24th Mar 2026 09:22
(Alliance News) - Gamma Communications PLC on Tuesday said it sees 2026 trading aligning with market expectations, as it posted weaker full-year profit amid an improved top line.
Shares in the provider of communication services fell 4.9% to 791.00 pence during early trading in London on Tuesday.
Gamma posted GBP87.7 million in pretax profit for 2025, down 8.3% from GBP95.6 million in 2024.
Revenue however grew 11% to GBP645.8 million from GBP579.4 million, with recurring revenue stable at 89%.
Gamma attributed the top line growth to its German business, in particular its acquisitions of Placetel and Starface, with both achieving double-digit growth.
The weaker earnings despite the improvement in revenue is owed to higher costs, as operating expenses grew to GBP257.3 million from GBP210.0 million.
Pretax profit was impacted by GBP10.6 million of exceptional costs, up from nothing, along with a GBP5.2 million increase in amortisation of intangibles.
Gamma explained these arose due to business combinations following the Starface acquisition.
Despite the lower profit, Gamma proposed a higher final dividend of 14.8 pence, up 14% from 13.0p a year prior. This brings its total dividend to 22.2 pence, up 14% from 19.5p.
Looking ahead, Gamma sees its 2026 performance aligning with market expectations, guiding adjusted earnings before interest, tax, depreciation and amortisation and adjusted earnings per share within the consensus ranges.
For adjusted Ebitda this is between GBP138.0 million and GBP144.6 million, which would be up from GBP125.5 million in 2024.
Gamma sees adjusted EPS on a fully diluted basis between 90.0p and 96.6p, up from 85.1p.
On Friday, the company named an executive from London Stock Exchange Group PLC to be its next chief financial officer.
Damien Maltarp will join Gamma from his current role as group financial controller at LSEG, succeeding Bill Castell who is leaving at the end of the month. However, Maltarp's start date is not currently fixed, with Gamma stating he will join by September at the latest.
"2025 was another successful year for Gamma. We delivered significant growth driven by our German business, with a resilient performance in the UK, where we are pleased to have won a number of blue-chip customers, despite the challenging macroeconomic backdrop," said Chief Executive Andrew Belshaw.
"Although the UK SME market headwinds remain, it now forms less than half the group and we are well positioned when conditions improve. Our strategy, supported by our increased scale in a growing German market, an improving Enterprise sales pipeline and the future growth potential of our Service Provider business, positions Gamma well for years to come."
By Christopher Ward, Alliance News reporter
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