Slides
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Gamma Half Year 2026 Results 7 September 2026 Business-critical communications technology
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01. Half Year 2026 Business Update 02. Recommended offer for Gamma 03. Half Year 2026 Financial Highlights 2 Agenda
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Half Year 2026 Business Update
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To change image; either delete and replace using the icon or double click image to change via the ribbon, or open new slide. Once image is placed, send to back.Half Year 2026 Financial Overview 4 Gross Profit £178.1m +4% growth Adjusted EBITDA £72.5m +2% growth Recurring Revenue 90% H1 2025: 90% Adjusted cash generated by operations £70.3m 97% Adjusted cash conversion
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To change image; either delete and replace using the icon or double click image to change via the ribbon, or open new slide. Once image is placed, send to back. 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 effectively UK SME saw strong volume growth in cloud and connectivity ▪ Resilient performance despite challenging UK macro and continuing pricing pressure; gross profit consistent with H2 2025 ▪ Sustained demand for Webex for Gamma, PhoneLine+ and full fibre connectivity (“FTTP”) ▪ Line churn associated with PSTN switch-off lower than expected Service Provider momentum improved ▪ Increased traffic volume in UK, and new contracts to carry voice traffic for major global technology vendors in Europe and the UK ▪ APAC expansion continued to progress well, with local customers now established in Australia and Singapore, and a license obtained in the Philippines Significant Enterprise customer wins and extensions ▪ Significant wins and renewals in the UK (JD Sports, Student Loans Company, Central England Co-op and RAC) and across Europe (N26 and David Lloyd) ▪ Partly offset by expected ethernet pricing pressure 5
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Recommended offer for Gamma
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To change image; either delete and replace using the icon or double click image to change via the ribbon, or open new slide. Once image is placed, send to back. 7 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 732p per share on 7 April 2026, the last trading day prior to the commencement of an offer period ▪ Epiris believes that increased investment and innovation, underpinned by greater AI adoption, can accelerate Gamma’s growth and unlock its potential as a leading European communications provider ▪ A Scheme Document is expected within 28 days of the offer announcement, with shareholder voting to follow after a minimum of 21 days ▪ Provided all necessary approvals and conditions are met, the acquisition is currently expected to complete during the first half of 2027 7
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HalfYear 2026 Financial Highlights
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To change image; either delete and replace using the icon or double click image to change via the ribbon, or open new slide. Once image is placed, send to back.Half Year 2026 Financial Highlights 9 *Organic growth rates, as defined in the Alternative Performance Measures (“APMs”) section of the RNS Adjusted EBITDA Up 2% to £72.5m (Organic down 1%*) Adjusted EPS (FD) Flat at 47.7p Gross Profit Up 4% to £178.1m (Organic flat*) Adjusted cash generated by operations £70.3m 97% Adjusted cash conversion (Net debt £3.8m) Revenue Up 4% to £330.0m (Organic up 2%*) Shareholder returns £34.5m Returned to shareholders in H1 Including £21.1m of share buyback
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Income Statement ▪ Recurring revenue remained high at 90% of total revenue (H1 2025: 90%) ▪ Gross margin % was maintained at 54% with high margin German growth offsetting UK SME headwinds; Adjusted EBITDA margin remained steady at 22% ▪ Growth in adjusted operating expense was driven by 1.5 months of Starface following its acquisition in February 2025, with 1% organic growth reflecting German investment offset by UK restructuring savings ▪ Funding for the acquisition of Starface and share buybacks resulted in a net finance expense, consequently Adjusted PBT declined 3% to £59.2m ▪ Adjusted EPS flat, reflecting the impact of the share buyback programmes *Organic growth rates, as defined in the Alternative Performance Measures (“APMs”) section of the RNS **Adjusting item when calculating the alternate profit measures 10 Six months ended Growth 26 vs 25 £m 30-Jun 30-Jun Reported Organic* 2025 2026 Revenue 316.6 330.0 4% 2%* Cost of sales (144.6) (151.9) Gross profit 172.0 178.1 4% 0%* Gross profit margin 54.3% 54.0% Adjusted operating expenses (101.1) (105.6) 4% 1%* Adjusted EBITDA 70.9 72.5 2% (1)%* Adjusted EBITDA margin 22.4% 22.0% Adjusting/Exceptional items** (6.7) 0.0 Depreciation and amortisation (10.2) (11.9) Amortisation on business combinations** (9.6) (8.6) Operating profit 44.4 52.0 17% Net interest income / (expense) 0.3 (1.4) Unwind of deferred consideration** (1.2) (0.5) Profit before tax 43.5 50.1 15% Tax expense (11.1) (13.3) Profit after tax 32.4 36.8 14% Adjusted profit before tax 61.0 59.2 (3%) Adjusted EPS (Pence, fully diluted) 47.9 47.7 0%
