A NELSON communications group has put a rise in its pre-tax losses down to the acquisition of another company.

Daisy acquired Worldwide Group Holdings for more than £28million this year, which has seen losses rise to £13.8million, up from £8.9million last year.

Revenue has raised from £176million to £178.1m, while net cash generated from operating activities has gone up 53 per cent, from £13.1m last year to £20.1m this year.

Chief executive Matthew Riley, a high-profile local business leader who has appeared as a interviewer on TV’s The Apprentice, said: “We are pleased to report the results for this interim period, in which we have seen an improvement in revenue and adjusted EBITDA, as well as a return to strong levels of free cash flow generation.

“Our acquisition of Worldwide Group Holdings Limited, in a growing area of the market, is performing well. The business has achieved an encouraging level of annualised revenue growth so far, and the change of ownership has been welcomed by key customers.

“Whilst the sector continues to experience difficult macroeconomic and regulatory headwinds, we see our own performance balanced positively by our improving revenue mix and product diversification.

“Looking forward, we remain cautiously optimistic and expect to see continued strong free cash flow generation during the rest of the current financial year.”

In its six-month financial report for the period until September 30 the group said it would ‘continue to consider strategic acquisitions that provide clear value for shareholders.’