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Highlights

  • Gamma Communications had2% year-on-year growth in top-line business in H1FY23.
  • GAMA’s cash from operations rose by 15% YoY in the first half of the year.
  • For H1 FY23, the firm has clocked 14% YoY growth in interim dividend payments.

FTSE AIM UK 50 Index listed Gamma Communications PLC (LSE: GAMA) offers tech-based communication services in Western Europe. It has grown to be a prominent provider in the United Kingdom, Dutch, Spanish, and German business markets.

In the first half of the fiscal year 2023, Gamma Communications registered around 9.2% year-on-year growth in top-line business. Its revenue was recorded at £256.20 million, as compared to £234.7 million in the previous corresponding period (pcp). Its profit before tax surged by over 13% YoY in H1 FY23. GAMA’s net cash balance increased from £92.5 million on 31 December 2022 to £121.5 million on 30 June 2023. Its cash from operations rose by 15% YoY in H1 FY23.

Since its IPO in 2014, GAMA has posted approximately 10 - 15% growth every year. For H1 FY23, the firm has clocked 14% YoY growth in interim dividend payments. It paid an interim dividend of 5.70 pence per share in October 2023, with an ex-dividend date of 21 September 2023.

As per the company, GAMA has witnessed improvement in its revenue growth for UK Direct and Indirect businesses due to popularity of voice enablement of Microsoft Teams. It is targeting more investments in its product portfolio across its European footprint in the coming quarters. It is expecting to achieve its strategic growth objective with EBITDA and Adjusted EPS in the top half of the range of the market expectations for the full year.

Top 10 Shareholders:

Around 50.72% of the total shareholdings in the firm is held by its top ten shareholders collectively. While Liontrust Investment Partners LLP is the biggest shareholder with approximately 10.88% shareholding, BlackRock Investment Management (UK) Ltd. holds 10.27% shareholding in GAMA. 

 

Stock Price Performance

GAMA’s stock price has gained 6.06% in the last one month. It has jumped by around 4.71% in the past six months. The stock’s 52-week low and 52-week high stand at GBX 980.10 and GBX 1,252.00.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 15 January 2024. The reference data in this report has been partly sourced from EODHD/Others.