Gamma Communications Plc · LSE:GAMA
Gamma Communications — H1 2026 Earnings Presentation
18 slides from Gamma Communications's earnings presentation, Sep 7, 2026
Slide 1: Half Year 2026 Results
Gamma Half Year 2026 Results 7 September 2026 Business-critical communications technology
Slide 2: Agenda
Agenda 01. Half Year 2026 Business Update 02. Recommended offer for Gamma 03. Half Year 2026 Financial Highlights 2
Slide 3: Half Year 2026 Business Update
Half Year 2026 Business Update
Slide 4: Financial Overview
Half Year 2026 Financial Overview Adjusted cash Gross Profit Adjusted EBITDA Recurring Revenue generated by operations £70.3m £178.1m £72.5m 90% 97% +4% growth +2% growth H1 2025: 90% Adjusted cash conversion 4
Slide 5: Operational Highlights
Half Year 2026 Operational Highlights Strong growth in Germany SME ▪ Strong demand for cloud communications continued to accelerate in both our channel and digital direct businesses ▪ Integration progressing well with the single German Channel Partner Sales and Customer Care teams operating effectiv
Slide 6: Recommended offer for Gamma
Recommended offer for Gamma
Slide 7: Recommended offer for Gamma
Recommended offer for Gamma ▪ On 1st September, Gamma's Board agreed a recommended cash offer from Epiris, a London based private equity investor (under the newly incorporated entity Bradbury Bidco Ltd) ▪ The offer of 1,120p per Gamma share represents a 53% premium to the undisturbed share price of
Slide 8: Financial Highlights
Half Year 2026 Financial Highlights
Slide 9: Financial Highlights
Half Year 2026 Financial Highlights Revenue Gross Profit Adjusted EBITDA Up Up Up 4% 4% 2% to £330.0m to £178.1m to £72.5m (Organic up 2%*) (Organic flat*) (Organic down 1%*) Adjusted cash generated by Adjusted EPS (FD) operations Shareholder returns £70.3m £34.5m Flat 97% Returned to shareholders a
Slide 10: Income Statement
Income Statement Six months ended Growth 26 vs 25 30-Jun 30-Jun £m Reported Organic* 2025 2026 Revenue 316.6 330.0 4% 2%* ▪ Recurring revenue remained high at 90% of total Cost of sales (144.6) (151.9) revenue (H1 2025: 90%) Gross profit 172.0 178.1 4% 0%* ▪ Gross margin % was maintained at 54% with
Slide 11: Germany SME
YoY growth: 21% Germany SME Organic growth: 5% 61.1 59.2 ▪ Accounts for 25% of Group gross profit 49.1 Revenue (£m) ▪ Inorganic contribution from Starface drove revenue (21%) and gross profit (30%) growth ▪ Revenue declined on H2 2025, reflecting H1 2025 H2 2025 H1 2026 seasonality in Epsilon mobile
Slide 12: UK SME
UK SME YoY growth: 0% 141.0 141.3 141.7 ▪ Gamma Business has been split into two Business Revenue (£m) Units: UK SME and Service Provider ▪ UK SME accounts for 39% of Group gross profit ▪ Strong demand for cloud and connectivity, offset by pricing pressure and product mix H1 2025 H2 2025 H1 2026 ▪ P
Slide 13: Service Provider
Service Provider YoY growth: +7% 47.2 48.2 ▪ Accounts for 13% of Group gross profit 45.0 Revenue (£m) ▪ Gross profit increased by 6% – Driven by higher voice traffic volumes in the UK – Our partnerships with major global technology vendors continued to expand with contracts to carry European and H1
Slide 14: Enterprise
Enterprise YoY growth: (2)% ▪ Accounts for 18% of Group gross profit 66.5 64.0 65.5 Revenue (£m) ▪ Gross profit declined 2%, reflecting the expected annualised impact of 2025 pricing pressure on ethernet connectivity contracts, partially offset by the initial roll out of some key wins made end-2025
Slide 15: Disciplined investment in new services and efficiencies
Disciplined investment in new services and efficiencies Research & Development costs Capital expenditure H1 H2 H1 H1 26 vs H1 H2 H1 H1 26 vs £m £m 2025 2025 2026 H1 25 2025 2025 2026 H1 25 Development costs 8.5 10.7 10.1 1.6 Development costs 8.5 10.7 10.1 1.6 R&D expense 10.1 9.3 9.0 (1.1) Tangible
Slide 16: Excellent cash generation supporting strong balance sheet
Excellent cash generation supporting strong balance sheet Free cash flow £47.5m* 69.2 (9.8) (11.9) (3.2) (4.3) (34.5) (3.8) (9.3) Cash generated Capital expenditure Acquisitions** 30 June net debt by operations 31 December Net debt Taxes paid Other investing & Shareholder returns financing cash flow
Slide 17: Gamma is in a strong financial position
Gamma is in a strong financial position High recurring revenue Consistent gross margin High cash conversion 90% 50%+ 97% In H1 2026 Across the Group Adjusted operating cash conversion in H1 Healthy return on capital Strong balance sheet employed £(3.8)m 30% Net debt with £104.5m of 30 June 2026 last
Slide 18: Thank you
Thank you eee Gamma