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Daisy fresher after stronger year

Operating losses narrowed slightly for full year, according to preliminary audit

Telecoms provider Daisy lost a little less money over the past year as a result of improvements made to its portfolio, cost base and customer mix.

According to the Daisy Group's audited preliminary results for the year to 31 March 2012, it has clawed back its operating losses some 17 per cent to £13.1m for the year, compared with the previous year's £15.8m. That is on turnover of £348.6m, up 31 per cent from 2011's £266.3m.

Matthew Riley, chief executive of Daisy, said that despite the ongoing macroeconomic headwinds, the firm had made good progress.

"In addition, the Group has continued to progress its organic growth strategy and seen an improvement in cross-selling, particularly among those customers taking three or more products," Riley said in the company's announcement to the London Stock Exchange.

Operating highlights included two strategic customer base acquisitions completed and integrated during the year; an increased mix of retail customers taking three or more products; improvements to its product portfolio that reduced its reliance on fixed-line network services; and significant cost savings following a year characterised by consolidation and integration at the company, the announcement said.

Riley added that the Group remains "cautiously optimistic" about the year ahead.

"With a strong balance sheet and solid base of recurring revenue... we expect to see a material increase in our level of free cashflow generation," he said.

Riley indicated also that further reseller acquisitions could be made. According to him, the reseller market is fragmented and therefore ripe for further consolidation.

Daisy shares closed steady at 95p on 19 June.