Trading Update

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.