14th May 2025 10:36
(Alliance News) - Gamma Communications PLC shares slumped on Wednesday, as it reported continued weakness in the UK market.
Gamma shares tumbled 13% to 1,136.92 pence each on Wednesday morning. It has made a tough start to life on London's Main Market, down 15% since moving from AIM roughly two weeks ago.
The provider of business-to-business communication services said it has taken a "number of prudent actions to manage costs" as tough market conditions in the UK persist.
"In the March results, we noted the challenging UK market conditions as part of the wider macro-economic picture. Since those results, we have seen ongoing softness in the UK market conditions continue," Gamma said.
Elsewhere, trading in 2025 "has begun positively in continental Europe", helped by recent acquisitions in Germany.
In February, it sealed the buy of SF Technologies Holding GmbH, trading as Starface. It completed the buy of BroadSoft Germany GmbH, also known as Placetel, in September.
Gamma expects adjusted earnings before interest, tax, depreciation and amortisation and fully diluted adjusted earnings per share for 2025 to be within the range of latest market forecasts.
This equates to an adjusted Ebitda of GBP139.4 million to GBP46.0 million and an adjusted EPS between 89.9p and 94.8p. For adjusted Ebitda, it would represent a rise of at least 11% from GBP125.5 million and for EPS, a climb of at least 5.6% from 85.1p.
By Eric Cunha, Alliance News news editor
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