Gamma Communications PLC Trading Statement (9983J)
04 July 2017 - 4:00PM
UK Regulatory
TIDMGAMA
RNS Number : 9983J
Gamma Communications PLC
04 July 2017
4 July 2017
Gamma Communications plc
Pre-close trading update
Momentum maintained delivering strong results
Gamma Communications plc ("Gamma"), a leading, technology based
provider of communications services to the UK business market, is
pleased to announce a trading update for the six months ended 30
June 2017.
Group overview
We are pleased to report that Gamma has continued to perform
well through the first six months of the year. Some of the
highlights from the period include:
-- Continued strong growth in Gamma's SIP Trunking, Cloud PBX
and data services, with margins consistent with the prior
period.
-- Continued good progress with our direct business, with
significant new contracts including Macmillan Cancer Support and
Savills. In the Public Sector, prior investment in this market is
delivering success with several new contracts in health and
education including the Central Manchester University Hospitals NHS
Foundation Trust.
-- Network investment and strategic partnerships with other
carriers is accelerating data growth, whilst our Manchester venture
"The Loop" has been selected by euNetworks for the provision of a
significant network extension.
-- Successful launch of an online marketing platform together
with supporting programme - "Gamma Accelerate" - to help Channel
Partners drive new business opportunities for Gamma products.
-- Launch of Cloud Compute and Backup, providing packaged server
applications for small to medium businesses.
-- Extension of the Horizon Cloud PBX service to provide
increased integration with specific vertical CRM applications in
areas such as health.
-- We remain on target for the launch of our fixed/mobile
converged product later this year. With the migration from the
previous Vodafone Thin MVNO now complete, Gamma's own Full MVNO
service is now showing sound underlying growth.
Cash
Gamma continues to have a very robust balance sheet, with strong
cash generation from its trading activities. Cash conversion from
adjusted EBITDA* will be slightly lower than originally guided
because Gamma has taken the opportunity to pay some suppliers in
advance in return for improved commercial terms. Consequently, the
closing cash balance for the half year is approximately GBP28.7m
compared to GBP28.2m at the end of the previous year. The Directors
expect to propose an interim dividend in line with the stated
progressive policy.
The Board expect to announce results for the half year ended 30
June 2017 on 5 September 2017.
Bob Falconer, Chief Executive, commented on the results:
"The first half of 2017 has been another period of solid
progress for Gamma. We have continued to successfully grow revenue
and margin across our core business areas, and I am particulalrly
pleased with the progress we're now making in the Public Sector.
Other initiatives, such as Gamma Accelerate, are enabling our
primary route to market - the channel - to use Gamma products to
increase its market share. We continue to place growing resources
on continually enhancing our current products whilst developing
exciting new capabilities with significant potential."
*Adjusted EBITDA is EBITDA before exceptional items and share
based payments
Gamma Communications Tel: +44 (0) 333 006 5972
plc
Bob Falconer, Chief
Executive Officer
Andrew Belshaw, Chief
Financial Officer
Tulchan Communications Tel: +44 (0) 207 353 4200
LLP
James Macey White /
Matt Low
Investec Bank plc (NOMAD Tel: +44 (0) 207 597 5970
& Broker)
Patrick Robb / Matt
Lewis
Dominic Emery / Sebastian
Lawrence
This information is provided by RNS
The company news service from the London Stock Exchange
END
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