LONDON (ShareCast) - (Sharecast News) - Communications provider Gamma Communications said on Monday that it had continued to perform well through the first six months of the year despite "challenging" conditions stemming from the Covid-19 pandemic.
Gamma said acquisitions in Spain and Germany had provided the group with scale in Continental Europe and also accelerated the development of its technology, while also noting that it had been successful in progressing its product development and digital transformation programme.

In both the UK and Europe, Gamma said its financial model had continued to be "robust" - given that 93% of revenue was recurring and billed monthly. Cancellations of existing contracts continue to be at normal levels.

The AIM-listed firm also highlighted a "very robust" balance sheet, with strong cash generation from trading activities in line with previous levels. Closing net cash at the half-year was approximately £37.7m - down from the £53.9m on hand at the end of the previous year due to the acquisitions of Voz and Exactive

Gamma also noted that it had not utilised Downing Street's furlough scheme and expects to propose an interim dividend in line with its stated progressive policy.

Chief executive Andrew Taylor said: "I am encouraged by our performance in the first half of 2020 given the difficult economic conditions.

"I am very pleased with our continued focus on delivering against our near-term commitments as well as the execution of our longer-term UCaaS strategy, as exemplified by our geographical expansion into both Spain and Germany, and the strengthening of our UCaaS capabilities through the acquisitions of Exactive and Telsis in the UK."

As of 0920 BST, Gamma shares were up 5.10% at 1,545p.

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