Gamma Communications PLC AGM Trading update
May 21 2024 - 1:00AM
RNS Regulatory News
RNS Number : 1831P
Gamma Communications PLC
21 May 2024
21
May 2024
Gamma Communications
plc
AGM trading
update
A positive start to the year
with strong UK performance, continued healthy cash generation and
full year guidance reiterated
Ahead of the Annual General Meeting
("AGM") to be held at 10.00am today at Investec, 30 Gresham
St, London EC2V 7QP, Gamma Communications plc ("Gamma" or
the "Group") confirms the following update on trading.
Group overview
Gamma is pleased with the strong
performance in 2024 to date, with healthy underlying performance
supported by recent acquisitions. It expects this to continue
through the rest of the year.
Highlights in the first part of the
year include:
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·
|
Gamma Business and Gamma Enterprise
have experienced a strong start. Recent acquisitions (Satisnet,
Pragma Group (EnableX) and Coolwave) are performing in line with
expectations and have added a number of key strategic products to
our portfolio.
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|
·
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During Q1 2024 Gamma Enterprise won
a five year contract for the supply, implementation and ongoing
managed service of an estate wide secure network infrastructure for
Wm Morrison Supermarkets. Further wins that deepen existing
customer relationships include a network and PhoneLine+ solution
for the Samaritans and Microsoft Teams for National
Highways.
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|
·
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The European business is currently
delivering lower growth than the UK, with a more challenging
macroeconomic climate and a small adverse impact from foreign
exchange.
|
|
·
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The balance sheet remains strong and
underlying trading continues to generate significant cash.
Gamma had net cash of £140.4m as at 30 April 2024 (30 April 2023:
£101.3m). This is after meaningful cash outflows for the
acquisition of Coolwave (initial cash payment, less cash acquired,
of £6.3m) and the share buyback programme (£5.0m to end of April,
in line with expectations).
|
Outlook
Based on our trading in 2024 to
date, the Board expects Adjusted EBITDA and Adjusted EPS (fully
diluted) for the year ending 31 December 2024 will be within the
range of latest market forecasts*.
The Board will provide its next
trading update with publication of the interim results for the six
months ending 30 June 2024 which is scheduled for Tuesday 10
September 2024.
*Company compiled range is based on known sell side analyst
estimates. The ranges are Adjusted EBITDA
of £120.9m - £127.4m and Adjusted EPS (fully
diluted) 78.4p - 84.0p.
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Enquiries:
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Gamma Communications plc
Andrew Belshaw, Chief Executive
Officer
Bill Castell, Chief Financial
Officer
Rachael Matzopoulos, Company
Secretary
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Tel: +44 (0)333 006 5972
CompanySecretary@gamma.co.uk
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Investec Bank plc (NOMAD & Broker)
Patrick Robb / Virginia
Bull
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Tel: +44 (0)207 597 5970
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Teneo (PR Adviser)
James Macey White / Matt Low /
Rebecca Hamer
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Tel: +44 (0)207 353 4200
Gamma@teneo.com
|
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