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(Alliance News) - Gamma Communications PLC on Tuesday said it had a good financial performance across all business units throughout 2020, with revenue and earnings at the top end of and above market expectations, respectively.
The London-based cloud communication services provider's 2020 pretax profit rose 66% to GBP75.0 million from GBP45.2 million in 2019.
Gamma's 2020 revenue grew 20% to GBP393.8 million from GBP328.9 million in 2019, which is towards the top end of the market expectations range of GBP371.8 million to GBP396.7 million.
Its 2020 adjusted earnings before interest, tax, depreciation and amortisation increased by 24% to GBP79.0 million from GBP63.5 million in 2019, which is slightly above the company-compiled consensus range of GBP73.9 million to GBP76.0 million.
Gamma said these increases were due to sales activity returning to pre-Covid levels in the second half of the year, with sales in its UK Indirect and Direct Businesses continuing to grow "strongly" with a focus on the existing partner base.
As a result of remaining "cash generative", Gamma declared a 2020 total dividend of 11.7 pence, up 11% from 10.5p in 2019. This is the sum of a final dividend of 7.8p and an interim dividend of 3.9p.
Shares in Gamma were up 7.0% at 1,690.00p in London on Tuesday.
"We have delivered a good business performance and set of financial results for 2020, with both our UK and European businesses continuing to develop and grow. Despite the Covid-19 pandemic, our product performance was positive, and we continued to strengthen our market capabilities through the development and launch of new products and services. During the year we have reinforced the execution of our unified communications as a service strategy, which is progressing very well, with the strengthening of both our geographical reach and overall product capabilities. As ever, we have continued to strengthen both our Direct and Indirect channel propositions across all markets, with a focus on positively supporting our partners and our customers," said Chief Executive Andrew Taylor.
Looking ahead, Gamma said it is positive about the outlook for 2021 and beyond.
"Our product set is well suited to organisations that wish to work remotely as part of their disaster recovery plans or who will choose to allow more flexible working in future. We believe that experiences learned from the Covid-19 pandemic will demonstrate the advantages of UCaaS to businesses of all sizes across all industries and we expect to see continuous growth in UCaaS product sales," said Gamma.
Additionally, Gamma said Alan Gibbins is to step down as non-executive director at the company's annual general meeting on May 20.
Gibbins has worked for the company for six years, during which he oversaw the executives' development of the group's financial control environment. Gamma said he also "contributed significantly in formulating and overseeing the implementation of the group's strategy."
By Zoe Wickens; zoewickens@alliancenews.com
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