Gamma Communications has hiked its dividend and kicked off a £35m share buyback after a strong performance from its European business drove up profit and revenue.
The firm increased its dividend 14 per cent to 17.1p, while earnings per share rose eight per cent to 54.9p.
Pre-tax profit increased 10 per cent to £71.5m, alongside an eight per cent rise in revenue to £521.7m. Shares opened slightly higher on the news.
The communications provider said it had seen growth in all business units, with a particularly strong performance in Europe, where profit jumped 11 per cent to £38.5m.
Cash generated by its operations increased 25 per cent to £123.5m, helping the firm dish out around £15.2m in payouts to its investors.
Andrew Belshaw, Chief Executive Officer, described growth in the European business as “particularly pleasing.”
He said: “Gamma has produced another strong set of results. Recurring revenue, stable margins and cash generation continue to be a feature of our business.
The firm, which has its headquarters in Berkshire, completed three acquisitions last year. These include the cybersecurity firm Satisnet and the international SMS provider Coolwave Communications.
“As well as our organic growth, Gamma has made acquisitions which have added to our growth potential and our ability to sell additional solutions to our existing customers.” Belshaw said.
He added: “We have developed our solution portfolio in the UCaaS space, and in the UK, for the first time, we will have a portfolio of solutions to serve any business of any size – we plan to replicate this in Europe throughout 2024.
“I want to thank our customers, partners and colleagues and look forward to working with them as we continue to grow the business over the coming years.”