Well, hello everybody, and good morning, and welcome to Gamma's Results. I can't quite believe it. This is the 10th year in a row I've been stood up here doing Gamma's Results, and I'm delighted to say in that time we've been growing for 10 years out of 10, and we've got another great set of results to share with you this morning. As ever, it's myself and Bill. We will be introducing a new member of the Gamma team a little bit later to you. You may have met him or her outside as you were having a coffee. Fairly standard agenda, so I'm going to give you a very quick business update. Bill's going to run through the numbers. We'll get to that as quickly as we can because I think we've had a very, very good year, so we want to focus on that.
I'll give you a bit of an update on Gamma's strategic progress over the course of 2023 and into 2024, and highlighting some of the growth drivers that are going to take us through the next 10 years. Then we'll talk a little bit about ESG because that matters to us. We'll talk about the outlook, and we'll try and get into Q&A as quickly as we can. So, right, 2023. Fantastic year. Very, very good financial performance. 10 years ago, we were stood up here saying Gamma had done about GBP 170 million of revenue and just over GBP 20 million of EBITDA, and now we've tripled revenue with GBP 520 million. We've done EBITDA five times over, so GBP 114 million this year. And as you know, Gamma continues to provide services that are mission-critical to all of the businesses that we support.
Recurring revenues are a theme, stable margins are a theme, and cash generation is a theme. And one of the things that Gamma now has is a decent CFO, so we've ended up this year with a very, very strong cash position, generating a lot of cash, with lots of cash on the balance sheet. And as you'll have seen this morning, we started a share buyback program, and Bill will talk a little bit more about that when he comes up in a moment. With all of that cash, we've also been doing some important strategic acquisitions. So over the course of the last 12 months, we bought three businesses. Satisnet, we talked about at the half-year. Satisnet gives us the ability to provide security monitoring to some of our enterprise customers. Just before Christmas, we purchased a business called EnableX.
EnableX does a number of things, but the important one is it sells a product in the UK called iPECS, which is a UCaaS product provided by Ericsson-LG, and Gamma now has the ability to sell that into our partner base, and our intent would be to start selling that across Europe as well. Just recently, in the last few weeks, we bought a business called Coolwave. Coolwave's going to enhance our voice enablement proposition, and I'll talk more to that later. All of that means that as we close out 2023 and move into 2024, we have a much more complete UCaaS proposition than we've ever had before. We have our own products like PhoneLine+ that we've built ourselves. We have the products we've been selling for years and years like Horizon.
We now have access to iPECS from Ericsson-LG, and we continue to work with Cisco on the products that they produce that will work for our enterprise customers. So Gamma is on the verge of being able to have a UCaaS solution for any business of any size across the whole of Europe. Why is that important? 2 reasons. Firstly, the markets continue to grow, so the UCaaS market grows. But also, if you remember, Gamma has a huge SIP base in the UK of businesses that have still got SIP plugged into a hardware PBX, and we now have a solution for pretty much any business in the UK that wants to move from SIP plus hardware into a UCaaS solution. So we've had a fantastic 2023, and we're building for the next 10 years as well, but I'll come back and talk about that in a moment.
Right now, I'm going to let Bill explain to you 2023 in a bit more detail. Bill.
Good morning. So I'm Bill Castell, CFO. Got to know most of you in the room. Today, I'm going to take you through some of the financial highlights, some of the pages you'll recognize from half-year and previous years, but I've also chucked in a few extra pages. Also, as you would have seen this morning with the RNS, as Andrew rightly alluded to, announcing over the GBP 35 million share buyback over the next six months up to the 6th of September. The slides are quite detailed, purposely so, so people can download. I won't go through every single number on the slides, but there is quite a lot of information there, and you've seen I've chucked in, as I said, a couple of new slides. So as Andrew said, 10 years, in October, it will be 10 years since the IPO in October 2014.
This doesn't go all the way back, but these graphs, if you did go back, the arrow would be even more slanted upwards on it. But I think it just shows you a track record of growth. You can see adjusted EBITDA since 2019, 16% CAGR. You can see adjusted EPS, 18% CAGR. For those of you, you would see that we've actually tax-adjusted the 2023. That's why there's 79.6 versus 75.1, so that's just on constant tax rates. And then you can see with the GBP 123.5 million of cash generation in 2023, 23% CAGR. I know different people have different definitions, so we also showed just the cash flow generated after CAPEX and tax, and actually, it's not on there, but that would have been a 26% CAGR.
