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(Alliance News) - Gamma Communications PLC on Wednesday said it performed well in 2021 and expects revenue and earnings to be within expectations.
The London-based cloud communication services provider confirmed it expects revenue for the year that ended December 31 to be within the range of current market expectations.
Adjusted earnings before interest, tax, depreciation, and amortization and adjusted earnings per share are anticipated to be in the upper half of current market expectations, Gamma said.
These expectations are GBP444.5 million to GBP455.6 million for revenue and GBP90.5 million to GBP96.0 million for adjusted Ebitda.
EPS is expected to come in at 57.6 pence to 64.0p.
Overall, this would be an improvement from last year, when Gamma generated revenue of GBP393.8 million and adjusted Ebitda of GBP79.0 million, though EPS had amounted to 66.6p.
The communication services provider explained its growth in 2021 with continued strong demand in the UK and European markets for its portfolio of unified communications as a service products.
These performed well through both direct and indirect channels throughout the trading period, it said.
Its net cash balance at the end of 2021 was GBP49.5 million, a 3.1% increase from GBP48.0 million a year before.
This was ahead of expectations, due to a strong working capital performance.
Gamma also noted that this was "particularly pleasing", given that it spent GBP49.3 million on acquisitions and increased its investment product development in the year.
Furthermore, Gamma increased dividend payments by 13% to GBP11.7 million from GBP10.4 million the year before.
"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. The demand for cloud communications across all geographies and market segments is positive and the long-term growth opportunity for Gamma is very significant," Chief Executive Andrew Taylor commented.
Shares were up 2.0% at 1,590.44 pence each on Wednesday afternoon in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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