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Best ever financial results from Gamma

Press release 16/03/2011

Newbury-based telecoms company Gamma Telecom has posted its full year financial results for 2010.

The key headlines are:

- Underlying revenue increased by £6.6m (+5.6%).* Total revenue was £126.2m.
- Gross profit percentage grew from 23.6% to 26.5% due to the increased proportion of business coming from higher margin IP and software based products.
- EBITDA increased from £6.5m to £7.9m (+21.5%). **
- Profit before tax was up from £2.3m to £3.9m (+69.6%).
- Net cash flow was up by 5% to £4.3m.
- The business is now demonstrating a consistent pattern of positive cash generation - £12.5m over the last three years.
- At the end of 2010 the business had a positive Net Funds balance of £2.8m.
- 46 new heads overall last year across the business. Total headcount 290.

*excluding the full year impact of the loss of the Tiscali contract following the sale of the business in July 2009
** Despite the loss of Tiscali

Bob Falconer, CEO of Gamma Telecom, commented, "2010 has been a good year of progress for the Gamma group with every key area in the business demonstrating solid improvement backed by a strong set of financial results. Our customer base has widened and strengthened, with a much reduced dependency on any single customer and a rapidly growing contribution from our newer products such as our Inbound suite of services which has exceeded our expectations."

Falconer continues, "Looking ahead, we shall be driving forwards with our investment programme, introducing a number of significant new services for 2011 with the objective of continuing to give Gamma Partners that extra edge in the marketplace. These include a range of new data services; a new hosted platform; and, off the back of our recently announced MVNA agreement with Vodafone UK, a more comprehensive mobile offering that offers true FMC."

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