Hull-based telco KCom has proposed a plan to outsource its Integration and Managed Services (IMS) division to BT, according to The Telegraph. The newspaper writes that the company hopes the deal will cut costs by GBP10 million (USD16.2 million) per year, in the latest in a string of measures intended to improve its fortunes. KCom’s corporate communications department told TeleGeography that any proposed agreement was still under review, whilst confirming that the IMS division did not cover ‘Internet and Managed Services’ as quoted in the Telegraph report. IMS serves medium-sized and large enterprises, and includes brands such as communications integrator Affiniti and managed services specialist Smart421. KCom’s Internet & Telecoms Services division primarily serves small and medium-sized enterprises (SMEs), and includes the nationwide ISP brand Eclipse.
KCom’s share price near-collapsed in November 2008 but has bounced back in recent weeks. For the year ending 31 March 2009 KCom is expected to report pre-tax profits of approximately GBP19.5 million, up from GBP4.4 million last year, on the back of a sales decline from GBP517 million to GBP470 million.