Colt Group has issued the results for the six months ended 30 June 2015.
Headlines of the first half of 2015:
On an underlying1 basis Colt Group revenue grew 0.2%, EBITDA increased 5.6% and free cash flow improved €38.5m from H1 2014.
Group revenue increased 2.6% from H1 2014. On a constant currency basis Group revenue declined 1.3% as the contribution of Colt Asia (formerly known as KVH) revenue was more than offset by our exit from low margin carrier voice trading contracts.
Group EBITDA of €156.4m represented year on year growth of 7.6% (€11.0m). The contribution of Colt Asia EBITDA and benefits of the 2014 restructuring programme continued to offset the margin compression within Network Services. On a constant currency basis Group EBITDA grew 6.7%.
Free cash improved materially with the outflow reducing from €29.1m in H1 2014 to €7.3m in H1 2015 due to improved EBITDA and working capital, and reductions in capital expenditure.
As announced in June, to accelerate improved performance, the Group will focus on its Network, Voice and Data Centre Services, the “Core Business”, and exit IT Services.
The Group recognised €128.4m of exceptional expenses during H1 2015 including a non-cash impairment expense of €87.1m in relation to the exit of IT Services, associated restructuring expenses of €32.2m, plus a €9.1m expense in relation to long term incentive schemes that vested under scheme rules as a result of the Fidelity share offer in June.
Fidelity announced its intention to make an offer at a price of 190p in cash per share on 19 June 2015. The Offer process is ongoing and our EGM is set for 11 August.
