Gamma revenues grow after connecting with new customers

Internet service provider Gamma Communications impressed investors on Monday with strong growth in first half revenue and gross profit.

Revenue of £137.6m for the six months ended 30 June was up 18% over the same period last year as Gamma won contracts with a number of public and private sector parties. Gross profit jumped 21% to £62.3m.

The AIM-listed company, which provides businesses of all sizes with network connections, now holds notable new clients that include the Scottish government, the Met Office, the YMCA and Xoserve.

Mobile, broadband and ethernet connections through the company have all increased by double figure percentages over the first half of the year and Gamma also successfully launched “Connect” which integrates mobile users with its Gamma Cloud PBX service, Horizon.

New chief executive Andrew Taylor said his first months at Gamma had made it clear that the company "has a deserved market leading reputation for customer service and reliability, product quality and innovation - as the strong results demonstrate today".

In response to the success, Gamma’s board declared an interim dividend of 3.1p, up 11% compared to last year.

The company remains debt free and had cash and cash equivalents of £36.9m at 30 June, up 29% over the same point last year.

"I am focused on making sure that Gamma continues to deliver what its customers and channel partners want, while also ensuring that we continue to take the business forward and maintain its market leadership," said Taylor.

Gamma Communications’ shares were up 7.49% at 918.00p at 0830 BST.