Telecoms business secures £75m finance package

Daisy Group plc, a leading provider of unified communications to the SME and mid-market has completed a £75m refinancing supported by Yorkshire Bank.

The investment will replace the company’s existing funding package, providing working capital and finance for further acquisitions. Yorkshire is one of three banks each providing £25m, the others being Lloyds and HSBC.

Daisy plc provides integrated voice and data services telephone lines, mobile telephony, broadband and web hosting to around 75,000 customers. It employs around 1,000 staff and has bases nationwide including Nelson in Lancashire, London and Northumberland.

The business was established in 2001 in Nelson, by entrepreneur and current CEO Matthew Riley. It grew rapidly, integrating 23 acquisitions before its flotation on AIM in July of last year and has completed a further six acquisitions since then.

Daisy’s management team also includes executive chairman Peter Dubens who previously established two other successful listed businesses, 365 Media Group plc and Pipex Communications plc.

Owen Malton, director with Yorkshire Bank Corporate & Structured Finance in Manchester said: “Daisy has a tried and tested strategy focused on consolidation within the business to business telecoms market. Its ability to make acquisitions and integrate them rapidly allows it to benefit from cost savings and offer a wide range of telecom products principally to the SME sector from a single customer service and billing platform.

“This is an opportunity for Yorkshire Bank to invest in a successful telecoms business with a strong dynamic and experienced management team with a proven track record and successful integration strategy. The finance package will provide cash to fund future acquisitions and continue its growth.”

Matthew Riley CEO of Daisy Group plc said: ”We are delighted to have chosen Yorkshire Bank as one of our preferred funding partners and were impressed with their quick grasp of the key fundamentals of our business, strategy and their ability to deliver. This additional funding will assist the group in pursuing its stated ambition to consolidate the fragmented reseller market with its acquisition strategy, continuing an exciting period in the groups’ growth trajectory”.