Daisy dials a loss, but expects more swoops

THE boss of telecommunications firm Daisy said the group is continuing on the acquisition trail as it posted a pre-tax loss in its maiden set of results.

The Nelson-based group, which listed in July via a £200m reverse takeover deal of Freedom4, said in the nine months to September 30, earnings before interest, tax, depreciation and amortisation (EBITDA) was £1.4m.

Pre-tax loss was £2.1m compared to a loss of £13,000 in the six months to June 30 2008. Revenue was £30.9m. As at September 30, Daisy had £22.5m in cash.

Since its stock market debut in July when Daisy Communication was bought by AIM-listed Freedom4 Group and another business, Vialtus, for £123m, and the enlarged business then raised £85.6m through a share placing, it has made a number of strategic swoops.

The acquisitions include Redstone plc’s telecommunications division, the trade and assets of Eurotel and AT Communications for a combined £36m.

Chief executive Matthew Riley said: “The strategy of consolidating the currently fragmented UK SME and mid-market telecoms sector remains the right one for Daisy.

“Whilst the integration of the acquired businesses remains our immediate focus, we are continuing to assess further opportunities to grow market share through acquisition. With the integrations going to plan, the systems and processes now in place provide a solid foundation for the future acquisitive growth.”

He added that t group is confident of the current market expectations for the 15 month period ended 31 March 2010 and its run rate is in line with this.

Mr Riley said: “We are also comfortable with market expectations for the year ended 31 March 2011 which shows revenues of £225m and EBITDA of £37m.”