Half Year Trading Update

RNS Number : 3038L

Gama Aviation PLC

18 July 2017

 

18 July 2017

Gama Aviation Plc (AIM: GMAA)

Half Year Trading Update

In advance of its half year results, Gama Aviation Plc ("Gama Aviation"), the global business aviation services provider, today provides an update on trading for the half year ended 30 June 2017.

Gama Aviation will release its half year results on 7 September 2017.

Trading

Trading for the first six months of the year has been encouraging and remains in line with our expectations for the full year. The Group has also made good progress in improving its cash conversion with net debt further reducing during the period.

Air Division

Our US Air division continues to benefit from strong organic growth, underpinned by the contracted growth on the Wheels Up contract and buoyant markets. The Landmark integration continues to progress as planned and full integration is still expected by the end of this financial year. Within our EU Air division, we have continued to build on the operational efficiencies made in 2016 with notable margin improvements in the first half of this year. The Middle East and Asia Air divisions have had a positive six months with new contract additions that should improve top line growth and bottom line performance in the second half of the year.  

Ground Division

Our line maintenance offering in the US Ground division has shown promising organic growth, and recent contract wins should flow through in the second half of the year. Our EU Ground division continues to show the benefits of the modest pick-up in discretionary spend as well as increased maintenance activity arriving from the contract wins announced earlier in the year. Our Middle East Ground division has had a productive first half with revenues and margins ahead of the comparative period due to continued improvements in the number of movements through our Sharjah FBO as well as strong parking and hangarage returns.

Marwan Khalek, Chief Executive Officer commented:

"This has been a busy and encouraging trading period for Gama Aviation and trading remains in line with our full year expectations. We have continued to target and deliver organic growth and operational efficiencies as well as improvements in our working capital and cash conversion. We are pleased with the progress that we are making on all fronts and together with the recent strengthening of the European management team we remain well placed to deliver on our strategic objectives."

Ends

For further information please visit www.gamaaviation.com or contact:

Gama Aviation Plc                                        [phone]

Marwan Khalek, Chief Executive Officer

Kevin Godley, Chief Financial Officer

Camarco                                                        [phone]

Ginny Pulbrook

Geoffrey Pelham-Lane

Jefferies International                                  [phone]

Simon Hardy

Will Soutar

Gama Aviation - Notes to Editors

Gama Aviation (GMAA) is a global business aviation services company that specialises in providing support for individuals, corporations and government agencies. Gama Aviation is now one of the top three global players in a highly fragmented market, with a fleet of over 250 aircraft. Gama operates across Europe, the US, the Middle East, Asia and Africa.

Gama's services can be split into two broad areas: Air and Ground. The Air Operations include aircraft management, special mission and charters, with Ground Services covering aircraft maintenance services, aircraft modification design and installation and Fixed Base operations.

http://www.gamaaviation.com/

 

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