8th Dec 2016 10:27
LONDON (Alliance News) - Telecoms services provider Alternative Networks PLC reported Thursday a drop in profit and revenue for its most recent financial year, as it continues to progress towards a possible takeover by privately held Daisy Intermediate Holdings Ltd.
Alternative Networks reported its pretax profit was GBP9.3 million for its financial year ended September 30, down by a third from GBP13.8 million the prior year. Revenue dipped by 8.0% to GBP135.8 million from GBP146.8 million.
The company said its performance was hit by the reset on UK mobile carriers tariffs on world roaming, and the uncertainty surrounding the UK's referendum on European Union membership.
No final dividend was proposed, due to the recommended offer from Daisy for Alternative Networks. The company's management has recommended the 335.0 pence a share offer, which values the company at approximately GBP165.3 million.
Shares in Alternative Networks were flat at 332.75p Thursday morning.
"2016 has been a challenging year overall, impacted by two unforeseen events; being the mobile roaming tariff reset and the uncertainty in the run up to and caused by the result of the United Kingdom's European Union membership referendum. These events impacted the financial performance of the group, but we have continued to invest in the business and drive improvements in customer service and operational performance whilst launching new innovative products," said Mark Quartermaine, chief executive.
"The improved profit performance in the second half of 2016, together with the high recurring revenue levels in the group and continued robust cash generation, means that the board is confident that the business is well placed for the future. The combination with Daisy will ensure that the group is best placed to capitalise on future growth opportunities and remain the provider of choice for our customers," added Quartermaine.
By Adam Clark; [email protected]
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