Crn21 1200 300.jpeg

Daisy's acquisition appetite wanes

Comms provider to slow M&A pace as FY11 figures show explosion of sales and debt levels

Daisy is to slow its rampant rate of acquisitions as its revenues - not to mention its debt levels - continue to soar.

For the 12 months to the end of March, the AIM-listed comms provider posted sales of £266.3m, compared with £134.4m in the 15-month period to 31 March 2010. Operating losses narrowed from £21m to £15.8m in FY11, while EBITDA rose more than 250 per cent to £40.7m.

During FY11 net debt increased almost eightfold to £66.2m. But £29.7m was generated from operations, compared with a negative operational cash balance of £1.6m in FY10. Eight acquisitions were closed during the year, and the firm disposed of a handful of non-core entities.

For the current year, Daisy expects profit to be "towards the upper end of the current market expectations", while cash generation is expected to continueameliorating. The firm asserted that "strategically important acquisitions" will still be looked at, but claimed that the sheer volume of M&A activity will see a decline.

Daisy chief executive Matthew Riley (pictured) said: "This year has been a period of growth and further transformation for the Daisy Group. Growth in revenue, adjusted EBITDA, underlying EPS and free cash flow have been strong and have been achieved while we continue to invest in the future of the business. The acquisitions we have completed are already yielding significant strategic benefits and have enhanced the breadth of our product offering for customers."