(Alliance News) - Gama Aviation PLC on Monday reported "solid" performance as it expects a revenue increase of more than 20% as well as an increase in gross profit, while it negotiates new credit facilities.
For the six months ending June 30, the Farnborough, England-based aviation services company reported revenue in excess of USD130 million, roughly a 22% increase from USD106.4 million a year before, which shows its continued recovery in activities.
Looking ahead, Gama Aviation expects gross profit to increase by more than 22% on the same period the previous year, which is in line with revenue growth and improved margins, it said. Adjusted earnings before interest and tax is anticipated to be in line with management expectations, despite some variances in expected performance across its business units.
Further, Gama Aviation expects continued recovery in activity and revenue growth through the second half of the year.
The company is looking to replace its revolving credit facility and term loan that mature in November and January respectively. It is progressing towards securing new facilities and is in "active dialogue" with HSBC on a proposal to extend the current revolving credit facility, in order to allow for enough time to secure the new facility with alternative lenders.
The aviation services company will publish its interim results by the end of September.
Shares in Gama Aviation were down 2.7% at 55.00 pence in London on Monday afternoon.
By Dominique Pretorius; dominiquepretorius@alliancenews.com
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Gama Aviation (GMAA)