10th Sep 2024 10:53
(Alliance News) - Gamma Communications PLC on Tuesday celebrated a "strong" first half and gave a healthy outlook, as it posted a profit and revenue rise.
The Berkshire, England-based provider of communication services said pretax profit rose 11% to GBP48.5 million in the first half of 2024, from GBP43.5 million a year ago.
Revenue was up 10% at GBP282.5 million from GBP256.2 million.
Chief Executive Officer Andrew Belshaw said: "Gamma has achieved another strong set of results, marked by robust revenue growth, stable margins, and strong cash generation. Our broadened product set is resonating well with both Channel Partners and enterprise customers. As customers require more complex communications solutions, we continue to see opportunities to grow our revenues further. We are making progress in developing a common Pan-European product set, expanding our enterprise offering while continuing to capitalise on the significant opportunities within our small & medium enterprises customer base."
Gamma declared an interim dividend of 6.5 pence per share, up 14% from 5.7p.
Looking ahead, Chief Financial Officer Bill Castell said: "Following a strong first half performance, growth is expected to continue across the second half and adjusted earnings before interest, tax, depreciation and amortisation is now anticipated to be in the top half and adjusted earnings per share at the top of the range of market expectations."
The company explained that its compiled consensus range of sell side analyst estimates is 2024 adjusted Ebitda of GBP120.9 million to GBP127.4 million. That would be between 5.8% and 11% higher than GBP114.3 million in 2023.
Further, Gamma said analysts expected adjusted earnings per share between 78.4p per share and 84.0p per share for 2024, between 4.4% and 12% higher than 75.1p in 2023.
Gamma shares rose 6.9% to 1,606.00p each on Tuesday morning in London.
By Tom Budszus, Alliance News slot editor
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