olivLaw · European equity research
Gamma Communications plc GAMA.L
United Kingdom · London Stock Exchange · ISIN GB00BQS10J50 · Vertical: Listed companies from United Kingdom
Gamma Communications is a UK-listed provider of business communications services active in the United Kingdom and Europe, with a growing focus on cloud and on Germany. In fiscal 2025 Germany reached almost a quarter of Group gross profit, while the UK SME business, at 42% of gross profit, remains under macroeconomic pressure.
At the close of 05 Nov 2026, Gamma Communications plc (GAMA.L) stock was 10.97 GBP (+0.00% on the day), with market capitalisation 1.0 bn GBP, P/E 15.8 on diluted EPS of 0.69 GBP over the last 12 months, dividend yield 202.37%, beta 0.53, 52-week range 7.01–11.82 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 50.7
- neutral
- Bollinger (20, 2)
- 10.87 – 11.00
- in the upper half of the band · %B 0.78 · band width 1.2%
- SMA 50 / 200
- 11.17 / 9.58
- mixed trend
- MACD (12, 26, 9)
- -0.01 / -0.02
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.5% | −0.6% | +1.2 pp | — |
| 3 months | +13.3% | −4.2% | +17.5 pp | — |
| 6 months | +16.9% | +4.3% | +12.5 pp | — |
| Year to date | +18.7% | +7.5% | +11.2 pp | — |
| 1 year | +12.5% | +9.9% | +2.6 pp | +5.8% |
| 3 years | +1.6% | +49.8% | −48.3 pp | +26.3% |
| 5 years | −40.3% | +42.8% | −83.1 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 50 percentile of its own 2-quarter history (min 13.3, median 17.3, max 21.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 |
|---|---|---|
| Revenue | 579.4 m | 645.8 m |
| Revenue YoY | unavailable | +11.5% |
| Net income | 69.8 m | 64.9 m |
| Net income YoY | unavailable | −7.0% |
| Diluted EPS | 0.72 | 0.69 |
| Diluted EPS YoY | unavailable | −3.8% |
| net % | 12.0% | 10.0% |
| Free cash flow | 88.0 m | 83.6 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 23.7 m GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 385.0 m GBP
- Total assets
- 621.3 m GBP
- Debt / equity
- unavailable
- Current ratio
- 1.40x
- ROE
- 17.1%
- ROA
- 11.3%
- FCF margin
- 12.9%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | Source (latest year) |
|---|---|---|---|
| Revenue | 579.4 m | 645.8 m | esef· 22 Apr 2026verified |
| Cost of revenue | 279.1 m | 297.6 m | esef· 22 Apr 2026verified |
| Gross profit | 300.3 m | 348.2 m | esef· 22 Apr 2026verified |
| Operating income | 90.3 m | 90.9 m | esef· 22 Apr 2026verified |
| Interest expense | 1.8 m | 6.1 m | esef· 22 Apr 2026verified |
| Pre-tax income | 95.6 m | 87.7 m | esef· 22 Apr 2026verified |
| Income tax | 25.8 m | 22.7 m | esef· 22 Apr 2026verified |
| Net income | 69.8 m | 64.9 m | esef· 22 Apr 2026verified |
| Diluted EPS | 0.72 | 0.69 | esef· 22 Apr 2026verified |
| Dividend per share | 0.18 | 22.20 | esef· 22 Apr 2026verified |
Balance sheet · GBP
| Line | 2024 | 2025 | Source (latest year) |
|---|---|---|---|
| Cash | 153.7 m | 23.7 m | esef· 22 Apr 2026verified |
| Receivables | 80.4 m | 78.4 m | esef· 22 Apr 2026verified |
| Inventories | 10.0 m | 7.5 m | esef· 22 Apr 2026verified |
| Current assets | 281.1 m | 154.1 m | esef· 22 Apr 2026verified |
| Property, plant & equipment, net | 33.6 m | 40.0 m | esef· 22 Apr 2026verified |
| Total assets | 528.0 m | 621.3 m | esef· 22 Apr 2026verified |
| Accounts payable | 68.4 m | 70.3 m | esef· 22 Apr 2026verified |
| Current liabilities | 95.0 m | 109.7 m | esef· 22 Apr 2026verified |
| Total liabilities | 155.3 m | 236.3 m | esef· 22 Apr 2026verified |
| Equity | 372.7 m | 385.0 m | esef· 22 Apr 2026verified |
| Shares outstanding at year end | 96.5 m | 93.4 m | esef· 22 Apr 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | Source (latest year) |
|---|---|---|---|
| Operating cash flow | 92.9 m | 88.4 m | esef· 22 Apr 2026verified |
| Capex | 4.9 m | 4.8 m | esef· 22 Apr 2026verified |
| Free cash flow | 88.0 m ≈ | 83.6 m ≈ | esef· 22 Apr 2026derived |
| Investing cash flow | -27.5 m | -166.7 m | esef· 22 Apr 2026verified |
| Financing cash flow | -47.6 m | -52.8 m | esef· 22 Apr 2026verified |
| Dividends paid | 17.3 m | 18.9 m | esef· 22 Apr 2026verified |
| Share repurchases | 27.3 m | 45.1 m | esef· 22 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 52.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 1.0 bn GBP
Key indicators
Coverage and freshness
Score by group
52% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 52.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 10.0% | 46 (vs peers) | 12% |
| FCF conversion · Quality | 128.8% | 100 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 14.9x | 100 (on a fixed band) | 12% |
| Current ratio · Balance sheet | 1.4x | 50 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 15.8x | 50 (vs peers) | 20% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 8.2% | 100 (on a fixed band) | 16% |
| Shareholder yield (distributions) · Returns | 6.2% | 89 (on a fixed band) | 12% |
| Payout ratio (FCF) · Returns | 22.6% | 100 (on a fixed band) | 8% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet80/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality73/100 · 2/3 factors with a value
- Returns94/100 · 2/2 factors with a value
- Valuation72/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
GAMMA COMMUNICATIONS PLC (GAMA.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 645.8 m GBP in 2025; YoY growth 11.5%; net margin 10.0%; ROE 17.1%.
