Gamma Communications Share Discussion Threads

[shared24] 16/6/2025 13:00:23

Totally fair, no crystal ball. But with the next update not due until September, I'm comfortable holding based on what we've seen: strong 2024 results, upbeat CEO commentary, and momentum in Europe. Unless something material changes, the fundamentals still look solid to me.

[essentialinvestor] 16/6/2025 12:58:02

No crystal ball obvs, let's see on their next update.

[shared24] 16/6/2025 12:56:36

Not sure there's much basis for a guidance cut here. The CEO gave a strong, optimistic interview just last week, emphasising continued growth, partner momentum, and long-term opportunities in both the UK and Europe.

Financials back that up: 2024 saw double-digit growth in revenue, operating profit, and EPS, with zero debt and a growing dividend. Plus, Gamma just uplisted to the Main Market and expects FTSE 250 inclusion, not the typical setup for a downgrade.

Unless something material has changed since then, this feels more like short-term sentiment or traders reacting to price action rather than fundamentals.

[essentialinvestor] 16/6/2025 12:36:41

Is a guidance cut on the way here..

[mrscruff] 15/6/2025 13:32:59

Based on a conservative estimate by the latest ChatGPT in deep research mode, I have a figure of ~£24.5 million of passive inflows could enter GAMA from FTSE 250 index trackers. This would translate to approximately 2.13 million shares being bought. I then looked into TradingView data and have the weekly volume 2.2 –239;3.3 million shares. I was expecting more from the passive flows but that is a reasonably strong net uplift from momentum and forced buying.

I also wounder, because GAMA is a classic GARP it won't appear in the filters of many value investors or growth investors so we will have to position this stock in the portfolio as a defensive growth play and as a result the 4% fall on Friday shows that volatility is still very high. Good opportunity to add on Monday as I expect markets to still be in fear mode over the tragic situation in the middle east.

[masurenguy] 13/6/2025 07:06:44

Murray Income buys Gamma after short-term weakness
The Murray Income (MUT) investment trust has started a position in Gamma Communications (GAMA).

In the latest factsheet for the £848m UK equity income trust, manager Charles Luke said they had bought the business-to-business communications company in April, ‘taking advantage of weakness in the shares given the move from AIM to the main market’. AIM-quoted shares can qualify for inheritance tax relief, which has potentially created some forced sellers due to the recent switch. ‘Despite some shorter team macro-related weakness in the company’s UK operations, we view Gamma as a good quality business with a high return on capital and attractive growth potential in Germany together with a very attractive valuation,’ said Luke, who works for Aberdeen Investments. Shares in the company, which moved to the primary market on the LSE at the start of May, are down 22% year to date.

[fuji99] 11/6/2025 14:36:27

Shared24: Thanks a lot for the excellent summary.

[shared24] 10/6/2025 23:56:12

Here is an interview with Gamma CEO - hxxps://cbus.mydigitalpublication.co.uk/articles/andrew-belshaw

📝 Summary

Gamma is entering a new phase of growth with:
• Proven leadership and financial strength,
• A disciplined, culture-first approach to M&A,
• Expansion into high-potential European markets,
• A strong partner-driven business model, and
• An eye on innovation, including AI.

It’s well-positioned as a high-quality, long-term compounder with both defensive attributes and a credible growth runway.

Here are the key positive takeaways for Gamma from Andrew Belshaw’s interview in Comms Business Magazine (June 2025):

⸻

✅ 1. Successful Transition to Main Market
• Gamma’s move from AIM to the London Stock Exchange’s Main Market marks a significant milestone in its growth journey.
• It reflects the company’s maturity in terms of governance, scale, and investor readiness.

📈 2. Strong Long-Term Growth
• Revenue growth from £173 million in 2014 to £580 million in 2025, with employee count rising from 500 to 2,200.
• Expanded operations beyond the UK to Germany, the Netherlands, and Spain.

🧠 3. Experienced, Stable Leadership
• CEO Andrew Belshaw has been with Gamma for 18 years, contributing to its financial and strategic leadership from AIM flotation to Main Market graduation.
• Built a balanced leadership team mixing internal talent (to preserve company culture) with external hires (to drive innovation and operational excellence).

