6/22/2010 1:48:00 PM
Daisy posts £16.2m loss and buys MurphX
Daisy Group pledged to continue on the acquisition trail following its latest purchase of MurphX Innovative Solutions, despite posting a loss of £16.2m for the 15 months ending 31 March.
The company’s preliminary results show pre-tax losses from continuing operations of £16.2m on revenue of £134.4m. During this period Daisy made seven acquisitions, including the recent purchase of distributor Fone Logistics. The company also secured £75m in bank funding and sold off its Wimax business to UK Broadband for £12.5m.
Daisy bought Hampshire based broadband service provider MurphX Innovative Solutions for an initial sum of £4.8m.
Daisy remains confident about its financial performance over the coming fiscal year. The group said it would make cost savings over the coming year as it moves to integrate its acquisitions. It is also sees opportunities for further acqusitions under the current tough economic climate.
Executive chairman Peter Dubens said: ‘The market environment remains difficult for smaller, sub-scale operators and this will provide further acquisition opportunities during the current financial year.’
He added that Daisy’s recently acquired £75 million banking facility would power further acquisitions.
According to Dubens, Daisy had cash and equivalents equaling £20m, leaving the company with net debt of £8.3m, as of March 31. He said that the group would continue to take a ‘prudent approach to debt levels’.
Daisy's portfolio currently covers network services, data products, maintenance and mobile kit. Dubens said the company aims to offer all four ‘from a single platform, with a single customer bill.’
Matthew Riley, CEO of Daisy Group, said: ‘These results demonstrate the progress we have made towards our aim of becoming one of the largest UK providers of unified communications services and solutions to the SME and mid-market sector.
'We have integrated acquired businesses on schedule, providing significant cost savings which will be reflected in our results for the year to 31 March 2011. We have in place the platform, the systems, the people and the product set to allow us to continue to grow organically and by further acquisitions.
'The recently completed bank funding provides the Group with the capability to pursue future acquisitions and we look forward to the coming financial year with confidence.’