SpiriTel, the business communications group, has announced preliminary results for the year ended 30 April 2010 which indicate the group is reaping the rewards of organic growth achieved through major account successes.
Headline revenue and underlying EBITDA grew to £21.3m and £1.6m respectively but FinnCap’s Andrew Darley is forecasting revenue of £36m and underlying EBITDA of £4.8m in the current year to April 2011, reflecting the contribution from recent acquisitions and an impressive 15% organic growth rate. Reviewing the results he noted: “Management delivery on the holy trinity of organic revenue growth, successful integration of acquisitions, and ongoing cost savings, gives us confidence of continuing progress and perpetuated margin improvement.”
Commenting on the audited results, SpiriTel’s Chairman, Lord St. John of Bletso said: “I am delighted to report a period of further growth across all key operational and financial performance criteria and that our current financial performance is far higher than the reported results. The Group successfully integrated five earnings enhancing acquisitions during the second half of the year and completed one further acquisition post year end. The business continues to perform well in difficult times and I am confident that we are well positioned to exploit opportunities arising from the anticipated recovery of the wider economy.”
Contributing significantly to profitability is SpiriTel’s ability to hold on to existing business where churn rates are less than 5% for fixed line and sub 8% in mobile communications- both market leading figures.
Chief Executive, Alastair Mills added, “The year to 30 April 2010 was another period of significant progress for SpiriTel, our third consecutive year of growth in revenues, underlying EBITDA and customer numbers. I remain confident in the Group’s strategy of increasing shareholder value through acquisition led growth combined with organically generated growth from cross selling.”
Commenting on the outlook Lord St John of Bletso concluded, “Whilst SpiriTel continues to operate in a challenging economic environment, we are realising the benefits of our increasing scale and a broad and innovative product set. These benefits are evident both in terms of the contracts we are winning and the Group’s ability to bolt-on acquisitions swiftly and efficiently with the cost and revenue synergies they bring. SpiriTel has a superb staff, all of whom have put in sterling work over the past year to open up pathways to growth at a time when general economic conditions have been less than favourable.
The business continues to perform well in difficult times, significantly ahead of the reported results, and I am confident that we are well positioned to exploit the opportunities arising from the anticipated recovery of the wider economy.”