Gamma Communications PLC, a leading provider of technology-based communication services across Europe, released its unaudited results for the six months ended June 30, 2024. The company reported strong financial performance with a 10% increase in revenue, an 11% increase in gross profit, and a 10% increase in Adjusted EBITDA. The companys gross margin remained stable at 52%. The companys profit before tax grew by 11% to £48.5 million, with Adjusted EBITDA growing by 10% to £62.2 million. The companys recurring revenue remained high at 89% of total revenue. Gamma Communications PLCs Adjusted EPS (fully diluted) increased by 13% to 42.5p, and the companys cash position remained strong with a net cash balance of £142.9 million. The companys business units, Gamma Business and Gamma Enterprise, also showed strong growth, with gross profit increasing by 12% and 14% respectively. The companys European revenue was flat, but gross profit grew by 7% excluding foreign exchange impacts. The company expects growth to continue in the second half of the year and anticipates Adjusted EBITDA to be in the top half and Adjusted EPS at the top of the range of market expectations.
| Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Revenue | £282.5m | £256.2m | 10% |
| Gross profit | £145.8m | £131.2m | 11% |
| Gross margin | 52% | 51% | 1% |
| Adjusted EBITDA | £62.2m | £56.5m | 10% |
| Profit before tax | £48.5m | £43.5m | 11% |
| Adjusted PBT | £56.0m | £48.3m | 16% |
| Earnings Per Share (fully diluted) | 36.7p | 33.8p | 9% |
| Adjusted EPS (fully diluted) | 42.5p | 37.5p | 13% |
| Interim dividend per share | 6.5p | 5.7p | 14% |
| Cash generated by operations | £59.6m | £57.1m | 4% |
| Adjusted cash conversion | 100% | 101% | 1% |
| Net cash | £142.9m | £121.7m | 17% |