Daisy vows to root out more M&A

Buy-and-build VAR claims banking backers have confidence in its business model, despite sinking to another annual loss

Aggressive comms provider Daisy Group has promised further acquisitions despite seeing annual losses widen.

The unified communications specialist - which made two acquisitions during its fiscal 2013 to 31 March - stumbled to annual operating losses of £16.8m on revenues that inched up one per cent to £351.5m. That compares to a loss of £13.1m the previous year.

Daisy shelled out a maximum of a combined £31.5m on two acquisitions in its last year - audio-conferencing services specialist WWG in April 2012 and Cisco, Juniper and HP partner TNC in January 2013.

Since its year end, the AIM-listed outfit - which is striving to move beyond its roots in the legacy fixed-line business into mobile and data-led solutions - has snapped up the datacentre assets of fallen rival 2e2 for £7.5m.

Chief executive Matthew Riley (pictured) vowed that Daisy would continue to play consolidator after securing new debt facilities of £200m in March that will allow it to undertake further strategic acquisitions.

Daisy attributed the widening loss mainly to an increase in charges for amortisation of intangible assets. However Riley said the new facility, which replaces the firm's previous facilities of £140m, reflects the faith its banking backers have in its buy-and-build model.

"We have a highly skilled executive team capable of building on the group's position as the main consolidator and the leading independent provider of unified communications to the SME and mid-market business segment," he added.

"We will continue to evaluate and execute acquisitions that help build strategic advantage and where we can see value for our shareholders."

Daisy Retail saw sales rise from £248.7m to £261.8m year on year, with more than half of the total coming from its networks business including fixed line calls and inbound telephony services.

Daisy Wholesale enjoyed a four per cent rise in sales £49.7m while Daisy Distribution saw revenues drop from £51.9m to £39.9m.