Daisy Group reportedly in talks to purchase TalkTalk for £175m
TalkTalk has posted £73m in annual losses this morning following reports that telecoms business Daisy Group is in talks to purchase the firm for £175m.
Speculation had been building overnight that Daisy Group, based in Northampton, would purchase TalkTalk’s business-to-business operations. The firm, has recently struggled with poor trading over the past few months seeing sales dropping 4% to £1.7bn for the year. The firm also reported this morning an operting profit of £91m down from the £224m experienced in the prior year.
It’s been said that the loss has been attributed to the costs of implementing a £119m turnaround and restructure plan.
In a statement, Tristia Harrison, TalkTalk CEO, said: “Last year we set out a strategy to radically simplify the business, focussing on fewer priorities that offer the best growth potential. TalkTalk has real strength in the Partner and Wholesale markets, where we have scale and a clear leadership position.
“It represents the vast majority of our revenue and profit and we see real opportunity to continue growing at pace. This proposed deal would allow us to focus on growth in those core B2B markets, whilst also removing significant complexity and cost from the business.
“As an existing strategic partner, Daisy is well placed to serve all direct customers, who would remain on our network and provide ongoing revenue.”
Daisy Group is a provider of business communications, IT and cloud services, employing 4,000 people across the UK. In an interview with BLM last year, CEO Neil Muller spoke about how his company is on a mission.