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Published on: May 21, 2024

Strong start to the year in UK businesses

Today’s AGM trading update states that Gamma has made a strong start to the year in its UK businesses, while the challenging economic environment and some impact from foreign exchange have contributed to the European businesses making a slower start. Recent acquisitions are performing in line with expectations. Cash generation remains strong, with net cash of £140.4m as at 30 April (vs £101.3m last year). Management expects adjusted EBITDA and adjusted EPS to be in line with current market expectations for FY24. We maintain our forecasts and note that, despite recent share price strength, the shares continue trade at lower multiples than we were accustomed to prior to the pandemic.

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