Business comms and managed services provider Colt Group is to embark on a restructuring programme to simplify its business and increase its operating efficiency.
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From early 2011 the firm will reorganise into three customer-facing units, Enterprise Services, Communication Services and Data Centre Services, as well as two new service units, Infrastructure Services and Business Services, which will support the customer-facing arms.
Colt said it expectes to book an exceptional charge of between €35m and €40m during 2010 to increase efficiencies. Approximately 35% of that total will be ploughed into recruiting for new customer-facing roles, which Colt believes will take around €20m per annum out of the business.
"We believe these changes will help us to deliver our strategy to be Europe's leading information delivery platform," said CEO Rakesh Bhasin,
"We are simplifying our organisation to enable us to be even more responsive to our customers' needs. At the same time we will be investing in our business to strengthen our customer-facing operations to drive future growth," he added.
In a separate interim management statement for the three months to the end of September, also released today, Colt made unaudited sales of €392.7m (£349.2m), a 1.8% decline as Voice revenues slid. Data sales were flat while the Managed Services unit recorded reduced growth.
The firm posted EBITDA of €83.8m, up 5.4% on the performance of the Managed Services business and operating efficiencies, including lower bad debt provisions.