Comms Dealer

Business comms provider Gamma has confirmed a successful IPO on AIM, with 50% of shares being sold to institutions at a sensibly-priced 187p per share, for a £165.2m market capitalisation. A combination of an attractive dividend yield and current organic growth rates way above the peer group average should ensure a solid start to Gamma's life as a public company, says Philip Carse, Principal Analyst, Megabuyte.

Special report by Philip Carse: As expected, Gamma has placed 50% of its shares in public hands, with most existing shareholders selling down. The company itself is not raising new money given a healthy balance sheet and good cash generation; the main aim of the IPO is to raise its profile. The company will have a market capitalisation of £165.2m at the offer price of 187p, or an enterprise value of approximately £145-150m given December 2013 net cash of £14.6m and subsequent cash generation.

The valuation equates to about 8.7x 2013 EBITDA. Current year multiples will be somewhat lower given that, as we reported recently, Gamma enjoyed very strong trading in the first half: revenues up 16% to £83.6m, EBITDA up 42% to £10.9m and post tax profits up 32% to £5.8m. A similar rate of growth for the full year would equate to about 6.2x 2014 EBITDA, at a PE of about 14.2x.

Gamma has also announced the intention to pay a progressive dividend. An indicative £1.75m dividend for the first half, had Gamma been listed then, equates to about £5.25m for a full year, or a prospective yield of 3.2% at the IPO price and a broad 50% profits payout. The company will pay two-thirds of a full year dividend for 2014, despite being only listed for less than three months.

First thoughts
Having tried to IPO in the tail end of 2011, but being deterred by market conditions, we are pleased to see Gamma succeeding this time round. The company marks a quality addition to AIM, with a long track record, good industry positioning and reputation, and starts life with a very decent level of liquidity with a 50% free float.

The IPO has also been sensibly priced; whilst an estimated 6.2x current year EBITDA is below the 7-12x range for peers such as Alternative Networks, Daisy, Maintel, Talk Talk and Redcentric, the PE of 14.2x and prospective dividend yield of about 3.2% are around their average. A combination of an attractive dividend yield and current organic growth rates way above the peer group average should ensure a solid start to Gamma's life as a public company.

Fidelity MD Alan Shraga commented: "This announcement is great news for the channel. Gamma and its partners have worked tirelessly over the last few years and to grow from £60m to £160m is an amazing achievement for our industry."

Video solutions company Imago Group has now been acquired by ScanSource following a Letter of Intent to acquire the company at the end of August. Imago Group will now be known as Imago ScanSource.

Imago will continue to provide the same broad range of services and will use its increased footprint to benefit its channel of value-added resellers.

Much of this will be focused on supporting them to assist customers with international requirements across Europe, the United States and into other territories.

ScanSource completed its purchase of Imago Group in September and as a result has incorporated Imago's operations in the UK, France and its recently acquired operation in Germany.

Ian Vickerage, Managing Director of Imago ScanSource, said: "It is an exciting time for ourselves, our partners and our customers because this acquisition gives us global reach and leverage which we will be using to assist our partners to win big international business."

Mike Ferney, President, Worldwide Communications and Services, ScanSource, said: "The Imago team, along with our ScanSource Communications team in Europe led by Rudy De Meirsman, will now total nearly 200 people, delivering video, voice and data solutions from the leading brands. As these two teams begin to work together, there will be cross-selling opportunities for resellers and vendors."

Jabra has unveiled its latest product series, Jabra Evolve designed to support knowledge workers.

A significant 69 per cent state od this group state that disturbances in the open office have a negative impact on their performance, but through advanced noise-cancellation technologies Jabra Evolve aims to enhance productivity by offering a personal 'concentration zone'.

The series consists of five headsets that are all purpose-built for shutting out office noise, including features that signal when the user doesn't want to be disturbed.

"The Jabra Evolve headset range create a complete personal concentration zone that boosts focus and work satisfaction for employees in increasingly open, loud and distracting workspaces," said Nigel Dunn, Managing Director, Jabra UK & Ireland.

"We have designed the Jabra Evolve series with both the employer and user in mind, delivering a solution to improve return on investment through increased workplace productivity and accelerated user adoption."

Unify aims to almost double channel revenues within two years following the launch of a new Partner Program and a single global channel strategy.

Unify intends to drive 45% of revenues through the channel within two years, up from 25%. "Our goal is to continue building a strong partner network with our existing partners, but also grow through new partners with a strong knowledge of software and hardware offerings," stated Thomas Veit, Senior VP of Channels for Unify EMEAR.

