- We are focused on driving value through delivering network, voice, data centre and IT services and solutions to businesses. Our unique asset base, combining international reach with local depth in key cities and information hubs in Europe, Asia and North America, means we are well positioned to take advantage of the opportunities from the continuing growth in enterprise communications and IT outsourcing. Our global operations are supported by our shared service centres. As we expand to new cities, this structure provides the opportunity for improved operational efficiency and profitability.
- At the end of the year we completed the acquisition of KVH, a similar business to Colt operating in Asia, expanding our capability in several key cities and strengthening our service capability as a global provider of network, voice, data centre and IT services.
- Our strategy is defined by three priorities: a focus on key markets, delivering an exceptional customer experience and optimising the use of our assets. During 2014 we completed the restructuring of Colt along four lines of business: Network, Voice, Data Centre and IT Services; increasing the focus on our assets, providing end to end ownership and responsibility for revenue, profits and cash returns and enhancing visibility of performance and delivery.
- Colt Group financial performance in 2014 reflects this ongoing transformation of our business, with a disappointing first half followed by a second half that delivered to expectations: Our Network Services business mix is evolving, with a decline in legacy SDH connections being countered by growth in managed networking; Voice Services performance reflected our proactive withdrawal from low margin carrier voice trading contracts; IT Services underperformed with the business in transformation from traditional platforms to cloud solutions; Data Centre Services grew, but slower than the market rate as it only recently refocused on retail colocation. We expect the completion of the transformation in 2015 should result in improved performance towards the end of the year.
- Our balance sheet strength and debt capacity allows us to support the necessary organic and inorganic investments to deliver our strategy. There is unlikely to be any near-term distribution of dividends as we maximise value generation for shareholders by investing in the full execution of our strategy.
1 May 2015: Colt Group S.A. (London Stock Exchange: COLT) issued today its Interim Management Statement for the three months ended 31 March 2015.
- For the first quarter of 2015 Colt Group delivered a solid set of results including growth in EBITDA and improved cash flows, in line with the focus of the business.
- The performance of our core businesses, Network Services and Voice Services, both delivered encouraging underlying revenue and EBITDA performance. We continue to focus on improving the performance of our Data Centre Services and IT Services businesses.
- It is still early days in the integration of KVH but this is on plan. The business has continued to deliver on revenue and EBITDA growth, in accordance with expectations. This is the first full quarter of KVH’s contribution to Colt Group performance.
- Management believe the Group will deliver modestly positive cash flows for full year 2015.
Rakesh Bhasin, Chief Executive Officer, said:
The new focus we have brought to the organisation through the implementation of the lines of business is starting to deliver results. Our core Network Services and Voice Services in particular show underlying signs of improvement and the Group is showing headline visibility of year on year cash flow improvement. We will continue to drive efficiency and asset utilisation across the organisation to deliver improved performance in 2015.