Specialist communications kit and services provider Gamma Communications (GAMA:AIM) has confirmed that its 2020 annual performance has beaten expectations.

‘EBITDA (earnings before interest, tax, depreciation and amortisation) and adjusted earnings per share (EPS) for the year ended 31 December 2020 are expected to be slightly ahead of the range of market forecasts’, the company said, while revenues will be at the top of the current range.

The company helpfully provided consensus estimate ranges showing revenue of £371.8 million to £396.7 million, adjusted EBITDA of £73.9 million to £76 million and adjusted EPS of between 47p and 51p.

EXCITING OPPORTUNITY

Gamma is a Unified Communications-as-a-Service (UCaaS) firm, providing 21st Century cloud-based and integrated systems with access to the latest tools and apps.

This is an area of the market where US-based Twilio operates, one of the big winners from Covid and popular with many high growth and tech fund managers.

‘This performance reflects a continued strong demand in the UK and European business markets for Gamma’s portfolio of UCaaS products,’ the company said.Investors will be particularly reassured by news that the company had managed to run the business and execute its strategy during the difficult conditions of 2020.

Gamma’s share price has grown nearly 300% over the past five years from 429p to today’s £16.25, up 3.5%.

The company expects to announce results for the year ended 31 December 2020 on 23 March 2021.

READ MORE ABOUT GAMMA COMMUNICATIONS HERE

Find out how to deal online from £1.50 in a SIPP, ISA or Dealing account. AJ Bell logo

Issue Date: 11 Jan 2021