Daisy Group on track, eyes maiden dividend

Shares of aim-listed business communications provider Daisy Group surged after it said full year revenues and adjusted EBITDA are expected to be in line with market expectations and it expects to announce its first dividend payment.

The group said free cash flow generation for the year ended March 31 2013 has been strong and is expected to be materially ahead of current market expectations. As a result, net debt will be at the low end of the current market range.

The board intends to declare a maiden dividend of 4.0p per ordinary share at its preliminary results in June.

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Chief Executive Officer Matthew Riley said: "Though trading trends have continued as highlighted at the interim results, we are pleased to report this is balanced with improved revenue mix, product diversification and strong cash flow generation."

"Our recently announced new £200m banking facility enables us to continue to review acquisition opportunities alongside the implementation of the progressive dividend policy."

CJ