June 7 British telecoms provider KCom Group Plc
said it would increase its annual dividend by 10
percent through to 2016, pushing its shares up as much as 11
KCom Group, which also reported a 3 percent rise in
full-year profit, raised its total dividend to 4.4 pence for the
year ended March 2013 from 4 pence a year earlier.
"The company has underlined its confidence in future cash
generation capability by increasing the dividend by 10 percent
per year for the next 3 years," Barclays Capital analyst Maurice
Patrick said in a note.
KCom Group, which provides communications services for
enterprise and public sector organisations in the UK, had in
2010 committed to raise its annual dividend by at least 10
percent for three years.
Shares in the company were up 11 percent at 85.21 pence at
0942 GMT on Friday on the London Stock Exchange, making them the
top percentage gainer on the FTSE-250 midcap index.
KCom Group said underlying pretax profit rose to 52.7
million pounds ($81.8 million) from 51.1 million pounds a year
earlier. Revenue fell 3.7 percent to 372.9 million pounds.
($1 = 0.6442 British pounds)
(Reporting by Abhirup Roy in Bangalore; Editing by Supriya