Reseller and O2 and Vodafone airtime distributor Daisy Group sees huge uplift in revenues and profits
Acquisitive reseller and airtime distributor Daisy Group has announced a 288 per cent revenue increase in revenue, to £120 million, and a 1,050 per cent jump in EBITDA, to £16.1 million for the six months to September 30, compared with the year-ago period.
The AIM-listed company has been on a ‘buy and build’ strategy over the past year, making three acquisitions in the period, with wholesale telecoms and internet provider CRC for £2.1 million, airtime distributor Fone Logistics for £3.7 million and data connectivity and hosted solutions provider Murphx Innovative Solutions for £4.8 million.
The CRC acquisition was funded from cash reserves while the other two were funded using the company’s new £75 million revolving credit facility, put in place in June this year.
Its recent purchases of reseller SpiriTel for £27.3 million and NEG MBO Two for £23.5 million are not covered in the results to September 30.
Daisy Group posted an increased loss of £9.8 million up from £2.1 million in the corresponding period, which it put down to the amortisation of intangible assets, increased to £18.1 million from £5.2 million in 2009.
This relates primarily to the customer lists acquired from the various acquisitions to date, which have been valued on the basis of expected future discounted cash flows which are being written down over periods from three to seven years.
Daisy chief executive Matthew Riley (pictured) said:“The integration of the Group’s acquisitions has proved timely and successful; illustrating that our integration structure and processes are efficient and effective and will serve the Group whilst it continues to drive its stated growth strategy.
“We firmly believe that Daisy Group has the right foundations in place to continue consolidating the fragmented UK SME and mid-market telecommunications sector, and drive shareholder value.”