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magazineGamma Communications raises the bar again
Gamma Communications (GAMA:AIM) 790p
Gain to date: 21.9%
Original entry point: Buy at 648p, 18 January 2018
Any concerns investors may have had over the retirement of Gamma Communications’ (GAMA:AIM) long-standing chief executive officer Bob Falconer in May were quickly swept aside by a typically positive trading update on 12 July.
In the 15 years that Falconer worked at the telecoms technology developer, including the past four as an AIM-quoted company, a reputation of beating well-managed market expectations had become almost set in stone.
Now with his replacement in the hot seat, Andrew Taylor, little seems to have changed on that front with the company saying it anticipates full year results to 31 December 2018 to be ‘at the higher end of expectations.’
That comment was based on earnings before interest, tax, depreciation and amortisation of £46.3m on £263.6m of revenue, according to consensus at the time.
Those figures have nudged up as analysts revisit forecasts in light of Gamma’s optimism; Peel Hunt increased its estimates 2% to 3% higher, even though ‘we were already a couple of million higher on revenue.’
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