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Daisy predicts ‘robust’ six month performance

Paul Withers
October 8, 2012

Unified communications provider says its half year revenues are above what it achieved in the same period last year and an improvement in the level of cash flow generation

Daisy Group has said trading for the six months ended September 30, 2012 has been “robust”, with revenues expected to be higher than those achieved in the same period last year.

The unified communications provider made the statement in a trading update issued today, in which it said these targets are expected to be achieved “against a tough micro-economic backdrop”. The company will announce the results on November 28.

In the same six month period last year, Daisy Group grew revenues by 47 per cent to £176 million and profits by 65 per cent to £26.6 million compared with the same timeframe from 2010.

Daisy Group also said it was pleased to report a material improvement in the level of free cash flow generation following the “working capital headwinds” seen in the second half of the previous financial year.

However, its net debt increased during the half year which it said reflected the acquisition of Worldwide Group Holdings Limited in April 2010, but that the purchase is performing in line with management expectations.

Daisy Group CEO Matthew Riley (pictured) said: “We highlighted in June that the second half of FY12 had seen a lengthening of sales cycles together with some pressure on certain mobile connection commissions. As expected, these factors continued into the first half of this year.

“However, we remain confident in the Group’s trading outlook for the second half and its ability to generate significant free cash flow going forward.”

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