"Gama Aviation Releases 2017 Results, Underlying Profits Up 28%
by Ian Sheppard
March 19, 2018, 9:49 AM
Gama Aviation experienced a strong year of growth in 2017 as the business aviation specialists operations in the U.S., Asia, and the Middle East all ticked up. The U.S. performed the strongest, partly on the back of its contract with Wheels Up (which now has 12 bases) and the Gama Aviation Signature joint venture, which was created on Jan.1, 2017. While profit in Europe proved elusive in the year, the group is looking to bolster that side of its business and become less UK-centric, ﻿co-founder and CEO Marwan Khalek told AIN.
Of the £48 million (around $67 million) raised in an equity placing last month, $10 million has been earmarked for investment in two maintenance facilities in the U.S. (one on the East Coast and one on the West); $10 million for developing its Sharjah, UAE business aviation center; and the rest for acquisitions in the Europe air and ground divisions and the Middle East air division. Khalek said the European division needs scale and needs to be more European.
The company, which is listed on the UKs Alternative Investment Market, recorded 2017 revenues of $207.4 million, up 5.8 percent, with underlying profit of $18.7 million. In the U.S. the new division created through the merger of its U.S. operations with the BBA aircraft management business (Landmark), rebranded as Gama Aviation Signature. Gama Aviation has a 24.5 percent stake in the venture, whichsaw significant growth. As a result, revenues for the the company's U.S. air-related activities increased by 35 percent, to $518 million. This was also fueled by the continued growth of our Wheels Up contract, said the company. It added, The integration of the BBA business is delivering the envisaged benefits: adding complementary West Coast coverage to the existing East Coast business, diversifying the client base, providing the ability to cross-sell maintenance services into Gama Aviations wholly owned U.S. ground business, and delivering cost synergies.
In the Middle East, revenue grew by 20.5 percent, to $23.5 million, and the division was profitable for the first time, returning $0.5 million. In October, Gama Aviation bought out Jet Sets 51 percent stake in its Middle East ground division, seeking "a strong foundation for our planned development in the region.
In Asia Gama Aviation acquired Hutchison Whampoas 50 percent stake of its Hong Kong-based joint venture, with Hutchison, instead, becoming a strategic investor in the Gama Aviation group by taking a 20 percent stake. The group itself now also holds a 20 percent stake in Hong Kong Chek Lap Kok International Airport-based MRO provider CASL. Were very well placed in the Asia market weve decided to use Hong Kong as our main base, while in a holding pattern waiting to see what happens in Mainland China.
WH Ireland have retained their Buy and 370p target.
They have 31.6c EPS for last year, with $17.1m PBT, which they summarise as "broadly in line with expectations", i.e slightly below, due to a "slightly higher effective tax rate in the year" and higher investment in the US Air sales force which should pay dividends in this and later years.
Given the placing dilution they now go for 29c EPS this year, rising fast to 41.2c next year. If GMAA make acquisitions as planned then of course these forecast could increase quickly.
As the manager of the the MI Downing UK Micro-Cap Growth fund said last week:
It is a great business that has grown to the next stage, is not well known but is a tuck away job for us.
Good results this morning as expected, with operating profit up over 28%, debt down 30% or so to only $13m, and in particular a bullish outlook for 2018:
"Current trading in line with management expectations; company well placed to achieve its expectations for the current year"
The current year forecast of 30c EPS should soon be increased significantly through acquisitions, which are well flagged in the narrative:
"· Acquisitions made in 2016 delivering at or above expectations
· Pipeline of acquisition targets identified
· Management teams and structures in place to support future growth and acquisitions"
It's worth noting GMAA's statement today that Gama Aviation Signature "is the largest aircraft management business in the US and has significant growth prospects."
The CEO's statement sums up the confidence here:
"Marwan Khalek, Chief Executive of Gama Aviation said:
"We are pleased to report financial results for 2017 in line with expectations. In particular, we have increased our operating margins and delivered improved operating cash flow.
