Gamma Communications PLC Trading Statement (1299Y)
12 Enero 2022 - 1:00AM
UK Regulatory
TIDMGAMA
RNS Number : 1299Y
Gamma Communications PLC
12 January 2022
12 January 2022
Gamma Communications plc
Trading Update
Full year adj EBITDA and adj EPS anticipated to be in the top
half of the range of market expectations
Gamma Communications plc ("Gamma"), a leading provider of
Unified Communication as a Service ("UCaaS") products, announces a
trading update for the year ended 31 December 2021.
Trading
There is a continued strong demand in the UK and European
business markets for Gamma's portfolio of UCaaS products, which
through both Direct and Indirect channels have performed well
throughout the trading period.
Market expectations were raised following the announcement of
Gamma's trading updates issued on 20 May and 13 July 2021. The
Board expects that revenue for the year ended 31 December 2021 will
be within the range of current market expectations and adjusted
EBITDA and adjusted EPS will be in the upper half of current market
expectations*.
Cash
The closing net cash balance was GBP49.5m (2020: GBP48.0m) which
was ahead of expectations due to a strong working capital
performance. The year on year net cash increase is particularly
pleasing given that during 2021 Gamma spent GBP49.3m on
acquisitions (primarily the acquisition of Mission Labs), increased
investment in product development compared to 2020 and paid
dividends to shareholders totalling GBP11.7m (2020:GBP10.4m), a
year on year increase of 12.5%.
Overview of the year
Some of the highlights from the year include:
-- The group performed strongly throughout 2021 despite the
ongoing economic uncertainty caused by Covid-19. Gamma's recurring
revenue model has proved robust, and importantly, its product set
supports businesses which have a need to both operate and work
remotely.
-- Unit sales of our core UCaaS products have continued to be strong in both the UK and Europe.
-- In our Direct business we have won several new multi-year
contracts, including The Berkeley Group (Horizon Contact), NFU
Mutual (SDWAN) and also a large central Government department
(fully managed Microsoft Teams deployment).
-- In March, Gamma acquired Mission Labs bringing additional
technology and product capabilities to the Group (Smart Agent and
Circle Loop) as well as adding important software development
capabilities. The integration of Mission Labs has gone well and is
proceeding in line with expectations. Gamma is leveraging Mission
Labs' relationship with Amazon to expand its offering into the
Enterprise market through the Smart Agent product, which has
generated new customers during the period. The Circle Loop product
(which is a digitally based Cloud PBX product aimed at the micro
business market) is also growing in line with expectations.
Moreover, the Mission Labs team is working well with the existing
Gamma technology and product teams which have collectively
accelerated progress on product and feature development.
-- The Group has continued to develop its suite of products and
has launched Horizon Contact (which is a Contact Centre as a
Service product) and has integrated Microsoft Teams to its market
leading Horizon Cloud PBX product.
-- Gamma has continued to develop its relationship with
Microsoft and launched Microsoft Teams Direct Routing in March -
essentially a SIP Trunk which works specifically with Teams. Gamma
was also added to Microsoft's select list of carriers who offer the
"Operator Connect" service which is designed to enable seamless and
integrated calling between Teams and the local telephony
infrastructure (known as the PSTN). This selection demonstrates the
strength of Gamma having both a UCaaS offering as well as an
ability to provide integration to the PSTN.
The Board expects to announce results for the year ended 31
December 2021 on Tuesday 22 March.
*Company compiled market expectations for the full year ended 31
December 2021 are revenue (GBP444.5m-GBP455.6m), adjusted EBITDA
(GBP90.5m-GBP96.0m) and adjusted EPS (57.6p-64.0p).
Andrew Taylor, Chief Executive, commented:
"We are pleased that Gamma has grown very strongly throughout
2021 while continuing to invest significantly in our business and
executing against all aspects of our strategic plan. The demand for
cloud communications across all geographies and market segments is
positive and the long-term growth opportunity for Gamma is very
significant.
"Our UCaaS product strategy is progressing very well, and we are
pleased with the overall performance of our product set, in
particular the new products which we launched through the year. Our
product set, digital channel and software development capabilities
have been strengthened with the acquisition of Mission Labs and we
are very pleased with how this is performing.
"I would like to take this opportunity to personally thank our
staff and partners for all of their support and hard work
throughout the year."
END
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 / Virginia Bull
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END
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January 12, 2022 02:00 ET (07:00 GMT)
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