Colt Group S.A. announces results for the twelve months ended 31 December 2012


28 February 2013: Colt Group S.A. (London Stock Exchange: COLT) today issues its audited results for the 12 months ended 31 December 2012.

Highlights:

  • In 2012, Colt grew overall revenue for the first time in seven years. Group revenue grew by 2.6% to €1,594.6m, reflecting growth across all major product categories with Voice revenue stabilising in 2012 (1% growth versus 8% to 12% declines in the previous four years)
  • EBITDA before exceptional items grew by 0.5% to €333.6m (2011: €332.0m) despite a period of investment in the transformation and growth of the business
  • An exceptional restructuring expense of €32.0m was recognised in 2012 (2011:nil) with net recurring annual cost savings of approximately €27.0m anticipated by 2014
  • Net funds reduced from €343.7m in 2011 to €280.1m in 2012, reflecting increased investment in the business and working capital movements
  • Continued to develop our customer facing organisation by launching a new franchise channel, realigning the direct sales force and accelerating our skills transformation programme, aligning costs related to our legacy business and protecting profits while investing in the business
  • Enhanced our portfolio in areas such as unified communications, flexible cooling and power in our data centre product and the service foundation platform for our solutions business. The shift in our business towards more service-led contracts continued with 23 new CES contracts in 2012 with a total contract value (TCV) of over €2m (2011: 12)
  • Expanded and enhanced our next generation infrastructure with significant investments in the core IP backbone, European expansion, new and improved low latency routes, new data centre space and capacity.

Key financial information:

Twelve months to 31 December

Twelve months to 31 December

Twelve months to 31 December

€ millions

2012

2011

Movement

€ millions

Audited

Audited

Movement

Total revenue

1,594.6

1,554.3

2.6%

Data revenue

824.1

805.1

2.4%

Managed Services revenue

201.9

186.2

8.4%

Voice revenue

568.6

563.0

1.0%

EBITDA1 before exceptional items

333.6

332.0

0.5%

Profit before tax and exceptional items

61.8

72.0

(14.2%)

Exceptional item – restructuring expense

(32.0)

Free cash flow2

(56.6)

43.3

(230.7%)

Capital expenditure

(306.5)

(279.5)

9.7%

Net funds3

280.1

343.7

(18.5%)

1 EBITDA reflects profit for the year before net finance costs, tax, depreciation, amortisation, foreign exchange and exceptional items
2 Free cash flow is net cash generated from operating activities less net cash used to purchase non-current assets and net interest received
3Net funds reflects cash and cash equivalents plus deposits classified as current asset investments less debt

Rakesh Bhasin, Chief Executive Officer, commented:

“2012 was a year of momentum and growth for Colt. We achieved overall revenue growth for the first time in seven years. We are accelerating the transformation of our cost and skills base, aligning costs related to our legacy business and protecting profits while continuing to invest in our products, services and infrastructure to support future growth.”

Read the full press release here

FORWARD LOOKING STATEMENTS

This report contains "forward looking statements" including statements concerning plans, future events or performance and underlying assumptions and other statements which are other than statements of historical fact. Colt Group S.A. wishes to caution readers that any such forward looking statements are not guarantees of future performance and certain important factors could in the future affect the Group’s actual results and could cause the Group’s actual results for future periods to differ materially from those expressed in any forward looking statement made by or on behalf of the Group. These include, among others, the following: (i) any adverse change in regulations and technology within the IT services and communications industries, (ii) the Group’s ability to manage its growth, (iii) the nature of the competition that the Group will encounter and wider economic conditions including economic downturns, (iv) unforeseen operational or technical problems and (v) the Group’s ability to raise capital. The Group undertakes no obligation to release publicly the results of any revision to these forward looking statements that may be made to reflect errors or circumstances that occur after the date hereof.

Investor Relations:
Morten Singleton
DDI: +44 (0) 20 7863 5314
Mobile: +44 7535 445159
Email: morten.singleton@colt.net

Press:
Helen Toft
DDI: +44 20 7039 2420
Mobile: +44 7855 301078
Email: helen.toft@colt.net

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