• Overall revenue grew by 4.1% to £131.4m
• Gross Profit up13.4%, improving from £33.5m in 2010 to £38.0m in 2011
• EBITDA jumped by 39%, from £7.9m in 2010 to £10.9m
• Positive free cash flow increased 23% from £4.3m to £5.3m
• The Group declared an operating pre-tax profit of £6.7m, up 73% from £3.9m in 2010.
Underpinning these results was a significant shift from traditional wholesale calls and lines to next generation communications products, which in 2011 accounted for 40% of the wholesale gross margin and growing. This trend to more software based services enabled the company to increase its overall gross margin from 26.5% to 28.9%. Gamma continues to focus on selling through a broad and growing range of partners.
Bob Falconer, Gamma CEO, commented “We are pleased with this strong set of results. The new services continue to gain traction in the marketplace, whilst we have worked hard to maintain our volumes in traditional fixed voice services. As a channel focussed business, our growth continues to demonstrate the appetite of our partners for taking our next generation services to the business market. It’s nice to start to see some return on our substantial investment in software development. The business has now demonstrated consistent cash generation for over four years.”
“2011 was a busy year with major new launches of services that broadened the Gamma portfolio, and deepened the relationship we have with many of our partners. New services included a data offering across our own core infrastructure, an MVNA mobile agreement with Vodafone, and “Horizon” a new “cloud” based telephony management service that provides a business with full and growing range of call control services.”
“In 2012 we will continue to develop new services and enhancements, with the launch of our own Ethernet service imminent. At the same time we will continue to add innovative extras to traditional services to maintain our partner’s competitive edge in the business market.”