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Germany SME Revenue (£m) Gross Profit (£m) Gross Margin % 21% 30% 70.1% YoY growth: YoY growth: 11 11%Organic growth: 5%Organic growth: 72.0% 75.7% 49.1 61.1 59.2 H1 2025 H2 2025 H1 2026 0.5 0.5 0.4 17.9 22.0 23.9 6.6 10.5 9.7 6.0 6.8 7.0 3.4 4.2 3.8 34.4 44.0 44.8 H1 2025 H2 2025 H1 2026 Connectivity Calling Licenses & Maintenance Cloud Other ▪ Accounts for 25% of Group gross profit ▪ Inorganic contribution from Starface drove revenue (21%) and gross profit (30%) growth ▪ Revenue declined on H2 2025, reflecting seasonality in Epsilon mobile and Starface license sales, as well as the impact of regulatory changes in Epsilon ▪ Gross profit up 11% YoY organically ▪ Cloud GP growth 9% on H2 2025 (increased 16% year on year organically) - ongoing transition of the German market from legacy on-premise products to cloud based products
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UK SME ▪ Gamma Business has been split into two Business 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 ▪ PSTN churn was lower than expected and GP benefitted from price rises ▪ Calling gross profit decreased by 6%, driven by the rationalisation of the legacy SIP customer base ▪ “Other” benefitted from non-recurring credits in H1 2025. Excluding “Other” from GP, the decrease was 3% year-on-year ▪ Overall H1 2026 GP broadly in line with H2 2025 12 2.6 (0.1) (0.5) 29.1 28.9 28.3 24.6 23.4 23.1 11.4 11.4 11.8 6.6 5.5 6.6 74.3 69.1 69.3 H1 2025 H2 2025 H1 2026 PSTN Connectivity Calling Cloud Other Revenue (£m) 0% Gross Profit (£m) 52.7%Gross Margin % 48.9% (7)% YoY growth: YoY growth: 48.9% 141.0 141.3 141.7 H1 2025 H2 2025 H1 2026
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20.9 21.8 22.3 0.8 0.7 0.8 21.7 22.5 23.1 H1 2025 H2 2025 H1 2026 PSTN Non-PSTN ▪ Accounts for 13% of Group gross profit ▪ 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 UK voice ▪ International expansion in APAC progressing well: – Australia, New Zealand and Singapore are now fully operational – Initial sales were generated in Australia – Licensing was obtained in the Philippines Revenue (£m) +7% Gross Profit (£m) 48.2%Gross Margin % +6% YoY growth: YoY growth: 13 Service Provider 47.8% 47.9% 45.0 47.2 48.2 H1 2025 H2 2025 H1 2026
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32.3 31.2 31.5 H1 2025 H2 2025 H1 2026 Enterprise ▪ Accounts for 18% of Group gross profit ▪ 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 ▪ Gross profit broadly in line with H2 2025, due to easing pricing pressures ▪ Significant wins in late 2025 and during 2026 include: – N26 (customer experience for the German fintech company) – David Lloyd (managed network across Germany, Spain and the Benelux region) – JD Sports (AI-led customer experience solution) Revenue (£m) Gross Profit (£m) Gross Margin % (2)% (2)% YoY growth: YoY growth: 14 48.6% 48.7% 48.1% 66.5 64.0 65.5 H1 2025 H2 2025 H1 2026
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To change image; either delete and replace using the icon or double click image to change via the ribbon, or open new slide. Once image is placed, send to back.Disciplined investment in new services and efficiencies Research & Development costs Capital expenditure 15 Increased capitalised spend reflects: ▪ Investment in internal systems to drive operational efficiencies ▪ Investment in new products, such as AI-concierge, FibreXchange and Voice Enablement enhancements ▪ Inorganic contribution of Starface £m H1 2025 H2 2025 H1 2026 H1 26 vs H1 25 Development costs 8.5 10.7 10.1 1.6 R&D expense 10.1 9.3 9.0 (1.1) Total R&D 18.6 20.0 19.1 0.5 £m H1 2025 H2 2025 H1 2026 H1 26 vs H1 25 Development costs 8.5 10.7 10.1 1.6 Tangible assets 1.1 3.7 1.5 0.4 Software licences 0.0 0.3 0.3 0.3 Total Capital Spend 9.6 14.7 11.9 2.3 Capex as % revenue 3.0% 4.5% 3.6%
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To change image; either delete and replace using the icon or double click image to change via the ribbon, or open new slide. Once image is placed, send to back.Excellent cash generation supporting strong balance sheet 16 * Includes £1.1m cash outflow relating to 2025 exceptional costs. Free cash flow is defined as cash generated by operations less taxes paid and the purchases of property, plant and equipment and intangible assets. ** Compromises deferred consideration and contingent consideration (predominantly Pragma and Placetel). (9.3) 69.2 (9.8) (11.9) (3.2) (4.3) (34.5) (3.8) 31 December Net debt Cash generated by operations Taxes paid Capital expenditure Other investing & financing cash flows Acquisitions** Shareholder returns 30 June net debt Free cash flow £47.5m*
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To change image; either delete and replace using the icon or double click image to change via the ribbon, or open new slide. Once image is placed, send to back. Gamma is in a strong financial position Healthy return on capital employed 30% 30 June 2026 last 12 months (FY2025: 28%) High cash conversion 97% Adjusted operating cash conversion in H1 17 Strong balance sheet £(3.8)m Net debt with £104.5m of undrawn RCF High recurring revenue 90% In H1 2026 Consistent gross margin 50%+ Across the Group
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Thank you