Strategically this is an exciting time for Gama Aviation, having recently completed our successful £48 million fund raising. This will allow us to deliver significant growth and scale across all geographies and service lines, enabling us to make further value enhancing acquisitions from within our fragmented market and will help us to fulfil our ambition of becoming the global leader in business aviation services.
In US Air, following the BBA aircraft management business merger, we are now the market leader in US business aviation management. This offers us cross-selling opportunities into our US Ground division. We will leverage customer relationships across our national network and invest in base facilities to increase the scale and scope of services.
Europe Air is positioned for sustainable growth and we continue to build our offering in Europe Ground. The acquisitions in Europe have been successful and have added significant value.
Recent corporate developments by us in the Middle East and Asia, together with the proposed construction of a business aviation centre in Sharjah will accelerate growth. With Hutchison as a strategic investor, the addition of two experienced non-executive board directors and the strengthened management teams across the regions, we are well positioned for growth in 2018 and beyond."
"Judith Mackenzies three best value stock ideas on AIM
15 March 2018
The manager of MI Downing UK Micro-Cap Growth highlights three interesting value opportunities in the AIM market at present."
Next up is GAMA Aviation, the fifth largest holding in the portfolio with a 4.92 per cent weighting.
Despite having aviation in the name, it is more of a services company than a travel company, providing services to both private and public service aircrafts.
If you happen to own a private jet you have to house it somewhere perhaps in a hanger but also every three months or after X number of hours in flight you have to have it maintained, Mackenzie said.
As well as this, an individual would need to hire a crew and pilot as they are unlikely to have their own on staff.
GAMA Aviation therefore provides all the ancillaries around such flights, charging for the crew plus around 8 per cent on contracts that are typically for three-to-five-years without taking on the fuel risks, the manager said.
As the firm does not own the planes and is not in charge of the flights, it is more like a quasi-support services business despite sitting in the aviation sector.
We bought our first stock around 10 months ago but we said to them that to operate in more countries they need to do it through joint ventures, she said.
We knew it would happen at some stage but we were a bit surprised about how quickly it did happen.
Indeed, last year the company announced a large deal with Hutchison China to expand its services into China and the wider Asia market, announcing a £48m rights issue in February this year.
That is symptomatic of a growth and value company. These little companies break out and it is now going to be twice the market cap of it was when we bought in but it is still on 6x P/E, Mackenzie said.
It is a great business that has grown to the next stage, is not well known but is a tuck away job for us.
I got hold of the full text of Simon Thompson's recent tip, as follows:
"I clearly wasnt the only one running the slide rule over Aim-traded Gama Aviation (GMAA:258p), an operator of privately-owned jet aircraft, when I rated the shares a buy after the company issued a positive pre-close trading update ahead of results on Monday, 19 March 2018 (Primed for gains, 29 Jan 2018).
Gama has just announced a placing of 19.5m shares at 245p each to raise £48m of new funds to ramp up its growth plans. Two-thirds of the new equity is being purchased by an affiliate of the mighty Hutchinson Whampoa (China), a Hong Kong-based conglomerate operating across a diverse number of sectors including the provision of aircraft maintenance and logistic services. Hutchinson will own 21 per cent of the enlarged share capital of 63.5m shares.
The fundraising makes commercial and strategic sense. Around $19.8m (£14.2m) of the capital will be used to acquire Hutchinsons Hong Kong aviation interests, including a 20 per cent stake in China Aircraft Services, a company founded in 1995 and one of only three operators that provide maintenance, repair and overhaul aviation services at Hong Kong International Airport. The $16m being paid for that stake implies a value of $80m for the equity, hardly a punchy valuation for a business that made pre-tax profits of $7.8m in its last financial year and has net assets of $72m. More importantly, it gives Gama access to markets that otherwise would have been difficult to access, and in a less capital intensive way, too.
