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(Alliance News) - Gamma Communications PLC on Monday said it had delivered increased revenue and profits in 2023, resulting in an improved cash position and prompting the company to launch a GBP35 million buyback programme.
Gamma Communications is a Berkshire, England-based provider of communication services to the UK, German, Spanish and Dutch markets.
In 2023, Gamma's pretax profit increased to GBP71.5 million, up 10% from GBP64.9 million.
Gamma's revenue rose 7.7% to GBP521.7 million from GBP484.6 in 2022.
Diluted earnings per share were up 8.5% to 54.9 pence from 50.6p a year prior.
The company has proposed a final dividend of 11.4p per share, up from 10.0p in 2022. Once approved, this will result in a full-year payout of 17.1p, an increase on 2022's 15.0p total dividend.
As at December 31, Gamma had GBP134.8 million in net cash, up 46% from GBP92.5 million.
Chief Executive Officer Andrew Belshaw said: "Gamma has produced another strong set of results. Recurring revenue, stable margins and cash generation continue to be a feature of our business. We have grown in each business unit and the growth in our European business is particularly pleasing."
Looking ahead, Gamma said that 2024 has shown signs of improvement on 2023's soft economic conditions, with slowing inflation reducing pressure on the company's overheads.
As a result of its improved cash position, Gamma also announced a new share buyback programme, set to run until September. Gamma said it will buy back up to GBP35 million worth of shares. The repurchase price was not disclosed.
Shares in Gamma Communications were up 1.0% at 1,364.00 pence each in London on Monday morning.
By Hugh Cameron, Alliance News reporter
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