SpiriTel grows revenues to £21.3m

SpiriTel grows revenues to £21.3m

SpiriTel is continuing its aggressive acquisition drive, which has seen it buy up six companies in the mobile, network and IP space over the past year.

Announcing its preliminary results for the year to the end of April, SpiriTel said it remains focused on a twin track strategy of acquisition backed by organic growth.

The Group’s results show trading significantly ahead of reported results for the year with Group revenue running at £21.3m, 6% ahead of expectations, and EBITDA 7% ahead of expectations at £1.6m.

SpiriTel’s business division, which includes its mobile, network and IP businesses, rose 71% to £17.7m, from £10.3m last year, with underlying EBITDA up 70% to £3.1m.The division also reported 15% organic growth revenues and a 74% increase in its customer base to 4,055 at year end.

Revenues from SpiriTel’s business division, which includes its mobile, network and IP businesses, rose 71% to £17.7m, from £10.3m last year, with underlying EBITDA up 70% to £3.1m.

SpiriTel also reported over £4m cross sales contracts signed during the year, and a £5m deal with Punch Taverns to provide a converged IP hosted voice and data service across its UK estate.

SpiriTel’s mobile business put in a strong performance with revenues increasing by 47% to £4.8m from £3.3m in 2009 and an annual organic growth of 22%.

The mobile division also reported a gross profit increase of 48% to £2.3m from £1.5m in the previous year. Underlying EBITDA from the division grew by 74% to £879,000 from £506,000 in 2009.  

Operating profit also increased by 69% to £526,000 after deducting increased exceptional costs of £134,000.

A reported loss of £11m for the Group was attributed to an accounting charge under IFRS.

Announcing the Group’s results chief executive, Alastair Mills said: ‘The year to 30 April 2010 was another period of significant progress for SpiriTel, our third consecutive year of growth in revenues, underlying EBITDA and customer numbers.

'I remain confident in the Group's strategy of increasing shareholder value through acquisition led growth combined with organically generated growth from cross selling.’

Chairman Lord St. John of Bletso said SpiriTel’s financial performance was far higher than the reported results.

He added: ‘The Group successfully integrated five earnings enhancing acquisitions during the second half of the year and completed one further acquisition post year end. The business continues to perform well in difficult times and I am confident that we are well positioned to exploit opportunities arising from the anticipated recovery of the wider economy.’

Written by Mobile Today
Mobile Today

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