Last checked at 23 Nov 2015 07:00
23 November 2015
Gamma Communications plc
Trading Update
and
Board appointment
Gamma Communications plc ("Gamma"), a leading technology- based provider of communications services to the UK business market, is pleased to give an update on trading and an appointment to the Board.
Trading Update and Exceptional Gain
The business has continued to trade strongly, with particularly encouraging growth in the sales of SIP Trunks and Cloud PBX services from both the Indirect Channel and Direct business units. The Board now anticipates that Group Adjusted EBITDA (which is stated before Share Based Payments and Exceptional Items - including the gain referred to below in relation to "Ladder Pricing") for the year ending 31 December 2015 will be ahead of previous expectations.
In addition to the improvement in trading position, Gamma had previously reported a contingent asset (note 10 in Half Year Results Statement) which related to "Ladder Pricing". Ladder Pricing was a mechanism which was used by fixed line operators to bill other operators for calls to certain 08 numbers. Gamma has been in commercial negotiations for a settlement in regard to its Ladder Pricing policy with the affected operators and these are now approaching a conclusion. The Board expects to receive a cash settlement shortly and hence will recognise an exceptional gain of approximately £5.5m for the year ending 31 December 2015.
Appointment to the Board
Gamma is pleased to announce that Richard Anthony Bligh (aged 54), the Company's Group Marketing Director and Managing Director of Gamma's Direct Mid-Market Channel, will be joining the Board on 1 December 2015 as Chief Operating Officer reporting to Bob Falconer, Chief Executive Officer. Richard has been with Gamma since 2004 and has over twenty years' experience in telecoms in a variety of marketing and business development roles. He currently holds 422,222 Gamma ordinary shares.
Save as disclosed above, there are no other matters which are required to be disclosed in accordance with Rule 17 and paragraph (g) of Schedule Two of the AIM Rules for Companies.
Bob Falconer, Chief Executive Officer, commented:
"I am very pleased with the continued strong trading of the Company. Our market-leading products are clearly in demand, sales are strong, and we continue to prepare for the launch of our own mobile service in H1 2016. It is also pleasing to be reaching a positive outcome from the Ladder Pricing dispute.
Richard has made a very significant contribution to the successful development of the business for over 11 years; I am delighted he will now bring his considerable knowledge and energy to the Board as COO".
For more information please contact:
Gamma Communications plc Tel: +44 (0)333 006 5972
Bob Falconer, Chief Executive Officer
Andrew Belshaw, Chief Financial Officer
Malcolm Goddard, Company Secretary
Investec Bank plc (NOMAD & Broker) Tel: +44 (0)20 7597 5970
Dominic Emery / Sebastian Lawrence
Patrick Robb / Matt Lewis
Tulchan Communications LLP (PR Adviser) Tel: +44 (0) 207 353 4200
James Macey White / Matt Low
Notes to Editors
Gamma is a rapidly growing, technology- based, provider of communications services to the UK business market. Gamma's services, such as Cloud PBX, Inbound Call Control Services and SIP Trunking, are designed to meet the increasingly complex voice, data and mobility requirements of businesses, through the exploitation of its know-how and own intellectual property.
Gamma also provides services such as business-grade broadband, Ethernet and mobile and data services and, as a consequence of its history, has a substantial voice service capability. These services enable Gamma to provide a comprehensive range of communications services.
Gamma has enjoyed strong organic revenue and EBITDA growth driven by high percentage of repeat revenues. The business has over 600 employees. It operates across six main locations - headquartered in Newbury - with offices in Fareham, Manchester, Glasgow, London & Budapest.