Last checked at 24 May 2018 12:30
Thursday 24th May 2018
Gama Aviation Plc (AIM: GMAA)
("Gama Aviation", "the Company" or "the Group")
Investment in UK maintenance facilities
Gama Aviation Plc, one of the world's largest business aviation services providers is pleased to announce the transfer of its primary turboprop and jet maintenance facilities from its 25,000 sq ft facility at Farnborough Airport and its 48,000 sq ft facility at London Oxford Airport into a flagship 135,000 sq ft secure facility at Bournemouth International Airport during the second half of 2018. The move will provide necessary capacity for expansion of the company's European Ground business, which grew by 20% in 2017, while delivering immediate efficiency savings.
Restructuring costs of c.$2m, which will be funded out of operational cashflow, will be incurred largely in 2018 and treated as either exceptional items or capital expenditure, with no impact on underlying profitability of the Group. The cash costs related to the restructuring will be offset by the end of the first half of 2019 through capital contributions by the new landlord and a rent-free period. The transfer will deliver near-term efficiency savings and revenue synergies which are expected to more than offset the costs of additional space from 2019 onwards, while also laying the foundations for further growth.
Neil Medley, Group Chief Operating Officer said:
"To support the continuing growth of our high performing UK maintenance business we are investing in a flagship maintenance facility to provide the capacity for maintaining all types and sizes of business aircraft for European clients. This will in turn allow the growth and development of our talented pool of engineers, as we add a range of new capabilities to broaden our service offering."
Marwan Khalek, Group Chief Executive said:
"This investment in a large, secure and modern MRO facility removes the physical constraints on our Ground business and is a powerful signal of our intent as we accelerate our growth strategy in Europe."
Steve Rigby, Chief Operating Officer, Rigby Group (owners of Bournemouth International Airport) said:
"We are delighted to welcome Gama Aviation to Bournemouth International Airport. This move will create a major new facility for business aviation as a core component of the strategic development of the airport."
Gama Aviation's Europe Air division, and its Ground facilities in Aberdeen, Glasgow, Jersey, Fairoaks and Doncaster are unaffected by the above.
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/