Gamma Communications Share Discussion Threads

[idriveajag] 28/6/2022 15:50

Gamma Communications PLC19 May 2022AGM trading updateContinued strategic delivery - growth across all marketsPerformance on track for 2022Ahead of the Annual General Meeting ("AGM") to be held later today at Investec, 30 Gresham St, London EC2V 7QN, Gamma Communications plc ("Gamma" or the "Group") has produced the following update on trading.Group overviewGamma has continued to grow throughout the first part of 2022, while successfully executing against its longer-term growth strategy. The Group has seen growth in its three operating segments and we expect this positive momentum to continue through the rest of the year.A selection of highlights in the first part of the year includes:-- Growth in gross profit in the Indirect Business for 2022 will be consistent with the previous year (c8% growth year on year).-- New project wins for the UK Direct business will drive growth in the second half of the year; revenue growth will approach 10% (2022 against 2021). We have experienced minimal impact from the well-publicised chip shortage.-- Strong momentum in Cloud PBX across our European business, with Germany in particular performing well.-- ARPU has been maintained through the successful up-sell of additional modules to Unified Communications as a Service ("UCaaS") customers.-- We continue to monitor inflationary pressures - and do not expect any material impact to our financial performance in 2022.Balance SheetOur balance sheet remains strong and underlying trading continues to generate cash. Gamma had net cash of GBP54.0m at 30 April 2022; this is after paying GBP1.7m of contingent consideration on acquisitions and making early supplier payments of GBP6.7m to receive prompt payer discounts.DividendThe proposed final dividend in respect of the year ended 31 December 2021 will be put to the normal shareholder vote at the AGM later this morning. The proposed final dividend is 8.8 pence (2020: 7.8 pence) being GBP8.5 million in cash terms. When added to the 4.4 pence interim dividend (2020: 3.9 pence) this will equate to a total dividend declared of 13.2 pence for the full year (2020: total 11.7 pence).OutlookThe Board remains very positive about the prospects for Gamma. The Group continues to deliver against its long term growth strategy. Gamma has a compelling, technology-led product portfolio, effective routes to multiple customer bases and a number of market leadership positions. The business is in a strong financial position, which enables it to continue to invest in products and market development.Based on our trading in the first part of the year, we expect adjusted EBITDA and adjusted EPS for the year ending 31 December 2022 to be in the upper half of the range of market forecasts*.The Board will provide its next trading update prior to the publication of the half year results on Tuesday 6 September.* Note: Company compiled range is based on sell side analyst estimates which have been updated to take into account Gamma's 2021 audited results. The ranges are Adjusted EBITDA GBP101.0m - GBP106.8m and Adjusted EPS 66.6 pence - 74.6 pence.

[wad collector] 29/5/2022 09:43

XD 8.8p this week, but very unusually , because of the Jubilee, it is a Wednesday.

[senseibull] 23/5/2022 15:47

Actually the associated RNS confirms they have done it already hopefully more to come

[senseibull] 23/5/2022 14:06

If you look at the AGM notice they are planning a share buy back and it's been voted through, that should give it a nice uplift. They want £19

[senseibull] 20/5/2022 11:08

I think that confirms the end of the slow price downtrend but let's see

[fuji99] 19/5/2022 10:47

Interesting company with a strong and resilient technology interacting with so many various sectors. In at its 3 year low.

[senseibull] 19/5/2022 08:09

Brilliant update today chaps and chapettes

[senseibull] 18/5/2022 13:21

I think it's been caught and is levelling out here ready for a move north. Low volume though so this consolidation period may take some time

[senseibull] 04/5/2022 17:34

If it doesn't bounce here I would say so, we are at my second bounce point at 11.50Next ones at £10, if it goes lower than that for a long period I'll move on from this share

[jonny_wright] 12/4/2022 11:39

Seems like it's heading to 1000

[alphabeta4] 28/3/2022 10:04

Whilst the below comment is fair and could be the reason it would feel a bit of an overreaction to me given that it's a division that is 22% of group revenue and with c89% recurring. If group organic revenue is running at 9% even if direct organic revenue halves it only takes group organic down to 8%, hardly a game changer.
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mammyoko22 Mar '22 - 16:00 - 267 of 270
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This from the CEO

Within our Indirect business, we will continue to evolve and adapt our partner proposition to support growth opportunities across all markets, ensuring that our channel partners have the tools to compete and be successful. Within our Direct business, we have seen delays to some projects for our Enterprise customers caused by the global chip shortage; this means that sometimes it takes longer than we had anticipated for billing to start and this may affect growth in 2022.

[senseibull] 22/3/2022 18:31

If it a supply to customer hardware shortage then likely stock is low for most businesses too so probably not likely just gamma affected.They sell physical phones I believe so it could be different models they have trouble supplying

[indiestu] 22/3/2022 16:12

Thanks, I never thought this business would be impacted by the Global chip shortage. The good news is that the chip shortage appears to be normalising and Intel's recent investment in European manufacturing should give more stability/visibility in supply going forward. Ok, I'm happy to build a position through 2022 with a view to 2023.

[bulltradept] 22/3/2022 16:09

Always darkest before the dawn....

[mammyoko] 22/3/2022 16:00

This from the CEO

Within our Indirect business, we will continue to evolve and adapt our partner proposition to support growth opportunities across all markets, ensuring that our channel partners have the tools to compete and be successful. Within our Direct business, we have seen delays to some projects for our Enterprise customers caused by the global chip shortage; this means that sometimes it takes longer than we had anticipated for billing to start and this may affect growth in 2022.

[bulltradept] 22/3/2022 15:57

I wouldn't throw in the towel just yet.

[indiestu] 22/3/2022 15:47

Ok. Well bought some. I will probably lose money. I usually do.

[bulltradept] 22/3/2022 15:40

Could just be the machinations of Mr Market atm..

[indiestu] 22/3/2022 15:23

Ok. I must do more research on the company. I am trying to understand why these results have had such a negative impact on the share price. There must be a red flag in the results but I have not spotted it.

[senseibull] 22/3/2022 15:09

They sell UCaaS products. Just like Zoom...

[indiestu] 22/3/2022 15:06

Are Gamma trying to compete with Zoom? They are working with Microsoft. To attempt to compete with Zoom and therefore Teams would not be the finest of judgements by management.

[bulltradept] 22/3/2022 10:43

Anyone here use sharescope please? And if so, do you find it any good. Cheers

[jonny_wright] 22/3/2022 10:41

Classic MM results game here

[wad collector] 22/3/2022 10:38

I was watching it fall further but was a bit slow to react , had to pay 1387 . I agree the price drop looks overdone.

[bulltradept] 22/3/2022 10:26

Bought some, too low AIMVHO.