Losses at KCOM, the Hull-based broadband and telecoms provider, widened sharply to £31.2 million in the financial year ending March 2025, driven by heavy restructuring costs, a fall in turnover and substantial exceptional charges. The company, which employs nearly 700 people, recorded a pre-tax loss that ballooned from £1.6 million the previous year, according to recently filed accounts.
Turnover dropped 5.6 per cent to £96.2 million, while the company’s net loss reached £25.02 million, a stark contrast to the £163,000 net loss reported in 2024. The value of KCOM’s total assets also declined, falling to £210.73 million from £236.20 million a year earlier.
The main contributor to the widened losses was a series of exceptional items. The company booked £3.9 million in restructuring costs, £2.8 million in consultancy fees and £1.025 million in employee restructuring costs. After accounting for these, the operating loss stood at £40.3 million — more than twelve times the £3.26 million loss recorded in the prior financial year.
Cost-cutting measures
Despite the headline loss, KCOM has been taking steps to stabilise its finances. During the year it disposed of surplus assets — primarily IP addresses no longer in use — generating £5.023 million. This contributed to an operating profit before exceptional items of £18.6 million, an increase of £8.185 million on the previous year.
The company also reduced its workforce, with employee numbers falling from 765 to 697 by the end of March 2025. Directors said the restructuring and transformation projects leave the group in a stronger position, noting in the accounts that “both executed and planned transformation projects leave the group in a strong position.”
KCOM’s owner, Australian investment firm Macquarie Asset Management, which bought the business in 2019 for £627 million, has itself taken a significant financial hit. Reports indicate Macquarie has suffered an impairment of around £500 million on goodwill, intangibles and property, reducing its equity in KCOM from £493 million to £25 million.
Future outlook and network reliability
More than a year has now passed since the end of the financial year, and senior figures at KCOM insist the business is in a considerably stronger position. The company, which provides telecommunications and broadband services across Hull, East Yorkshire and North Lincolnshire, is preparing to launch a major campaign highlighting its claim to be the UK’s most reliable broadband provider — a status underpinned by data from regulator Ofcom.
Ofcom’s May 2025 report, using 2024 figures, showed KCOM recorded an average of just 16 faults per 1,000 customers per month, significantly lower than the industry average of 44 faults per 1,000 customers. This low fault rate is central to the company’s marketing push.
KCOM’s network already covers more than 305,000 premises, and the company is investing £100 million to extend its full fibre reach to over 350,000 properties. This includes expansion into North Yorkshire, targeting communities such as Flamborough, Hunmanby, Stamford Bridge and Cayton. The initiative is part of KCOM’s “Full Fibre Future” plan, launched in 2022, which aims to upgrade communities without full fibre, migrate copper phone lines to fibre and deliver download speeds of up to 10Gbps.
During the financial year, KCOM also marked its 120th anniversary on November 28, 2024, and commemorated the 90th anniversary of its iconic cream K6 telephone boxes through the “Hometown Heroes” campaign, which honoured local figures. Directors said the year was an opportunity to celebrate the company’s history and look ahead to future possibilities.
Competitive pressures, however, are mounting. Alternative network providers such as MS3 and Connexin (now part of CityFibre) have been expanding their fibre networks in East Yorkshire and North Lincolnshire, challenging KCOM’s historical dominance. MS3 aims to reach 500,000 homes, while CityFibre’s acquisition of Connexin could further intensify competition.
Against this backdrop, Macquarie is understood to be renewing efforts to sell the business. After initially appointing PJT Partners to conduct a strategic review, KCOM’s owners have now enlisted New York-based advisors Perella Weinberg Partners (PWP) to begin a sale process. Lenders including NatWest and Lloyds are reportedly pushing for a sale, with potential buyers expected to be approached in the second quarter of 2026.
