Gamma reports strong performance in 2015 with gross profit up 20%

Gamma's strong performance last year has been underscored by its audited results for year ended 31st December 2016, reporting revenues of £213.5m (2015: £191.8m), up 11.3%, with gross profits of £98.8m (2015: £82.3m), up 20.0%.

Gamma witnessed strong growth in its indirect business with gross profit increasing from £64.1m to £78.2m (+22%). The number of channel partners grew from 834 to 970 (+16%).

Wins in the direct business drove gross profit up from £18.2m to £20.6m (+13%). New customers include a large financial institution, Reed, OCS, City Electrical Factors, Nandos and St John Ambulance.

Cloud PBX and SIP trunking connections continue to grow with the number of installed SIP Trunks up from 360,000 at 31st December 2015 to 511,000 one year later (a gain of +42%). The number of Cloud PBX users increased from 142,000 to 230,000 (+62%).

Gamma CEO Bob Falconer said: "We have seen no let up in the demand for our strategic products of SIP trunking and Cloud PBX, and we are particularly encouraged by the growing contribution from our data services following the investments we made to extend our network reach.

"Bringing a full MVNO into service in 2016 was a major engineering achievement. While it is still early days for our new mobile service it positions the business well for the future as we develop more converged fixed and mobile services.

"We are pleased with the growth in the number of channel partners choosing to use our services and we continue to make significant marketing and other investments.

"The Gamma direct business remains focused on the larger, more complex opportunities, and we were successful in agreeing a significant SIP Trunking contract with a large financial institution and to provide full voice, data and mobile services to companies such as Strutt & Parker and CEF.

"The public sector has also grown significantly, with particular success with NHS Trusts, educational establishments and Government departments such as the Department of Communities and Local Government for whom we are providing mobile services."