DAISY Group, the business communications service provider, saw a 2.5 per cent drop in its share price yesterday after its losses widened from £3.59m to £3.9m during the six months to 30 September.
Chief executive Matthew Riley told City A.M. that the losses are part of a wider market trend: “Mainly due to the fixed line decline in the market that everyone’s seeing, so the plan is to sell data and system services that are all in growth.”
Despite revenue falling a further 2.3 per cent to £173.9m Riley did not rule out further acquisitions, “We’ve got a £100m bank facility that is set to be used for acquisitions and if the right acquisition comes along then we’ll look to acquire. We’ve got a strong track record of managing those acquisitions and bringing them in on target and on time.”
Riley said the company’s sales pipeline continues to strengthen as Daisy increases the cross selling of its services. Investors were less confident in the results as Daisy Group’s share price fell to 199p.