The telecommunications industry is pivotal to today’s modern global economy, sitting at the heart of the internet and responsible for carrying the world’s voice and data traffic. The industry is going through a period of rapid innovation and transformation. With convergence, operators are facing competition from all sides, be it content and social media companies, cable and broadband suppliers, or hardware and device manufacturers. Added to this, margins are being continually driven down in the industry’s core market of data and voice traffic. Operators are therefore expanding their products and offerings to meet this competition head on, thereby delivering value to the ever more demanding consumer.
However, this brings with it new challenges. Operators must ensure that they are at the forefront of innovation, whilst getting to grips with new services and working with new partners. Systems, processes and cultures must change to put the customer at the heart of the organisation. On top of all this, tax, accounting, legal and regulatory matters need to be considered.
We can provide organisations with expertise and advice on a range of services including audit and accounting, corporate tax, restructuring, transaction services, M&A (both private and public) and raising equity capital.
We enjoy helping clients achieve their financial and strategic objectives. Our experience, including hands on experience within FTSE 100 and multinational organisations in the sector gives us an unrivalled understanding of this industry for our size. We have a dedicated team that can deliver superior value to our clients, offering innovative idea driven results.
Specialist Services offered:
- Research and Development (R&D) Tax credits
- Start ups / structure / finance
- Identify funding options including grants/small awards
- Corporate & e-Tax Advisory Services
A small telecommunications company was owned by the manager and a passive investor had a large minority interest of 40%.
The business had developed and offered growth prospects for the future. The manager wanted to obtain complete control and the minority interest was happy to sell at a substantial profit. The company’s advisers were a small firm of accountants and had no experience nor understanding of the provisions for a company to buy it’s own shares.
Kingston Smith were asked to deal with the process of obtaining HMRC acceptance that the transaction would be treated as capital. This would enable the seller to obtain Taper Relief and enjoy a reduced rate of tax.
The process took a few weeks and both shareholders achieved their respective objectives.