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Gamma CommunicationsAnnouncement

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RNS Number : 5872O  Gamma Communications PLC  13 January 2026

13 January 2026

 

Gamma Communications plc

 

FY 2025 Adj. EBITDA and Adj. EPS (fully diluted) in line with market
expectations*

Share Buyback programmes announced

 

Gamma Communications plc ("Gamma" or the "Company"), a leading European
provider of business-critical communications technology, issues its scheduled
trading update for the year ended 31 December 2025.

 

Group results

The Board anticipates reporting FY 2025 financial performance in line with
market expectations*, with Adjusted EBITDA and Adjusted EPS (fully diluted)
within the consensus range. This demonstrates material year-on-year growth,
underpinned by a positive performance from our recent German acquisitions.

Cash generation

Continuing healthy adjusted cash generation supported the Group's capacity to
deleverage quickly, with closing net debt at 31 December 2025 of £9.4m (2024:
net cash £153.7m). This was after the acquisition of STARFACE in February
2025 for £152.2m, the share buyback of £45.1m (completed in H1 2025) and the
payment of £18.9m of dividends in the year.

 

Share buyback programmes

Gamma has a strong balance sheet and a high level of recurring revenues. It
continues to generate significant operating cash flow with liquidity supported
by its £130m multicurrency Revolving Credit Facility, of which £97m remained
undrawn at 31 December 2025. The Company is committed to maintaining balance
sheet efficiency and providing the appropriate returns to shareholders, whilst
also balancing investment in the development of the business and selective
M&A, as appropriate.

 

Following a review of the Company's capital structure, liquidity and cash
generation, the Board is today announcing the launch of a share buyback
programme within existing shareholder authorities of up to £42.5m in FY 2026
and an intention to launch a further £42.5m share buyback in FY 2027,
returning up to £85m in aggregate.

 

In parallel, the Board intends to pay a dividend per share for the next two
years fixed at FY 2025 levels. The intended dividends would continue to be
structured as 1/3rd : 2/3rds across interim and final payments. The first such
dividend would be the interim dividend declared alongside the 2026 interim
results in September 2026.

 

The Board expects to announce results for the year ended 31 December 2025 on
Tuesday 24 March 2026.

 

Andrew Belshaw, Chief Executive, commented:

 

"Gamma expects to report another good set of results, underpinned by strong
growth in Germany, and despite the challenging UK macroeconomic backdrop.

 

"Following a review of the Company's capital structure, liquidity and cash
generation, in addition to the dividend, the Board intends to return up to
£85m to shareholders by way of share buybacks during FY 2026 and FY 2027.
This balances investment in growth with enhanced shareholder returns.

 

"Although the UK market faces ongoing headwinds, including the PSTN switch-off
in early 2027 (shift from copper telephone network), our increased scale in
Germany, expanded Group product portfolio and robust business model -
supported by high recurring revenue, strong cash generation and available
liquidity - positions Gamma well for years to come."

 

* Company compiled range is based on known sell side analyst estimates. The
current consensus ranges for the full year ended 31 December 2025 are Adjusted
EBITDA £140.0m - £143.0m and Adjusted EPS (fully diluted) 93.6p - 95.4p
as at 12 January 2026.

 

 Enquiries:   

 Gamma Communications plc                             Tel: +44 (0)333 006 5972

 Andrew Belshaw, Chief Executive Officer

 Bill Castell, Chief Financial Officer

 Rachael Matzopoulos, Company Secretary

  
 Investec (Joint Broker)                              Tel: +44 (0)207 597 5970

 Patrick Robb / Virginia Bull 

 Peel Hunt (Joint Broker)                             Tel: +44 (0)207 418 8900

 Neil Patel / Benjamin Cryer / Kate Bannatyne

  
 Teneo (Financial PR Adviser)                         Tel: +44 (0)207 353 4200

 James Macey White / Matt Low

  

 

Notes for editors:

 

Gamma Communications plc is a leading European provider of business-critical
communications technology. Our unrivalled channel partner network connects
major technology vendors with tens of thousands of SMEs, as well as large
corporates and the public sector. Gamma combines its proprietary solutions
with leading third-party cloud platforms, its own network and a high quality
of service, to help customers communicate and collaborate more effectively.

 

Our broad and expanding portfolio - including cloud communications software
(telephony, messaging, video, customer experience), calling, network
connectivity, AI-driven automation, cyber security and managed services -
enables customers of any size to deploy end-to-end communications and IT
solutions via a single provider.

 

In the UK, Gamma Business serves SMEs via an extensive network of over 1,500
channel partners. For larger corporate and public sector organisations, Gamma
Enterprise engages directly to design and support complex, integrated
communications solutions.

 

In Europe, Gamma has its largest presence in Germany, delivering services to
SMEs through both partners and its own self-service digital platform, and is
recognised as one of the country's leading cloud communications providers.

 

With over 2,000 employees, Gamma is a FTSE 250 company listed on the London
Stock Exchange (ticker: GAMA). More information can be found at: gammagroup.co

 

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