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(Sharecast News) - Gamma Communications reported an 8% increase in revenue in its final results on Monday, reaching £521.7m, and a similar 8% growth in gross profit to £267.2m.
The AIM-traded company said it maintained a gross margin of 51% in 2023, while its adjusted EBITDA gained 9% to £114.3m, reflecting strong profit growth and disciplined cost control.
Profit before tax saw a 10% increase to £71.5m, bolstered by significant growth across all business units.
Adjusted profit before tax meanwhile improved 12% to £97.9m.
Gamma noted its acquisition strategy, having integrated three companies over the last year - Satisnet, a cybersecurity services provider; EnableX Group, which strengthens its unified communications-as-a-service (UCaaS) offerings; and Coolwave Communications, expanding its international SMS and voice services.
Despite the increased UK statutory corporation tax rate, Gamma managed to post 5% growth in adjusted earnings per share to 75.1p.
The company also showcased its operational efficiency with a 25% increase in cash generated by operations, amounting to £123.5m, and a 46% rise in net cash to £134.8m.
As part of its commitment to shareholder returns and using its strong cash position, Gamma announced a £35m share buyback programme, set to start over the next six months. This
Gamma's growth was also reflected in its dividend policy, with a total dividend per share increase of 14% to 17.1p for the year.
"Gamma has produced another strong set of results - recurring revenue, stable margins and cash generation continue to be a feature of our business," said chief executive officer Andrew Belshaw.
"We have grown in each business unit and the growth in our European business is particularly pleasing.
"As well as our organic growth, Gamma has made acquisitions which have added to our growth potential and our ability to sell additional solutions to our existing customers."
Belshaw said the company had developed its solution portfolio in the unified communications-as-a-service (UCaaS) space, adding that in the UK for the first time, it would have a portfolio of solutions to serve any business of any size, with plans to replicate that in Europe through 2024.
"I am very pleased with this set of results and the opportunities which lie ahead of us suggest a promising future for the group."
At 1420 GMT, shares in Gamma Communications were up 0.15% at 1,352p.
Reporting by Josh White for Sharecast.com.