Gamma Communications reports strong first half

Andrew Belshaw

Communications-as-a-service provider Gamma Communications says it has enjoyed a strong first half.

The Newbury-based firm said that in both the UK and Europe its “resilient recurring revenue model, combined with selected price increases and strict cost discipline, has helped mitigate inflationary pressures, ensuring that the Group has good momentum going into the second half of the year.”

Its indirect business is on track to meet its targeted eight per cent growth in profit for the year 2022, while its direct business “has seen a number of significant MS Teams user contract wins, including the Home Office and DWP in the public sector.”

The firm said it expected revenue growth to approach 10 per cent.

Its closing net cash at the half year was approximately £72.6 million compared to £49.5 million at the end of the previous year.

This was after paying £1.7 million of contingent consideration on acquisitions and making early supplier payments to receive attractive prompt payer discounts.

Andrew Belshaw, Interim Chief Executive, said: “I’m very pleased to report on a strong first half performance.

“Gamma is leveraging the full breadth of its market-leading product set both through the channel and direct across all of our markets.

“Although not immune from the macro-economic challenges ahead, our recurring revenue model, strong cash generation and healthy balance sheet enables us to continue to invest in the undoubted market opportunity.

“Churn and bad debt remains at low levels and these results demonstrate the resilience of the customer base and the importance they attach to Gamma’s products and services.

“We look forward to continuing this momentum into the second half.”