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In FY12, Colt hit the significant milestone of returning to growth (in Euros) for the first time in seven years. However, management’s ambition doesn’t stop there. The objective is to achieve a Compound Annual Growth Rate (CAGR) of between 5% and 9% to 2017. To make this a reality, Colt will need to ensure its legacy products in voice and data can consistently grow – something that will be a significant challenge in today’s market. In IT services, there is an opportunity to grow strongly in cloud-delivered infrastructure services. However, Colt’s business here is currently small and our view is that it is not yet delivering the kind of growth Colt needs to justify the investments made to date.
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