Ipswich: Daisy Group reports annual results in line with expectations

Matthew Riley, Daisy Group chief executive Matthew Riley, Daisy Group chief executive

Tuesday, June 17, 2014
11:34 AM

Daisy Group, a major provider of IT and communication services to the business sector, today reported growth in annual revenue and earnings “in line with market expectations”.

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Revenue in the year to March 31 edged higher, to £352.7million from £351.5m, and adjusted earnings before interest, tax, depreciation and amortisation rose to £57.9m from £56.3m.

The group’s operating loss increased, from £16.8m to £17.9m, although this largely reflected one-off costs relating to three acquisitions made during the year all of which Daisy said were performing ahead of expectations.

The bottom-line pre-tax loss also widened but by a smaller margin, from £23.535m to £24.375, helped by a reduction in net finance costs.

Daisy Retail, the group’s largest division, which provides network, data, systems and mobile products to SME and mid-market business customers, saw revenues fall from £244.5m to £229.6m, although gross profit remained flat at £100.3m.

The decline in revenue large reflect a fall in the networks stream, although network margins improved from 40.4% to 41.4%.

Daisy Wholesale, which provides a similar range of services to the reseller channel, saw revenue grow from £61.6m to £72.7m and gros profit from £17.5m to £25m.

And Daisy Distribution, which provides mobile handsets and airtime tariffs via a dealer network and includes an office in Ipswich, as a result of the group’s acquisition of Anglia Telecom in 2009, saw revenues grow from £45.4m to £50.4m, with gross profit rising from £11.9m to £14m.

Daisy Group chief executive Matthew Riley said: “We have made good progress during the year from both an organic and inorganic perspective.

“The acquisitions we have made are performing ahead of expectations and help to provide a better balanced product portfolio mix, which positions us well for the continued convergence of IT and communications.”

He added: “Looking forward, we expect to continue with our inorganic strategy alongside our key organic objective of cross-selling.

“Changes to our bank facilities have increased the headroom available for further accretive acquisitions and notwithstanding our desire to pursue these acquisitions, the board will consider the return of capital by way of share buybacks to maintain an efficient capital structure.

“We view the year ahead with optimism and, with confidence in the cash-generating capability of our business, we remain committed to growing the dividend by 15% in the current year.”

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