Clear delivery on ‘optionality’
Gamma’s trading update for its financial year to the end of December 2020 reflects another strong year for the Group and we adjust our FY 2020E numbers upwards by 2-3% to reflect guidance of an above-consensus outturn for adjusted EBITDA and EPS numbers. Following the sale of Gamma’s Manchester-based fibre business, the period-end cash balance of £54.1m was higher than expected and a touch up over the year – despite the Group spending £48m on acquisitions in the period. Gamma’s European business is now firmly established in Germany, Spain and the Netherlands while the Group retains a strong balance sheet position. The business continues to display resilience in the current operating environment as cancellations and bad debts remain at low levels, and it retains a range of growth opportunities in both the UK and European unified communications (UCaaS) markets.