As Andrew rightly said, if you go back all the way back to 2014, EBITDA was down at GBP 23 million, and adjusted EPS was at 15p. But we're here to talk about 2023, but I thought that was a good intro just to remind people of the history. The standard nine-box grid. As you can see, Andrew always steals a bit of the thunder in his summary slide. You can see revenue is up 8% to GBP 521.7 million, Adjusted EBITDA a healthy 9% to GBP 114.3 million.
When I get to OPEX, you'll hear me talk about 7%, so we're back into this what I call positive jaws territory where our gross profit and our revenue are growing faster than OPEX, so we're getting that operating leverage with EBITDA growing faster at 9%. EPS on a constant tax basis is at 11%. As my son always says, read the footnotes.
You can see actually it was 5% on a reported basis because of the increase in the tax rate. Cash generated by operations, we're going to talk a lot about this. Cash, cash, cash was up 25% to GBP 123.5 million, and I'll come back to that in the cash flow statement, which leaves us in a net cash position of GBP 134.8 million. If you recall, we have a small amount of debt from the German transaction some time ago of GBP 1.7 million, so our gross cash in bank is GBP 136.5 million. Progressive dividend policy continues alongside the share buyback, so up 14%, 14% to 17.1p with, remember, the one-third, two-thirds, so we'll be asking at the AGM for approval for the 11.4p final dividend to go alongside the 5.7p we did at half-year. All in all, positive across the board.
Looking now into the income statement, the story is a quite familiar one. We talk about recurring revenue. It was 89%, similar to prior periods. You'll see gross profit also grew by 8%. Margins are stable at 51% on that side. A couple of points to note. We alluded to it in our January trading statement, some of these exceptional items. There were two exceptional items totaling GBP 16,16 16 million in total, GBP 12.7 million relating to the intangible asset impairment. Andrew's already discussed some of the transactions we've done with EnableX Group, for example, where at the medium to top end, we're working with other providers to provide those UCaaS solutions. Clearly, we still have our own development at the PhoneLine+ and other levels, so we're not stopping development, but it was realized at that middle to top end that it is best to partner.
Restructuring costs, GBP 3.3 million, slightly associated with that decision around the focus on the mid to top end on third parties. Also, we brought together our German and Dutch senior management team. As the put option for the German business, we settled that, so we're now 100% owners. If you recall, there was a small amount, just under 4% remaining, of the German legal entity that we did not own. We've now brought that out, the put option, and that was the right time for the CEO of Germany to move on. And at that point, our Dutch CEO and CFO are now CEO and CFO of Northern Europe. So that was relating to that restructuring. Depreciation amortization at GBP 21.3 million, still below the CapEx of GBP 23 million.
I think importantly as well, Adjusted PBT supported also by the interest income, so we got higher returns in the higher interest rate environment, which might change over time. We'll see where that goes. But the higher interest rate environment allowed us to have quite significant interest income, so Adjusted PBT growth was 12% year-on-year. So if I go into the divisions, again, won't go through all of them. Gamma Business, 7% revenue growth, gross profit at 8% growth along that side. Margins staying flat at 53%. Again, Andrew's going to talk, like prior periods, a lot more detail around our product volume, so that slide is coming up shortly, so we'll go through all the Horizon adds, which were a bit slower year-on-year, but offset by PhoneLine+ beginning to really accelerate going forward.
And then clearly, we now have iPECS as well, which Andrew will talk about in more detail going forward. Gamma Enterprise, it's like it's the inverse with revenue up 8%, gross profit 7%. This was supported by the Satisnet acquisition we did in August. You can see some of the numbers there, so this was supported by inorganic growth. Actually, the margins, when you can see at the bottom, 48.3% moving to 47.8%. The actual margins on the organic basis was at 48.4%, so actually, margins are flat on organic. Satisnet have a slightly different margin model than the underlying Gamma Enterprise business. You can read about all of the wins at the bottom there. It's also in our RNS, and it was also actually in the trading statement, trading update, sorry, that we gave back in January. Europe.
Headline numbers, the best numbers I think we've had in Europe since we entered Europe in 2018. Revenue up 8%, gross profit up 11%. Constant currency, we were helped by the FX, so you'll see that eight goes to six and the 11 goes to eight, but still strong performance. Mixed bag. Germany is the largest part of our European business, I think everyone's aware. They had a solid to strong performance, UCaaS and Epsilon. Epsilon's our mobile reseller that we have in Germany, a bit lower margin business, but solid to healthy German performance. Spain, again, returning back to growth, helped inorganically by NeoTel, the CCaaS business we bought in Malaga, but also the underlying business also performing better than prior years. Tough market still, though, with a tough competitor in Telefónica.