"The Program is designed for partners of all sizes. It offers a low cost of entry, easy on-boarding and fast ramp-up to bring quick results.

"We have to trust partners to be successful, and they have to trust us to not compete against them via direct sales."

The Unify Partner Program expands access to the vendor's UC solutions and rewards partners for expertise and specialisation. It also offers profit predictability and incentives.

Unify is also making more of its UC portfolio available to the channel, including the OpenScape Voice and OpenScape 4000 for enterprises, and OpenScape Business for commercial which has been scaled to accommodate more than 1,000 users.

"In order for Unify to help our customers transform themselves to successfully be positioned for the future, we must first transform ourselves," commented Veit.

"Our offerings need to be compelling, and we need to be ridiculously easy to do business with."

Virtual1 has completed a significant phase of network investment having ploughed millions into its core network with Juniper, boosting the scalability, capacity and resilience of its primary asset.

The upgraded network sees a big increase in scalability using multiplex devices with the capability for software defined networking. The devices improve system capacity with the ability to light dark fibre to multiples of 10Gig. The total number of 10Gig ports across the Virtual1 network now exceed 450.

The phase also sees a significant increase in network capacity with the deployment of additional Juniper routers with total capacity of 15Tbps. Dual routing engines on core routes were installed to improve resilience, resulting in impact-less upgrades using two routing engines.

Virtual1, CTO, James Hickman, commented: "This project has been a huge phase in our network development. The work undertaken by our architects has resulted in one of the most robust networks in our space. As well increasing the scalability, capacity and resiliency of our network, the work has seen our London network footprint doubled."

The phase was expected to take over 18 months to complete with over 3000 customer migrations taking place, but the migration and upgrade was completed in just three months.

Tom O'Hagan, MD, added: "The network underpins the core services our partners deliver to their customers. Strengthening our network by investing in large-scale upgrades is paramount to strengthening our relationship with our partners. I commend the work undertaken by our network architects in ensuring the large scale work was completed so swiftly and seamlessly."

As the end of a recruitment year draws near, employers always start to fret about who will be in their sales line up for January. So they should, as for every target year drawing to a close there are always sales people considering whether commissions worked out as promised, writes Clive Jefferys, JMA Network.

Shortfalls are easily explained by missed targets, but this is also the time when 'Yeah, but...' starts to presage conversations about bonuses earned, but not paid. This conversation is cropping up among our new candidates, very closely linked to their reason for looking for a new job.

Recruiters rarely need to persuade anyone to move job for its own sake, we can rely on dissatisfaction or change of circumstance to bring candidates to our door.

So the big question for 2015 is: How to shape up for New Business?

The telecoms industry is accelerating towards a services contract sale with monthly revenue collection, and selling tin for a big fat GP payment is becoming harder and harder.

Consequently it's getting tough to win real new customers when incumbent suppliers already have multiple, overlapping contracts in place. If needs be, they slash their price to beat your new bid.

In today's world the best sales people are defined by charisma, flair and personality.

Every successful team has them. They sniff out opportunities and win their sales cleverly, enigmatically and unusually.

Yet other chaps plod through dry ITT's, and bemoan that a hundred pages of technical detail is not good enough to win a deal anymore.

Meanwhile, your charismatic salesperson is having dinner with the best prospects and selling the benefits, not the features, of their solution.

So where do the bumblebees come into it?

Well they are the sales people in the middle. They flit from flower to flower and never remember which ones yield the best nectar. They pick up heaps of leads and have a go at this, and at that, but never hang around long enough to get truly good at delivering what is needed.

Like any profession, it takes time and determination to get really good at anything, and you just have to stick at it.

Ironically, this counts the same for hirers too. They should stop looking for a quick fix and work harder at strengthening recruitment relationships with their jobsites, agencies and HR advisors.

Successful recruitment of key staff is a long-term process - you must always be looking for new talent! Look at every suitable candidate that comes your way, whether you have an official vacancy or not. If you see someone you like, construct a justified reason to hire - and win over your bosses to hire your next Charismatic Salesperson!

Four Daisy Distribution employees have successfully completed the West Suffolk Triathlon in a bid to get fit and lose the pounds.

