Gamma Communications anticipates earnings will be 'slightly' ahead of expectations

23rd Jan 2017 07:58

(ShareCast News) - Gamma Communications anticipates earnings for 2016 will be "slightly" ahead of expectations due to "strong" demand in the business communications market.Adjusted earnings before interest, tax, depreciation and amortisation for the 2016 calendar year are anticipated to be slightly ahead of expectations, due to demand for the company's products.The AIM-listed company has increased market share for its SIP Trunking, Cloud PBX communication products as well as data services with margins holding.Last year the company's direct sales business made wins with recruitment firm Reed, restaurant franchise Nando's and a a financial institutions, and increased contracts lengths with clients in the direct business. The company also launched a mobile service.Cash conversion from earnings before interest and tax remained "strong" despite investment on the Cloud PBX product and payment of dividends. The company had £28.2m in cash at the end of 2016, which was 13.7% higher than the previous year.The company said it will propose a dividend in line with expectations.Chief executive Bob Falconer, said: "We are pleased with the performance of Gamma throughout 2016. While the competitive pressures in our market are well publicised, our differentiated strategy has led to strong growth across all of our markets."We continue to invest significantly in product development, our channel and making the company easy to do business with."Shares in Gamma Communications were up 0.99% to 483.75p at 0852 GMT.