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A year ago the shares traded at 66 valuing the company at c.£44m. Much has happened since though looking at the sp you wouldn't think so. In receipt of cash from the sale of Jet Air
the company balance sheet has been improved out of all recognition, most importantly we're debt free and holders can look forward to a cash distribution of 55p almost the sp of the Co a year ago. Doubters will point to selling our most profitable division will put considerable strain on the Co finances going forward as we deplete cash in Bank. Regardless I much prefer to have that problem than being back at 50 where we traded in early October.
The deals already done . 50.3% of the vote already received and voted for the deal.
From 2 hrs ago
https://legaldesire.com/latham-advises-west-star-aviation-in-combination-with-jet-east/
Irrevocable undertakings have already been rec'd for 50•3% so the deal will go through.
I agree. Mad to sell here, I guess there is always the risk the vote doesn't go through next week, although it seems a dead cert it will.
It’s a real conundrum that if this were a company takeover the share price would now be £1.25-8.
It’s also strange that when the deal goes through the company gets the equivalent of £1.25-8p a share plus the company still has all the other business and is still a viable operating company.
You would have to be insane to get out now!!
I just do t get why the price has stagnated. ?
At the very least one should hold for the 55p dividend (worth £35•2m) so to speak and worry about the lease obligations later. Current sp/value supported by the net proceeds equivalent to c.128p and a mrkt cap of £52m.
First of all the price is creeping up and the sells thinking out.
Secondly, why didn’t the American company just buy the whole of GA?
The share price was depressed and they could have probably bout GA lock stock and barrels for the same money?
This will only start shifting once volume increases. Will be a domino effect.
Surely a rise to the subsidiary selling price today? £1.25p
AIM movers: Gama Aviation sells subsidiary for more than share price and Sosandar delays profit by investing in stores.
Gama Aviation (LON: GMAA) is selling its Jet East business for $131m. Adjusting for debt and transaction costs the net amount is $100m, which is equivalent to 125p/share. That could allow a 55p/share dividend. The share price is two-thirds higher at 87.5p. The rest of the cash can be reinvested in the remaining aviation services businesses. It recently won air ambulance and offshore helicopter contracts.
Wow - looks like this one is well and truly under the radar! Good job for those who saw the rns early this morning.
It would seem that the MM are taking a breather and deciding just how high this will go.
The market value has now dramatically changed upwards.
It's fascinating how many listed companies intrinsic value is totally out of kilter with the share price. Hence why there are so many share buybacks ongoing in markets. Praise to the BoD here for realising some of the hidden value in Gama. Pleased I was on board - & that was only because my son works for the Company!!!
Thank goodness i remained with them during tough times, and ignoring Questor {dt} advice to sell.
Seems at the current share price you can’t lose.
In fact you could make a killing..
WH Ireland have their forecasts under review for the time being, but they summarise:
- the net proceeds from the sale are expected to be c.$100m, equivalent to c.125p per share
- not less than 55p per share are expected to be returned to shareholders
- following the completion of the sale net cash (ex leases) is expected to be $88m, i.e around 111p er share
They conclude:
"While Jet East has been the strongest performing segment in recent years and central costs will now need to be spread across a smaller business, the transaction not only provides the ability to create significant immediate value for shareholders but will also bring with it capital to invest in the remaining Business Aviation, Special Missions and Technology & Outsourcing operations to enable these to deliver future growth"
Nice!
Jet East is to be sold for a whopping $131m, or $100m net.
There'll be a MINIMUM 55p per share return to shareholders. Plus of course we'll still have in particular the thriving Special Mission business plus the "Technology & Outsourcing and Business Aviation strategic business units".
And the distribution will only take up around £35m of the proceeds, so there should still be a very substantial cash pile left over after repaying the relatively de minimis borrowings.
Kinda expected H/Y results given the global backdrop the US excepted. A reclassified $2•8m depreciation charge resulted in reduction of gross profit was about the only item of note.
Regrettably the announcement was light on the meat and potatoes long on the jumbled financials. In commentating in the 'outlook' section there was nothing to make me take a second look. In gambling terms a very each'way report, cards held tightly to the chest.
Steady progress, challenging environment, cost pressures and geo uncertainty all standard guff investors have heard a thousand times, really?... I never knew that.
I was very bullish back in June cannot say that now. Oh well I hold in hopes but little else.
Great set of results. Strategy appears to be bearing fruit post CoVid. They have also announced today design and build of new hangar in Jersey, Channel Islands.
No doubt excellent results and ahead of my expectations. Gross profits at c.£44m more than the current mrkt cap (c.£32m) is ridiculous. Add on cash balances of £17m makes Gama one of the cheapest stocks on the Lse.
Thats very frustrating holding that long only to bale out at a substantial loss. I hope you recover monies in due course. I'd give you a tip but tbh I wouldn't give myself a tip on my current form!
Good luck!
I have now sold my 2,500 shares which I bought for over 6k in January 2018 based on a recommendation of Thompson 0f Investors Chronicle for a loss of about 75%
With my past record, the shares will probably fly!
Good luck to you all who still have some faith in this share
Yes indeed, it's been a slow burner but happy I invested last year.
Great to see the Welsh Air Ambulance contract win confirmation just now.
GMAA's prior RNS named GMAA as preferred bidder, but I certainly had no idea it would be this big - £65m over 7 years.
This provides guaranteed long-term income going forward, along with GMAA's various other contracts won in the last 2-3 years, including the £130m 5-year O&G contract commencing soon.
Plus GMAA evidently has no problem financing the H2 investment to enable contract delivery.
Everything's looking much more healthy:
Https://www.investegate.co.uk/gama-aviation-plc--gmaa-/rns/new-seven-year---65m-air-ambulance-contract-award/202302221307497433Q/