It also makes sense for Gama to deploy $10m on expanding hangar capacity and tooling and equipment at its fast-growing operations on the East and West coast of the US. The company operates from 14 locations across the country and manages a fleet of 200 aircraft, but growth is being held back by capacity constraints, an issue the new capital addresses, as well as providing cross-selling opportunities on the maintenance side of the business. Strategically, its a smart call to allocate $5m as seed capital to develop a new $45m aviation centre at Sharjah International Airport, given capacity constraints at Dubai International Airport. Its not only a lower cost base, but is geographically well located, thereby offering a platform for expansion in the Middle East.
In the near term, the placing will be dilutive to EPS, which is why analyst John Cummins at broking house WH Ireland expects EPS to dip from 32.9¢ to 30¢ this year, even though pre-tax profits are forecast to rise 29 per cent to $22.6m on revenues up 18 per cent to $691m. The payoff will be seen in 2019 when he predicts a 50 per cent hike in pre-tax profits to $33.1m on revenues of $758m to deliver EPS of 41.2¢, or almost 30p, implying the shares are being priced on a forward PE ratio of 8.5. Its not hard to understand why chief executive Marwan Khalek is investing £625,000 of his own money to purchase 255,000 shares in the placing. I continue to rate Gamas shares a buy and reiterate my 325p target price. Buy."
Gama Aviation Signature adds four new large cabin aircraft to US aircraft management fleet.
SHELTON, CT March 6, 2018 Gama Aviation Signature, the largest aircraft management company in the United States, announced today that it is expanding its managed aircraft fleet with the addition of four large cabin business jets a Challenger 350, a Gulfstream 550 and two Gulfstream IV-SP aircraft. Gama Aviation Signatures growing fleet continues to offer a wide variety of aircraft types to satisfy all client needs. The company currently manages over 200 aircraft in the United States and over 250 worldwide.
The new Gulfstream IV-SP additions are the ideal intercontinental-range business jets. Each cabin measures 45.1 feet long by 7.3 feet wide by 6.1 feet tall, making it spacious and comfortable to accommodate up to 13 passengers. Providing the ideal choice for business or leisure travel, each G-IVSP is equipped with Wi-Fi connection and the latest in-flight technologies for passengers to remain relaxed yet productive. One of the new Gulfstream IV-SPs is currently based at Miami Opa-Locka Executive Airport (OPF) and is already available for immediate charter. The second G-IVSP will call Teterboro Airport (TEB) home and will be available for charter at the end of this month.
These new Gulfstream IV-SPs mark the 28th and 29th Gulfstream jet to Gama Aviation Signatures US aircraft management fleet. The new Challenger 350 and Gulfstream 550 mark the 2nd Challenger 350 and the 9th Gulfstream 550 respectively.
We are pleased to offer our clients more options for their intermediate and long range missions, said KC Ihlefeld, Senior Vice President of Aircraft Management. These aircraft are perfect additions to our US charter fleet of heavy, midsized and light jets. We expect the aircraft to be in high demand and support as well as contribute to Gama Aviation Signatures fast-paced US charter business.
"After raising more than $100 million in funding, Wheels Up, a membership-based private aviation company, has begun the expansion of its sales and marketing campaign....
....Jamie Jaffe, senior vice president of marketing at Wheels Up, said the company has earned about $300 million in annual revenue and added more than 5,000 members since 2013. About 80 percent of those members are individuals and 20 percent are corporate.
During last years National Business Aviation Association conference in Las Vegas, Dichter said the company expects membership to reach 10,000 by 2020. I think we can be a $5-10 billion company, he said. Theres no reason by 2025 into 2030 we shouldnt have 25,000 or 30,000 members. We should be every year taking more airplanes than we took the year before.
In October, Wheels Up announced it had closed an equity-based fundraising round of $117.5 million. The funds will be used for a number of growth initiatives, including the purchase of additional aircraft and expansion of sales and marketing."
"On his appointment Richard Kearsey, Director of Corporate Development commented: "Gama Aviation has the structure, financial means and shareholder backing to capture the opportunity that exists within the business aviation sector. I'm delighted to join the company and look forward to the Company's development in the years ahead."
