Gamma Communications PLC has announced its financial results for the year ended 31 December 2023, demonstrating continued strong performance and considerable cash generation. The company reported an 8% increase in revenue to £521.7m, with gross profit also rising by 8% to £267.2m. Adjusted EBITDA grew by 9% to £114.3m, and profit before tax increased by 10% to £71.5m. The company's EPS (fully diluted) saw an 8% rise to 54.9p, and the total dividend per share increased by 14% to 17.1p.
Gamma completed three acquisitions in 2023 and early 2024, including Satisnet, a leading provider of cyber security services and solutions; EnableX Group, providing access to their UCaaS solution, iPECS; and Coolwave Communications, an international SMS and voice services provider. These acquisitions are expected to enhance the company's growth potential and ability to offer additional solutions to existing customers.
The company's financial highlights include a strong gross profit growth, with recurring revenue growing by 7% to £462.8m, representing 89% of total revenue. Adjusted EBITDA grew by 9% to £114.3m, and the company's various business units, including Gamma Business, Gamma Enterprise, and the European business, all experienced growth in gross profit.
Gamma's Chief Executive Officer, Andrew Belshaw, expressed satisfaction with the results, highlighting the company's organic growth and successful acquisitions. He also noted the development of the company's solution portfolio in the UCaaS space, emphasizing the growth in the European business as particularly pleasing. Additionally, the company announced an intention to launch a share buyback program of £35m, to be executed over the next six months, until early September.