The event, which took place on 28th September in Stowmarket, saw Managing Director Dave McGinn, Finance Director Jamie Macrae, Marketing Manager Lindsay Cooper and Connections Team Coach Leon Smith, attempt and complete their first ever triathlon.

McGinn, Managing Director of Daisy Distribution commented: "I am delighted with the team's efforts. Not only did we all finish, but none of us came last either!

"This has been particularly challenging for me as I suffer from psoriatic arthritis, so at times it was hit and miss whether I would actually be able to complete the event. However, the fact is that I really enjoyed it! I lost two stone in weight during training and am feeling much healthier."

The West Suffolk Triathlon comprised of a 300m swim, 18km bike ride and 5km run.

McGinn added: "It has been a fantastic experience, but it doesn't stop there. Our current aim is to identify some new recruits for the Daisy Distribution tri-team, continue our training and compete again next year."

Steljes has entered into an exclusive partnership with education software developer Wordwall.

The two-year agreement sees Steljes appointed as the sole distributor of Wordwall's software and tablet solution in the UK.
 
Wordwall software enables educators to create, use and edit resources within the curriculum by developing interactive games and activities. The software will be included in all Steljes' interactive flat panels, whiteboards and projectors going forward.
 
Ian Goodhind, Commercial Director, Steljes, said: "This partnership brings new levels of interactivity and engagement to the classroom. When combined with the Wordpad 7B Android tablet, Wordwall offers an interactive and collaborative solution that is easy to use."
 
Wordwall 3.5, due for release in November, incorporates improved features, notably enhanced interactivity for tablet users, new templates and additional games.

British small businesses are not getting the most from their broadband provider and need to demand better value, according to new research released from TalkTalk Business.

The survey of 1,000 small business owners, show 59 per cent are experiencing problems with their provider and only half of those surveyed feel they're getting good value for money.
 
The results, taken from TalkTalk Business's Value of Business Broadband survey, also revealed that over a quarter of small business owners are confused about the best package for their needs and more than one in five SMEs are looking to switch providers today.
 
TalkTalk Business has announced two new packages tailored to SMEs -Simply Broadband and Complete Broadband - both are said to offer savings compared to other packages on the market.
 
To help SMEs forecast more effectively and maintain a positive operating cash flow, every TalkTalk Business customer pays a fixed monthly fee and installation, equipment, UK-based support, WorkSafe Internet security are all included within the package, with no hidden extras.
 
Results from the Value of Business Broadband survey also reaffirmed the ever-increasing need for faster connection speeds amongst SMEs. Half of those surveyed felt the Government should prioritise intervening to reduce the cost of superfast fibre broadband. And in addition to reliability and price, fast connection speed, was amongst the top three purchasing considerations.
 
To help more British businesses benefit from Fibre broadband, TalkTalk Business' Simply Broadband and Complete Broadband customers can also upgrade to superfast Fibre for just £15 extra month.

TalkTalk Business has also announced it is an official supplier of the Broadband Connection Voucher Scheme, administered by Broadband Delivery UK (BDUK). Any business based in one of the 22 SuperConnected Cities - whether a current TalkTalk Business customer or not - can apply for a free upgrade to Simply Fibre or Complete Fibre broadband, saving as much as £180 in the process.
 
"The research tells us loud and clear that Britain's businesses deserve better, and we couldn't agree more," said Charles Bligh, Managing Director, TalkTalk Business.
 
"Every business understands the benefits of fast, reliable business grade broadband, but few realise you don't have to pay above the odds for it. Our message to SMEs is clear - there is always a choice, demand more from your broadband provider."
 
As a further step to back SMEs, TalkTalk Business is also launching a new calling app that makes the business landline mobile.

Called Talk2Go, the app will be free to Simply Broadband and Complete Broadband customers, and allow business owners to pair their landline with up to five mobile devices.

Following the relaunch of Daisy Wholesale's data proposition at the start of the financial year, including the roll out of a new pricing portal, the channel provider has witnessed a significant spike in its data business.

The wholesale provider has seen the number of partners ordering data services increase by 37% within a six month period with EFM, GEA and Fibre all increasing month-on-month.

Lee Broxson (pictured), Product Director for Data at Daisy Wholesale, commented: "Through enhanced negotiations with our carriers, we have been able to offer our resellers a much more competitive market solution.

"To maintain our offering we have been inviting our partners to challenge our commitment of 'best product, best price' through our new pricing portal.

"We have had strong feedback from our base and that is backed up by our quote volumes and the substantial rise in pipeline activity."