Daisy Group has said it is 'cautiously optimistic' about the rest of its financial year, after pre-tax losses widened by 55.1% to £13.8m.
It said the sector was being hit by 'difficult macroeconomic and regulatory headwinds' but said its diversification in products would benefit it in the longer term. It bought conference call aggregator Worldwide Group Holdings in April, as it bids to move away from its falling fixed line business. Its sales were up 1% to £178.1m for the six months to 30 September. It said revenues were boosted by an increase in cross-selling with 22% of its Retail base, which involves Daisy selling directly to small and medium enterprises, taking three or more products. This is up from 20% on last year.
Looking ahead, the business said it would consider strategic acquisitions but if it does not make a significant takeover, it will pay a maiden dividend to shareholders when it reports its full-year results.
Matthew Riley, CEO of Daisy, said: 'Whilst the sector continues to experience difficult macroeconomic and regulatory headwinds, we see our own performance balanced positively by our improving revenue mix and product diversification. Looking forward, we remain cautiously optimistic and expect to see continued strong free cash flow generation during the rest of the current financial year.'
Editor: Graeme Neill