June 7 (Reuters) - British telecoms provider KCom Group Plc said it would increase its annual dividend by 10percent through to 2016, pushing its shares up as much as 11percent.
KCom Group, which also reported a 3 percent rise infull-year profit, raised its total dividend to 4.4 pence for theyear ended March 2013 from 4 pence a year earlier.
"The company has underlined its confidence in future cashgeneration capability by increasing the dividend by 10 percentper year for the next 3 years," Barclays Capital analyst MauricePatrick said in a note.
KCom Group, which provides communications services forenterprise and public sector organisations in the UK, had in2010 committed to raise its annual dividend by at least 10percent for three years.
Shares in the company were up 11 percent at 85.21 pence at0942 GMT on Friday on the London Stock Exchange, making them thetop percentage gainer on the FTSE-250 midcap index.
KCom Group said underlying pretax profit rose to 52.7million pounds ($81.8 million) from 51.1 million pounds a yearearlier. Revenue fell 3.7 percent to 372.9 million pounds.($1 = 0.6442 British pounds) (Reporting by Abhirup Roy in Bangalore; Editing by SupriyaKurane)