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Gamma Communications PLC on Tuesday said it expects scale through acquisitions to drive ‘more significant returns’, as it posted improved revenue in 2024. The Berkshire, England-based provider of communication services reported a 34% increase in pretax profit to £95.6 million for 2024 from £71.5 million in 2023. Driving this improvement was an increase in revenue, up 11% at £579.4 million from £521.7 million, and with recurring revenue improving 12% to £516.6 million from £462.8 million. Shares in the firm were up 4.3% at 1,258.00p on Tuesday morning in London. Gamma proposed a final dividend of 13.0 pence, up 14% from 11.4p the prior year. Its total dividend matched this increase, rising 14% to 19.5p from 17.1p. The firm added that is launching an up to £50 million share buyback programme, with broker Peel Hunt conducting the scheme on the firm’s behalf. Gamma said the scheme is effective immediately and will expire on June 30. Gamma also confirmed its expectation of moving to London’s Main Market, with admission expected on May 2 this year as all work streams are ‘progressing as planned’. Looking at 2025 trading, Gamma reported good progress in Europe, particularly Germany, as acquisition integrations progress. Gamma expects ‘satisfactory’ organic growth bolstered by ‘active cost management’ during the year, with this boosted by acquisitions. In 2024 the firm made three acquisitions, namely Coolwave, BrightCloud and Placetel, with it stating that ‘the acquisitions we have made will enable us to continue to perform well into 2025 and beyond.’ Chief Executive Andrew Belshaw: ‘Gamma has achieved another strong set of results, marked by robust revenue growth, stable margins, and healthy cash generation despite general soft macro-economic performance in our two main markets of the UK and Germany. ‘As customers require more complex communications solutions, we continue to see opportunities to grow our revenues further. ‘I believe our increased scale in Germany through acquisitions will drive more significant returns, allowing Europe to contribute more meaningfully to group growth in 2025 and beyond. Our resilient business model continues to help us mitigate the current macro-economic uncertainties and I look forward with confidence given the medium-term market opportunity.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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