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

Extraordinary information

The Gloster Infocommunications Public Limited Company Aktientársaság (company registration number: 13-10-042012; registered office: 2142 Nagytarcsa, Csonka János utca 1/A. building A/2.; hereinafter referred to as "the Company", Gloster) hereby informs the following to the attention of the Honoured Investors pursuant to the applicable laws, in particular Act CXX of 2001 on Capital Markets ("Act") and the General Business Rules of the Budapest Stock Exchange.

Gloster turns on the lights, takes international business to the next level its international model 

Focus on international growth, AI and Cloud

The Company the intensive organic and commercial development of its centres in the UK, German and US markets growth supported by acquisitions. The rapid to finance rapid growth opportunities by working exclusively for the domestic market. the sale of its Systems Integration business and the real estate that supports it Gloster will generate the signed today by the parties.

The aim of the significant own resources investment is to Company to achieve its ambitious growth plans, the the dynamic growth of its international sales team to achieve its ambitious development of its dynamic international sales force and the market launch of its new AI and cloud-based and the launch of its new AI and digitalisation products. In the future, Gloster will focus on larger international digitisation projects where it has the specific knowledge, industry expertise, innovative development, and industry-specific, innovative methodologies, solutions using the latest artificial intelligence and is more profitable than domestic projects.

International instead of domestic public procurement Gloster focuses on international expansion

The purpose of the portfolio clean-up and the new business model is to combine the unique technological expertise of the Cloud business and the International Software Development business, which has been proven abroad, to make the Company even more competitive for winning new digitalisation projects abroad. Gloster expects that the transaction will result in a significant increase in export share and foreign exchange revenue share next year, which will contribute to the Company's financial stability and increase its profitability. Domestic procurement revenues will no longer be part of Gloster's revenue in 2026 and the EBITDA margin is expected to increase as early as 2025. From international expansion, management expects average annual growth to accelerate and Gloster's export sales to reach 75% by 2027.

"We are a success is that we made good decisions quickly. This is the only way we can to preserve what we have achieved so far. The success we have achieved in recent years and the further intensive development of our international customer base is where we expect to see real growth." - added Viktor Szekeres, founder, Chairman of the Board of Directors

Funding and management: significant resources will be released to support the new model

With today's signature of the contract, the Company - the domestic Systems Integration business serving the domestic market[1], as part of a portfolio clean-up, the operation of which is no longer an integral part of the long-term growth strategy supporting international expansion. The sale of the business will not only provide financial financial resources, but also management resources. Significantly significantly reduce the group's administrative burden and operational complexity. A of the other two business lines, the administrative and decision-making processes of the the time needed for internal coordination is reduced. A At the same time as the sale of the companies belonging to the Systems Integration business Gloster also sold the properties serving them, as a result of which infrastructure and infrastructure costs associated with maintaining the business will be eliminated. administrative costs of maintaining the business. The company will use the proceeds from the sale of the properties will also invest in its international expansion.

As of today, the positions of Domestic Operations Director, Systems Integration Business Unit Manager, Domestic Sales Manager and Domestic Service Manager will be abolished at Gloster Infocommunications Plc. The Board of Directors of the Company remains unchanged. Gloster continues its international growth story with two business units, International Software Development and Cloud.

The parties to the share transfer agreement at the same time a strategic cooperation agreement, in which the parties undertake to do business support each other's activities on a commercial basis. Company and Gloster Networks Kft. will continue to be contractually Gloster Networks Kft. will continue to operate under the same name (for the time being) in the domestic market. The closing period of the agreements has started today, with the closing is expected in spring 2025.

Further acquisition opportunities are being explored

With experience in eleven transactions, Gloster's management continues to actively seek value-creating acquisition opportunities that support the company's growth strategy and strengthen its international presence. In particular, they target domestic and European companies with high growth potential in cloud services, big data and artificial intelligence, as well as strong professional competencies and an international client base. Such acquisitions not only accelerate growth, but also create synergies in Gloster's existing technology portfolio, while enabling access to new markets and expanding customer relationships.

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

About Gloster

Gloster is a broad-spectrum international IT services provider listed in the standard category of BSE. In its more than 20-year history, it has evolved from a hardware garage company into a software-focused international medium-sized company. Thanks to its intensive growth strategy, Gloster has completed eleven transactions since 2018 and expanded its activities into systems integration, cloud solutions and international software development services. The group currently employs a team of nearly 350 people and, according to its audited consolidated accounts for 2023, had revenues of HUF 10.3 billion, adjusted EBITDA of HUF 976 million and a profit after tax of HUF 414 million.

Nagytarcsa, 12 December 2024.

Gloster Infocommunications Plc.

Further information:

Dr. Adrienn Karlovich-Szabó

Investor Relations Officer

karlovich.szabo.adrienn@gloster.hu

[1] The following companies were sold with the Systems Integration business: 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 other 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);