Service provider reports bumper revenues and underlying EBITDA growth as it continues its aggressive acquisition strategy
SpiriTel saw revenues in its Business Division rise by 71 per cent to £17.7 million in the year to April 30, 2010, thanks largely to its acquisition strategy and organic growth from cross selling.
Underlying EBITDA for the year was up 70 per cent to £3.1 million from £1.8 million in 2009 with 15 per cent organic growth in Business Division revenues also. SpiriTel’s customer base increased 74 per cent to 4,055 compared to 2,337 a year earlier.
Cross sales contracts amounted to over £4 million signed during the year with the company reporting sub five per cent fixed line churn and eight per cent mobile churn.
The service provider has now acquired 12 companies – six of those in the past year. It signed its biggest contract to date last month with Punch Taverns, worth an estimated £5 million.
SpiriTel chief executive Alastair Mills (pictured) said: “The year to April 30, 2010 was another period of significant growth for SpiriTel, our third consecutive year of growth in revenues, underlying EBITDA and customer numbers. I remain confident in the Group’s strategy of increasing shareholder value through acquisition led growth combined with organically generated growth from cross selling.”
SpiriTel chairman Lord St. John of Bletso said: “The Group successfully integrated five earnings enhanced acquisitions during the second half of the year and completed one further acquisition post year end. The business continues to perform well in difficult times and I am confident that we are well positioned to exploit opportunities arising from the anticipated recovery of the wider economy.”