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Gamma 2017 revenue grew 11pc to £213.5 million

Manny Pham
April 13, 2018

Gross profit is up 14 per cent from £98.8m to £113m, while EBITDA rose 27pc to £39.6m

Gamma saw strong financial growth for its 2017 fiscal year with revenue up 12 per cent to £238.4 million from £213.5m.

This was for its 2017 financial year ending December. Pre-tax profits for the telecoms provider expanded 22 per cent raking in £26.4 million from £21.6 million. Gross profit is up 14 per cent from £98.8m to £113m, while EBITDA rose 27pc to £39.6m.

The increase in turnover was credited to a rise in its services. SIP Trunks installation increased from over half a million to 680,000 (33pc), Cloud PBX users increased from 230,000 to 331,000 marking a 44pc surge.

According to the Newbury-headquartered firm, due to past investments, access products also saw a rise with broadband rising from 54,000 units to 76,000 and ethernet from 3,500 to 5,300.

Channel partners grew 12pc from 970 to 1,089 with its indirect gross profit increasing from £78.2m to £86.6m.

The firm also announced new contract wins with Rush Hair and Beauty, insurance broker – Stackhouse Poland, Thrifty UK, Leicester City Council, itsu, The Financial Ombudsman, and MacMillan Cancer Support.

Public sector contract wins include: Merseyside Police and Norfolk and Suffolk NHS Foundation Trust. Direct channel gross profits was up from £20.6m to £26.5m.

Following the glowing financial report, Gamma proposed a payout of £0.56p per share, an increase of 12pc year-on-year.

CEO Bob Falconer (pictured) said: “The business performed well throughout 2017, with solid growth across the product range and in both indirect and direct routes to market. Data volumes have accelerated both in our fixed and mobile capabilities and this will continue to be fuelled by the general shift to cloud based services, the expansion of fibre reach in the UK and the necessity to work from anywhere. We are seeing good returns on our selective investments in this area”.

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