Education and key worker communications firm Keycom has published results for the year to 30th September, which showed that losses narrowed by 42% to £588,000. Revenues jumped 153% to £4.86 million, although administrative expenses were up 80% to £3.249 million. The diluted loss per share was down by 83% to 0.12p. Net cash was down to merely £70,000, from £1.437 million in 2008. The gross margin improved by five percentage points to 62%.

At the end of the period, the number of rooms serviced by the group had doubled to 32,900, and broadband services revenue was up 86% at £3.14 million, and made up 64% of group gross profit. Keycom continues to expand the number of military rooms serviced and since 30th September has made progress, with 7,750 rooms available with a healthy pipeline of additional contracts.

Keycom’s current mid-price of 1.75p gives it a market capitalisation of £8.44 million. The expansion in revenues looks promising, although the reduced funding for universities and defence may provide cause for concern. In addition, the company has not yet proven that its business model is viable. Sell.