The Dutch market, as we've said previously, is quite a mature market compared to Germany and Spain. KPN is a formidable competitor in that space. We've rooted in the partner business. However, we have found that the Microsoft Teams, which obviously were very strong in the voice enablement in the UK, you will see when Andrew takes you through the numbers, there's been a significant increase in voice enablement of Teams in the Netherlands and actually in the Benelux region and going to Belgium as well. A slide I introduced last year just to give people an update on our numbers. OpEx, I mentioned before, up 7% to GBP 152.9 million, but lower than gross profit. Actually, organically, OpEx was only up 6% on that side. If you recall, staff costs are our main OpEx costs, so 70% of our OpEx is staff-related, so it's really correlated to that.
We continue to manage those. Looking forward, although inflation, for the macroeconomic economy is coming down, that will feed through, but it might take some time as we recontract, so it won't be overnight. I can see the latest inflation figures are back down into the 3% rather than the 11% highs that we were previously. Development costs were up around about 9% to GBP 31.7 million. Of that, you can see the capitalized element was up GBP 1.3 million to GBP 14.4 million. That takes us down to the CapEx side, and you can see CapEx, I think it was roughly 11% up at GBP 23 million. Within guidance, we guided between GBP 22 million and GBP 25 million, and CapEx was at GBP 23 million. Balance sheet. We talked cash. You're probably fed up with me talking about it. Strong cash, you can see that on the side.
On this page, we also show you the IFRS 16 lease liabilities. When we look at net cash, we just take off the mortgage we have in Germany. We don't include the IFRS 16, so we've done that, but it's also coming down, as you can see. And then contingent consideration of the old deals obviously being paid off, but with EnableX at the back end of 2023, so we did that deal just before Christmas, at the back end of December, is why contingent consideration has come back up. That's the discounted value of the consideration on that side. All in all, though, a strong performance. I think I would just point everyone just to the receivables and inventories area there. You heard about in the cash flow, the 108% cash conversion.
I'll talk a little bit about it, but that's really as a result of that line with the improvement in working capital, which I'll talk a little bit in a second. So cash flow, 108% conversion, I just mentioned that. I think the big message here, if you look at the bottom right of this table, you can see that we generated more cash overall year-on-year than the prior period at GBP 42.1 million in 2023. That is after higher tax rate. You can see GBP 15.3 million. Higher CapEx, you can see at GBP 23 million. Acquisitions, three times the size, and obviously our progressive dividend policy on that side. So basically, doing all of that, but actually producing more cash year-on-year after all of those different items is the main story here. There is a post-balance sheet event. We bought Coolwave.
Andrew's talked a little bit about that, and there's a slide coming up, but that will be in the 2024 numbers. But you can see we just gave you the update there of the consideration associated with the Coolwave transaction. The 108%, if I cover that now, again, talking about I've got three sons. Another son came up to me and said, "How can it be 108% every year, Dad?" It won't be 108% every year. This was associated primarily due to prepayments back in 2022. If you recall, I did mention it last year, we prepaid in order to get beneficial rates from suppliers and elsewhere before the inflationary uptick came in. We also, because of supply chain issues, kind of covered stock in advance, so there was a bit of a stock improvement year on year on working capital as well.
We still prepay a bit in 2023, but not to the same degree. Also, the interest you can get from the banks is healthy enough now compared to the discounts that suppliers might give you that actually make sense to keep in the bank on that side, and the pressure is less on the inflationary side. So this is a kind of, if you like, a period of adjustment. I'll talk a little bit about the guidance going forward around cash conversion. Capital allocation. We've let the cat out of the bag this morning, so the share buyback.
Just to give you a view of how the board looks at capital allocation, really want to emphasize you've seen the growth profile over the years since 2019. When you get the annual report, it will show you over the whole 10 years. We do Gamma like to grow organically. It's in our DNA.
Increasingly as well, M&A. You've seen the bolt-ons we've done, obviously entering Europe as well, the Mission Labs transaction. That is a key part of our strategy as we grow both organically and inorganically. Progressive dividend policy will continue. We've said that before, between 10%-15%, but the prior period has all been around the 14% mark. We pride ourselves in the balance sheet. When everyone else was taking out leverage in the historic years, we were a bit more cautious, and I think that's now seen as favorable as we sit there in a net cash position and our multiples start improving. And then return surplus, and that's what we're doing today as a one-off return of cash through a share buyback.
