings.
based, is no This meant that the
exception. There impact of the floods
were extreme in 2007 on our business
floods experienced was minimal. We have
in Hull in June continued to improve
2007 and there our defences further
has been smaller-scale since that time,
flooding experienced installing powerful
at times since. water pumps and flood
There is a risk alarms at key sites
that such flooding and flood defence
could impact barriers where appropriate.
upon our business We monitor flood
if we do not risk closely and
take the necessary are always alert
steps to mitigate to increased risks
the risk where caused by extreme
possible. weather and high
tides, so that we
can activate our
defences as necessary
if and when required.
Where we rely on
partners to provide
services we seek
to work with them
to ensure that their
services are resilient
to flooding wherever
possible.
--------------------- ------- ----------------------------- -----------------------------
Directors' Responsibilities Statement
Each of the Directors as at 31 March 2017 whose names and
functions are listed on pages 36 and 37 of the Annual Report
2016/17 confirm that, to the best of their knowledge:
-- The financial statements, which have been prepared in
accordance with International Financial Reporting Standards as
adopted by the European Union, give a true and fair view of the
assets, liabilities, financial position and profit of the Group and
Company; and
-- The Strategic report and Directors' report contained in the
Annual Report include a fair review of the development and
performance of the business and the position of the Group and
Company, together with a description of the principal risks and
uncertainties that they face.
In the event of any queries, please contact Kathy Smith, Company
Secretary on 01924 882501.
This information is provided by RNS
The company news service from the London Stock Exchange
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