Another impressive performance
Gamma has reported another half year of strong growth. In particular, Cloud PBX and SIP Trunking continue to shine. The Group’s performance underlines the success of its focus on supporting its channel partners and driving the direct business in the direction of larger enterprises and public sector customers on longer term contracts. Gamma is building a good pipeline of new business and a number of product launches and updates are planned for the second half. The reported numbers reflect the adoption of IFRSs 9, 15 and 16. As previously flagged, in combination (but predominantly IFRS 15) they reduce EBITDA but leave adjusted EPS relatively unaffected. The decision to treat share-based payments as a non-adjusting item means that there is some impact on Adjusted EPS from that source, though. Prior year numbers have been restated to give a like-for-like comparison. We adjust our estimates for the healthy growth in the business and to reflect the accounting standards that Gamma has adopted and the treatment of share-based payments. Our estimates remain conservative, in our view, and we look forward to further positive trading news.