Gamma Communications PLC on Tuesday said trading in the calendar year to date has been ‘strong’, in a trading update ahead of its annual general meeting today, while it expects earnings in 2024 to rise.
The Berkshire, England-based provider of communication services to the UK, German, Spanish and Dutch markets said healthy underlying performance supported by recent acquisitions.
It said Gamma Business and Gamma Enterprise have experienced a ‘strong start’, while recent acquisitions are performing in line with expectations and have added a number of ‘key strategic’ products to its portfolio.
Gamma Communications said the European business is currently delivering lower growth than the UK, with a more challenging macroeconomic climate and a small adverse impact from foreign exchange.
It said its balance sheet remains strong while underlying trading continues to generate ‘significant’ cash. Net cash at April 30 stood at £140.4 million, up from £101.3 million.
Looking ahead, Gamma Communications expects adjusted full-year 2024 earnings before interest, tax, depreciation and amortisation to be within the range of latest market forecasts of £120.9 million to £127.4 million, alongside adjusted fully diluted earnings per share of 78.4 pence to 84.0p.
In 2023, adjusted Ebitda £114.3 million while adjusted fully diluted EPS was 75.1p.
Shares in Gamma Communications were up 1.5% to 1,512p each in London on Tuesday late morning.
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