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Colt to exit IT service, reduce senior executives

2015-06-30 09:55:00| Telecompaper Headlines

(Telecompaper) Colt has approved a new business plan that will put greater focus on the company's core businesses, namely Network, Voice and Data Centre Services, with a managed exit from IT Services. Cost transformations across the group will also continue to be a key strategic focus, with Colt looking to reduce the number of senior executives in order to simplify and streamline operations. The European carrier has been working on the plan since the beginning of the year; it has now been given a provisional approval by its management board. The plan, which is unrelated to the recent buy-out offer by Fidelity, will be put into effect as quickly as possible. The Business Plan is expected bring cash one-off expenses of EUR 45-55 million and a non-cash impairment charge of around EUR 90 million. There will also be an exceptional restructuring cost of EUR 25 million relating to the Core Business. Savings are seen at EUR 25 million per year, reflected in Core Business EBITDA partially this year and fully next year. Trading is still expected in line with expectations for the second quarter; results will be reported before the end of July. Colt is guiding for a free cash flow for its Core Business of EUR 70-80 million for 2015 and of EUR 100-120 million for 2016, including all restructuring exceptionals and cash outflows.

Tags: service senior reduce exit

Category:Telecommunications

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