5th Jun 2020 10:34
(Alliance News) - Gamma Communications PLC said Friday prior to its annual general meeting that it grew strongly in the first quarter of the year, as continued momentum leads to a positive outlook for the rest of the year.
In the lead up to the UK lockdown in late March, the company reported higher demand for its Collaborate UCaaS product and for the soft client for its Cloud PBX product, which allows users to access the service remotely.
Since the lockdown started, Gamma has reported continued growth from the SIP Trunks and Cloud PBX seats, although at a lower rate compared to the first quarter, while the cancellation of existing contract remain at minimal levels.
As the group has recognised that some of its customers in contract are not currently trading, the group has allowed them to hibernate their voice services until June 30, so that they do not have to pay for it when it is not in use.
Gamma expects to lose GBP1.2 million in earnings before interest, taxes, depreciation and amortisation.
The group's Dutch business has continued to trade positively and in line with expectations, with similar trends to the UK.
Although Gamma meets the criteria to make a claim under the UK government's Covid-19 job retention scheme it has taken the decision to not make a claim on the grounds that the scheme is "designed to protect jobs rather than to boost profits for companies who have been able to continue to trade".
Looking ahead, despite uncertainty over the depth and length of the coming recession, the board remains positive about its prospects, with high levels of interest in Cloud PBX and UCaaS products in all of its geographic markets.
Shares in Gamma Communications were up 0.4% at 1,235.00 pence on Friday in London.
By Dayo Laniyan; [email protected]
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