(Alliance News) - Gamma Communications PLC on Tuesday said trading in the calendar year to date has been "strong", in a trading update ahead of its annual general meeting today, while it expects earnings in 2024 to rise.

The Berkshire, England-based provider of communication services to the UK, German, Spanish and Dutch markets said healthy underlying performance supported by recent acquisitions.

It said Gamma Business and Gamma Enterprise have experienced a "strong start", while recent acquisitions are performing in line with expectations and have added a number of "key strategic" products to its portfolio.

Gamma Communications said the European business is currently delivering lower growth than the UK, with a more challenging macroeconomic climate and a small adverse impact from foreign exchange.

It said its balance sheet remains strong while underlying trading continues to generate "significant" cash. Net cash at April 30 stood at GBP140.4 million, up from GBP101.3 million.

Looking ahead, Gamma Communications expects adjusted full-year 2024 earnings before interest, tax, depreciation and amortisation to be within the range of latest market forecasts of GBP120.9 million to GBP127.4 million, alongside adjusted fully diluted earnings per share of 78.4 pence to 84.0p.

In 2023, adjusted Ebitda GBP114.3 million while adjusted fully diluted EPS was 75.1p.

Shares in Gamma Communications were up 1.5% to 1,512p each in London on Tuesday late morning.

By Greg Rosenvinge, Alliance News senior reporter

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