Daisy Group is on the hunt for more deals with new warchest

Oliver Smith
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DAISY Group, the Aim-listed telecoms provider, is targeting further acquisitions and has renegotiated its £200m borrowing facilities to fund new deals.

Yesterday the firm reported its operating loss had widened 6.5 per cent to £17.9m during the year to 31 March, due to the increased costs associated with its recent purchases.

“We’re highlighting that we continue to be in an acquisition phase and some of those acquisitions may even become bigger and more meaningful, I think we’re ready to continue to acquire,” Daisy Group finance chief Steve Smith told City A.M.

The company was itself a takeover target earlier in the year, holding talks with Liberty Global that broke down in March.

The group said it had £195m of banking facilities in place from Barclays, HSBC, Lloyds, Royal Bank of Scotland and three others.

“Since the year end, a number of changes have been made to the bank facilities, the principal change being the removal of term loan amortisation, which provides further capacity for acquisitions…

“These changes reflect the confidence of management and the lenders in the cash-generating capabilities of the business,” Daisy said in its results statement.

Revenues inched up 0.3 per cent to £352.7m. Daisy raised its full-year dividend by 15 per cent.

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