Gama Aviation Europe wins a two year West Africa transport contract with a comprehensive Challenger 604 solution incorporating its Air & Ground services.
Farnborough, UK, 2nd March 2018 Gama Aviation Plc, the global business aviation services company, is pleased to announce it has won a competitive tender to supply air & ground services to support a major oil companys management transportation requirement.
The contract award is for two years with a further two-year option.
Mark Gascoigne, Managing Director, Europe commented: We are delighted to have extended our relationship with this client winning a hard-fought tender process. By focusing on the end clients needs, we have been able to create a solution that delivers the right mix of security, safety, resilience and value using a combination of our air and ground assets.
The contract offers a prime aircraft in the ever-versatile Bombardier Challenger 604 with a back-up fleet aircraft being supplied on an as required basis. Line and AOG maintenance is provided in country with base maintenance taking place at Gama Aviations Oxford facility which specialises in Bombardier Challenger 601 / 604 / 605 aircraft.
Scott Corbett, Head of Jet maintenance, Europe commented: We are well positioned to support this aircraft both down-route and through its contracted lifecycle via our Oxford base. However I also anticipate, according to the aircrafts mission profile, that we also will draw upon our teams in Nice and Sharjah all of whom have support capabilities that we can draw upon. We believe this, alongside our experience with the type, was a major factor in the clients decision to award the work to us.
Gama Aviation adds Bombardier Global 6000 to aircraft management fleet in Asia.
Hong Kong, 27th February 2018 Gama Aviation, is pleased to announce the addition of a Bombardier Global 6000 to its aircraft management fleet in Asia.
Following a competitive process, Gama Aviations ability to support the aircraft locally and international were amongst the defining factors in the clients final decision. The addition of the Global 6000 follows the recent addition of a Gulfstream G550 to the fleet, which also required global support given its mission profile.
Sergio Oliveira e Silva, General Manager, Asia said: I am delighted with the fast start we have had to the year. Our new client wanted a high-quality team who could fully support their mission wherever they were. With our local, regional and international resources, strong working relationship with Bombardier and deep experience with the Bombardier Global series of aircraft, we deliver just that. Few aircraft management companies in Asia can think global and deliver local in the way that we can; consequently, we are witnessing strong interest in our offer when clients wish to maximising the performance of their aircraft.
"Underlying operating profit in Flight Support increased by 12.0% to $329.4 million (2016: $294.0 million), driven by continued strong underlying operational performance in Signature Flight Support and an $11.6 million contribution from acquisitions. Underlying operating profit includes our Signature TECHNICAir and our aircraft management and charter business which is accounted for as a joint venture. On an organic basis, adjusting for acquisitions ($11.6 million), FX ($0.6 million) and disposals ($7.8 million), underlying operating profit increased by 11.3%."
"Signature Flight Support's locations delivered another strong performance in a good growth environment, as we started to capture the benefits of our strong and customer-relevant network."
"Signature is well positioned to focus on optimising its unique and high quality global network of FBOs and line maintenance locations, through the provision of a broader range of B&GA services to our extensive customer base and enhancing network performance to accelerate value creation. The unique Signature network has the unmatched ability to satisfy the needs of our customers at many more locations that they want to fly to, supporting anticipated continued outperformance in 2018 and beyond.
In 2017 Signature expanded its affiliate FBO programme, Signature Select®. It signed an extended licence agreement with Fly Across at Toluca International Airport in Mexico, just a 30-minute drive from Santa Fe, the country's financial and business district. This location increases the Signature Select® network to 19 locations globally and we continue to look for further opportunities to expand this proposition.
Signature has continued to invest in its current network, with the successful opening of its newly constructed FBO, with premium hangar space to satisfy the growing tenant demand, at Boeing Field, Seattle which completed in June 2017. It also secured a new strategic lease at Washington Dulles International Airport."
Gama Aviation Asia delivers first Gulfstream G650/650ER engineering course in Hong Kong.
