Tech-based communications provider Gamma Communications PLC (LON: GAMA) posted impressive financial results for the first half of full year 2019, alongside expansion of its user base.
The Group’s revenue grew 15% on a year-on-year comparison for the first half, up to £158.2 million. This led growth across profit indexes. Its profit before tax jumped 40% to £21.7 million, its adjusted EDBITDA spiked 39% to £30.4 million and its gross profit bounced 25% to £78.1 million.
This growth was reflected in improved fundamentals for its shareholders, with adjusted EPS spiking 43% on-year to 19.2p and its dividend per share rising 13% between the two periods, to 3.5p.
Gamma Communications added that the number of Horizon (Cloud PBX) users increased 10% from 435,000 to 478,000, its Unified Communications upgrade to Horizon already has 4,000 users (from March) and the number of installed SIP Trunks increased to 938,000, up 10% from 31 December 2018.
Gamma Communications comments
Andrew Taylor, Chief Executive Officer, stated,
“We have delivered a strong business performance and an excellent set of financial results during the first six months of 2019, with both our UK Indirect and UK Direct businesses continuing to grow well. Despite an increasingly competitive market, our product performance was positive, and during the period we continued to invest in developing and launching new products and service capabilities. This included our new Collaborate product which has been well received across the market. The development and execution of our Gamma 2023 strategy is progressing well, and looking forward we will continue to focus our efforts on strengthening our competitive position and ensuring that we further enable both our customers and our channel partners to be successful in the marketplace”
The Company’s shares have enjoyed an impressive rally of 10.45% or 109.70p to 1,159.70p a share 03/09/19 13:33 BST. Peel Hunt analysts reiterated their ‘Add’ stance on Gamma Communications stock. The Group’s p/e ratio is 34.65, their dividend yield is modest at 0.81%.
Elsewhere in the tech sector, there were updates from; Maintel Holdings plc (LON: MAI), Bigblu Broadbend PLC (LON: BBB), Avanti Communications Group PLC(LON: AVN), Maestrano Group (AIM: MNO), Vitec Group plc (LON: VTC), TT Electronics (LON: TTG) and Seeing Machines (LON: SEE).