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Daisy reveals financial losses, buys MurphX IS

Microscope contributor

The multi-million pound losses Daisy Group chalked up in preliminary results released today has clearly not dampened its appetite to expand, as it shelled out £4.8m to acquire MurphX Innovative Solutions.

In numbers covering the fifteen months to 31 March 2010, the B2B unified comms provider posted revenues of £134.4m, adjusted EBITDA of £10.9m but an £11.1m loss from continuing operations and a £14m loss after tax.

"These results demonstrate the progress we have made towards our aim of becoming one of the largest UK providers of unified communications services and solutions to the SME and mid-market sector," said Daisy Group CEO Matthew Riley.

The numerous firms Daisy has taken over since it began the 'buy and build' strategy last July, have been integrated he said "providing significant cost savings which will be reflected in our results for the year to 31 March 2011."

The group is engaged in four key markets; network services, data and mobile solutions and maintenance.

It is difficult to make comparisons with previous years given the seven acquisitions Daisy made since last summer - Vialtus and Freedom 4, AT Comms and Eurotel, Redstone's telco unit, Managed Communications and BNS Telecom.

However the group did reveal it had integrated all the acquisitions and had made "solid progress" in working toward placing all services onto a single CRM platform and billing system.

Last week's disposal of WiMAX licenses to Broadband UK and the acquisition of unified comms player MurphX, further highlights Daisy's move from being a niche broadband provider into the unified comms space. .

The price for MuphX - which provides a range of services to the channel including VPNs, leased line and Ethernet connectivity and application services - could rise based on growth in EBITDA over the next three years.

Daisy Group secured an additional £75m in funding from bankers earlier this month to fund future purchases, and the market remains ripe for consolidation according to chairman Peter Dubens, in a statement that accompanied the prelims.

"The market environment remains difficult for smaller, sub-scale operators and this will provider further acquisition opportunities for the group during the current financial year," he said.


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