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Gamma Communications Targets Growth and Shareholder Returns With New £85m Buyback Plan

Story Highlights
  • Gamma expects 2025 profits to meet forecasts, with strong growth helped by its German acquisitions.
  • The board plans up to £85m in share buybacks and a stable dividend, reflecting confidence in cash generation and balance sheet strength.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Gamma Communications Targets Growth and Shareholder Returns With New £85m Buyback Plan

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Gamma Communications ( (GB:GAMA) ) just unveiled an announcement.

Gamma Communications said its 2025 adjusted EBITDA and fully diluted adjusted EPS are expected to land within market consensus, reflecting solid year-on-year growth driven in part by strong contributions from recent German acquisitions. Healthy cash generation, even after the STARFACE purchase, prior buybacks and dividends, leaves the group with modest net debt and significant undrawn credit, enabling the board to announce share buyback programmes of up to £42.5m in both 2026 and 2027, alongside fixing the dividend per share at 2025 levels for the next two years. The move signals confidence in Gamma’s balance sheet strength and recurring-revenue model, and is intended to balance ongoing investment and selective M&A with enhanced shareholder returns, as the company positions itself against UK market headwinds and prepares for structural changes such as the 2027 PSTN switch-off.

The most recent analyst rating on (GB:GAMA) stock is a Buy with a £1048.00 price target. To see the full list of analyst forecasts on Gamma Communications stock, see the GB:GAMA Stock Forecast page.

Spark’s Take on GB:GAMA Stock

According to Spark, TipRanks’ AI Analyst, GB:GAMA is a Outperform.

Gamma Communications scores well due to strong financial performance and positive corporate events, which indicate strategic growth and leadership confidence. However, technical analysis suggests some caution due to bearish momentum, and valuation metrics indicate the stock is fairly priced. These factors combined result in a moderate overall stock score.

To see Spark’s full report on GB:GAMA stock, click here.

More about Gamma Communications

Gamma Communications is a FTSE 250-listed European provider of business-critical communications technology, offering cloud communications software, calling, connectivity, AI-driven automation, cyber security and managed services. Through its extensive UK channel partner network, direct enterprise operations and a major presence in Germany, the company delivers integrated communications and IT solutions to SMEs, large corporates and public-sector clients via its own network, proprietary platforms and leading third-party cloud services.

Average Trading Volume: 338,539

Technical Sentiment Signal: Sell

Current Market Cap: £812M

Find detailed analytics on GAMA stock on TipRanks’ Stock Analysis page.

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