Gamma Communications Plc · LSE:GAMA
Gamma Communications — FY2025 Earnings Presentation
38 slides from Gamma Communications's earnings presentation, Mar 24, 2026
Slide 1: Gamma Full Year 2025 Results
Gamma Full Year 2025 Results 24 March 2026 Andrew Belshaw, CEO Bill Castell, CFO Business-critical communications technology
Slide 2: Agenda
Agenda Full Year 2025 Business Update 01. Andrew Belshaw What does Gamma do? 02. Andrew Belshaw Strategy and Market Update 03. Andrew Belshaw Full Year 2025 Financial Highlights 04. Bill Castell Business Outlook 05. Andrew Belshaw Q&A 06. Andrew Belshaw and Bill Castell 2
Slide 3: Full Year 2025 Business Update
Full Year 2025 Business Update Andrew Belshaw, CEO
Slide 4: Full Year 2025 Financial Overview
Full Year 2025 Financial Overview Gamma Group Gamma Germany Gamma Business Gross Profit Gamma Enterprise Gross Profit Gross Profit UK SME Service Provider Gross Profit £348.2m £78.4m £146.5m £44.3m £60.3m +16% growth +197% growth (3)% decline +3% growth Flat 23% of Group Gross Profit 42% of Group Gr
Slide 5: Full Year 2025 Operational Highlights
Full Year 2025 Operational Highlights Strong performance in Gamma Germany ▪ Driven by Starface and Placetel acquisitions; double-digit revenue growth across both businesses* in first year of ownership ▪ Acquisitions led to 2% improved Group gross margin to 54% ▪ Integration progressing well, e.g., a
Slide 6: What does Gamma do?
What does Gamma do? Andrew Belshaw, CEO
Slide 7: Gamma's unique proposition
Gamma’s unique proposition Gamma is a leading European provider of business-critical communications technology Our extensive channel partner network connects major technology vendors with tens of thousands of SMEs, and we deal directly with large corporates and the public sector Network Operator Key
Slide 8: Gamma provides business-critical communications technology
Gamma provides business-critical communications technology Calling Cloud communications Connectivity Our international telecoms network enables the Voice calling, video, messaging and Partnering with major network operators voice services businesses need to make and customer contact tools in one eas
Slide 9: Telcos are beneficiaries from AI
Telcos are beneficiaries from AI Enhancing operations and supporting growth Telecoms Network Partner Enablement ▪ Improved efficiency ▪ Data insights ▪ Security and fraud detection ▪ Operational efficiency Gamma sees Customer Solutions Internal Efficiency ▪ AI-powered propositions as an enabler ▪ Au
Slide 10: FY 2025 Group Gross Profit distribution
FY 2025 Group Gross Profit distribution Other Europe SME 5% Other* 5% Distribution by Distribution by business unit product category Gamma Gamma Germany Connectivity Enterprise 17% 23% 18% Cloud 41% Service Provider 13% UK SME 42% Calling 36% Gamma Business 55% 10 *Other includes security and manage
Slide 11: Gamma is in a strong position
Gamma is in a strong position 1. All businesses need a communications technology provider 2. Leading position in European growth markets with extensive distribution reach 3. Financial strength and resilience with highly cash generative business model ▪ 89% recurring revenue with a predictable outloo
Slide 12: Strategy and Market Update
Strategy and Market Update Andrew Belshaw, CEO
Slide 13: Our top 5 strategic priorities
Our top 5 strategic priorities 1. 2. 3. 4. 5. Migrate customers Grow the core Expand into adjacent Drive operational Deliver exceptional to modern platforms business markets efficiency customer service 1. Migrate customers to Drive cloud Grow Enterprise and Deliver lower costs Continue to invest in
Slide 14: Market trends
Market trends Cloud Full-Fibre Expansion of Cybersecurity comms connectivity hyperscalers IoT, AI 2. 3. Grow the core Expand into business adjacent markets The trends driving Gamma’s growth have continued to develop in ways that reinforce our confidence in the long-term growth opportunities across o
Slide 15: Our strategic priorities in action – customer examples
Our strategic priorities in action – customer examples International International expansion expansion AI ▪ Bosch, a major global engineering group ▪ Kerv, a global Consultancy and Managed ▪ Placetel customer, Innomall GmbH operates serving millions of customers across mobility, Services provider si
Slide 16: Full Year 2025 Financial Highlights
Full Year 2025 Financial Highlights Bill Castell, CFO
Slide 17: Full Year 2025 Financial Highlights
Full Year 2025 Financial Highlights Gross Profit Adjusted EBITDA Adjusted EPS (FD) Up Up Up 16% 13% 11% to £348.2m to £141.7m to 94.5p Adjusted cash generated by Net debt Shareholder returns operations £131.8m £(9.3)m £64.0m 93% Returned to shareholders Adjusted cash conversion 31 Dec 2024: Net cash
Slide 18: Income Statement
Years ended 31 December Growth 25 vs 24 2024 2025 £m Reported Organic* Income Statement Revenue 579.4 645.8 11% 1%* Cost of sales (279.1) (297.6) • Recurring revenue remains high at 89% of total revenue Gross profit 300.3 348.2 16% (1%)* (2024: 89%) Gross profit margin 51.8% 53.9% • Gross margin % i
Slide 19: Gamma Germany
