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RNS confirmation that Hutchison's stake has increased to 25.45% with 16.2m shares:
Https://www.investegate.co.uk/gama-aviation-plc--gmaa-/rns/holding-s--in-company/201904261249212757X/
Hutchison have increased further, buying another 1.02m shares:
Https://www.investegate.co.uk/gama-aviation-plc/rns/director-pdmr-shareholding/201904261132542641X/
They now need to buy another 2.8m shares or so to get to just under 30%.
NB: the second RNS today is simply a holding RNS reflecting yesterday's PMDR RNS.
I was right - last night's RNS saw Hutchison buy another 1.7m shares to move to 23.85%.
I calculate Hutchison need to buy another 3.8m shares or so to get to just under 30%:
Https://www.investegate.co.uk/gama-aviation-plc--gmaa-/rns/director-pdmr-transactions/201904251808101652X/
A further 1m shares just bought at 93p this morning, following another 1.04m share trade reported yesterday afternoon at 91p.. Could well be Hutchison increasing their stake to just below 30% I suppose.
I concur. HW getting a grip.
T
Perhaps your first and last points are related. Yes, I read it the same way.
Another 500,000 shares just reported bought at 90p.....
The 2018 results look like a real kitchen sink job. Far too complicated to comment on quickly on first read. However, (1) thankfully the Balance Sheet is healthy and (2) the guidance for 2019 EBITDA of between $10.5m and $11.5m is better than I'd feared.
The separate RNS re potential takeovers is interesting. It seems to imply that Hutchison Whampoa may wish to increase their stake to 30% (unless I'm completely misunderstanding it).
Confidence in Simon To.
T
Interesting - a 500,000 share buy at 69.2p. No wonder the share price has crept back upwards recently.
Good to see the share price bouncing most days last week - hopefully that was the bottom.
Extensive interview with the MD of Gama Aviation Asia about their prospects in China and the rest of Asia:
Https://www.ainonline.com/aviation-news/business-aviation/2019-04-13/gama-aviation-eyes-asian-expansion
Extracts:
"Gama Aviation Eyes Asian Expansion
April 13, 2019, 11:00 PM
Farnborough, UK-based Gama Aviation has started to build up its general sales agent (GSA) network in the Asia-Pacific region aimed at getting more aircraft owners in the region using its management services, as it eyes opportunities to grow its footprint out of Hong Kong, particularly into Mainland China. Sergio Oliveira e Silva, managing director of Gama Aviation Asia (Booth B523), told AIN, “The Chinese government is doing very good things that in the mid- to long term will be very good for China."
He continued: “They appreciate international companies that respect compliance,” and suggested, “small Chinese companies will struggle.”
And of Gama’s plans? “We’ll try to replicate in China in the next couple of years what we’d done in Hong Kong [with Hutchison Whampoa]. We’re hoping to identify strong local partners around Asia to act as our GSAs. If that allows us to grow the fleet, it could lead to acquisitions at a later stage. So we want to expand our footprint in Asia, but Hong Kong will always be the regional office for Gama.”
In terms of its regional fleet so far, Oliveira e Silva said, “We now have six aircraft under our management and are going to bring two Globals—a 6000 and an XRS—to the region, fully dedicated to charter.” He confirmed the aircraft belong to a “customer.” “They should be here ready for the summer time. They are currently parked at Bournemouth [Gama’s new facility in the UK]. Charter is getting very busy.”
"So he prefers to focus on growing organically. “The GSA concept and evolving the organization is my favored option.”
Oliveira e Silva says the priority countries for Gama are China and Australia, “but most likely the first ones will be Japan and South Korea. We’ll reveal the GSAs at ABACE, hopefully.” He added that “the three main bases” for business aviation in the region today are Hong Kong, Beijing, and Shanghai “so our focus will be on northern China,” as the south is covered by Hong Kong."
"Maintenance & Support
On the maintenance side, Gama established a foothold at Hong Kong Chek Lap Kok in late 2017 when it signed a collaboration agreement with China Aircraft Services Ltd (CASL) as the exclusive GSA to sell CASL’s business maintenance capability in Asia.
Oliveira e Silva said, “We are also looking at opportunities in China. If we developed line maintenance in China as we did in the U.S., that would be very useful. I’m a strong believer that China needs a line maintenance network, and we have already started talks. There is a fleet of 300 aircraft based in China with thousands of hours of maintenance requir
Will we get an explanation from the auditors as to why these overpayments were not picked up at the annual audit.?
Some of us bought shares on the consideration of the audited accounts..Seems the auditors could be open to an action for negligence?
