Colt Group returns to growth

Data services and telecoms provider Colt Group has seen a big rise in pre-tax profits and says its first half results show a 'return to growth for the first time in many years'.

The firm's biggest offering is data, which accounts for more than half of total revenues. Colt allows companies to use its fibre optic network to provide ethernet services to clients. Revenues in this crucial division gained 1.8% compared to last year, to hit £407.7m.

This pushed group revenue to £797.9m, 4.1% ahead of the prior year.

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The most impressive performance across the group was in managed services, which includes the provision of data centres. Revenues climbed 15.4% in this area, lifting group profits before tax to £33.2m, a whopping 52.3% gain on the same point in 2011.

This is probably why the stock rose sharply in morning trading, up 4% by 11:31.

Rakesh Bhasin, Chief Executive Officer, said: "Despite challenging economic conditions we made good progress in (the first half) and are targeting growth for the second half of the year. Our products and services are gaining traction in the market and our pipeline is improving in both quality and quantity."

BS