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(Sharecast News) - Unified communications-as-a-service provider Gamma reported continued strong demand in the UK and Europe business markets for its portfolio of products in a trading update on Wednesday, which through both direct and indirect channels had performed well through the year just ended.
The AIM-traded firm had raised its market expectations following its trading updates on 20 May and 13 July.
It said on Wednesday that it expected revenue for the year ended 31 December to be within the range of current market expectations, and adjusted EBITDA and adjusted earnings per share to be in the upper half of those forecasts.
The company said its closing net cash balance was £49.5m, up from £48m at the end of 2020, and ahead of expectations due to a strong working capital performance.
It said the year-on-year net cash increase was "particularly pleasing" given that during the year it spent £49.3m on acquisitions - primarily Mission Labs - and increased investment in product development compared to 2020, while paying dividends totalling £11.7m to shareholders, which was a year-on-year increase of 12.5%.
"We are pleased that Gamma has grown very strongly throughout 2021 while continuing to invest significantly in our business and executing against all aspects of our strategic plan," said chief executive officer Andrew Taylor.
"The demand for cloud communications across all geographies and market segments is positive and the long-term growth opportunity for Gamma is very significant."
Taylor said the company's unified communications-as-a-service (UCaaS) product strategy was progressing "very well", with positive overall performance of its product set - in particular the new products launched through the year.
"Our product set, digital channel and software development capabilities have been strengthened with the acquisition of Mission Labs and we are very pleased with how this is performing."
Gamma said it would announce its results for the year ended 31 December on 22 March.
At 1141 GMT, shares in Gamma Communications were up 1.54% at 1,584p.
12 Jan 2023 11:05
IN BRIEF: Gamma Communications eyes earnings in line with expectations
Gamma Communications PLC - London-based cloud communication services provider - Says UK business has continued to perform strongly throughout 2022. It notes healthy demand for broadening UCaaS portfolio and products enabling Microsoft Teams. "The strength of our financial performance more than offset the UK inflationary pressures, and the minor industry-wide hardware supply delays in the Direct channel were actively managed and resolved within the year," it adds. Cash stands at GBP92.2 million as at December 31, compared to GBP49.5 million a year ago.
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