Operating losses also increase but unified communications provider says it is well positioned to progress with its organic and acquisitive strategy
Daisy Group has said it is “cautiously optimistic about the year ahead” after reporting a 0.8 per cent rise in revenue to £351.5 million for the year ending March 31.
Adjusted EBITDA remained static at £56.3 million, but operating losses rose £3.7 million to £16.8 million in the 12 month period. Gross profit fell by £3.2 million to stand at £129.7 million.
Daisy Group said of particular note has been the significant increase in cash generation, with cash generated from operations of £7.6 million, up from £29.1 million the year before.
It said its acquisition programme, executed over the past four years, has provided additional capability and reduced the dependence on fixed line network services. It added it will continue to invest internally as well as making further acquisitions should the right opportunities arise.
Daisy Group made two acquisitions in the financial year – audio-conferencing company Worldwide Group for £28.5 million in April 2012 and IP data provider The Net Crowd for £2.1 million in January.
Last month it bought Daisy Data Centre Solutions for £7.5 million, which had acquired the data centre assets and customer relationships from the administrator of It firm 2e2.
Daisy Distribution saw revenues decline by £12 million to £39.9 million, while gross profit fell by almost £2 million to £9.5 million. Adjusted EBITDA was up slightly at 15.5 per cent.
Daisy Group CEO Matthew Riley (pictured) said the division has been impacted by the reduced level of mid-term contract renewal incentives provided by some mobile operators, which had a significant impact on revenue.
The lower level of renewals has meant that Daisy’s dealers have earned less commission, but added there are indications it can begin to re-initiate mid-term contract renewals, which positions Daisy Distribution well for the new financial year.
In summary, 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.
“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.”