Published on: July 13, 2021

Another good half year of growth

Gamma’s trading update for H1 2021E notes another good performance, with growth in line with market expectations for that of the full year. Management expects that the full year results will be in the upper half of the range of market consensus estimates and we upgrade our numbers accordingly for FY 2021E with knock-on increases for the subsequent two years of our forecast horizon. Despite the restrictions associated with the pandemic, the Group continues to show the financial resilience that comes from its high level of recurring revenue (>90%) and monthly billing. In addition, cancellations remain at very low levels and bad debt remains ‘negligible’. Gamma continues to deliver well in a positive long-term growth market with all trends leading to an ongoing increase in the adoption of cloud services.