There is potential here, but we have to be able to rely on statutory accounts. Would senior employees not have known of this ‘error’? Or was it contrived? Until we know the facts, the Company and it’s Directors remain under suspicion
Interesting to see that the Managing Director of Hutchison Whampoa (China) has now been appointed as Chairman.....
Https://www.investegate.co.uk/gama-aviation-plc--gmaa-/rns/appointment-of-chairman/201904031215010122V/
HW have unsurprisingly confirmed they won't be bidding for GMAA - but with their 21.7% stake it's interesting that this RNS sets out their rights if an offer by a third party comes along. Perhaps this is a possibility given the bombed-out share price.
It would be encouraging to see some directors buying some shares. If it’s a closed period now, after the results in a few weeks time should give them an opportunity. Hopefully they won’t get another chance at this price
GMAA seem determined to make things worse before they get better :o))
Last night's RNS was a bit of puzzler. It looks like they're kitchen sinking everything into last year's results to have a clean slate going forward, which seems eminently sensible, if fatal for the share price.
The detail is rather confusing. For example, is the $2.8m figure of additional costs mentioned last night actually a reduction from the $3m reduction stated in the 24th January update?
If GMAA can actually deliver, as they have stated, a similar core performance in 2019 to that in 2018, then this share price is very good value.
It's encouraging that GMAA have again noted that the 2019 outlook remains in line with expectations - and that as you'd expect given the historic Balance Sheet the company remains well funded.
Apologies - opening was 50-55 range
Bid - offer price very substantially down overnight following yesterday’s RNS, but has climbed since. I presume there was adverse press comment although I cannot find any reference
Finals out at beginning of April and apart from the unexplained overpayment and the treatment of ‘extraordinary ‘ items, hopefully there will be no more surprises
It’s been a disappoiinting year!
Gama hasn't "accounted for" the melt-down of the Saudi executive jet market. An accounting "adjustment" for their middle East division is surely overdue. Or will they wait until CEO Khalek has gone and do it together with an emergency placing instead? Many possibilities...
what worries me is reading the last dozen posts what else could turn up at this point.
I was hoping to catch this the bounce
looked good value in jan.
..glad I didn't.
It sounds like the similar setup of FLYB.
GLA
Sneaky... Their accounts say
"On 1 January 2017 the Group and BBA Aviation Plc merged their
US aircraft management and charter businesses. This merger
resulted in the Group’s 49% interest in its associated company
Gama Aviation LLC, being reduced to 24.5% and a profit of $1.6m
being recorded on the disposal of the other 24.5% interest."
They never issued any rns telling us that they sold half of their 50%-holding in Gama Aviation LLC for $1.6m. That values the whole company at $6.4m !!
THe Gama directors must have been desperate to flog the crown jewels holdings for pittance, only to raise a bit of cash...
I've looked at this a bit and can see the following:
According to this RNS from January 2017
https://www.investegate.co.uk/gama-aviation-plc/rns/merger-to-create-us-aircraft-management-business/201701030700101256T/
from Jan 2017 Gama Aviation PLC owns 50% of Gama Avition LLC as follows:
"Gama Aviation Plc will transfer its 49% ownership in Gama Aviation LLC into a new holding company, GB Aviation Holdings LLC, which will be owned 50:50 by Gama Aviation and BBA Aviation"
I cannot find anything about this ownership structure having changed later.
Therefore half of the $7.75mill repaid to Gama Aviation LLC should in effect be a payment to themselves. (But if that really is the case why wasn't this mentioned in today's RNS?)
Is there any ownership connection between Gama plc and Gama Aviation LLC? Why do they call it an "associate" company?
Will we get an explanation from our auditors? Are they the same auditors for Gama Aviation LLC?
No one noticed $7.75m? Some of us invested after examining the balance sheet and the assurance of auditors to confirm a true and fair account of the Company’s finances. Will the company sue its auditors?
Yes, we didn't have to wait long for more dirt: Another RNS today
"Gama Aviation Plc today announces that it has identified the receipt of two overpayments, in error, from Gama Aviation LLC, its US Air associate. $5.75m and approximately $2m were received in June 2018 and December 2017 respectively and were reported in cash and trade creditors in the respective half and full year reporting periods. Both of these overpayments have been re-paid in full."
Unnoticed by the auditors, Gama has had $7.75mill in cash for a year. This has now of course suddenly disappeared. Nearly 11 pence per share CASH. GONE!
Why does this company now remind me of Patisserie Holdings, Marwan Khalek?