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Published on: March 25, 2024

More happy returns

Gamma’s results for the year ended 31 December are in line with the expectations confirmed in the January trading update. Revenue of £521.7m is 8% ahead of FY22, with gross profit at £267.2m showing the same progress. Adjusted EBITDA grew by 9% and PBT by 10%, although the impact of higher tax rates was seen in the 5% increase in adjusted EPS. Cash generation was strong once again, with 108% adjusted cash conversion. Year-end cash of £134.8m is £42.3m above the year before, even after the £30.5m in acquisition spend. Perhaps the most anticipated element of today’s news is the statement regarding the £35m share buyback programme, alluded to in the January trading update. On an operational basis, Gamma is making good progress in Business, Enterprise and Europe. For those looking at ‘undervalued’ UK equities, Gamma’s growth stands out.

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