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Gama Aviation posts loss; scraps dividend as Covid-19 clouds outlook

By BFN News | 02:34 PM | Friday 31 July, 2020


Business aviation group Gama Aviation posted a full-year loss for calendar 2019 and scrapped its final dividend, citing uncertainty caused by the Covid-19 crisis. Pre-tax losses for the year through December 2019 amounted to $11.0m, compared to losses of $34.2m on-year, as revenue rose 5% to $246.8m. Gama Aviation said revenue in its ground division was offset by increased costs, while trading in the Middle East and Asian regions continued to be challenging. The air division, meanwhile, was 'stable with solid performance in special mission contracts'. On current trading, the company reiterated that activity levels had been impacted by the pandemic. Underlying trading in the second quarter had progressed in line with management's revised assumptions on cost containment, cash preservation measures and maintaining contracted revenue streams. An exception, however, had been significant losses suffered by Hong Kong associate China Aircraft Services, in which Gamma Aviation owned a 20% equity stake. 'Given the continuing operational and financial uncertainties resulting from the Covid-19 pandemic, the group's financial guidance for the year ending 31st December 2020 remains suspended,' it added. At 2:34pm: (LON:GMAA) Gama Aviation Plc share price was -0.5p at 36.5p Story provided by StockMarketWire.com

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