Gamma Germany YoY growth: Organic growth: +103% 1% Pro forma growth*: 10%+ • Germany accounts for 23% of Group gross profit Germany Revenue (£m) • Gross profit of £78.4m includes £57.6m from Placetel and Starface – Under our ownership they delivered double digit revenue growth* in the year – Both ac
Slide 20: Gamma Business
Gamma Business YoY growth: +2% (UK SME and Service Provider) Organic growth: +1% Revenue (£m) 374.6 • Accounts for 55% of Group gross profit • Revenue growth of 2%: – A resilient performance despite challenging market conditions – Volumes increased, supported by continued growth in our cloud communi
Slide 21: Service Provider
Service Provider YoY growth: +2% • Contributes 23% of gross profit in Gamma Business Revenue (£m) and 13% of Group gross profit • Delivered 2% revenue growth • Gross profit increased by 3% – Healthy growth in Calling products – Service Provider benefits from structural demand and remains insulated f
Slide 22: Gamma Enterprise
Gamma Enterprise YoY growth: +3% Organic growth: +0% • Accounts for 17% of Group gross profit Revenue (£m) 130.5 • Delivered 3% revenue growth – BrightCloud, a Cisco CX provider acquired in July 2024, contributed £4.4m inorganic revenue and £2.4m inorganic gross profit • Near-term competitive ethern
Slide 23: Investments
Investments Development costs Capital expenditure £m 2024 2025 Variance £m 2024 2025 Variance Capitalised 12.5 19.2 6.7 Development costs 12.5 19.2 6.7 Expensed 19.7 19.4 (0.3) Tangible assets 4.9 4.8 (0.1) Total Development Spend 32.2 38.6 6.4 Software licences 1.8 0.3 (1.5) Capitalisation rate 39%
Slide 24: Strong Balance Sheet
Balance Sheet as at 31 December 31 December Strong Balance Sheet (£m) 2024 2025 Non-current assets (incl. PPE) 246.9 467.2 Receivables and inventories 127.4 130.4 • Net debt is low at £(9.3)m (December 2024: net cash Cash 153.7 23.7 £153.7m) considering the Starface acquisition and Current assets 28
Slide 25: Cashflow
Cash Flow Statement (£m) 2024 2025 Growth Cashflow Cash generated by operations 116.8 115.1 (1)% Add back: Cash impact of exceptional items 2.7 9.4 • Operating cash conversion remained healthy at Add back: Cash impact of other adjusting items 0.9 1.6 93%, with higher working capital outflows in the
Slide 26: Modelling considerations
Modelling considerations • The Board expects Adjusted EBITDA and Adjusted EPS to be in line with the range of current market expectations* for FY 2026 • Adjusted operating cash conversion to remain above 90% • Capex expected to be c.4% of revenue for FY 2026 • A one-off headwind exists in UK SME rel
Slide 27: Gamma is in a strong financial position
Gamma is in a strong financial position High recurring revenue Consistent gross margin High cash conversion 89% 50%+ 93% In 2025 and 2024 Across the Group Adjusted operating cash conversion in 2025 Healthy return on capital Significant committed future Strong balance sheet employed return of cash £(
Slide 28: Business Outlook
Business Outlook Andrew Belshaw, CEO
Slide 29: Summary and confidence in FY26 outlook
Summary and confidence in FY26 outlook 1. Gamma Germany: acquisitions mean Germany is a larger portion of the Group; continued double-digit growth expected as businesses transition from on-premise systems to the cloud 2. Gamma Business UK SME: resilient, facing one-off PSTN headwinds, migrating cust
Slide 30: Thank You and Good Luck Bill! Welcome Damien
Thank You and Good Luck Bill! Welcome Damien 30
Slide 31: Q&A
Q&A ee eee Gamma
Slide 32: Thank you
Thank you eee Gamma
Slide 33: Appendix
Appendix 33
Slide 34: Group Gross Profit evolution
Group Gross Profit evolution Distribution by business unit Distribution by product category £348.2m £348.2m 5% Other Europe 5% Other* £300.3m £300.3m 18% Connectivity £267.2m 6% 23% Gamma Germany £267.2m 5% 9% 4% 7% 22% 7% 22% 36% Calling 51% 42% UK SME 51% 42% 46% 14% 13% Service Provider Cloud 15%
Slide 35: Our strategic priorities in action
Our strategic priorities in action Cloud Full-Fibre Expansion of Security, comms connectivity hyperscalers IoT, AI ▪ Migrate businesses from on-premise ▪ Capitalise on full-fibre expansion ▪ Expand online direct Webex ▪ Grow AI Voice Agents systems to the cloud sales (Placetel) across Gamma Germany
Slide 36: Walk through of 2025 adjusting items
Walk through of 2025 adjusting items 2.2 3.3 1.8 - - 141.7 130.9 5.1 (1.6) EBITDA (£m) 1.6 - 1.7 4.0 131.8 5.1 2.2 2.1 115.1 Operating cashflow (£m) Placetel Starface Starface FX on Unadjusted Restructuring ERP employee maintenance Adjusted acquisition Listing costs implementation deferred measure c
Slide 37: Scale and opportunity in Germany
Scale and opportunity in Germany Gamma Germany Market Opportunity Top 3 Provider potential Revenue Gross Profit 1. Scale our German-made Starface product through our Channel Partner network £110.2m £78.4m 2. Launch Webex in the Channel (alongside Starface) Full Year 2025 Full Year 2025 Europe’s larg
Slide 38: Gamma serves three main customer groups across a variety of geographies
Gamma serves three main customer groups across a variety of geographies Customer Group What we do Route to market Geographies ▪ Cloud communications, Calling and ▪ Indirect via c.1,500 channel partners ▪ UK Connectivity products and services in the UK ▪ Germany and wider DACH region ▪ Indirect via c