Colt says to take up to 33 mln euro charge on restructuring

Wed Dec 19, 2012 7:57am GMT

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Dec 19 (Reuters) - European telecoms provider Colt Group SA said it will take a charge of 28 million euros ($37.00 million) to 33 million euros in the current quarter related to a restructuring it undertook last year.

"Our performance remains on track. Given the economic backdrop, we believe now is the right time to accelerate the transformation of our cost and skills base," Chief Executive Rakesh Bhasin said.

The company, which restructured its business into three units last year, said the majority of the cash outflow to support the restructuring will fall into 2013.

Colt said it expects to save about 44 million euros per year through these plans, of which a third will be invested in new jobs.

The company runs fibre optic networks and data centres for large and mid-sized companies, audio and web conferencing, and cloud services.

It said investment in growth areas such as managed networks and IT services had helped raise bookings.

Colt shares closed at 93.5 pence on the London Stock Exchange on Tuesday.

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