Shares in FTSE 250 firm Gamma Communications rose by more than 4% to 919p today after the European business communications technology provider said it expects to deliver yearly EBITDA in line with market expectations.
The progress has been supported by “material year-on-year growth” and a positive contribution from its recent German acquisitions.
In its scheduled trading update for the year ended 31st December 2025, the London-based firm said it had ended the year with net debt of £9.4 million, reflecting the £152.2m acquisition of STARFACE in February 2025.
It still expects to deliver adjusted EBITDA of £140-143m for the year.
The group also announced fresh capital returns, launching a new share buyback programme of up to £42.5m for FY26 and signalling its intention to run a further £42.5m programme in FY27.
“Gamma expects to report another good set of results, underpinned by strong growth in Germany, and despite the challenging UK macroeconomic backdrop,” said Andrew Belshaw, chief executive of Gamma Communications.
“Following a review of the company’s capital structure, liquidity and cash generation, in addition to the dividend, the board intends to return up to £85m to shareholders by way of share buybacks during FY 2026 and FY 2027.
“This balances investment in growth with enhanced shareholder returns.
“Although the UK market faces ongoing headwinds, including the PSTN switch-off in early 2027 (shift from copper telephone network), our increased scale in Germany, expanded Group product portfolio and robust business model – supported by high recurring revenue, strong cash generation and available liquidity – positions Gamma well for years to come.”
The business is due to publish full-year results on 24th March 2026, but investors are already positive, with the company’s share price rising to 919p today.
This is a jump of more than 4%, with Gamma’s market cap now rising to more than £845m.
The business has also today appointed Chris Jagusz (pictured) as an independent non-executive director.
He brings more than 35 years’ operational and advisory expertise across the sector, including two decades at BT Group and senior leadership roles at Eurotel, Daisy Group, SSE Telecoms, Azzurri Communications and AIM-listed Redcentric.
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