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Daisy builds on buyout success in H1

Acquisitive comms firm shows 300 per cent-plus annual growth in strong figures

The Daisy Group buy-and-build juggernaut was given a boost today as half-year results reveal the telecoms firm has more than quadrupled in size in the last year.

For the six months to the end of September, the Lancastrian comms provider posted sales of £120m, a 288 per cent increase on the nine-month period to 30 September 2009. Adjusted EBITDA increased more than tenfold to £16.1m.

Daisy's core voice business now accounts for just 48 per cent of total sales, with data now contributing 19 per cent and mobile chipping in 24 per cent. Systems represent nine per cent of total turnover - a figure that is sure to rise following Daisy's buyout of Avaya Platinum partner Network Europe Group (NEG) last week.

But the cost of integrating its many acquisitions continues to eat away at Daisy's bottom line. During the first half of fiscal 2011, amortisation of intangibles cost the telecoms firm £18.15m, while exceptional operating costs stood at £4.51m. These factors dragged Daisy to £8.33m operational loss during H1.

During the six-month period, the comms player snapped up three companies: CRC, Fone Logistics and Murphx. Two of Daisy's biggest buyouts - in the shape of Spiritel and NEG - have been sealed since the end of September.

The buy-and-build specialist's acquisition firepower was further boosted in June by the agreement of a three-year, £75m revolving credit facility. Daisy chief executive Matthew Riley (pictured) claimed the consolidation drive is still in full effect.

"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 while it continues to drive its stated growth strategy," he said.

"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."