Newbury based Gamma has posted its full year financial results for 2012. The company has now demonstrated consistent growth in cash generation over five years. This is despite the poor economic climate over this period and the continued erosion of the fixed calls market both in volume and regulated fixed to mobile rates.
The key highlights are:
Turnover up 4.4% from £131.4m to £137.2m
Gross Profit up 18.2% from £38.0m to £44.9m
Gross Profit percentage up 3.8% from 28.9% to 32.7%
EBITDA up 29.7% from £10.9m to £14.2m
Profit before tax up 38.4% from £6.7m to £9.3m
Cash inflow before acquisitions and financing up 23.1% from £5.3m to £6.6m
The growth in gross profit has primarily come from communications services with much higher software content and in-house know-how; these services now account for around 50% of the gross profit resulting from indirect sales.
Gamma now has a very comprehensive portfolio of next generation communications services, supplemented in 2012 by the addition of Ethernet.
Bob Falconer, CEO at Gamma commented, “We are pleased with this strong set of results. The new services continue to gain traction in the marketplace, whilst we have worked hard to maintain our volumes in traditional fixed voice services. As a channel focussed business, our growth continues to demonstrate the appetite of our partners for taking our next generation services to the business market. It’s nice to start to see some return on our substantial investment in software development. The business has now demonstrated consistent cash generation for over four years.”
“In 2013 we will continue to develop new service enhancements, and work with our channel partners on business opportunities and making us easier to work with. At the same time we will continue to add innovative extras to traditional services to maintain our partner’s competitive edge in the business market.”