We, as a board, will constantly look at our internal hurdles and our capital hurdles and how we allocate capital, and they came to the decision, rightly so, to return some of the shareholders' cash back to them. So guidance. Guidance today that I'm giving. At the moment, we've compiled, as of Friday, many of your numbers in this room today of our sell-side analysts to give a range looking at 2024. And you can see that range to be the Adjusted EBITDA GBP 118.3 million-GBP 127.4 million. And then you can see the Adjusted EPS, quite a broad range as we sit here today at 75.8p-86.3p. So we're guiding that we're happy with that range, and we'll clearly give further updates as the year progresses.
Other things to note in the January trading update, you would have seen that Andrew and his quote, talked about the HR and finance systems that we're putting across the group as the group matures. That's going to have a one-off cost. There used to be CapEx, but in the world of cloud, that is now more and more OpEx. And therefore, we've got GBP 3 million, which is one-off costs covering 2024 and 2025, which will total GBP 3 million, so not annually GBP 3 million, but total GBP 3 million over that two-year period. Tax rates, as we stand here today, is at 25%. We'll see what the future holds on that side. And then we're keeping to the CapEx range of 2022-2025.
In the RNS, you'll see, and Andrew will talk about it, that we continue to invest not only in PhoneLine+ and some of the lower end of the market software, proprietary software, but we also have our portal that is well-renowned in the market that we want to continue to invest in. And then Adjusted Cash Conversion, the years of 108%+, I don't think is right, so I'm continuing to guide to 90%+. In prior years, it's been around the 94% mark before this 108% that we've seen here. With that, I'm going to hand over to Andrew, and I'm happy to answer Q&A, obviously, and all of this later on, but he's going to give you an update on the strategic progress.
Cheers well. Thank you. Which way are you going? There we go. Right.
So yeah, so in this section, we'll talk a little bit about not just the fantastic 2023 that we've had, but why 2024, 2025, 2026 are also going to be great for Gamma as well. Before we do that, just a bit of a reminder on what does Gamma actually do. Over the last 10 years, I think what we do has got more and more complicated, and we try and simplify it down and just explain what we do and why the services and the solutions that we provide are so important for the people that we provide them to. So very crudely, we list it as three things: UCaaS, voice enablement, and connectivity. And let's start with voice enablement in the middle. What does that mean? It means helping our customers just make and receive telephone calls using telephone numbers. Put simply, that's what we do.
And we've been doing that for years on the left-hand side with SIP trunking. So if you've had a hardware PBX, Gamma SIP has enabled you to do that call to an outside line. More recently, Teams has become quite popular, you might have noticed, but very, very few Teams users actually take the functionality where you can make and receive calls using phone numbers. It's around about 10%, and Gamma helps people do that. We'll sort of see how that's growing in a minute. The bit that we don't talk about very much, but it's just very quietly growing in the background, is Gamma supports other service providers. So there's about half of the Gartner Magic Quadrant, so names that you know that I'm not supposed to say, where Gamma supports their telephony ambitions as well. So we're really good at doing that.
We've been doing that for 20-25 years now. UCaaS solutions are building on that, so not just merely making and receiving calls, but all the stuff that we've now become very used to doing: instant messaging people, doing video calls, video conferencing. And if you're a small business, we have a product called PhoneLine+ that we've built ourselves. We own the IP. If you're a slightly larger business, we've been selling Gamma Horizon for the last 15 years in the U.K., and as I mentioned, and we'll come on to talk about a bit more, we now have a relationship with Ericsson-LG and their iPECS product, and we continue to build and develop our relationship with Cisco. You've got some fantastic tools for larger customers, enterprise customers who want the latest and greatest in AI, who have contact center requirements as well, and we can supply that.
We also supply connectivity: Ethernet, broadband, mobile. By way of a reminder, we're not going around digging up streets and laying fiber, nor are we building towers in the countryside. We partner with TalkTalk. We partner with BT. We partner with EE, and we partner with Three to provide those services. Why do people actually want to talk to Gamma about taking those services and solutions from us? Well, global tech giants and the large partners I've named, so people like Microsoft, people like Ericsson LG, people like Amazon that we also work with, they like talking to Gamma because Gamma has this unparalleled reach. We have thousands of channel partners across Europe that can take those solutions into tens and thousands of small businesses. But we also have relationships with thousands of CIOs at large enterprise customers as well.
