LONDON (Alliance News) - Daisy Group PLC Tuesday said that its revenue and profits for the first half of the year are in line with management expectations, buoyed by large managed-service wins and the recent acquisition of its hosting business.
The business-communication services provider said that its confident in meeting full-year market expectations, and has agreed a new commercial deal with mobile provider Vodafone Group PLC, which it hopes will boost growth in its mobile business.
Daisy said that its new data centre business acquisition, Daisy Data Centre Solutions Limited, which was formerly owned by 2e2, is performing in line with expectations, and is making good progress in signing new contracts with its former customer base.
Daisy also said that during the period its core retail business won a number of managed service contracts with public and private sector customers. It said that the contracts should provide good quality cashflow over the span of the contract, following some upfront investment.
Broker Liberum Capital expects Daisy Group to continue making earnings-enhancing acquisitions, and reiterated its Buy recommendation on the shares. It also raised its target price to GBP1.55, from GBP1.40 per share.
The company is expected to release its interim results on December 3.
Daisy Group shares were trading at 148.00 pence per share Tuesday morning, up 6.5% or 9.00 pence.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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