Gloster plans significant growth and dividend payments in 2026

EXTRAORDINARY INFORMATION

Gloster Infokommunikációs Nyilvánosan Működő Részvénytársaság (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A. A/2. ép.; hereinafter: Company, Gloster) hereby informs its esteemed investors of the following in accordance with the relevant legislation and the General Business Rules of the Budapest Stock Exchange.

Gloster plans significant growth and dividend payments in 2026

From 2026, as a result of dividend payments, significant foreign expansion, and internal synergies, Gloster's Board of Directors plans to generate more than HUF 3 billion in EBITDA on sales of HUF 15.6 billion over the next two years, according to an investor presentation published by the company.

Having completed 11 transactions over the past 60 months, this international IT service provider, listed in the BSE Standard category, has grown into a company with 355 employees serving 811 customers. According to research by Helap Partners, Gloster is the market leader among Hungarian-owned software development export companies and the largest Hungarian-owned cloud service provider and Microsoft partner company. Its business model focuses on regular (69% of total revenue) and export (44% of total revenue) revenues, which grew by an average of 60% and 98% between 2021 and 2023, respectively.  

Among the challenges facing Gloster, the company's board of directors identified the further development of international sales, the improvement of corporate profitability, and the high salaries typical of the IT sector.

According to the investor presentation, Gloster is embarking on international B2B business development with experienced partners in the world's major software markets: the United Kingdom and Ireland, the DACH region, and Scandinavia. Gloster divides its international sales into regions rather than countries, targeting a market that is 43% larger than the current one, at approximately EUR 21,700 million per year. It is building its own sales and customer support teams at each location. Sales in the UK and Ireland are supported by Andrew Wilmot, the DACH region by Attila Tóth, a native German speaker, and the Scandinavian region by Herwig Stöckl.

From the presentation, investors can learn that Gloster, in order to increase its international competitiveness (more favorable developer salaries), plans to open an SSC in the Philippines by the end of the year, which is expected to generate savings of approximately HUF 50 million per year from the beginning of 2025. Gloster has previously announced that the Company's management expects an annual profit improvement of at least HUF 200 million from the Gloster Level up internal efficiency improvement program announced on November 27, 2023. The company expects to generate an additional HUF 1,518 million in EBITDA by 2026 (compared to 2023), and expects to collect an additional approximately HUF 400 million in dividends from its subsidiaries by 2026, when all contracted acquisition agreements are scheduled to be fully completed.

Gloster's debt ratio will remain low in 2024 (117% of EBITDA), which is expected to increase in 2025, but by 2026 it is planned to reach only 89% of EBITDA. Analyst prices exceed Gloster's current share price, with ERSTE at HUF 1,183 HUF recommendation: Buy) and Equilor's target price at HUF 1,369 with a HUF recommendation.

A significant difference from previous disclosures is that the Company plans to pay dividends from 2026, which is likely to be welcomed by Gloster's current and future shareholders. Gloster will inform investors of the details of this in a separate announcement in its amended dividend policy by June 30, 2024.

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Nagytarcsa, 2024. march 26.

Gloster Infocommunications Plc.