Hong Kong, 27th February 2018 Gama Aviation Plc, the global business aviation services company, is pleased to announce the completion of the first of its theory and practical training courses run in-conjunction with Global Jet Services and China Aircraft Services Limited (CASL) for the Gulfstream G650/G650ER.
Eleven engineers from four local MROs attended the course for seven weeks receiving B1 / B2 training with formal approvals from Hong Kong CAD, EASA, GCAA and the FAA.
J D McHenry, President, CEO, Global Jet Services, Inc. commented: This most recent class was an excellent example of how the continued partnership of Gama Aviation Asia and GJS will successfully support a global business aviation maintenance market. The class concluded with awarding a large group of students from multiple geographic regions with their respective certificates required by Hong Kong CAD, EASA, GCAA or FAA. They were all served at this central site provided by Gama Aviation. The combined talents, expertise, and flexibility demonstrated by this alignment of quality training providers are proof of a highly effective maintenance training solution, available to a diverse audience with specific requirements.
Sergio Oliveira e Silva, General Manager, Asia commented: This G650/650ER engineering course is the first of its kind in Hong Kong that combines the skills of our team, CASLs comprehensive business jet maintenance approvals and the talents of Global Jet Services instructors. Running this very well attended course in Hong Kong saved local companies thousands of dollars in travel and accommodation costs, removed the inconvenience of having valuable resources in different time zones and allowed the engineers to return home to their families at the end of the day. Based on the success of this G650/650ER engineering course we will be running further Gulfstream and Bombardier courses in 2018.
"Private jets chartered for as little as $500
February 24 2018
After the financial crash of 2008 the writer Tom Wolfe imagined the dismay of bankers and chief executives forced to give up their private jets and move through the clogged intestines of commercial airports.
A decade later executives are flying privately once more. Yet there are also signs that some of the great unwashed multitude are joining them. Tumbling prices for second-hand private jets have pushed many owners to charter their aircraft rather than sell at a loss.
Companies have sprung up selling seats on Gulfstreams and Bombardiers for not much more than they might pay on Delta Airlines. Industry observers have recorded a 10 per cent increase in charters and prices as low as $500.
Bob Seidel, who runs a jet charter company called Alerion, said that since 2000 the resale value of some jets had dropped from $32 million to $4 million.
He thought that American television might have helped too. Shows like The Bachelor, where they are taking private jets everywhere, had helped to popularise the idea of private jet travel, he said.
Among his customers he counts a cat that flew to London on a Gulfstream jet, sent by a woman whose daughter had gone to university there. Her daughter missed the cat, he said. It was the only passenger on the plane.
Simon Thompson of the IC has just published this afternoon a Buy tip update on GMAA, which should bring in more buying interest.
A couple of quotes - imo WH Ireland's 370p target is nearer the mark, but 325p would be a good start:
"The fundraising makes commercial and strategic sense. Around $19.8m (£14.2m) of the capital will be used to acquire Hutchinsons Hong Kong aviation interests, including a 20 per cent stake in China Aircraft Services, a company founded in 1995 and one of only three operators that provide maintenance, repair and overhaul aviation services at Hong Kong International Airport. The $16m being paid for that stake implies a value of $80m for the equity, hardly a punchy valuation for a business that made pre-tax profits of $7.8m in its last financial year and has net assets of $72m."
"In the near term, the placing will be dilutive to EPS, which is why analyst John Cummins at broking house WH Ireland expects EPS to dip from 32.9¢ to 30¢ this year, even though pre-tax profits are forecast to rise 29 per cent to $22.6m on revenues up 18 per cent to $691m. The payoff will be seen in 2019 when he predicts a 50 per cent hike in pre-tax profits to $33.1m on revenues of $758m to deliver EPS of 41.2¢, or almost 30p, implying the shares are being priced on a forward PE ratio of 8.5. Its not hard to understand why chief executive Marwan Khalek is investing £625,000 of his own money to purchase 255,000 shares in the placing. I continue to rate Gamas shares a buy and reiterate my 325p target price"
Thanks - here's the complete tip from Questor FYI. Some very positive commentary from the fund manager at Downing:
Daily Telegraph Business section 14/2/2018 :
" Update : Gama Aviation .
