Service provider’s 2010 financial results are its best since its establishment as it pledges to introduce a hosted platform and new data services to its partners this year
Gamma Telecom has posted record financial results for 2010 – its best annual performance since the business was established in 2001.
Underlying revenue increased 5.6 per cent to £6.6 million, with total revenue now standing at £126.2 million. Gross profit grew from 23.6 per cent to 26.5 per cent in what Gamma Telecom said was due to the increased proportion of business coming from higher margin IP and software based products.
The company’s EBITDA rose 21.5 per cent to £7.9 million despite the loss of its Tiscali contract, profit before tax was up 69.9 per cent to £3.9 million and net cash flow increased by five per cent to £4.3 million.
Gamma Telecom said the business is now demonstrating a consistent pattern of positive cash generation – £12.5 million over the last three years, and at the end of 2010 the business has a positive Net Funds balance of £2.8 million. In addition there were 46 heads across the business last year, taking the total headcount to 290.
Gamma Telecom chief executive Bob Falconer said: “2010 has been a good year of progress for the Gamma group with every key area in the business demonstrating solid improvement backed by a strong set of financial results. Our customer base has widened and strengthened, wit5h a much reduced dependency on any single customer and a rapidly growing contribution from our newer products such as our inbound suite of services, which has exceeded our expectations.
“Looking ahead, we will be driving ahead with our investment programme, introducing a number of significant new services for 2011 with the objective of continuing to give Gamma Partners that extra edge in the marketplace. These include a range of new data services; a new hosted platform; and, off the back of our recently announced MVNA agreement with Vodafone UK, a more comprehensive mobile offering that offers true FMC.”