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24 Dec 2018 07:00
24th December 2018
Gama Aviation Plc
("Gama", the "Group" or the "Company")
Contract Awards
Gama Aviation Plc ("Gama"), one of the world's largest business aviation service providers, is pleased to announce the following special mission contract awards within its European Air & Ground divisions.
The first, an 11-year contract commencing 1st April 2019, is for the provision of maintenance and spare parts logistical support for eight government special mission aircraft and is for substantially the same scope of services and terms as the Company currently provides under a similar contract that is due to expire on 31st March 2019. The contract is expected to deliver revenues of between £66m and £88m over the period.
The second, a new 5-year contract commencing 1st July 2019, is to support four special mission aircraft by drawing upon a range of specialist services unique to Gama Aviation's holistic business model including aircraft modifications, maintenance and flight operations. This new contract is expected to deliver overall revenues of approximately £27.5m over the 5-year term.
The combined effect of both contracts is expected to be neutral to earnings in 2019 and accretive thereafter.
Finally, the Company is pleased to report that it has placed a £20m firm order for 3 Airbus H145 Helicopters to be delivered in Q4 2019. The helicopters will be deployed in support of an existing long term contract from the 1stJune 2020 when the Company will be delivering the rotary element of the service directly rather than through its current sub-contractor. It is expected that at least 85% of the purchase price will be funded through a traditional loan and/or lease structure.
The Company's CEO, Marwan Khalek, commented;
"We are delighted with these contract awards which endorse the Company's strength in the UK special mission market segment. This is as a direct result of our strategy to continue to build our depth of capability and breadth of service offerings to derive steady and profitable revenue growth for our European division. These medium and long-term support contracts, which we have a strong track record in winning, significantly improve the forward visibility of our revenues and enhance our earnings in the mid to long term."
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
Jefferies International +44 (0) 207 029 8000
Simon Hardy
Will Soutar
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
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/
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