Kingston guidance update sends share price higher

26 Jul 2004

Kingston Communications has issued an update to confirm that its trading performance was in line with market expectations, sending the company’s share price up GBP0.02 to GBP0.65 at the close on Friday. According to the Financial Times, the company said its revenues were growing steadily and that a strategic focus on ‘long-term recurring income had helped it maintain margins’. In addition, Kingston has benefited from a programme of cost-cutting over the past six months, meaning that it was now profitable. The telco has bucked a recent trend in which its rivals have fared badly on the markets after announcing their financial results. Cable & Wireless saw its share price slip by 5% after its trading statement was interpreted as a gloomy prognosis for an overcrowded telecoms market. COLT Telecom too presented a similarly pessimistic outlook in the wake of the re-emergence from bankruptcy of MCI (formerly WorldCom) and Global Crossing.

United Kingdom, KCOM