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Sales flat for takeover-tastic Brit IT bods Daisy Group

Continued losses could bode ill for nearly private biz

Comms and tech supplier Daisy Group, which is to be de-listed from the Alternative Investment Market (AIM) this month, has posted an operating loss of £8.1m for the first six months to September 2014.

According to its audited half-year financials posted on 31 December, revenue dropped just 0.3 per cent from £173.9m to £169.6m. Gross profits remained almost identical at £67.37m, compared with £67.32m for the same period in 2013.

Revenue remained stable for the firm's financial year ended March 2014, despite a series of acquisitions made during that period. Sales rose just 0.3 per cent to £352m, compared to 2013's £351.5m, while operating losses for the year were £17.8m.

In October last year, Daisy agreed to a £500m takeover deal by a consortium of investors led by the chief executive of the firm, Matthew Riley.

Riley is to become exec chairman when the business goes private, and is bringing in Computacenter's UK MD Neil Muller as his CEO successor.

Back in May 2013 the firm acquired Daisy Data Centre Solutions – formerly part of collapsed 2e2 – for £7.5m, mobile distribution business MoCo for £1.9m in June 2013, IT firm Indecs Computer Services in October 2013 for £18m, and telecoms consultancy ABSE for £7.9m in February 2014.

It also acquired IT firm Advanced Business Solutions in May 2014 for £1.8m.

The VC consortium that is currently swallowing the British group said in October that to maintain top line expansion, it will look to make chunkier acquisitions. ®

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