Gamma director continues to sell down

The sale follows Gamma’s full year results in March, which revealed growth largely fuelled by its recent acquisitions. The group is in the process of moving to a unified communications-as-a-service (UCaaS) model and targeting expansion in Western Europe – where broker Peel Hunt reckons the penetration of B2B UCaaS averages only around 8 per cent. It is encouraging then that Gamma completed its purchase of Vox Telecom in Spain last week, as well as acquiring Telsis in November last year and Exactive last month. On 25 March, the group issued 69,024 new ordinary shares of 0.25p each to Exactive shareholders. 

However, in the face of Covid-19 chief executive Andrew Taylor told Investors Chronicle in March that the company “will certainly slow down” its acquisitive approach until it is able to fully assess the impact of the pandemic. 

Gamma is well-positioned to benefit from increased use of digital communications as more companies work from home at scale. It is true that competition in the wider UCaaS market is heating up, which will inevitably put pressure on product margins. For now the group remains highly cash-generative, with a high proportion of recurring revenues and ending 2019 with £41.3m net cash (including lease liabilities) and no debt.

Mr Stone now holds 0.2 per cent of Gamma Communication’s issued share capital. He is a managing partner of St Albans Capital LLP, a family investment management vehicle, and founder and director of Greenstone+, a non-financial reporting software company. Mr Stone also sits on the boards of Frugalpac, Epsilon Global Communications Pte Ltd and Calcot Hotels Limited. He was not available for comment.