Gamma Communications Share Discussion Threads

[crazycoops] 25/7/2024 13:40

"For the year ended 31 March 2024, unaudited revenue was under £8m and EBITDA was approaching £0.9m."

[p1nkfish] 25/7/2024 10:04

Bright Cloud Group, haven't looked for a revenue figure.

[slopsjon2] 21/5/2024 08:47

Progressive note:
"Today’s AGM trading update states that Gamma has made a strong start to the year in its UK businesses, while the challenging economic environment and some impact from foreign exchange have contributed to the European businesses making a slower start. Recent acquisitions are performing in line with expectations. Cash generation remains strong, with net cash of £140.4m as at 30 April (vs £101.3m last year). Management expects adjusted EBITDA and adjusted EPS to be in line with current market expectations for FY24. We maintain our forecasts and note that, despite recent share price strength, the shares continue trade at lower multiples than we were accustomed to prior to the pandemic. "

[wad collector] 17/5/2024 13:45

One of the BOD just sold 5000 too, selling at a profit is the point of it all!

[salpara111] 16/5/2024 17:55

Well, my limit sell order at 14.90 was executed today. Bought in at £10 so a great result for me. Doubtless it will continue its rise now but I'm happy with a 50% return . Good quality company so will keep it on my watchlist in case of a pull back.

[wad collector] 13/5/2024 21:18

I guess the question is when rather than if, inflation will probably take us there eventually!

[manutd99] 13/5/2024 20:50

reckon can get back that?

[wad collector] 13/5/2024 15:36

Senseibull , nowhere near an ATH ; it was 2350 in Aug 21.

[manutd99] 10/5/2024 18:31

no brainer due to some of products they offer. Not many in the industry with the portfolio they have.

[senseibull] 09/5/2024 11:46

Yeah I'm going to buy up a portion of my previous holding now, looks like the breakout is soon back to ATH

[xamf] 08/5/2024 20:31

Nice move on today. Well done all holders.

[crazycoops] 03/5/2024 09:21

I understand that Deutsche Bank initiated coverage this morning with a Buy recommendation targeting 2250p

[nhb001] 26/4/2024 08:56

Any theories as to what Liontrust are up to? 2 days ago they up their stake and today they sell it back down!

[xamf] 25/4/2024 10:26

Just taken the plunge based on fundamentals (eps growth/strong net cash position etc). Historical and forward growth estimates are fantastic!

I'm hoping we could see a reversal soon (and certainly by early May). I can't see a fall back to 1250 as this is such a high growth stock (and we have the continued support of share buy back). Any views?

[senseibull] 23/4/2024 13:31

Completing share buyback but the price goes down again, a little odd to see

[wad collector] 07/4/2024 10:07

Tipped as a BUY in IC @1349p FWIW.
Although the PhoneLine+ net growth has been slow, only 12000 customers out of 1M total GAMA customers, this is partly as the existing landline providers have kept the service running for now, and GAMA say the growth will be steady not rapid. They quote the Peel Hunt broker note and point out the asset light software makes it good at generating cash as the numbers rise and PH predicts 88.5P eps for 2025 would give P/E of 16 , low for a software company.
Their last opinion on GAMA was a BUY in Sep23 and they were right as it was 1083p then.

[tole] 26/3/2024 07:18

https://citywire.com/funds-insider/news/expert-view-rolls-royce-entain-virgin-wines-pennon-gamma/Market underestimating Gamma, argues Peel HuntThe market is failing to reflect the potential at Gamma Communications (GAMA) despite another year of growth, says Peel Hunt.Analyst James Lockyer reiterated his 'buy' recommendation and increased the target price from £13.80 to £16.50 on the telecoms group, which rose 0.7% to £13.60 on Monday.Full-year 2023 results were in line with expectations, with earnings up 9%, ahead of the 8% rise in revenues thanks to operational leverage. Following acquisitions, Lockyer increased full-year 2024 and 2025 revenues by 1% and earnings by 3% and 4%, respectively.'At 9.7 times full-year 2024 embedded value to [pre-tax profits], we think the market fails to reflect the growth potential and profitability Gamma has to offer versus peers,' he said.'Another encouraging year of growth and significant cash generation leave Gamma with £13m of net cash in the bank.'Lockyer said the £35m buyback presents a 'shrewd allocation of capital given the current valuations, but the priority remains investing in organic growth and acquisitive activity to bolster exposure in underpenetrated markets.'

[salpara111] 25/3/2024 21:54

Well, I'm happy to hold although I think that any further movement up will be artificially driven by the buybacks.
If it gets close to £15 I would be tempted to take some profit.
They have always impressed with their cash generation.

[74tom] 25/3/2024 10:59

I suggest you review the source of your 'consensus' figures john, as they are incorrect, they actually came in slightly ahead on PBT, hence why shares opened up.

[slopsjon2] 25/3/2024 10:40

Progressive Equity Research note.

"Gamma’s results for the year ended 31 December are in line with the expectations confirmed in the January trading update. Revenue of £521.7m is 8% ahead of FY22, with gross profit at £267.2m showing the same progress. Adjusted EBITDA grew by 9% and PBT by 10%, although the impact of higher tax rates was seen in the 5% increase in adjusted EPS. Cash generation was strong once again, with 108% adjusted cash conversion. Year-end cash of £134.8m is £42.3m above the year before, even after the £30.5m in acquisition spend. Perhaps the most anticipated element of today’s news is the statement regarding the £35m share buyback programme, alluded to in the January trading update. On an operational basis, Gamma is making good progress in Business, Enterprise and Europe. For those looking at ‘undervalued’ UK equities, Gamma’s growth stands out."

[johnrxx99] 25/3/2024 08:41

Hericsaba, they missed the consensus figures I posted.

[xamf] 25/3/2024 08:22

I thought the same but assumed I'd missed something. Regardless of the semantics it's still a good set of results imo plus (unlike the normal rhetoric in these matters) a decent outlook.