Daisy reveals 15-month loss as acquisitions build up group

TELECOMS firm Daisy Group posted a posted a 15-month loss but continued on the acquisition trail, buying broadband service provider MurphX Innovative Solutions for an initial £4.8m in cash.

The group said the deal would boost its data solutions sales by more than 30 per cent. Lawyers from Eversheds in Leeds, led by partner Keith Froud, advised Daisy on the deal.

"The market environment remains difficult for smaller, sub-scale, operators and this will provide further acquisition opportunities for the group during the current financial year," said Daisy, which was formerly known as Freedom4 Group.

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For the 15-month period ended March 31, its pre-tax loss from continuing operations was 16.2m on revenue of 134.4m.

But in spite of the loss, Daisy said it looks forward to the coming financial year with confidence.

Daisy completed seven acquisitions during the period, and said their integration is going to plan.

One of those, Halifax-based telecoms and IT supplier Eurotel, was acquired in August for 13.5m in cash plus share warrants in a pre-pack administration deal. The business employed 275, mainly in Halifax.

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Daisy has since closed the Halifax operation and said employees were offered new positions, but declined to say how many jobs were cut.

Daisy recently secured a banking facility of 75m – with 25m from Yorkshire Bank – and said the financing would support its continuing acquisition strategy as well as provide additional working capital.

The company added it would be difficult to compare reported results for 2010 and 2008 due to significant acquisitions, disposals and restructuring that occurred during these periods.

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