Gama Aviation , tipped at 193.5p in August last year , has announced plans to raise £48M by selling new shares . Gama's existing partner in Hong Kong , Hutchinson Whampoa , has committed £ 32.7M for 21pc of Gama's enlarged equity .
" This is a coup for Gama , giving it the financial firepower to take the company to the next level " , said Nick Hawthorn of Downing , who holds shares in the group . " Since we invested , management have done everything they said they would . It's only a matter of time before the true potential of this business is realised . The shares continue to look cheap at only 8.8 times 2019 earnings . We believe that they deserve to be rated at least in line with peers at 12.5 times earnings , which would imply a share price of 370p " .
GMAA meets Giles Hargreave's rules for such growth stock investing per the article:
Positive earnings-per-share (EPS) that have been growing by more than 10% compounded over three and five years.
Return on Capital of more than 12%.
Net Margins are increasing year-on-year.
Positive relative price strength.
A constituent of the FTSE SmallCap or AIM All-Share index.
Must admit that GMAA has managed to hold up better than many other stocks during the recent bot attacks. However 370 maybe a dizzy height.
Will be very happy to be up around 300 after the interims next month.
Tipped as follows by the IC's Simon Thompson - hopefully more buying to come tomorrow:
"Gama in the ascent
Shares in Aim-traded Gama Aviation (GMAA:260p), an operator of privately owned jet aircraft, have reacted positively to a pre-close trading update ahead of results on Monday, 19 March 2018. I expect the share price to continue to make headway towards the 325p target price I set out at the time of the interims ('Riding earnings momentum', 6 September 2017).
Analyst John Cummins at broking house WH Ireland expects revenues to have climbed by over a third to $586m in 2017, buoyed by significant growth in Gamas US air division following the Landmark fleet joint venture with BBA Aviation (BBA), and in its US ground handling business, too. As expected Gamas European air division has produced a far better margin improvement on the back of cost savings. As a result, pre-tax profits are forecast to rise by 28 per cent to $17.5m and deliver EPS of 32.9¢. The strong operational progress is set to continue in the new financial year especially as the US economy remains buoyant, suggesting that Mr Cummins EPS estimate of 36¢ is well supported. On this basis, Gamas shares are rated on 10 times earnings estimates.
One reason for the modest rating is that Gama is involved in legal proceedings relating to its legacy Hangar 8 business brought by its former chief executive Dustin Dryden who resigned in September 2015. In a separate case, the company is trying to recover a long standing trade receivable on which it holds adequate security. The board expect the net effect of these proceedings to lead to a net cash inflow to the company. I am unconcerned.
More importantly, with net debt reduced by almost a third to $13m year-on-year, and the trading outlook upbeat, I would expect a hike on last years dividend of 2.6p a share and see potential for further earnings-accretive bolt-on acquisitions. Buy."
"7th Jan 2018
Oxford airport maintenance facility receives FAA approval
Gama Aviation Oxford airport maintenance receives FAA approval to support private jet maintenance for Bombardier Globals, Challengers and Embraer Legacy.
Gama Aviations Oxford airport private jet maintenance base has added to its comprehensive coverage with the addition of FAA approvals for N registered Bombardier Globals, Challengers, the Embraer Legacy series and the Bae Hawker series.
Scott Corbett, Base Maintenance Manager, Gama Aviation Oxford, commented: This summer has seen a high volume of maintenance activity taking place in Oxford. The new FAA approval, combined with our 24/7 AOG coverage for these highly popular types creates a compelling proposition for individuals and fleet owners who want holistic coverage for their aircraft.
"4th Jan 2018
Hong Kong Bombardier maintenance approval
Gama Aviation, is pleased to announce China Aviation Services Limited has been awarded Hong Kong Bombardier maintenance approval with a comprehensive FAA Ops Spec at its Hong Kong International Airport base.
