Ahead of the Annual General Meeting, to be held at 8.30am today at the offices of Investec Bank plc, 30 Gresham Street, London EC2V 7QP, Gamma Communications plc (LON:GAMA) has provided the following trading update for the year to date.
A good start to the year, with continued healthy cash generation and full year guidance reiterated
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)*.
Gamma Communications 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.
