GAMA Gamma Communications Plc

TIDMGAMA

RNS Number : 8068Z

Gamma Communications PLC

15 January 2020

15 January 2020

Gamma Communications plc

Trading Update

Strong growth in UK and Netherlands

Full year EBITDA anticipated to be at the top of market expectations

Gamma Communications plc ("Gamma"), a leading, technology-based provider of communications services, announces a trading update for the year ended 31 December 2019.

Trading

We are pleased to report a financial performance significantly ahead of last year with adjusted EBITDA and adjusted EPS for the year ended 31(st) December 2019 expected to be slightly ahead of consensus*, with revenues growing in line with market consensus expectations. This performance reflects a continued strong demand in the UK and Dutch business markets for Gamma's portfolio of products and services.

Cash

The closing net cash balance for the year was GBP53.8m compared to GBP35.5m at the end of the previous year, an increase of GBP18.3m in the year. This increase has been achieved despite a cash outflow in respect of acquisitions of GBP7.5m (Nimsys in the Netherlands in February and Telsis in the UK in November).

Overview of the year

Some of the highlights from the year include:

   --    Continued strong growth in key products within the UK - 

o We continue to grow volumes in SIP Trunking and Cloud PBX ("Horizon").

o Positive market reception for Collaborate, our fully integrated Unified Communications offering.

o Broadband and Ethernet volumes increased at rates ahead of the general market.

-- Our business in the Netherlands continues to increase volumes in its Cloud PBX and Mobile offerings at rates ahead of market growth. We acquired Nimsys in February 2019 to expand our presence in the Netherlands and the integration of that business has gone well.

   --    We continue to develop our Unified Communications as a Service ("UCaaS") product road map. 

o In March, we launched "Collaborate", which provides video and audio conferencing and instant messaging services which are fully integrated into Horizon.

o In November, we acquired Telsis, a developer of UCaaS solutions for small to medium size enterprises. This brought a combination of specialist development skills and engineering expertise to Gamma which will enable Gamma to expand its UCaaS offering.

o We will shortly launch a specific SIP Trunking product to support the deployment of Microsoft Teams (which is typically used by larger corporates).

-- The direct business in the UK has grown new sales and its order book significantly in 2019. This provides a strong foundation to meet our aspirations for growth in 2020 and beyond. We have also successfully focused in 2019 on upselling and cross selling to existing customers which has delivered significant year on year growth.

The Board expects to announce results for the year ended 31 December 2019 on Tuesday 17 March.

Andrew Taylor, Chief Executive, commented on the results:

"We are pleased that Gamma has continued to grow strongly in both the UK and the Netherlands. Our core SIP and Cloud PBX products continue to perform well and we are pleased with the progress of Collaborate. We are excited about the possibilities that the acquisition of the Telsis development capability affords for future product development."

END

* Note: Company compiled consensus expectations for Revenue, Adjusted EBITDA and EPS are GBP329.8m, GBP62.3m, and 39.9p respectively.

 
 Gamma Communications plc           Tel: +44 (0) 333 006 5972 
  Andrew Taylor, Chief Executive 
  Officer 
  Andrew Belshaw, Chief Financial 
  Officer 
 
 Tulchan Communications LLP         Tel: +44 (0) 207 353 4200 
  James Macey White / Matt Low 
 
 Investec Bank plc (NOMAD &         Tel: +44 (0) 207 597 5970 
  Broker) 
 Patrick Robb / Andrew Pinder 
  / Sebastian Lawrence 
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

TSTMZGMMGDKGGZZ

(END) Dow Jones Newswires

January 15, 2020 02:00 ET (07:00 GMT)

Grafico Azioni Gamma Communications (LSE:GAMA)
Storico
Da Mar 2024 a Apr 2024

Grafico Azioni Gamma Communications (LSE:GAMA)
Storico
Da Apr 2023 a Apr 2024