AGM Trading Update
Gamma makes good start to FY26 with trading in line with expectations and strong cash generation.
vs expectations: in line
- Net debt £1.6m (prior £9.3m at 31 December 2025)
- Share buyback programme spend £12.1m
- FY 2026 Adjusted EBITDA guidance £138.1m - £142.8m
- FY 2026 Adjusted EPS (fully diluted) guidance 90.9p - 94.4p
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Ahead of the Annual General Meeting ("AGM"), to be held at 8.30am today at the offices of Investec Bank plc, 30 Gresham Street, London EC2V 7QP, Gamma Communications plc ("Gamma" or the "Group") provides the following trading update for the year to date.
Group overview
The Group has made a good start to FY 2026, with trading in line with expectations. Highlights include:
| · | Gamma Germany: Continued strong adoption of cloud communications solutions, with ongoing momentum from both new customer wins and upselling to the existing base. |
| · | Gamma Business - UK SME: The UK market faces ongoing headwinds, including the industry-wide impact from the switch-off in early 2027 of the UK's legacy public switched telephone network ("PSTN"), as previously guided. Nonetheless, cloud volumes continue to grow, driven by sustained uptake of "Webex for Gamma" and "PhoneLine+". Customer engagement and the partner pipeline remain healthy with opportunities for larger migration deals. |
| · | Gamma Business - Service Provider: Early traction of international strategy in Europe and APAC, having signed first contracts with local customers in Germany, Australia and Singapore. |
| · | Gamma Enterprise: Continued momentum from both contract renewals and new business wins, including an AI-led Customer Experience deployment at JD Sports, and further wins across Local Government and the NHS, including Rochdale Borough Council and Greater Glasgow & Clyde NHS. |
Balance Sheet
The Group continues to generate healthy underlying cashflows and maintains a strong financial position. Net debt was £1.6m as at 30 April 2026 (31 December 2025: £9.3m). This was after the expected cash outflows of £12.1m for the share buyback programme to the end of April, and £3.8m of deferred and contingent consideration related to prior acquisitions.
Strategic update
Further to the announcement made on 7 April 2026, the Group confirms it remains in preliminary discussions with a number of interested counterparties. The Group will provide a further update in due course.
Outlook
The Board expects financial performance for FY 2026 to be in line with market expectations, with Adjusted EBITDA and Adjusted EPS (fully diluted) in line with the consensus range (FY 2026 Adjusted EBITDA £138.1m - £142.8m and Adjusted EPS (fully diluted) 90.9p - 94.4p respectively, as at 12 May 2026)*.
The Group expects to provide its next trading update alongside the interim results for the six months ending 30 June 2026, scheduled for Monday 7 September 2026.
*Consensus range based on unconnected sell-side analyst estimates.
Rule 28 of the Takeover Code
The UK Panel on Takeovers and Mergers has confirmed that this profit forecast constitutes an ordinary course profit forecast. The directors confirm that this profit forecast has been properly compiled and the basis of the accounting used is consistent with the Group's existing accounting policies. The profit forecast has been compiled on the basis of the assumptions set out below and should therefore be read in this context and construed accordingly.
Assumptions outside of the Company's control or influence:
| · | No material change in the political, economic and/or market environment that would materially affect the Group. |
| · | There will be no material changes in market conditions over the period to 31 December 2026, including in relation to either demand or the competitive environment. |
| · | No significant or one-off events or litigation that would have a material impact on the operating results or financial position of the Group. |
| · | There will be no material adverse change to the Group's client relationships. |
| · | No adverse changes to inflation or interest or tax rates compared with the Group's budgeted estimates. |
| · | No material adverse events which will have a significant impact on the operating results or financial position of the Group. |
| · | No material adverse outcome from any ongoing or future disputes with any customer, competitor, regulator or tax authority. |
| · | No material change in legislation, taxation, regulatory requirements, applicable standards or the position of any regulatory bodies impacting the Group's operations or accounting policies. |
| (ii) Assumptions within the Company's control or influence: | |
| · | No additional significant acquisitions, disposals, developments, partnerships or joint venture agreements being entered into by the Company. |
| · | No material change in the dividend or capital policies |
| · | No material changes to the Group's management team to the extent not already publicly disclosed. |
| · | No material changes to the Group's strategy. |
| · | No material adverse change to the Group's ability to meet customer, supplier and partner needs and expectations based on current practice. |
| · | The Group's accounting policies will be consistently applied in the period ending 31 December 2026. |
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.