Colt losses widen, but claims things are looking up

21 Jul 2005

UK-based corporate communications provider COLT Telecom posted a near-doubling of its interim losses, as tough trading conditions continued to dent its bottom line. In the six months to 30 June 2005, COLT sales totalled GBP624 million (USD1.09 billion), up GBP18 million year-on-year, but operating loss increased from GBP19.3 million to GBP35 million and pre-tax loss widened by GBP7 million to GBP56.8 million. Despite the grim reading, COLT remains upbeat, saying that it has won a number of major new contracts that it hopes will contribute to a cashflow-positive second half of the year.

COLT has long been struggling financially as intense competition in the UK corporate sector drives margins down. In April this year the telco was forced to quash rumours that it was in talks with TDC over a possible takeover by the Danish incumbent.

United Kingdom, Colt Technology Services Group