UK/Ipswich: Business communications specialist Daisy Group on track to hit targets

Matthew Riley, Daisy Group chief executive

Matthew Riley, Daisy Group chief executive - Credit: Archant

Business communications group Daisy said today that its first half revenues and earnings would be in line with management expectations.

In a final update ahead of its results for the six months to September 30, which are due to be announced in December, Daisy said it was “comfortable in its ability to meet full year market expectations”.

The group, whose distribution division includes an office in Ipswich, as a result of its £17million acquisition of Anglia Telecom 2009, said its core retail business had achieved a number of managed service contract wins during the first half, with both public and private sector clients.

“These types of contract provide good quality cashflow over the span of the contract following a level of upfront investment,” the group said

Daisy Data Centre Solutions Ltd (DDCSL), the data centre business formerly owned by 2e2 and acquired by the group out of administration in February, was performing in line with expectations, with “very good progress” achieved in signing new contracts with its former customer base.

The group added that, during the first half, it had also agreed new commercial arrangements with Vodafone that it believed will accelerate the growth of its mobile business.

“These arrangements provide an improvement in mobile margins over the long term but with a reduction in up-front commissions received from the network,” it said.

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Chief executive Matthew Riley said: “I am pleased with the progress made during the period, particularly with the large managed service wins and the customer reaction to our acquisition of the hosting business DDCSL.

“We are very proud to be paying our first dividend following our acquisition strategy over the last few years and we reiterate our commitment to this whilst still being able to invest to support our mid market customers.”