Last checked at 5 Jun 2018 07:00
5th June 2018
Gama Aviation Plc (AIM: GMAA)
("Gama Aviation", "the Company" or "the Group")
AGM update
In advance of its Annual General Meeting today, Gama Aviation Plc, the global business aviation services provider, is issuing an update on trading and other matters for the period from 1 January 2018.
Trading
Trading across both Air and Ground divisions has been broadly satisfactory although flat compared with last year, with conditions in Europe being somewhat challenging whilst conditions in the US are supporting strong growth.
Air Division
The EU air division's performance remains stable and we continue to expect modest growth for the year as a whole. The US air associate is continuing to deliver strong organic growth enhanced by the Wheels Up contract. The Middle East and Asia air divisions have made good progress in scaling their operations.
Ground Division
The EU ground division performance has been somewhat mixed with some modest like for like revenue growth in the period supported by high quality contract wins for base maintenance and design the full effect of which will be seen in the second half of the year. The recently announced move to Bournemouth International Airport will allow the division to double its engineering capacity, improve operational efficiency and extend its service offering.
The US ground division has delivered strong organic revenue growth with new clients continuing to be attracted to its line maintenance centres. The further development of our US network is progressing well and we expect to be adding base maintenance capacity on both coasts in line with our 2018 strategic plan.
The Middle East ground division has had a weak start to the year, with movements at the FBO being affected by regional events. The Group's investment in the Sharjah BAC is progressing well, with the design phase well-advanced, and remains on track to open in the fourth quarter of 2019. In Hong Kong, our collaboration with CASL is making good progress and has started to deliver revenues.
2018 strategic plan update
Following the equity placing in March, the Group is confident in delivering its strategic growth plan for 2018. The anticipated investments in US & Middle East Ground are underway and the Group continues to actively review potential acquisition candidates, particularly, in Europe and the Middle East.
Senior Leadership Team
The Group has further strengthened its leadership team with the appointment of a new CFO, a Director of Corporate Development and a COO of the US Ground Division.
As recently announced, David Stickland will be joining as the Group CFO on 1 September. He brings with him extensive financial and international operational experience from within the transport and service sector.
Richard Kearsey was appointed as Director of Corporate Development on 8 March to help deliver on the 2018 strategic plan and future acquisition strategy.
In addition, Gama Aviation recently appointed Walter Berchtold, as COO of the US Ground division, to drive the performance and delivery of organic investments in that division. He previously held roles at Jet Aviation, Cessna, RUAG and Bombardier, where he delivered Bombardier's major new MRO facility at London Biggin Hill Airport.
Litigation update
During the period, the Group has either resolved or has settled four out of the ten previously disclosed legal proceedings, namely; Taz Hawker, ACC Columbia; the litigation with Credit Suisse arising from claims against Igho Sanomi, and Ukraine State Aviation Administration. Two claims against the Company have been inactive. The Company continues to vigorously pursue/defend the outstanding proceedings and remains confident that the overall awards and settlements will result in a cash inflow to the Company.
Marwan Khalek, Chief Executive Officer commented:
"I am pleased with the progress that we are making in implementing our 2018 strategic plan which is tailored to ensure that, through a mix of organic investments and acquisitions, each division in the Group receives the necessary support to allow it to address its specific growth opportunities. With the strengthened leadership team now established, we are even better equipped to deliver on our strategic objectives."
Note
The company will issue its half year trading update on the 19 July 2018
ENDS
For further information please visit www.gamaaviation.com or contact:
Gama Aviation Plc +44 (0) 1252 553029
Marwan Khalek, Chief Executive Officer
Camarco +44 (0) 20 3757 4992
Ginny Pulbrook
Geoffrey Pelham-Lane
Tom Huddart
Jefferies International +44 (0) 207 029 8000
Simon Hardy
Will Soutar
Gama Aviation - Notes to Editors
Gama Aviation Plc (AIM:GMAA) is a global business aviation services group that specialises in providing support for individuals, corporations and government agencies; allowing them to deliver on the promises they make.
The Group's services are split into two divisions: Air and Ground. Air services include aircraft management, special mission support and charter. Ground services cover aircraft maintenance services, aircraft modification design and installation, and Fixed Base Operations (FBO).
More details can be found at: http://www.gamaaviation.com/