Gamma Communications plc, the Newbury-headquartered IT and communications business, saw continued growth during the first half of the year. Unaudited results for the six months ended 30 June reveal that revenues rose by 23 per cent to £217.34 million.
The Group saw good growth across all key product categories in the first half. COVID-19 had only a minor impact on the overall financial performance of the business. UK Revenue growth in the period (which was largely organic) was nine per cent (from £166.8m to £182.0m). The European Business grew revenues from £10.6m to £35.4m which includes the inorganic growth from acquisitions in Spain and Germany.
In March the company acquired Mission Labs for 40.8m with up to an additional £6.0m contingent deferred consideration payable over the next three years assuming certain development milestones are met.
Gamma has partnered Mission Labs over the previous 18 months on various projects such as PhoneLine+, its cloud based voice application replacement service for a basic telephone line. The addition of the Mission Labs team has accelerated Gamma’s ability to take advantage of structural changes in the market which are leading to a greater adoption of cloud services.
Andrew Taylor, Chief Executive Officer, said: “We have delivered a strong business performance and a very good set of financial results in the first six months of 2021, with both our UK and European businesses continuing to develop positively. We have begun to successfully knit together our desired Western European footprint and as part of a structured group operating model and growth strategy, we are working with our local management teams to both further enable and accelerate our long-term Cloud PBX growth across Europe.
“Despite the economic and business market impact of the COVID-19 pandemic, our product performance was very robust and we continued to broaden and strengthen our market capabilities through the development and launch of new products and services. During the period we have reinforced the execution of our UCaaS strategy, which is progressing very well, with the strengthening of both our overall technology and product capabilities. As ever, we have continued to invest and strengthen both our direct and indirect channel propositions across all markets, with a focus on positively enabling our partners and our end-customers to be competitive and highly successful in their respective markets.”
Gamma was established in 2002 and is now an AIM listed company in the UK. The business operates in the UK, Netherlands, Spain and Germany and is looking to further expand its European presence.