UPDATE 1-KCom profit falls, says trading on track

(Adds CEO, analyst comments, share price)

LONDON, May 20 (Reuters) - Telecommunications company KCom Group Plc (KCOM.L: Quote, Profile, Research) said on Tuesday full-year profit fell 2.4 percent, due partly to a downturn in demand from financial services firms, and current trading is line with expectations.

Yorkshire-based KCom said earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 69.3 million pounds ($135.4 million) in the year to end-March the from 71 million a year earlier.

Shares in the group, which was previously known as Kingston Communications, were down 1.8 percent to 49-1/4 pence at 1305 GMT, underperforming a smaller dip in the FTSE Small Cap index .FTSC.

Pretax profit plunged 59 percent to 4.4 million pounds, reflecting a 7.0 million pound increase in amortisation of intangible assets from an acquisition, the company said.

"Telecoms and Internet Services (TIS) had a very strong year," Chief Executive Malcolm Fallen said in a conference call.

"But Integration and Managed Services (IMS) had a more challenging year. It was hit in the second half by the slowdown, particularly in financial services."

Sales to the sector, which represents about 25 percent of IMS revenues, remain subdued, but Fallen said he saw some small signs of encouragement for the division, including a 26.4 million pound increase in the order book.

TIS, which has a stronghold in East Yorkshire, continued to perform well, with revenues up 9.7 percent, he said.