Gamma Communications Hikes Payout Amid Strong 2017 Profit Growth

22nd Mar 2018 12:34

LONDON (Alliance News) - Gamma Communications PLC hiked its dividend Thursday after profit and revenue both expanded strongly in 2017 amid "solid" growth across all product ranges and as it prepares to welcome a new boss.

In 2017, pretax profit expanded 22% to GBP26.4 million from GBP21.6 million the year prior. This was after revenue grew 12% to GBP238.4 million from GBP213.5 million the year before.

Gamma proposed a 5.6 pence per share final dividend, up 12% from 5.0p the year prior. For the full year, the dividend also rose 12% to 8.4p from 7.5p the year before.

"The business performed well throughout 2017, with solid growth across the product range and in both indirect and direct routes to market," outgoing Chief Executive Officer Bob Falconer said. "Our Cloud PBX product - Horizon - now has an excellent position and reputation in the market and continues to displace traditional on-premises equipment, whilst Gamma remains synonymous with SIP Trunking, where we have continued to outpace the market growth."

"Data volumes have accelerated both in our fixed and mobile capabilities and this will continue to be fuelled by the general shift to Cloud based services, the expansion of fibre reach in the UK and the necessity to work from anywhere," Falconer added. "We are seeing good returns on our selective investments in this area."

"Direct wins in enterprise and public sector include Leicester City Council, itsu, The Financial Ombudsman, and MacMillan Cancer Support", Falconer added. "Our investments in development have brought many useful product enhancements and I was particularly pleased to be able to launch our initial converged fixed/mobile voice service which brings real and novel benefits to a business user."

Falconer - CEO for 15 years - will be replaced by former Nomad Digital boss Andrew Taylor from May.

Gamma Chairman Richard Last added: "Gamma has made a significant investment in new product development and is in great shape for 2018 and the foreseeable future. The infrastructure is in place, the products are strong and the routes to market established."

Shares in Gamma were 1.4% higher at 740.00 pence on Thursday.

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