The estimated value range is 112.80–140.54 GBP per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 125.35 GBP, the price of 10.97 GBP leaves a potential of 1,042.6% (value / price − 1) and a margin of safety of 91.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 128.8%
- Interest coverage: 14.9x
- FCF yield: 8.2%
- Shareholder yield (distributions): 6.2%
- Payout ratio (FCF): 22.6%
- The price is below the estimated value range
What contradicts it
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| GAMA.LGamma Communications PLC | 1.0 bn | 15.8 | 17.1% | 10.0% | +11.5% | +16% / +4% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for GAMA.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 6.96 Total return -31% · Per year -31% | 12.26 Total return 19% · Per year 19% | 18.42 Total return 76% · Per year 76% |
| 3 years | 7.73 Total return -13% · Per year -4% | 15.23 Total return 63% · Per year 18% | 24.98 Total return 158% · Per year 37% |
| 5 years | 8.59 Total return 8% · Per year 2% | 18.93 Total return 117% · Per year 17% | 33.88 Total return 268% · Per year 30% |
- Exit P/E± 3.81
- Net margin± 2.67
- Annual revenue growth± 2.05
- Annual dilution± 0.22
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Gamma Communications is a UK-listed provider of business communications services active in the United Kingdom and Europe, with a growing focus on cloud and on Germany. In fiscal 2025 Germany reached almost a quarter of Group gross profit, while the UK SME business, at 42% of gross profit, remains under macroeconomic pressure 1.
SWOT
Strengths
- The company has a highly cash-generative business model and strong growth in Germany, with rising gross margins in cloud.
- Recent acquisitions brought scale and local presence in Germany, supported by a large partner network.
- A broad product range, from telephony to security and AI, allows complete solutions for business customers.
Weaknesses
- The UK SME segment is declining and depends on weak economic conditions.
- Traditional UK telephony faces falling demand, and the company still relies on this revenue.
- Integrating acquisitions carries execution risk and organisational change.
Opportunities
- Migrating customers from on-premise systems to cloud could grow recurring revenue in Germany.
- Expansion into new international territories could add growth in adjacent markets.
- Customers want more services through partner channels, including security, which could add revenue.
Threats
- Rising competition and new AI-based entrants could push down prices and market share.
- Cyber attacks and AI-enabled fraud could disrupt services and damage reputation.
- Macroeconomic uncertainty in the UK and Europe could persist and delay a demand recovery.
Risks
- Slow response to market shiftshigh
If the company does not adapt products and pricing quickly, it could lose customers and market share.
- Data loss and cyber attackshigh
AI-enabled attacks could lead to data loss and service disruption.
- Talentmedium
Difficulty attracting and retaining skilled staff could slow integration and product development.
- Telecoms regulatory compliancemedium
Non-compliance with telecommunications rules could bring penalties and extra costs.
- Supplier dependencelow
Reliance on a single supplier could affect services if that supplier faces problems.
Investment thesis
What would need to be true (bull case)
- Rapid growth in Germany and higher gross margins could support a wider Group profitability.
- The cash-generative model and acquired scale could allow investment in cloud and AI products.
- If the UK market stabilises, the SME segment could return to growth.
What would break the thesis
- Falling traditional telephony and UK weakness could keep limiting overall growth.
- Intensified competition and AI could compress margins and market share.
- Integration of acquisitions and organisational change could delay the expected results.