So when people come to Gamma, we're able to take those solutions into a massive unrivaled customer base that they can't otherwise reach. On the right-hand side, that's why channel partners talk to us, because we have those relationships with people that they wouldn't be able to talk to. They wouldn't be able to have a direct relationship with a Cisco or an Ericsson LG, but we can help people do that. So are we merely like a broker? Well, no, we're so much more than that. Because as I mentioned earlier on, Gamma has a carrier capability. We're not simply going take this solution from a large provider. We're voice-enabling that. We're providing that carrier wrap. We're enabling you to make and receive telephone calls using that best-of-breed solution.
Also, the other thing that we've done very, very well over the last 20, 25 years is Gamma's known in the industry for its quality of service, and particularly our portal. For those of you who have sat here 10 years ago, you'd have heard Bob talk about the power of One, if anybody remembers that, which was sort of setting out as one or two nods there, which is quite frightening, but we've all been here for a while now. But Bob talked about the power of One, having one portal where you can provision anything from the Gamma stable, and that sort of set us apart. We've still got that. We still have that as a differentiator.
But as our solution set becomes bigger, we now are going to need to spend money on our portal over the next two-three years to get it to a point where it can underpin Gamma's growth for the next 10 years. So what have we been doing in voice enablement? Well, we bought Coolwave just a few weeks ago, February 2024. And what does Coolwave do? What Coolwave enables us to do is it enables us, quite simply, to provide phone numbers in other territories from the ones we're currently providing them in. So what does that mean? That means we have a license. If you need a license, it means we have number ranges that we can supply to our customers, and it means we can port your numbers in and out.
So if you come to us with a set of phone numbers because you're an existing business and you'd like us to host them and put them onto one of our products, we can do that. Now, we've been doing that very, very successfully, obviously, where we've been selling SIP and UCaaS in those purple countries, so the countries that we've been operating in for the last four or five years now as we've moved into Europe. But what Coolwave enables us to do is they have existing relationships with the regulators and the people that provide numbers in all of those countries that you see there that are green. If you're not quite sure which one that is, it's South Africa. I'm assuming people have got Australia and New Zealand, but if you're sitting at the back, that's there.
We also haven't put South Korea on there because none of us knew what it looked like, and nor have we put Singapore because it's really quite tiny. So there's all of the green countries there and a few more besides. So by the end of this year, we'll be able to provide voice enablement in 20 countries. And because of the way Coolwave operates, we can build that to 50, 100, as many as you want based on business case. There's probably a natural limit in that, I suspect. And what does that do? Well, it increases the TAM for things like Operator Connect. So at the moment, we're providing Operator Connect in 5 countries. We can provide that in 20 countries and then onward to 30, 40 countries.
It just increases that addressable market for something that we do very, very well in the countries that we're already in. It also means, I mentioned earlier on, where we're supporting people in the Gartner Magic Quadrant with their telephony aspirations, and we can support them in the UK. We can now support them around the world, which I think is going to be increasingly important for us. So we see our service provider business becoming more important over the course of the next few years. In UCaaS, we've been busy as well. We've acquired a business called EnableX, and EnableX has three brands. So the first of those is a business called Pragma, and Pragma joined us with 130,000 UCaaS seats, all in the UK, and they're all on a product called iPECS, which is built by Ericsson-LG.
Ericsson-LG sell that around the world, and our intention is to bring that product into all of the countries in which we're currently operating. So it's a really good relationship to have, as well as those 130,000 seats, and relationships with a few channel partners in the U.K that we didn't previously have a relationship with. It has two smaller businesses as well. Techland has a relationship with Ribbon, selling session border controllers into enterprise and service providers, and will continue to run that business. And then Candio is a really interesting business. It has small, easily consumed software products at a really good price point. So it has two or three of these that are designed to be taken into small and medium-sized businesses.
So one, for example, is a little widget that small businesses can run that just tells them if their data's been stolen and is for sale on the dark web. Don't ask me how it works. But what we're finding is partners, so Gamma's big partner base, not just in the U.K., again, but across Europe, are going to take these products, and it's just going to be an upsell opportunity for us. Again, not going to move the dial significantly, but just adding a few million GBP of revenue over the course of the next few years from the upsell from some of these products, which is quite exciting. So with Pragma and the Ericsson LG relationship in mind, what does that mean, particularly for Gamma's UCaaS portfolio? And I'm quite excited about where we've got this portfolio to now.
