Gamma Communications plc, a leading, technology based provider of communications services to the UK business market, reported closing net cash balance for the year rose by £3.4m to £31.6m, and expects adjusted EBITDA to be slightly ahead of expectations.
The £3.4m uptick in closing net cash balance for the year to £31.6m - up from £28.2m at the end of the previous year - was achieved despite a significant capex programme for the year which included a nearly £13m outlay on the network of which nearly £5m was spent on the new national network.
Gamma said it anticipates adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), for the year ended 31 December 2017, to be slightly ahead of market expectations.
'We are pleased that Gamma has continued its strong, organic growth across both its markets and its product range during 2017,' Bob Falconer, Chief Executive, said. 'The launch of our first converged fixed and mobile offering in December also brings new opportunities.'
Gamma successfully launched its fixed and mobile converged offering in December 2017.
Gamma's SIP Trunking and Cloud PBX continued to grow ahead of the market: volumes of access products (Broadband and Ethernet) continued to increase as a result of past investment, while its mobile proposition is expected to add to volume growth as the proposition becomes more established.
Gamma said its direct business made further progress with significant new contract awards including; Care UK, Rush, Stackhouse Poland and Thrifty UK (the latter has adopted Gamma's cloud compute platform). 'Our Public Sector base continues to grow with key wins from Merseyside Police and Norfolk and Suffolk NHS Foundation Trust,' Gamma said.
Gamma also said that its new high capacity national optical network project is on schedule and on budget, which would enable the company to deliver services at 10Gb/s and above in the second half of 2018.
At 9:17am: (LON:GAMA) Gamma Communications Plc share price was +11p at 690p