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Daisy numbers show impact of roll-up strategy

Alex Scroxton

After acquiring numerous businesses during the course of 2010, comms and networking reseller Daisy Group has posted a pre-tax loss of £9.84m on sales of £119.9m, up 288% year-on-year for the six months to the end of September.

However, income tax benefits and profit from discontinued operations pushed the net figure into the black, with post-tax profit hitting £954,000, reversing a year-ago loss, while adjusted EBITDA was £16m.

"The period under review has included significant corporate activity and the team has worked exceptionally hard to ensure that the Group is in a position to report such strong results," said CEO Matthew Riley.

"The integration of the Group's acquisitions has proved timely and successful; illustrating that our integration structure and processes are efficient and effective and will serve the Group whilst it continues to drive its stated growth strategy," he added.

Daisy has not yet shown any signs of winding down its 18-month and counting acquisition spree.

It embarked on an epic roll-up of firms in the networking and communications space in 2009 - bought healthcare networking supplier NEG and Mitel partner SpiriTel for £23.5m and £27.5m respectively.

During its first half it also splashed out on CRC, Fone Logistics and Murphx - the latter two of which were funded from a £75m credit facility.

In its statement to the City this morning, Daisy provided an update on the integration process

CRC has now been absorbed into its Wholesale division and its Stoke premises have been shut, while Fone Logistics has been integrated into Daisy's Mobile Distribution division and is now managed out of Daisy's Ipswich office. Its Northumberland base has also been closed.

The Murphx business, based in Hampshire, now forms the basis of Daisy's Wholesale business, which manages the combined reseller-facing activity of both firms and accounted for £12.5m or 10.5% of the Group's revenues for the period.

Daisy's other two units, Retail and Mobile Distribution, contributed £89.5m and £18m to the coffers respectively.


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