So I'm just going to go for one because I'm quite excited. So for the last four or five years, Gamma's been selling all of these products in Europe. So we have Horizon that we've been selling in the U.K. We don't really talk about them very much. We also have a product called Flex that's our UCaaS product in Germany and the Netherlands, and a product called Centile that we've been selling in Spain. And we carry on selling those. So customers who are using and enjoying those solutions can carry on using them and enjoying them, and partners who are selling them can carry on selling them. But we've added additional things to the stable now that take us not just from the middle of micro up to sort of nearly the top of SME, but we can now cover the full remit of every company.
So we've sort of talked about this before, but in the micro space, we now have PhoneLine+ . We launched that in the U.K about 18 months ago, and you'll see that that's doing very well. It's a product we built ourselves. It's designed for businesses with zero to nine users. We now have that relationship with Ericsson-LG and their iPECS product, which is being developed by a team of hundreds of developers in Korea. It's a best-of-breed solution. We can now take that into businesses from probably about five users up to something like 200-250 users. And the relationship that we're building and developing with Cisco means that we now have a product, as I said earlier, for enterprise customers who want all of the latest things in AI, who want contact center functionality. We can now deliver that through the partnership with Cisco.
Just on the right-hand side, we continue to analyze whether there's anything else that we need to put into the portfolio. As I mentioned a moment ago, some of the big global people want to come to talk to Gamma because we have this unrivaled distribution network across Europe, and therefore conversations are ongoing as to whether there are additional things that we can bring into our portfolio. People say to us, "Well, does that mean you're turning your back on Teams?" Absolutely not. Teams integrates with pretty much everything we have. It doesn't currently integrate with PhoneLine+ at the moment, but remember, PhoneLine+ is designed for small businesses, like micro businesses, who don't really use Teams. But every other solution that we're selling can be integrated into Teams to provide a more fuller experience for our end users.
So we're very, very excited that we're just at that point now where, for the first time, we do have a UCaaS solution for any business of any size, and over the course of the next 12-18 months, we will make that the case in Europe as well. Right. So what does all of that mean in terms of growth? Well, we pulled out four growth trends, and to be honest, one of the issues that we have at Gamma is there's so much going on in our industry and our space. There's so many different growth trends. Actually, it's quite difficult sometimes just honing it down to these four.
But the first one, which is really important, and we saw this kind of post-COVID and with hybrid working becoming more and more prevalent now, customers have more complicated requirements, which means that we need to provide more complex solutions to be able to deal with them. And that means we need to be working with more partners, and I'm so pleased that we are able to work with some of these partners. So as I mentioned, and I keep sort of mentioning, we have people like Ericsson-LG, hundreds of developers in Korea building product, Cisco spending $1 billion a year building out their UCaaS portfolio, and of course, Microsoft spending whatever they're spending on Teams, which I would imagine is quite a lot.
And we have all of those things in our stable and an ability to put them together in a way that can deliver a solution for any business. So as things become more complicated, we don't see that as a threat that sort of says, "Well, has your portfolio of products maybe met its match in some of the things that are happening in the world?" We see that as a challenge and an opportunity for us to think about how can we be the first to meet some of those new needs that are out there in the market. PSTN switch-off in the U.K., we talked about at the half-year. We got very excited about, for those of you who don't remember, at the end of 2025, BT is turning off the PSTN network in the U.K.
There's about 3 million micro business lines that are out there somewhere that we're very much hoping are moving to IP telephony. What we're actually seeing happening is that partners and end users are moving to comparable legacy products that are offered by those carriers who've historically unbundled local exchanges. So they're not immediately moving to IP telephony. That gives them a bit of a stay of execution of maybe two, three, four years, but ultimately, they need to move to IP telephony. So I think when we were talking at the half-year, we said there's going to be this kind of big uptick over the next two years between now and the end of 2025.
Actually, we think it's going to be a slightly longer slope, shallower but longer slope that's going to bring those micro businesses onto our IP products, not over the next two years, but over the next three, four, five years. The evolution of the SIP base is a fantastic opportunity for us, and on the very next slide, I'll show you some numbers as to how the market's moving. But Gamma has 1 million SIP trunks, so that's probably about 4 million business users who are still using a hardware PBX. And we have a fantastic opportunity to move those users onto other solutions that are going to increase our RPs and AMPs. And number four, and we've been talking about this for a long, long time now, the great sleeping giant is the European UCaaS market. Germany is still massively underpenetrated.
