Measuring our progress
The assessment of our KPIs, their link to our strategy, movement in the year and their progression is described below.
Revenue (£m)
£484.6m +8%
2022 484.6
2021 447.7
2020 393.8
Definition
Revenue from sales made to all customers (excluding intra-Group sales which eliminate on consolidation).
Outlook and strategic focus
Revenue has grown in the year due to continued growth in our key products in the UK and Europe.
Continued growth as further adoption of cloud.
Gamma monitors growth in revenue as it shows how successful Gamma has been in expanding its markets and growing its customer base.
Continued growth as further adoption of cloud.
Gamma monitors growth in revenue as it shows how successful Gamma has been in expanding its markets and growing its customer base.
Gross profit (£m)
£247.7m +8%
2022 247.7
2021 228.5
2020 200.8
Definition
Revenue less cost of sales.
Outlook and strategic focus
Gross profit has continued to grow in the year in line with revenue.
Continued growth as further adoption of cloud.
Gross profit is the measure used to evaluate the performance of the Group as well as each of the operating segments.
Continued growth as further adoption of cloud.
Gross profit is the measure used to evaluate the performance of the Group as well as each of the operating segments.
Gross margin (%)
51.1% +0.0%
2022 51.0
2021 51.0
2020 51.0
Definition
Gross profit as a percentage of revenue.
Outlook and strategic focus
Gross margin is in line with the prior year.
Gross margin is expected to remain consistent as the product mix across the Group tends to an equilibrium.
Gross margin is a measure of the Group’s profitability.
Gross margin is expected to remain consistent as the product mix across the Group tends to an equilibrium.
Gross margin is a measure of the Group’s profitability.
Adjusted EBITDA (£m)
105.1m +10%
2022 105.1
2021 95.4
2020 79.0
Definition
Adjusted earnings before interest, taxation, depreciation, gains and losses on disposal of fixed assets, amortisation and exceptional items.
Outlook and strategic focus
Adjusted EBITDA has continued to grow.
Continued growth as further adoption of cloud.
Adjusted EBITDA is the measure used to evaluate the performance of the Group as well as each of the operating segments, including their support functions.
Continued growth as further adoption of cloud.
Adjusted EBITDA is the measure used to evaluate the performance of the Group as well as each of the operating segments, including their support functions.
Cash (£m)
£94.6m +79%
2022 94.6
2021 52.8
2020 53.9
Definition
Cash and cash equivalents held at the end of the year.
Outlook and strategic focus
Cash has grown.
The Group expects to increase the cash balance subject to any further acquisition opportunities that may arise.
Cash demonstrates financial strength and the ability to pay sustainable dividends to our shareholders.
The Group expects to increase the cash balance subject to any further acquisition opportunities that may arise.
Cash demonstrates financial strength and the ability to pay sustainable dividends to our shareholders.
Cash generated by operations (£m)
£99.1m +10%
2022 99.1
2020 89.8
2019 70.3
Definition
Net cash flows from operating activities before tax paid.
Outlook and strategic focus
Cash generated by operations has continued to grow.
Cash generated by operations is expected to grow in line with EBITDA – cash conversion is expected to remain strong.
Cash generated by operations is a measure of the quality of Gamma’s earnings. It provides financial strength and the ability to pay sustainable dividends to our shareholders.
Cash generated by operations is expected to grow in line with EBITDA – cash conversion is expected to remain strong.
Cash generated by operations is a measure of the quality of Gamma’s earnings. It provides financial strength and the ability to pay sustainable dividends to our shareholders.
EPS (p)
50.6p -8%
2022 50.6
2021 55.2
2020 66.6
Definition
Earnings after tax divided by the full diluted number of shares.
Outlook and strategic focus
EPS has declined as a result of an exceptional charge relating to the impairment of the Spanish CGU and disposal of ComyMedia (note 8). In 2020 there was a £20m exceptional gain related to the sale of The Loop.
Expected to grow in the absence of any unforeseen events.
Long-term growth in EPS is a fundamental driver to increasing shareholder value.
Expected to grow in the absence of any unforeseen events.
Long-term growth in EPS is a fundamental driver to increasing shareholder value.
Fully diluted adjusted EPS (p)
71.8p +12%
2022 71.8
2021 64.0
2020 51.3
Definition
Adjustments to earnings include in the current year amortisation arising on business combinations, change in fair value of acquisitions, exceptional items and related tax benefits.
Outlook and strategic focus
Fully diluted adjusted EPS has continued to grow.
Fully diluted adjusted EPS is expected to continue to grow.
Fully diluted adjusted EPS is a measure of how successful we are in our strategy and ultimately how Gamma increases value for its shareholders.
Fully diluted adjusted EPS is expected to continue to grow.
Fully diluted adjusted EPS is a measure of how successful we are in our strategy and ultimately how Gamma increases value for its shareholders.
Performance metrics
Number of UK hosted seats ('000s)
751 + +11%
2022 751
2021 676
2020 601
Definition
Number of billed seats at the end of the year on Horizon (Cloud PBX) products.
Outlook and strategic focus
We have achieved growth from prior year as planned.
Continued growth.
Growth in this metric demonstrates the ability of the sales force to win new customers while also retaining existing relationships.
Continued growth.
Growth in this metric demonstrates the ability of the sales force to win new customers while also retaining existing relationships.
Number of UK SIP Channels ('000s)
1,794 +20%
2022 1,794
2021 1,430
2020 1,185
Definition
Number of billed UK SIP channels at the end of the year.
Outlook and strategic focus
We have continued to grow our number of SIP channels during the year.
Continued growth.
Growth in this metric demonstrates the ability of the sales force to win new customers while also retaining existing relationships.
Continued growth.
Growth in this metric demonstrates the ability of the sales force to win new customers while also retaining existing relationships.
UK Network Availability (%)
100.0% +0.0%
2022 100.0
2021 100.0
2020 99.994
Definition
Availability of UK strategic platforms.
Outlook and strategic focus
The network has continued to have strong availability throughout the year.
To continue to have strong availability.
By having a stable, available network this helps to attract and retain customers.
To continue to have strong availability.
By having a stable, available network this helps to attract and retain customers.
R&D Spend (£m)
£29.1m +48%
2022 29.1
2021 19.6
2020 12.9
Definition
The sum of research costs expensed through the statement of comprehensive income and capital expenditure on development costs in intangibles during the year.
Outlook and strategic focus
We have continued to invest in research and development.
Continued investment.
New and continued development on our products contribute strongly to overall growth, maintaining high returns and strengthens our overall market position.
Continued investment.
New and continued development on our products contribute strongly to overall growth, maintaining high returns and strengthens our overall market position.
Recurring Revenue (%)
89% -1%
2022 89
2021 89
2020 91
Definition
The percentage of revenue recognised over time over total revenue. See note 5 in the financial statements.
Outlook and strategic focus
Recurring revenue is in line with the prior year.
Maintain a high proportion of recurring revenue.
Recurring revenue gives an indication of future performance of the business.
Maintain a high proportion of recurring revenue.
Recurring revenue gives an indication of future performance of the business.