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Published on: March 12, 2019

A focus on future growth

Gamma’s FY 2018 results show the anticipated continuation of the
healthy performance which the Group has provided in recent years.
In particular, they feature adjusted numbers which are 3-5% ahead of
our estimates which were upgraded after January’s trading update.
Importantly, the commentary and the numbers are consistent with
recent trading updates and the evolution of Gamma’s strategy which
was announced in some detail at the recent Capital Markets Days
(CMD). The channel showed further growth during FY 2018 with more
contract wins while the direct business also enjoyed a good 2018 –
helped by a useful tailwind from contracts won in 2017. The outlook
comments are positive and note the visibility afforded by the Group’s
recurring revenue base. We make some small positive changes to
adjusted estimates for FY 2019E and FY 2020E and introduce
estimates for FY 2021E. In viewing the continued momentum in the
business, we see our numbers as conservative and we expect to see
Gamma further exploit the growth opportunities which it has
identified.

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