Daisy to show significant year-on-year increase in revenue
By BFN News | 07:19 AM | Friday 13 April, 2012
Business communications specialist Daisy Group said profit and earnings for the year to end-March will be within the range of market expectations, with a significant year-on-year increase in revenues.
All businesses acquired in FY11 and FY12 are fully integrated and performing in line with management expectations.
Daisy said the main focus of the Group's buy and build strategy over the financial year ending March 2012 has shifted to the effective integration of assets acquired over the previous 18 months. We are pleased with our progress in this area and the integration programme has been achieved in line with management's targets. Consistent with this, Spiritel, Outsourcery and Telinet/Ipitomi have each been successfully integrated into Daisy during the financial year. In addition, the Group has consolidated its mobile operations into one centre of excellence at its headquarters in Nelson, Lancashire.
All trading divisions have performed broadly in line with management expectations during the period ending March 2012, with the major trends demonstrating a continuation of those reported at the interim results in November.
The Retail Division has seen clear progress in both its mobile and data product portfolios. This has enabled it to partially offset the expected decline in fixed line call revenues, which reflect the market-wide trends of lower voice usage and the impact of lower mobile termination rates. Whilst the majority of this division has performed robustly, the Group has seen a moderate lengthening of sales cycles for some larger contracts, particularly in systems and large data installations, reflective of a more challenging macroeconomic backdrop.
The Wholesale and Distribution Divisions have benefitted from the availability of a wider product set and seen an improvement in cross selling trends amongst much of their product portfolios.
Net debt at 31 March 2012 will be above March 2011 levels. This reflects acquisition and integration cash flows, together with an increase in working capital absorption associated with our mobile business and a higher proportion of larger customer deals.
The Group expects profit and earnings to be within the range of market forecasts for the year ending March 2012.
For the year ahead, the Board is pleased with the progress to date across all key divisions, though remains mindful of the challenging market trends and macroeconomic outlook.
The Group will announce its preliminary results on 19th June 2012.
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