Daisy losses widen, confident outlook

Acquisitive telecom and hosting services provider Daisy Group said full year losses widened and while it remains mindful of the challenging economic environment, it remains cautiously optimistic about the current financial year.

The group, which was started by Lancashire entrepreneur Matthew Riley, said loss after tax widened to £8.9m for the 12 months to 31 March 2012 from a loss of £7.6m a year earlier. Revenue increased to £348.6m from £266.3m before.

"As a group, we remain cautiously optimistic about the current financial year, bolstered by a strong balance sheet and solid level of recurring revenue," the group said in a statement.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Daisy completed two acquisitions during the year and one post year-end, all of which have been successfully integrated.

Chief executive officer Matthew Riley said, "The group has continued to progress its organic growth strategy and seen an improvement in cross-selling, particularly amongst those customers taking three or more products."

"Notwithstanding ongoing macroeconomic headwinds, the group remains cautiously optimistic about the year ahead. We also continue to see a strong flow of potential acquisitions and intend to further pursue our successful strategy of consolidating the fragmented reseller market."

Daisy said it plans to continue to invest the majority of these cash flows in its ongoing acquisitions strategy. In the event that acquisitions are not completed, the board intends to introduce a maiden dividend following the end of the current financial year.

CJ