🌍 4. European Growth and Partner Model
• Gamma has grown “alongside partners” in the channel and places strong value on partner-driven success, suggesting recurring revenue and a resilient business model.
• Celebrated success inclusively across its entire European workforce, reinforcing a unified, people-focused culture.

💡 5. Culture and Acquisition Discipline
• The company prioritises cultural alignment in acquisitions, turning down deals that don’t fit Gamma’s values.
• Focus on preserving an entrepreneurial edge while scaling—rare in tech companies post-IPO.

🔧 6. Strategic Appointments Driving Innovation
• Recent hires include a CFO and CTO from larger organisations, bringing fresh ideas and systems while maintaining Gamma’s agility.
• CTO from Openreach is helping optimise processes and drive tech innovation.

🚀 7. Clear, Confident Growth Outlook
• Belshaw is optimistic: “Onwards and upwards,” noting the company still has significant growth potential in the UK and solutions yet to bring to market.
• Hints at future adoption of transformative technologies, including AI, as part of Gamma’s roadmap.

[fuji99] 10/6/2025 10:59:14

Thanks a lot shared24 ... for sharing !

[shared24] 10/6/2025 09:12:35

Here is an interesting read - https://www.flipsnack.com/BB6FD8D9E8C/comms-dealer-june-2025/full-view.html?p=4

Key Takeaways for me,
In three years time I expect Gamma to be significantly larger with a broader footprint in the UK and Europe. Structurally, we'll be more international but culturally we intend to remain recognisably Gamma.Innovation will continue across many different areas of the business and we'll have an expanded set of solutions that help our partners grow their customer relationships - Andrew Belshaw, Gamma Group CEO

The market sweet spot for us is unified comms, and selling hosted solutions into VMO2's 500,000 customers is a massive opportunity. We've proved the strategy by selling Gamma Horizon into our larger customers. This is our prime objective for growth - and we just want to grow faster - Matthew Riley, Daisy Group Founder/Chairman

[fuji99] 09/6/2025 16:40:17

Today Spectris [SXS] received a bid approach from Advent.

Advent Portfolio seems to be concentrated on speciality tech companies particularly in the UK.
They are taking over in every sector.

With no debt, plenty of cash and a growing business, Gamma looks a possible future target.
It's just a matter of time as UK market is undervalued.

[mrscruff] 09/6/2025 15:31:09

Not a chartist but MACD and RSI look well formed. Lacks volume, but that may come after hours and delayed trades.

[fuji99] 09/6/2025 13:40:11

Germany again looks the place to grow as per IC article.

[melody9999] 07/6/2025 15:59:43

I note Questor headline says sell GAMA which surprised me.

But the article reads:
Finally, telecoms company Gamma Communications recently moved to the main market. As a result, it is no longer eligible for inclusion in our Aim portfolio and will now be removed. Since being added in January 2018, it has produced an 86pc capital gain. This is 115 percentage points ahead of the FTSE Aim All-Share index’s return.

So this is not a sell recommendation, unless like Questor, you can only hold AIM listed shares in your portfolio.

86% over 7 years is not too shabby - especially as GAMA share price today is over 50% below 2024 highs. For me its a buy at these levels, with loads of cash and PE of 12.5 compared with nearly 20 at its highs.

[mrscruff] 06/6/2025 20:32:58

fuji99 those stocks look great investments with growing YoY and why the UK market is cheap down here. The debt means they don't make my GARP criteria for downside protection, however the upside is likely greater.

Back to GAMA most passive funds and ETFs tracking the FTSE 250 will add GAMA at market close on Friday, 21 June 2025. Begin reflecting it in their NAVs and holdings from Monday, 24 June

However, some funds and investors like us may front-run slightly, especially smart beta or semi-active strategies, but the bulk of flows typically happen on the rebalance date itself where some profit taken can happen without negatively impacting the share price.

On the macro side, this could go up at any point. Vodafone Group CEO Margherita Della Valle has declared "that the company will turn around its fortunes in Germany despite reporting more losses in this market." -They may have the big bucks but are weighed down with debt, while GAMA is far more nimble.

