Gamma Communications PLC Trading Statement (8068Z)
15 Enero 2020 - 1:00AM
UK Regulatory
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
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END
TSTMZGMMGDKGGZZ
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January 15, 2020 02:00 ET (07:00 GMT)
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