There's still fewer than 10% of business users in Germany that are taking UCaaS. Most of them have still got a hardware solution. But we are so well placed now. As Bill mentioned, Achim, who built our German business from nothing over a period of 20-25 years, chose this summer to retire. So I've got Gerben, who is running our Dutch business, now running the whole of northern Europe. And we've also appointed a new sales director. He's a guy called Thomas Muschalla, who joins us from NFON which is the market leader in Germany for cloud PBX. So we've got a fantastic management team now in Germany who are very well placed, not just to wait for that UCaaS market to grow in Germany, but actually to think about how we can begin to push it, which is what we did 10 years ago in the UK.
So let's look at some numbers. So in the voice enablement, again, if you go back 10 years, all we were talking about was that top left-hand box there. So Bob and I would have stood up and said, "We've got 250,000 SIP trunks in the U.K.," and over the course of the next probably five or six years, we said, "That's going to grow to something like 1 million, and then it's going to flatten off." And that's what we're seeing now. That traditional SIP in the U.K. is flat and actually declining ever so slightly. But that's no bad thing because actually what we're seeing is users are moving to products that generate more RP and more margin for us. Many of them are moving to UCaaS, and we'll see that on the next slide. But actually, people are moving to Teams and voice enablement of Teams.
Gamma remains the U.K. market leader for Teams voice enablement with 430,000 users. People inevitably move to third-party UCaaS solutions. As I mentioned, we underpin using that carrier capability in our service provider business, a lot of those third-party UCaaS solutions. We've got only 400,000 SIP trunks that are supporting not hardware, but third-party UCaaS. SIP actually, overall, is a growth area for us. The original SIP product we were selling 10 years ago, that's now flattened off, maybe declining slightly. We've taken that capability that we have. We've applied it to supporting third-party UCaaS. We've applied it to supporting Teams, and that's growing. If you look at the European market, well, we've always said the European market probably lags the U.K. market by 6 or 7 years, and that's what you're seeing here. That traditional SIP market is still growing.
Most of our SIP trunking is in Germany, where we're actually seeing that prevalence of people taking hardware with SIP. That's still a growth area. In Europe, we don't support any third-party UCaaS providers, but we will, and that's what Coolwave enables us to do, as well as our existing capability and expertise in the U.K. Teams, well, it looks like it's growing fantastically in Europe, but that's from a very, very low base. We support 9,000 users in Europe, primarily there in the Netherlands. Actually, those 9,000 users in the Netherlands actually make us the largest provider of voice enablement for Teams in the Netherlands, which just goes to show you how nascent the market is when you're the market leader with just under 9,000 users. So there's lots and lots of areas where we can grow in our voice enablement over the coming years.
UCaaS, well, we also have that opportunity to grow. Again, if we were talking 10 years ago, we'd have only had that top left-hand box. And when we stood here doing the 2014 results, we had 80,000 cloud seats in the UK, and we had nothing else on this slide. And we've now moved that up to just shy of 800,000. It's really annoying that we haven't hit 800,000 in the year. I would have bought 3,000 myself just to round that off. But yeah, that's bad, apparently. So we've got nearly 800. Let's just call it 800. Let's do a bit of rounding. It's 800,000. We've also acquired another 130,000 seats with the acquisition we did of Ericsson-LG and our micro product, so PhoneLine+ and its digital baby brother, which we call CircleLoop, and we're nearly up to 30,000 seats.
So in the UK now, we've got 950,000 UCaaS seats. And the UK market, just as a reminder, is still around 50% penetrated. So there's lots and lots of market for us still to go at. And in future, we'll start listing Cisco seats up there, I'm sure, as well. And over the last kind of couple of results presentations, we've talked about the importance of bolt-ons to enable us to maintain our RPs in our UCaaS product. And we haven't done the math this time, but you can do that based on information that we've given you in the past. The key thing is that all of those bolt-ons are growing faster than the core Horizon product, and therefore the argument that we're maintaining RP is the same.
Just below the line again, European cloud PBX grew 5%, and that's really just a measure of the fact the European market is not quite yet growing at the rates that we hope it will be growing at going forward. So we think that's roughly in line with where the market's at when you look at people like NFON and some of our other competitors. But there will be a day, we believe, when the German market in particular continues to grow. And the Europe CCaaS business, I wasn't going to say too much about that, only really to point out there's a tiny mistake in the RNS. Those 4,000 cloud seats are at the end of December, and I think the RNS actually says they're at the end of June. So it should have been the end of December, but I'm sure everybody spotted that. Right.