The Bundesbank’s forecast for Germany: Economic recovery slowly getting started
hxxps://www.bundesbank.de/en/press/press-releases/the-bundesbank-s-forecast-for-germany-economic-recovery-slowly-getting-started-959308

[fuji99] 06/6/2025 15:33:29

Very informative posts.
Thank you both.
For diversification, I kept two UK based stocks, with dividends, on my watch list:
GRG and PETS.

[shared24] 06/6/2025 14:15:31

Great points as always, MrScruff.

Totally agree on the two big macro headwinds - Trump's return and the "higher for longer" rate environment. GARP names with strong balance sheets and net cash are exactly where I want to be right now, and GAMA ticks all the right boxes. No surprise it's your largest position outside the index.

I've held ALPH for many years, and it remains my biggest holding. There's real potential there - whether through the Corpay takeover or continued growth under Clive Khan, both paths look compelling.

Also agree this is the time to be researching potential pivots, even if the window doesn't open this year. The market down here is anything but efficient, which makes patience and preparation all the more important.

[mrscruff] 06/6/2025 13:54:33

Agree with the comparison points. There are two macro headwinds to think about going forward. The Trump War and Higher Rates for longer supporting GARP stocks going forward that have strong balance sheets with net cash positions. My holding in ALPH is gong through M&A that is geared to higher rates. This is all why GAMA is now my largest position outside of the index... but a pivot to some of the others when the time is right is something to research and not necessarily buy this year. But be ready. The market down here is not efficient.

Good to see the MACD lines could cross on the Daily chart? I am not a technical trader (more macro and GARP) but I do keep an eye on these.

[fuji99] 06/6/2025 12:29:11

Cheers MrScruff.
I hold Gamma for its defensive qualities and expansion of its growth in Germany - The third biggest economy in the world.
As you said it's also debt free.
Regarding CKN, it's a brilliant stock but the only negative I personnaly see is the risks due to sabotage which is nowadays becoming a new type of economic war.
If the risks increase with geopolitical tensions, this could affect both, shipping volumes and the insurance of the whole shipping industry too.

[shared24] 06/6/2025 11:01:56

Thanks for sharing your insights, MrScruff - I always find your perspective valuable.

Personally, I continue to favour GAMA. Its strong fundamentals, clean balance sheet, and lack of direct geopolitical exposure make it a more reassuring hold in the current climate. With Trump in the White House and already causing significant market turbulence through trade measures and unpredictable policy shifts, I'm especially cautious about names like CKN that could be caught in the fallout. GAMA may not have the same GARP profile, but it feels like the steadier, higher-quality option for now.

[mrscruff] 06/6/2025 09:58:49

No direct geopolitical exposure, which likely explains the lack of short positions compared to other quality names that have seen sharp declines. The bigger picture here is global investors needing to diversify away from the dollar, which appears to be in structural decline, not just cyclical. GAMA ticks almost every box: strong cash flow, no debt, recurring revenue, and high quality. The only thing it lacks is explosive year on year growth, but that is where Germany comes in, offering a credible runway for expansion and potential for a rerating back toward historic multiples. That is meaningful upside from here.

The extreme end, is in shipping with Trump and shorts are increasing every week at CKN, and here is the thing, CKN is better value on a GARP than GAMA. I know its bad etiquette to mention other stocks, but we are all like minded and this other 'tip' is obviously on a path to loosing money in the short run so it takes a rare type of investor.

[fuji99] 04/6/2025 14:38:49

One of the biggest positive I can see on here is that Trump tariffs have no effect on Gamma as all its business activities are in Europe.
This completely eliminates any geopolitical turbulence for Gamma.
IMO Gamma is now a very solid defensive stock to hold for the long term.

[oggyrocks] 03/6/2025 08:57:19

On the back of this - have bought a few. Hopefully will get picked up by trackers etc when in the bigger ftse250.

[masurenguy] 03/6/2025 07:53:07

"The next FTSE index review will be announced on Wednesday, based on market closing prices on Tuesday. Four companies are likely to be promoted from the small cap ranks into the FTSE 250: telecoms group Gamma Communications (AIM:GAMA), police and military helmet maker Avon Technologies PLC (LSE:AVON), home improvement retailer Wickes Group PLC (LSE:WIX), and Pantheon Infrastructure PLC (LSE:PINT)."