Kingston doubles losses to £37.4m

SHARPLY higher depreciation charges have caused Kingston Communications to more than double operating losses to £37.4m in the year to 31 March. However, it said underlying turnover rose 40% to £316m, underpinning an 85% rise in earnings before interest, tax and depreciation to £29.1m.

Kingston, which has £160m of undrawn credit facilities but no cash, said the result left it on track to meet its goal of breaking into the black in the next financial year. Much of the loss stemmed from depreciation charges relating to the completion of the group's long-distance network.

It also booked a £2.1m loss on the sale of the company's British telecommunications testing facility and made a £1.1m provision for non-recovery of debts owed by struggling media companies.

Earnings before interest, tax, depreciation and amortisation margins rose from 10.8% to 12.4% in the fourth quarter as Kingston continued to cut costs and focused on selling value-added solutions.