Gamma has signalled its ambitions to grow the business across Europe after sharing solid results for its fiscal year.
The comms player saw revenues improve by 11% to £579.4m for the 12 months ending 31 December. Gross profit was up by 12% to £300.3m and pre-tax profits climbed by 34% to £95.6m.
The firm made a trio of acquisitions during the year, with Coolwave in February, BrightCloud in July and Placetel in September. Acquisitions positively contributed to the results, and Gamma indicated that on an organic basis growth revenue increased by 5% and gross profit by 6%.
The Coolwave deal helped Gamma Business expand its service provider business to 20 countries offering carrier services to those looking for outsource the running of options including hosting telephone numbers and connecting calls.
That M&A activity continued after the close of FY24 with the firm picking up German cloud comms player Starface in February. The plan is to combine that move with the acquisition the firm made of Placetel to ramp up the business in Germany and beyond.
Andrew Belshaw, CEO of Gamma, indicated that the plans for this year included pushing deeper into Europe, using its German operations as a base for widening its activities on the continent.
“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,” he said.
Gamma saw its recurring revenues account for 89% of the total generated, coming in at £516.6m, buoyed by a strong customer renewal rate and fresh signings.
In terms of the specific business units, the Business operation – which saw demand rise for UCaaS – saw gross profit increase by 11% to £194.7m; Gamma Enterprise, benefitted by a number of significant contract wins and the contribution of previous acquisitions, Satisnet and BrightCloud, to deliver a 14% increase in gross profit to £60.2m.
Belshaw said that its acquisitions were contributing to growth, and it continued to work with the channel to increase the business.
“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. Our broadened product set is resonating well with both channel partners and end users. As customers require more complex communications solutions, we continue to see opportunities to grow our revenues further,” he said.
“The strength of Gamma’s balance sheet has enabled us to expand our capabilities through both product development and strategic acquisitions. I am delighted to have welcomed the teams from Coolwave and BrightCloud to Gamma – their contributions will be invaluable as we continue to expand our solution set.
“I am also pleased to say that Gamma is now a significant player in the German market following the acquisitions of Placetel and Starface. This gives us a fantastic opportunity to build a business in Europe’s largest market. We expect significant medium- and long-term growth in this market as new technologies are adopted.”
He added that the firm felt it was in a good position to deal with the ongoing economic uncertainties: “Our resilient business model continues to help us to mitigate the current macro-economic uncertainties, and I look forward with confidence given the medium-term market opportunity.”