Extraordinary information - Gloster switches to the next level, taking its international business model to the next level

Extraordinary information
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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, in particular Act CXX of 2001 on the Capital Market (hereinafter: Tpt.) and the General Business Rules of the Budapest Stock Exchange.

Gloster joins in, taking its international business model to the next level

Focus on international growth, AI, and the Cloud

The Company is shifting its focus to intensive organic growth and acquisitions in its centers in the English, German, and American markets. Gloster will finance the rapid development opportunities from the sale of its system integration business, which operates exclusively in the domestic market, and the real estate that serves it, for which the parties signed an agreement today.

The purpose of this significant investment from the Company's own resources is to enable it to focus exclusively on the dynamic development of its international sales team and the market launch of its new AI and cloud-based digitization products, in order to realize its ambitious growth plans. In the future, Gloster will primarily focus on larger-scale international digitization projects in which it has special knowledge, specific industry experience, innovative development methodologies, and can offer solutions using the latest artificial intelligence, and which are much more profitable than domestic projects.

Gloster focuses on international expansion instead of domestic public procurement

The purpose of cleaning up its portfolio and its new business model is to combine the proven, unique technological expertise of its Cloud business and International Software Development business abroad, thereby making the Company even more competitive in winning new foreign digitization projects. Gloster expects that the transaction will significantly increase the proportion of exports and foreign currency revenues next year, which will promote the Company's financial stability and increase its profitability. Domestic public procurement revenues will no longer be part of Gloster's sales revenue in 2026, and the EBITDA margin is expected to increase from 2025. Management expects international expansion to accelerate average annual growth and Gloster's export sales to reach 75% by 2027.

“One of the keys to our success is that we made good decisions quickly. This is the only way we can preserve what we have achieved so far in the future. We expect real growth from the technological knowledge we have acquired in recent years and the further intensive development of our international customer base,” added Viktor Szekeres, founder and chairman of the board.

Financing and management: significant resources are being freed up to support the new model

With today's signing of the agreement, the Company is selling its System Integration business unit, which serves the domestic market, as part of a portfolio streamlining exercise, as its operations no longer fit organically into the long-term growth strategy supporting international expansion. The sale of the business unit will free up not only financial resources but also management resources. The administrative burden and operational complexity of the group will be significantly reduced. With the discontinuation of this activity, decision-making processes in the other two business units will be accelerated and the time required for internal coordination will be reduced. At the same time as selling the companies belonging to the System Integration business unit, Gloster also sold the real estate serving them, resulting in the elimination of the infrastructure and administrative costs associated with maintaining the business unit. The company is also investing the proceeds from the sale of the real estate in its international expansion.

As of today, the positions of Domestic Operations Director, System Integration Business Unit Manager, Domestic Sales Manager, and Domestic Services Manager Gloster Infocommunications Plc. will be discontinued. The Company's Board of Directors will remain unchanged. Gloster will continue its international growth story with two business units: International Software Development and Cloud.

Simultaneously with the business share transfer agreement, the parties also signed a strategic cooperation agreement, in which they undertook to continue to support each other's activities on a commercial basis. The existing cooperation between the Company and Gloster Networks Kft. will continue as agreed, and Gloster Networks Kft. will continue to operate on the domestic market under its current name (for the time being). The closing period for the agreements began today and is expected to be completed in the spring of 2025.

Further acquisition opportunities are being explored

With eleven transactions under its belt , Gloster's management continues to actively seek value-creating acquisition opportunities that support the company's growth strategy and strengthen its international presence. The primary targets are domestic and European companies with high growth potential in the areas of cloud-based services, big data, and artificial intelligence, as well as strong professional expertise and an international customer base. Such acquisitions not only accelerate growth but also create synergies within Gloster's existing technology portfolio, while enabling entry into new markets and expansion of customer relationships.

Following the signing of today's transaction, the Company's Board of Directors will update its strategic plan by February 28, 2025, taking into account changes in the economic environment.

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About Gloster

Gloster is a broad-spectrum international IT service provider listed in the standard category of the Budapest Stock Exchange. Over its more than 20-year history, it has evolved from a hardware garage company into a software-focused international medium-sized enterprise. Thanks to its intensive growth strategy, Gloster has completed eleven transactions since 2018 and expanded its activities into the areas of system integration, cloud solutions, and international software development services. The group currently employs a team of nearly 350 people. According to its audited consolidated financial statements for 2023, its revenue was HUF 10.3 billion, its adjusted EBITDA was HUF 976 million, and its after-tax profit was HUF 414 million.

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Nagytarcsa, 12 December 2024.

Gloster Infocommunications Plc.

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Further information:

Dr. Adrienn Karlovich-Szabó

Investor Relations Officer

karlovich.szabo.adrienn@gloster.hu

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[1] The following companies were sold as part of the System Integration business unit: Gloster IT Security Kft. (registered office: 2142 Nagytarcsa; Csonka János u. 1/A. A/2.; Cg. 13-09-203488); Gloster Networks Kft. (registered office: 2142 Nagytarcsa, Csonka János u. 1/A. A/2.; Cg.13-09-202159); and its wholly owned subsidiaries Cableline Technologies Kft. (registered office: 2142 Nagytarcsa, Csonka János u. 1/A. A/2.; Cg. 13-09-182301); and Gloster Telekom Kft. (registered office: 2142 Nagytarcsa, Csonka János u. 1/A. A/2.; Cg. 13-09-208675);