Last checked at 24 Jan 2019 07:00
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014
24th January 2019
Gama Aviation Plc (AIM: GMAA)
("Gama Aviation", "the Company" or "the Group")
2018 Full Year Update and 2019 Outlook
In advance of the publication of its full year results, Gama Aviation Plc, the global business aviation services provider, today provides an update for the full year ended 31 December 2018. The Company will release its full year audited results on Monday 18th March 2019.
2018 Full Year Update
The Board now expects the full year underlying operating profits to be $3m below its previous guidance, provided on 29th October 2018, due to:
· Accounting adjustments resulting from a comprehensive balance sheet review process carried out by the new finance team
· Changes in accounting treatment of certain organic investment costs
· Lower than expected share of associates profits, principally in the US
· Positive but lower than forecast trading growth in Q4/18
In the first half of the year the company incurred exceptional costs of $4.5m including costs associated with the equity raise, litigation costs and integration and restructuring costs. In the second half the company has incurred further significant exceptional costs including those associated with the move to Bournemouth, legal entity reorganisation and diligence costs on potential M&A opportunities. These costs will be reflected in the statutory reported results in 2018.
The Board is conducting a thorough and full review of its financial reporting methodology to simplify the presentation and improve the consistency of financial information.
2019 Outlook
With continuing growth in the US likely to be offset by the challenging market conditions in Europe, and with M&A opportunities yet to be delivered, the Company is taking a cautious approach and accordingly expects that the performance for 2019 will be similar to that delivered in 2018.
For more information contact:
Gama Aviation Plc +44 (0) 1252 553000
Marwan Khalek, Chief Executive Officer
David Stickland, Chief Financial Officer
Camarco +44 (0) 20 3757 4992
Ginny Pulbrook
Geoffrey Pelham-Lane
Jefferies International +44 (0) 207 029 8000
Simon Hardy
Will Soutar
Gama Aviation - Notes to Editors
Gama Aviation Plc (LSE AIM: GMAA) is a global business aviation services company that specialises in providing support for individuals, corporations and government agencies; allowing them to deliver on the promises they make.
The Company has two divisions: Air and Ground. Air services include: aircraft management, special mission support and charter; with Ground services covering: base & line aircraft maintenance services, aircraft modification design and installation and Fixed Base Operations (FBO).
More details can be found at: http://www.gamaaviation.com/