COMS firm Daisy Group yesterday said it hoped to break into profit by 2012 or 2013 despite reporting a first half loss of £9.8m, wider than the loss of £2.1m it booked last year.
The group reported a four-fold increase in revenues to £120m but made losses because of its heavy acquisition and amortisation costs.
The company, known for its buy-and-build strategy, has bought out 36 of its competitors since founder and chief executive Matthew Riley started the business in 2001.
When asked if Daisy was looking to acquire further competitors after the recent acquisitions of SpiriTel and NEG MBO Two, Riley said yesterday: “Exciting times are ahead.”
While many analysts praised Daisy’s revenue gains, finnCap’s Andrew Darley advised investors to sell Daisy shares. He said: “Unlike KCOM – a listed comparable company – Daisy does not offer a dividend and has a higher risk profile at a similar valuation.”
Despite this, Darley is optimistic for Daisy’s plans to expand into public sector phone systems regardless of the coming budget cuts.