The FAA Bombardier Global maintenance approval for the BD-700 series, enables Gama Aviations Hong Kong business to sell, under its general sales agreement with CASL, base maintenance (up to and including 3C / 24 month inputs) to local and regionally based FAA registered Bombardier clients.
Great start to the week, after a very good Friday move up, with buying now coming in at 258p.
Hopefully new almost 2-year highs coming soon, but still lots of upside to WH Ireland's 370p target price.
WH Ireland have reiterated their forecasts of:
last year: 32.9c EPS
this year: 36.0c EPS
next year: 41.2c EPS
The pound has pushed up to $1.38 at present, but may be back to say $1.30 in terms of translation pretty soon.
A single-figure P/E and a PEG of less than 1 marks GMAA as cheap and with a good value growth rating. The legal shenanigans may or may not hold it back for a while, but it'll only take a little interest to cause a good re-rating.
And it looks like there's a decent-sized buyer out there now, as any selling has been mopped up easily.
Muddied somewhat by the exceptionals relating to Dryden and his "affiliated entities". It's striking that GMAA feel confident enough to be able to state they expect to receive net cash inflows from all this.
The bullish outlook statement gives reassurance to the almost 27p EPS expected this year.
Very impressive new NED appointment today - should improve City confidence here given RS' record in founding and building Synergy Health PLC. And the new director/COO is also very solid as a former COO of Detica, which was sold for £500m to BAE:
GMAA are due to announce their year end trading update very soon if the last couple of years are anything to go by.
Last year's update was on 9th January. I'm hopeful this year's will be good given the outlook in September's interims.
The latest forecast is historic 24.61p EPS for last year, rising to 26.92p EPS this year.
A P/E of 8.8 and a confirmed positive outlook in the next couple of weeks would help the market notice the potential upside of anywhere from 30%-100% from here:
"Marwan Khalek, Chief Executive of Gama Aviation said:
"The first half of 2017 has seen the Group maintain the positive momentum generated through last year to deliver a good performance in line with our expectations. In all divisions and all regions we achieved strong revenue growth and encouraging improved margin performance.
The integration of the BBA aircraft management business into the US Air division is progressing well and benefiting from a buoyant US market. The 2016 acquisitions of Aviation Beauport and FlyerTech, in Europe Ground and Europe Air respectively, are performing above expectations. Gama Aviation is well positioned to continue to benefit from the opportunities that this highly fragmented market presents.
Based on our performance to date and contract visibility, the Board is confident that the Group will meet its full year expectations."
Hi, might have read that wrong but isn't that tax paid by the customer? So how would GMMA benefit? You thinking if taxes are reduced there's room for GMMA to increase their rate? My take take on the recent price action was it appeared to be a tree shaking exercise, annoyingly couldn't buyany more as already fully loaded and waiting for take off!
"Democrats blast GOP plans tax break on private jets
By David Sherfinski - The Washington Times - Sunday, November 19, 2017
Republicans billed their tax overhaul as a way to clear out special loopholes from the bloated tax code but the bill that will hit the Senate floor after Thanksgiving actually adds a host of new breaks on everything from private jet operators to citrus farmers.
The jet plan, which would exempt private airplane maintenance payments from a transportation excise tax, has quickly become emblematic of the GOPs bill in online forums, with opponents saying it shows the plan is skewed toward the wealthy who can afford to use such planes.
The aviation industry says thats a misunderstanding, and said the provision is intended to make sure private plane managers dont pay a 7.5 percent ticket tax applied to commercial flights.
Tax reform legislation has a long way to go, but this is an important step and small aviation businesses are appreciative of the inclusion of this provision, which provides them the tax certainty they have long sought, said Martin H. Hiller, president of the National Air Transportation Association."
"The Group's trading performance remains in line with expectations, with revenue up 10.2% year-on year for the ten months to October, reflecting good organic growth in Signature and the contribution from acquisitions.
