Daisy Group has offloaded its peripheral WiMAX spectrum licenses to UK Broadband for £12.5m.
The WiMAX licenses were held within a sub-group of Freedom4 Ltd, which Daisy reversed into last year and had been earmarked for disposal after making a loss of £2.4m in the first nine months of 2009
At the same time, Daisy has cast off its unprofitable WiFi unit (Freedom4 WiFi) to the existing management team for a nominal sum. The unit made a £300,000 loss in the 15 months to 31 March 2010 and drained £200,000 a year in cash.
The group plans to concentrate its efforts on conquering the unified communications sector for SME and mid-market business customers, said Daisy Group CEO Matthew Riley.
"The WiMAX and WiFi businesses were not core to the Daisy Group, and the disposals mean we can focus on our unified communications strategy, as well as improve cash flow," said
The Freedon4 sub-group was valued at £4.25m within Daisy's interim consolidated balance sheet on 30 September. The sale will free up £800,000 a year in cash.
The subsequent closure of the Freedom4 sub-group will save an additional £1m in cash per year, Daisy said.
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