Daisy posts increased losses
Nelson-based Telecoms giant Daisy has posted losses of £23.5m - an increase of a quarter on last year's deficit.Total revenues climbed 1% to £351.5m, but it wasn't enough to stop pre-tax losses increasing by £4.8m for the year.
The company highlighted an amortisation charge of £66.2m, and the acquisitions of Worldwide Group Holdings and The Net Crowd for £31.5m as reasons for the dowturn.AIM-listed Daisy did increase cash generation to £47.6m, up from £29.1m, and said it is dedicated to a 4p dividend.
Chief executive Matthew Riley said: "We have made good progress during the period, completing two acquisitions, with another one transacted post year end. In addition, the group has continued to progress its organic growth strategy and has seen an improvement in cross-selling, with an increase in the proportion of customers taking three or more products."These results demonstrate the cash generating capability of the Daisy business with significant growth in our free cash flow generation. This has been recognised by our banking syndicate partners who have made available a significantly enlarged facility to assist with our continued acquisitive growth strategy.
"Reflecting our confidence in the cash-generating characteristics of the business moving forward, we are pleased to propose a maiden full-year dividend of 4p per share and to reiterate our guidance on expected dividend progression of 15% for each of the next two years. "Notwithstanding ongoing macroeconomic headwinds, the group is cautiously optimistic about the year ahead. With a strong balance sheet and a solid base of recurring revenues from an improved product mix, we are well positioned in these more challenging economic times."