Daisy is a shopaholic. In its brief history, the business telecoms group has bought 18 companies.
This has come at a cost. Customer churn has meant the group is consistently in the red. It was a similar story this half, as losses accelerated due to mounting amortisation costs.
Cash conversion improved, however, which should provide some relief for investors.
Daisy’s shares currently trade on a forecast price/earnings ratio of 6.5, below the sector average and TalkTalk’s on 13.9. Unlike TalkTalk, though, Daisy does not pay a dividend, however, it has promised to pay one this year, if there are no big purchases. But until investors see the cash, the discount looks here to stay.
| Six months to Sept 30 | % change | |
|---|---|---|
| Sales | £178.1m | +1.2 |
| Pre-tax profit | (£13.8m) | -55.1 |
| EPS | (3.59p) | -78 |
| Dividend | n/a | n/a |
Copyright The Financial Times Limited 2013.
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