- Gamma Communications reported before tax increased 22% to £26.4m for the year end to December amid strong performance in both its direct and indirect businesses.

A final dividend of 5.6p per share was proposed, taking the total dividend for the year to 8.4p per share, up from 7.5p.

Group turnover for the year increased by 11.7% to £238.4m from £213.5m, supported by strong performance in the firm's indirect business which generated turnover of £181.4m, up from £169.0m, while £12.5m of revenue came from the direct business which saw turnover increase to £57.0m.

The number of installed SIP Trunks was 680,000 in 2017, up 33% from 511,000 the previous year, while the number of Cloud PBX users rose 44% to 331,000 from 230,000.

Adjusted EBITDA for the group increased by 21.6% to £41.6m from £34.2m. EBITDA for the group increased by 26.5% to £39.6m from £31.3m.

Adjusted EPS increased by 16.6% to 24.6p from 21.1p. EPS increased by 27.1% to 23.9p from 18.8p.

Bob Falconer, Chief Executive Officer, said: 'Our Cloud PBX product - Horizon - now has an excellent position and reputation in the market and continues to displace traditional on-premises equipment, whilst Gamma remains synonymous with SIP Trunking, where we have continued to outpace the market growth.'

'Data volumes have accelerated both in our fixed and mobile capabilities and this will continue to be fuelled by the general shift to Cloud based services, the expansion of fibre reach in the UK and the necessity to work from anywhere.'

' We are seeing good returns on our selective investments in this area. Direct wins in enterprise and public sector include Leicester City Council, itsu, The Financial Ombudsman, and MacMillan Cancer Support. Our investments in development have brought many useful product enhancements and I was particularly pleased to be able to launch our initial converged fixed/mobile voice service which brings real and novel benefits to a business user.'

'Having recently announced my planned retirement at the AGM on the 23rd May, these are my last set of results as Chief Executive of Gamma. I look forward to welcoming Andrew Taylor to Gamma as CEO Designate in April and wish him all the best for the future.'

At 10:11am: [LON:GAMA] Gamma Communications Plc share price was +12p at 742p

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