Hopefully, you met the new member of the Gamma team outside. I don't know if you did, but the purple dog, as he's become known, we've not yet named him or her. We're going to have a naming competition. If you'd like to enter, you'd be very, very welcome to do that. But he's our new brand ambassador, and he's a new way of helping us to describe Gamma. So we believe business is built on relationships, and the best relationships are built on trust, and the best relationships are very, very genuine. And what our friend here reminds us of is that Gamma is a new breed of comms company. Gamma is loyal. Gamma is supportive. Gamma is reliable. Gamma is by the side of our partners and our end users every day as they're running their businesses.
How we do business is just as important to us as the fact that we've had a very, very good 2023. There's just two or three things I'd pull out on our ESG slide. For those people who are particularly interested, we have compliance teams who are very interested. We have a whole ESG website that sets out all of the data and the various bits of reports and the gradings that we've had from the institutions that grade us. There's two or three things that we're very, very pleased about that I want to just highlight. In our annual report, when that goes up on the website in a couple of days' time, you'll see that we've put TCFD reporting in there. We're not required to do that because we're an AIM company rather than a Main Market company.
But you'll also see that on the 11 criteria, Gamma complies with 10 out of those 11, which is actually really, really good compared to our peer group. We're very pleased about that. It's much kudos to the team that have worked very, very hard getting us that level of compliance. But more than that, we've had the Science Based Targets initiative people. None of this stuff rolls off the tongue very easily. Look at Gamma's net zero plan. We'd originally said we're going to be net zero by 2042. We'd also said that by 2030, our Scope 1 and 2 emissions, we'd reduce those by 90%. I'm delighted again to say that the SBTi people have had a look at that, and they've essentially approved our plan. In my finance parlance, that's sort of audited, but it's not quite an audit.
And also just on governance, Gamma tries to maintain governance in line with being a premium main market company. We're on AIM, but we always kind of keep our governance as good as it could be and as good as it needs to be. And just while I mention that, I should also mention and pass on our thanks and management's thanks to Henrietta Marsh, who's been one of our non-execs for the last, I think, five or six years now, and has really helped us bring governance up to where it needs to be within Gamma. And she just announced this morning that she'll be retiring. So we wish her a long and happy retirement, and we thank her very much for her contributions. So that's 2023. Where are we going forward?
Well, I've mentioned it a few times, but look, over the last 10 years, we've tripled the revenue. We've increased EBITDA five times. We've increased our cloud seats over 10 times. We've increased SIP trunks four times. We've moved into Europe. We've taken our core competencies of voice enablement, and we've applied that to all of the new solutions that have been introduced in the market, those coming from Microsoft Teams, those coming from other third-party providers. And Gamma will continue to do that. We continue to take those core competencies that we have. And as the market just becomes more complicated, we will build. We will partner with people to deliver solutions for all businesses. Our business model remains robust. Recurring revenue is a feature. Margins being maintained is a feature. Cash generation is a feature. And we still maintain a strong balance sheet.
We still have these fantastic differentiators. The global providers want to talk to us because of our distribution reach. And those people who distribute for us in Europe and the U.K, they talk to us because we have the relationship with the global providers. And we wrap that with fantastic customer service, and we wrap that with our carrier capability that enables us to voice enable all of those solutions. We also continue to execute our technology-driven product strategy across all routes to market. Again, as the market changes, it's not just about customer requirements. It's about the way people want to consume some of those solutions, and we will continue to support those. And then we have those growth drivers. In the U.K, I've mentioned it a couple of times.
SIP plus hardware is going to move to cloud products, to UCaaS products, and we now have a UCaaS product for any end user. PSTN switch-off's going to create lots of opportunity. It's going to be over a slightly long period than we thought originally, but all of those customers will need to find an IP solution. Growth in Europe, we've been talking about it for some time. I know it's frustrating. Nobody's more frustrated than us. Growth in Europe will come. Germany is still less than 10% penetrated. We continue to look for additional M&A opportunities, either bringing a new route to market or possibly bringing a new product. There's always a number of things that we're looking at and considering. So as I hope you can see, 2023, we thought was a fantastic set of results, but it doesn't end there.
We think not only is the market moving in a way that really works for us, but we think we're very, very well placed to exploit that going forward so that we can be sitting here in another 10 years looking back on a fantastic set of results.