LONDON - Gamma Communications PLC (LON:GAMA), a prominent European technology-based communication services provider, has indicated a robust financial performance for the year ended December 31, 2024, in its latest trading update issued today. The company expects to report Adjusted EBITDA and Adjusted EPS (fully diluted) figures that align with market consensus, showcasing a year of healthy growth driven by organic expansion and strategic acquisitions.
In the UK, Gamma's Business and Enterprise units have continued their strong performance, maintaining gross margins and marking a significant achievement with over one million cloud seats now in use. Noteworthy contract wins include agreements with Morrisons Supermarkets, Equiniti and Quilter, as well as public sector entities like Dorset NHS and Westminster City Council.
The company's European operations, particularly in Germany, have also met expectations. This growth has been bolstered by the acquisition of Placetel. Further expanding its German market presence, Gamma announced the acquisition of STARFACE, an IP telephony solutions provider for SMEs, for €196 million on a debt-free/cash-free basis, pending regulatory approval.
Gamma's balance sheet reflects a healthy closing net cash balance of £153.7 million as of December 31, 2024, up from £134.8 million the previous year. This increase comes after the acquisitions of Coolwave and BrightCloud, and the completion of a share buyback program. The STARFACE acquisition is set to be financed with £125 million from Gamma's cash reserves and £40 million through a new £130 million multicurrency Revolving Credit Facility, which will also support future investments.
The company has reaffirmed its intention to transition to the Main Market, with completion expected in the second quarter of 2025. All preparations for this move are reportedly on track.
Gamma's CEO, Andrew Belshaw, expressed satisfaction with the 2024 results, crediting the company's growth to strong partnerships and an expanded product range offered to SME customers. He also extended gratitude to the team for their dedication over the year.
The Board plans to announce detailed full-year results and provide an update on the Main Market move on March 25, 2025. This trading update is based on a press release statement issued by Gamma Communications PLC.
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