27th Jan 2015 08:49
LONDON (Alliance News) - Gamma Communications PLC said Tuesday its revenue and earnings before interest, tax, depreciation, amortisation, exceptional costs and share-based payments for 2014 are to be slightly ahead of its original expectations.
The communications services firm floated on AIM last October, and expects to post GBP2.1 million in exceptional items for the year including GBP1.3 million in initial public offering costs, and to posted GBP3.4 million in share-based payments also related to its listing.
The company said it had seen strong demand for its portfolio of services, and its performance was driven by the growth in its number of channel partners in its indirect business to 730 from 650.
It said it has continued to execute its strategy of moving from lower-margin traditional voice services to higher-margin services, and managing the structural decline in wholesale calls and lines that has been "a feature of the market for some years".
Gamma said that prior to the year end it had made an acquisition of assets to strengthen its position in converged fixed and mobile services, and intends to provide a fuller update on this with its full-year results.
The company closed the year with GBP13.4 million in cash, compared to GBP14.6 million a year before, due to a deferred consideration for an acquisition, costs related to its listing, and the asset acquisition before the year end.
Shares in Gamma Communications are trading up 5.7% at 268.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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