What to watch
- Germany revenue growth and cloud gross margin trend2026
- UK SME results and the effect of growth and cost measures2026
- Integration progress of Placetel and Starface2026
- Results of the second climate scenario analysis2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Gamma Communications supplies telephony, connectivity and cloud communications platforms to businesses, particularly SMEs, through partner channels and direct sales 1. The company runs several business units, and its 2025 strategy focuses on transformation and growth of recurring cloud revenue rather than large acquisitions 1. Management describes the model as highly cash-generative 1.
The German business expanded through the Placetel and Starface acquisitions, which gave scale and around a 15% cloud seat share in what the report calls Europe's largest business communications market 1. These deals reduced the weight of the UK in the Group 1. Management says integration is progressing, with a single German management structure 1.
Principal risks reported include losing market share through slow responses to competitive shifts, data loss and cyber attacks, and difficulty attracting and retaining talent 1. The company added transformation and integration risk in place of the former M&A risk 1.
Segments
Gamma Germany
Germany is the main growth driver, with revenue of GBP 110.2 million in fiscal 2025 against GBP 54.3 million in 2024, an increase of 103% 1. Gross margin reached 71.1% against 48.6% a year earlier, helped by higher-margin cloud products 1.
Market context
The European business communications market is described by management as shifting towards cloud, with Germany the largest market where cloud adoption is still early 1. Weak macroeconomic conditions in the UK and Europe have affected SME demand 1.
Customers are changing how they buy, asking for more complex communications solutions and services through partner channels, which could favour providers with a broad product range 1. The company has also reorganised some UK activities, including transferring a part of its UK customer base to O2 Daisy 1.
Trends
- Migration to cloudtailwind
The move from on-premise systems to cloud services, with subscriptions and add-on services, could raise average revenue per user 1.
- UK economic weaknessheadwind
Weak SME demand and the decline of traditional telephony continue to weigh on UK revenue 1.
- Artificial intelligencemixed
AI could open opportunities through products such as the Placetel AI voice agent, but may also raise fraud risk and bring new entrants with cheaper generative products 1.
- Competitive pressureheadwind
Rising competition could cut market share if the company is slow to respond to market shifts 1.
Competitive position
The company competes with business telephony and cloud providers in the UK and Germany; the source does not name direct competitors 1. Loss of market share is treated as a principal risk, especially given new sales routes and generative AI products 1.
Its competitive position rests on German scale and a broad solutions range, but pricing pressure and new entrants could limit margins over time 1.
- German cloud communications providers
Competitors in the German cloud market, not named in the source; no US listing can be confirmed.
- UK traditional telephony providers
Competitors in traditional telephony, where demand is declining; the source does not name them.
- New entrants with generative AI products
The report flags risk from new entrants with cheaper AI products, without naming them.
- Service provider communications suppliers
Competitors of the Service Provider division, not named in the official source.
News & filings
In the press
- A gamma-ray powerhouse's smoking gun? Gas trail points to microquasar jetsPhys.org · 30 Oct 2026 · EN
- Modest gamma-ray flash followed by dazzling afterglow points to powerful stellar jet viewed off-axisPhys.org · 29 Oct 2026 · EN
- A gamma-ray burst's engine stayed active for nearly a month, breaking the previous recordPhys.org · 06 Oct 2026 · EN
- Gamma-ray search sets new limits on dark matter annihilation in the inner Milky WayPhys.org · 04 Oct 2026 · EN
- A 42-light-year X-ray tail links a pulsar to previously 'orphan' gamma raysPhys.org · 22 Sept 2026 · EN
- What Old-School Chart Analysis and Gamma Exposure Tell Us About QQQ This Fed WeekYahoo Finance — News · 14 Sept 2026 · EN
- JWST may solve a 20-year mystery behind a rule-breaking gamma-ray burstPhys.org · 31 Aug 2026 · EN
- QQQ is Still in a Negative Gamma Regime. Here’s How a ‘Put Wall’ and Fibonacci Support Could Come Into Play.Yahoo Finance — News · 24 Aug 2026 · EN
- Misterul fluturilor Buha gamma care au invadat Capitala. Specialist: E una dintre cele mai spectaculoase migrații din lumea insectelorAntena 3 CNN · 20 Jun 2026 · RO
- Invazia „Buha gamma” în București. Când va scăpa Capitala de fluturii care au ocupat blocurile și spațiile verziAdevărul · 20 Jun 2026 · RO
- What every coder should know about Gamma CorrectionHacker News · 13 Jun 2026 · EN
- Lancia forțează renașterea premium: Noul Gamma promite până la 740 km autonomie. Gigantul Stellantis schimbă regulileCapital.ro · 27 May 2026 · RO
Annual reports (ESEF)
- Annual report 202522 Apr 2026
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Gamma Communications plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.