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(Alliance News) - Gamma Communications PLC on Monday said that despite challenging conditions, its performance in the first half of 2020 is expected to result in earnings for its full year above expectations.
The communications services provider said it expects adjusted earnings before interest, tax, depreciation, and amortization for 2020 to be above GBP373.2 million and earnings per share ahead of 46.5 pence. For comparison, adjusted Ebitda for 2019 was GBP63.5 million, EPS was 36.1p, and adjusted EPS 40.8p.
Gamma said its UK and Europe business has remained robust as 93% of its revenue is recurring and cancellation of existing contracts have remained minimal.
During the six-month period, the company acquired Voz Telecom in Spain, HFO Holdings in Germany, Netherlands Cloud PBX provider GnTel and UK Microsoft Teams specialist Exactive. It noted that the integration of the Voz and HFO business is proceeding in line with plans and the acquisition of GnTel will give it access to a new group of channel partners and increase its Cloud PBX seats in Europe to over 100,000. Since the acquisition of Exactive in January, Gamma has secured over 6,000 new direct routing seats with organisations such as Metro Bank, Fraser Nash, Northern Marine and Baillie Gifford.
"I am encouraged by our performance in the first half of 2020 given the difficult economic conditions. I am very pleased with our continued focus on delivering against our near-term commitments as well as the execution of our longer-term UCaaS strategy, as exemplified by our geographical expansion into both Spain and Germany, and the strengthening of our UCaaS capabilities through the acquisitions of Exactive and Telsis in the UK," said Chief Executive Andrew Taylor.
As at the end of June, London-based Gamma had cash of GBP37.7 million.
Looking ahead, the company said it has continued to invest in its digital transformation program, through the launch of its Dealer Hub. It remains on target to launch Release 2 of the platform in the second half of 2020 which "significantly optimises customer order delivery and provides customers with an online community for support and digital engagement with Gamma".
It added it also is on track to launch a multichannel cloud contact centre solution aimed at small and medium-sized businesses.
Full interim results will be published on September 8.
Shares in Gamma were trading 5.1% higher at 1,545.00p each on Monday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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