9/29/2010 12:39:00 PM
Analyst: SpiriTel's ‘Foot in the door’ approach is working
SpiriTel’s ‘foot in the door’ approach, which led to the recent £5m Punch Taverns contract win, highlights the benefits of upselling, said Andy Darley, analyst at FinnCap.
‘SpiriTel has reported prelims with revenue of £21.3m, 6% ahead of expectations, and EBITDA of £1.6m, 7% ahead of expectations, which does not yet take into account the full period significant benefit of acquisitions,’ he added.
Meanwhile, a succession of acquisitions have been successfully integrated with material synergies, Darley said. ‘When combined with a typical telecoms organic growth of 15%, this leads us to upgrade April 2011 forecast EBITDA 10% to £4.8m.’
He added: ‘We also issue 2012 numbers suggesting 10% revenue growth and a maintained 13.5% EBITDA margin, cautious given the 15% growth rate and continuing cost savings.’