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21 May 2024 07:00
21 May 2024
Gamma Communications plc
AGM trading update
A positive start to the year with strong UK performance, continued healthy cash generation and full year guidance reiterated
Ahead of the Annual General Meeting ("AGM") to be held at 10.00am today at Investec, 30 Gresham St, London EC2V 7QP, Gamma Communications plc ("Gamma" or the "Group") confirms the following update on trading.
Group overview
Gamma is pleased with the strong performance in 2024 to date, with healthy underlying performance supported by recent acquisitions. It expects this to continue through the rest of the year.
Highlights in the first part of the year include:
· | Gamma Business and Gamma Enterprise have experienced a strong start. Recent acquisitions (Satisnet, Pragma Group (EnableX) and Coolwave) are performing in line with expectations and have added a number of key strategic products to our portfolio. |
· | During Q1 2024 Gamma Enterprise won a five year contract for the supply, implementation and ongoing managed service of an estate wide secure network infrastructure for Wm Morrison Supermarkets. Further wins that deepen existing customer relationships include a network and PhoneLine+ solution for the Samaritans and Microsoft Teams for National Highways. |
· | The European business is currently delivering lower growth than the UK, with a more challenging macroeconomic climate and a small adverse impact from foreign exchange. |
· | The balance sheet remains strong and underlying trading continues to generate significant cash. Gamma had net cash of £140.4m as at 30 April 2024 (30 April 2023: £101.3m). This is after meaningful cash outflows for the acquisition of Coolwave (initial cash payment, less cash acquired, of £6.3m) and the share buyback programme (£5.0m to end of April, in line with expectations). |
Outlook
Based on our trading in 2024 to date, the Board expects Adjusted EBITDA and Adjusted EPS (fully diluted) for the year ending 31 December 2024 will be within the range of latest market forecasts*.
The Board will provide its next trading update with publication of the interim results for the six months ending 30 June 2024 which is scheduled for Tuesday 10 September 2024.
*Company compiled range is based on known sell side analyst estimates. The ranges are Adjusted EBITDA of £120.9m - £127.4m and Adjusted EPS (fully diluted) 78.4p - 84.0p.
Enquiries:
| |
Gamma Communications plc Andrew Belshaw, Chief Executive Officer Bill Castell, Chief Financial Officer Rachael Matzopoulos, Company Secretary
| Tel: +44 (0)333 006 5972 CompanySecretary@gamma.co.uk |
Investec Bank plc (NOMAD & Broker) Patrick Robb / Virginia Bull
| Tel: +44 (0)207 597 5970 |
Teneo (PR Adviser) James Macey White / Matt Low / Rebecca Hamer
| Tel: +44 (0)207 353 4200 Gamma@teneo.com |
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