In Flight Support, Signature revenues in the ten months to 31 October grew 14.2% and on a like-for-like basis (organic, constant currency, adjusting for higher fuel prices) were up 3.8%. US B&GA flight movements have grown 3.7% over the nine months to 30 September, with improved growth of 4.3% for the three months ended 30 September. Signature like-for-like revenue growth for the same three month period ended 30 September was 5.3%. The Signature outperformance during the three months ended 30 September in part reflects good progress with our commercial renegotiations for the enlarged network.
The recent hurricanes: Harvey, Irma and Maria, caused minimal impact overall across the Signature network and we were able to re-establish services quickly and provide support for the rescue and relief efforts.
Signature has recently signed a Signature Select licence agreement with Fly Across at Toluca International airport in Mexico, our first location in Mexico and the closest B&GA airport to Mexico City. This increases the Group's affiliate FBO programme, Signature Select, to 19 locations....
....Wayne Edmunds, BBA Aviation Interim CEO commented "The Group has traded in line with expectations during the period. We are particularly pleased with Signature's performance since the half year, which in part reflects the positive customer response to our enlarged network proposition."
"Gama Aviations Hong Kong business jet maintenance collaboration with China Aircraft Services Ltd. (CASL) opens with fixed price base maintenance packages*
In a formal opening ceremony today, 09 November, 2017, Gama Aviation Hutchison (Hong Kong), is pleased to announce the start of its General Sales Agent (GSA) collaboration with China Aircraft Services Ltds (CASL) for business jet maintenance services.
The collaboration, of which Gama Aviation has the exclusive permission to sell CASLs business jet maintenance capability in Asia, has already achieved FAA and Cayman approvals for the Gulfstream G350/450, G500/G550 and G650/650ER types and the Bombardier Global BD-700 series, the primary types operated in the region. Approvals for Bermudan and HK CAD are imminent.
Angus Cheung, Chief Executive Officer of China Aircraft Services Limited commented:
This is a historic year for CASL as we build further capability from our strong commercial aviation maintenance platform. Our collaboration is the perfect blend of maintenance expertise, operational know-how and type knowledge. Were very excited to end the year in such a strong position, with a relevant and compelling offer to business jet owners in the region.
Marwan Khalek, Chief Executive Officer of Gama Aviation Plc commented:
Today marks a new era for Gama Aviation in the region. We could not want for better partners in CASL and I fully believe we have the means to deliver a game changing proposition. For many owners and crews, the inconvenience, cost and unnecessary engine and airframe hours of flying to alternate service facilities has ended. Hong Kong now has the capability and we are proud to represent, through our unique collaboration.
Gama Aviation is now taking bookings for base maintenance (up to and including 3C / 24 month inputs for the Gulfstream G350/450, G500/G550 and G650/650ER types and the Bombardier Global BD-700 series). Coverage is also provided for AOG regional call outs, battery services and cleaning."
"Questor: theres plenty of scope for this aviation firms undervalued shares to soar
By Richard Evans
8 November 2017 6:02am
Obscenely cheap. This is how one fund manager described the share price of one of his holdings when he started to build a stake last year.
At that time, shares in the company concerned, Gama Aviation, were trading at only about five times earnings. True, they have rallied since then but even now they are rated at only about seven times expected profits for 2018 very much the kind of bargain-basement price that attracts Questors eye.
Better still, Gama is a fast-growing, cash-generative business, which operates in a sector that is both rapidly consolidating and relatively immune from attack by new entrants, said Nick Hawthorn of Downing, which owns about 6pc of the Aim-listed company in various portfolios.
Gamas operations are divided into two parts: air operations, which provides services such as fuel, crew and food for private aircraft owned by firms, governments and individuals;..."
Perhaps indirectly linked to Mohammed Bin Salman the Saudi Crown Prince rounding up various opponents and closing the airport to prevent their private jets moving. Possible wider repercussions around the middle east and knock on effects on private jet activities.
Also, Lewis Hamilton got a VAT refund on his private jet by landing it in the Isle of Man.
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