Gamma announces interim results for six months to June 2015


Gamma Communications plc, a leading, technology based provider of communications services to the UK business market, is pleased to announce its unaudited interim results for the six months ended 30 June 2015.

Financial highlights

Six months ended 30 June 2015 Six months ended 30 June 2014 Change (%)
Revenue £92.4m £83.6m +10.5%
Gross Profit £39.2m £32.0m +22.5%
Gross Profit margin 42.4% 38.3% +4.1%
EBITDA £11.2m £10.0m +12.0%
Adjusted EBITDA* £13.0m £10.9m +19.3%
Adjusted EBITDA* £13.0m £10.9m +19.3%
Profit Before Tax £7.6m £7.2m +5.6%
Adjusted Profit Before Tax* £9.4m £8.1m +16.0%
EPS (diluted) 6.7p 6.4p +4.7%
Adjusted EPS* (diluted) 8.2p 7.1p +15.5%
Interim Dividend per share 2.2p N/A N/A
Net operating cash inflow before tax** £10.9m £8.5m +28.2%

* before share based payments and exceptional items (and associated tax effects)
** being “Net Cash flows from operating activities” plus “Taxes paid”

Operational highlights in six months to 30 June 2015

  • The number of installed SIP Trunks increased from 234,000 to 283,000 (21%)
  • The number of Cloud PBX users increased from 80,000 to 107,000 (34%)
  • Margin from the direct business increased from £6.5m to £8.9m (37%)
  • Gamma has continued to successfully build its customer base (helped by the increased market awareness around the IPO):
    • Strong revenue and margin growth in direct sales, with wins including Taylor Wimpey, The Law Society, Metrobank and Moneysupermarket
    • Increasing focus on larger customers on multi-year contracts with the number of direct customers with monthly billing of over £5,000 at the end of the period increased from 90 to 99 (10%)
    • The multi-site data network service was successfully launched in June as planned
    • Gamma has been awarded a place on eight Lots on the new Crown Commercial Service Network Services agreement (RM1045)
  • Channel Partner distribution network grew from 725 to 782 (8%)
  • Good progress with development of new mobile service, with launch now targeted for H1 2016

Bob Falconer, Chief Executive, commented: “We are pleased with the progress we have made in the first half of 2015. Our current strategic products have continued to grow well in both Channel and Direct markets. Good progress has been made with our pipeline of new products, with our multi-site data network launched on time at the end of June. Our new mobile service is now planned for launch into the market in the first half of 2016. A strong position on the new Crown Commercial Services framework (RM1045) positions the business well for opportunities in the public sector, an area where Gamma is currently under-represented.”