Gamma Communications PLC Trading Statement (5870C)
January 23 2018 - 1:00AM
UK Regulatory
TIDMGAMA
RNS Number : 5870C
Gamma Communications PLC
23 January 2018
23 January 2018
Gamma Communications plc
Trading Update
Continued growth in key markets
Full year results anticipated to be slightly ahead of market
expectations
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 year ended 31 December
2017.
Group overview
We are pleased to report that Adjusted EBITDA* for the year
ended 31 December 2017 is anticipated to be slightly ahead of
market expectations. This reflects a strong demand in the business
market for Gamma's portfolio of products. Some of the highlights
from the year include:
-- Continued strong growth in all non-traditional products -
o SIP Trunking and our Cloud PBX ("Horizon") continue to grow
ahead of the market;
o Volumes of access products (Broadband and Ethernet) are
increasing as a result of past investment; and
o Volumes growing as our mobile proposition becomes more
established.
-- Gamma successfully launched its fixed/mobile converged offering in December 2017.
-- The direct business made further progress with significant
new contract awards including; Care UK, Rush, Stackhouse Poland and
Thrifty UK (the latter has adopted Gamma's cloud compute platform).
Our Public Sector base continues to grow with key wins from
Merseyside Police and Norfolk and Suffolk NHS Foundation Trust.
-- The new high capacity national optical network project is on
schedule and on budget. This will enable Gamma to deliver services
at 10Gb/s and above in the second half of 2018.
Cash
The closing net cash balance for the year was GBP31.6m compared
to GBP28.2m at the end of the previous year, an increase of GBP3.4m
in the year. This was achieved despite a significant capex
programme for the year which included cGBP13m spent on the network
(of which cGBP5m was spent on the new national network).
The Board expects to announce results for the full year ended 31
December 2017 on Thursday 22 March.
Bob Falconer, Chief Executive, commented on the results:
"We are pleased that Gamma has continued its strong, organic
growth across both its markets and its product range during 2017.
In the channel, we have successfully increased our focus on helping
to grow the market share of those partners that work closely with
us, whilst our direct business successfully pursues opportunities
in the larger enterprise and public sector markets. The launch of
our first converged fixed/mobile offering in December also brings
new opportunities."
*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
Andrew Pinder / Sebastian
Lawrence
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTZMGZMNZRGRZM
(END) Dow Jones Newswires
January 23, 2018 02:00 ET (07:00 GMT)
Gamma Communications (LSE:GAMA)
Historical Stock Chart
From Apr 2024 to May 2024
Gamma Communications (LSE:GAMA)
Historical Stock Chart
From May 2023 to May 2024