Contact sales

Gamma announced more strong results for 2016

Gamma, a leading, technology based provider of communications services to the UK business market, is pleased to announce its audited results for the year ended 31 December 2016.


Financial highlights

Years ended 31 December
2016 2015 Change (%)
Revenue £213.5m £191.8m +11.3%
Gross Profit £98.8m £82.3m +20.0%
Gross margin 46.3% 42.9%
EBITDA* £31.3m £29.9m +4.7%
Adjusted EBITDA £34.2m £28.3m +20.8%
Profit Before Tax £21.6m £22.6m -4.4%
Adjusted Profit Before Tax* £24.5m £21.0m +16.7%
Fully Diluted EPS* 18.8p 19.6p -4.1%
Adjusted EPS 21.1p 17.9p +17.9%
Dividend per share 7.50p 6.60p 13.6%
Adjusted net operating cash inflow before tax £31.3m £25.3m +23.7%
Adjusted net operating cash inflow before tax / Adjusted EBITDA 91.5% 89.4%

*Unadjusted figures for 2015 include an exceptional gain of £5.7m

All adjusted measures set out above and throughout this document are described as “adjusted” and are defined and reconciled in the Financial Review section and are applied consistently. Where reference is made to adjusted EPS this is stated on a fully diluted basis.

Note: The above consolidated results relate to Gamma Communications plc


Operational highlights

  • The Cloud PBX and SIP Trunking connections continue to grow ahead of the market
    • The number of installed SIP Trunks increased from 360,000 at 31 December 2015 to 511,000 at 31 December 2016 (a gain of +42%)
    • The number of Cloud PBX users increased from 142,000 to 230,000 (+62%)
  • Strong growth in the indirect business
    • Gross profit from indirect business increased from £64.1m to £78.2m (+22%)
    • The number of Channel Partners grew from 834 to 970 (+16%)
  • Significant wins in the direct business drive growth
    • Gross profit up from £18.2m to £20.6m (+13%)
    • New customers include a large financial institution, Reed, OCS, City Electrical Factors, and St John Ambulance
    • Good progress in the public sector, key wins include Your Housing Group, AQA and a number of NHS Trusts
  • Continued investment in further product development
  • Gamma’s new mobile service launched in both the indirect and direct channel


Bob Falconer, Chief Executive Officer, commented

“2016 has been a year of significant progress at Gamma. We have seen no let up in the demand for our strategic products of SIP Trunking and Cloud PBX, whilst being particularly encouraged by the growing contribution from our data services following the investments we made to extend our network reach. Bringing a Full MVNO into service in 2016 was a major engineering achievement, and, whilst it is still early days for our new mobile service, it positions the business well for the future as we develop more converged fixed and mobile services. We are pleased with the growth in the number of channel partners choosing to use our services and we continue to make significant marketing and other investments to help our partners grow their business with us.

The Gamma direct business remains focussed on the larger, more complex opportunities, and we were successful in agreeing a significant SIP Trunking contract with a large financial institution and to provide full voice, data and mobile services to companies such as Strutt & Parker and CEF. The public sector has also grown significantly, with particular success with NHS Trusts, educational establishments and government departments such as the Department of Communities and Local Government for whom we are providing mobile services.”


Notes to Editors

Gamma is a rapidly growing, technology based, provider of communications services to the UK business market. Gamma’s services, such as Cloud PBX, Inbound Call Control Services and SIP Trunking, are designed to meet the increasingly complex voice, data and mobility requirements of businesses, through the exploitation of its know-how and own intellectual property.

Gamma also provides business-grade mobile and data services and, as a consequence of its history, has a substantial voice service capability. These services enable Gamma to provide a comprehensive range of communications services.

Gamma has enjoyed strong organic revenue and EBITDA growth driven by a high percentage of repeat revenues. The business had 753 employees at 31 December 2016. It operates across six main locations – headquartered in Newbury – with offices in London, Manchester, Glasgow, Portsmouth and Budapest.