Gama Aviation Share Discussion Threads

[rivaldo] 11/11/2016 10:48

Twirl, each of these contract wins are no doubt not material individually so can't each be issued as RNS's. Collectively however, they make very good reading and give rise to some optimism for the next trading statement.

The CEO's closing comments are particularly encouraging, particularly "a strong pipeline and sales".

The year end trading update in January will be the time for GMAA to comment on overall trading.

[twirl] 11/11/2016 09:50

IG online limits are S 17500 @113 and B 100 @116

[twirl] 11/11/2016 09:43

Why have they not issued this as an rns

[rivaldo] 11/11/2016 08:47

Without giving out a formal trading statement, read this below - even the CEO is now telling us that things are at the least not as bad as the share price is telling us, and at best are positively encouraging.

I suspect this is one of those situations I've regularly seen over the years, where an institutional shareholder sells out over a long time ridiculously and inefficiently by dripping out stock at regular intervals until the holding gets small enough to sell at any price just to get it off the books.

Which imo presents investors with an opportunity:



"Nov 11 2016
New contracts for Middle East, Europe & USA

Gama Aviation gains contracts this Autumn

We are delighted to announce recent contract wins in the Middle East, Europe and the USA.

Middle East:

Gama Aviation’s is pleased to announce three new aircraft to its managed fleet with the addition of two Learjet 60’s and a Piaggio Avanti Evo; bringing the Middle East’s managed fleet to eleven. All three aircraft will be available for charter, fitting neatly into a category and price point where there is currently low inventory and availability. The Learjet’s are also Air Ambulance capable being equipped with Spectrum Aeromed ICU kits, furthering Gama Aviation’s strategy of expanding its special missions offering in the region.

Europe:

Within Europe, Gama Aviation’s engineering teams have won a maintenance contract for two King Air’s at the company’s Beechcraft service centre in Farnborough, and have extended an existing military design modifications project at its centre of excellence in Surrey, UK.

USA:

After a strong first half of the year, the 99th and 100th aircraft was added to Gama Aviation LLC’s fleet this autumn. Alongside the Wheels Up business, the core managed fleet continues to grow with the two new aircraft, a Palm Beach International based Cessna Citation Sovereign and a Learjet 60XR out of White Plains, adding further capacity to its Part 135 US east coast charter capacity.

Marwan Khalek, Group Chief Executive, Gama Aviation commented:

“I’m delighted with the progress we are making in key markets. This is testimony to the focus we place on understanding our clients and providing them with solutions that deliver the appropriate scale, breadth and depth of service to meet their needs. The Middle Eastern and US management contract wins demonstrate how this strategy has resulted in a strong pipeline and sales.”"

[corrientes] 10/11/2016 16:02

How about giving us bad news,Rivaldo. You never know, the price might actually go up !

[paleje] 09/11/2016 10:09

Cheers rivaldo, I would have thought these were way overdue to turn, PE is under 5 now. That piece you posted re Middle East underlines a comment ST made to one of his readers a couple of weeks back which I paste below....

19 Oct 2016 - ST in reply to a reader comment
lloyd,
Although the European market segment remains challenging, analysts still expect Gama to grow cash profits from $20.4m to $21.6m and increase pre-tax profits from $15.6m to $16.6m. On this basis, expect a modest rise in EPS to 33.9 cents, or 27.8p a share at current exchange rates. In my view, a rating of five times earnings estimates is far too low for a business that appears to have reached an inflexion point in its Middle Eastern business, is enjoying strong growth in North America, and has a solid balance sheet and a lowly geared one to support further bolt-on acquisitions.
I remain a buyer at 130p.
Regards
Simon

[rivaldo] 08/11/2016 11:44

Good news:



"Gama secures three more aircraft for Mid East fleet
Posted 8 November 2016 ·

Gama Aviation's is pleased to announce three new aircraft to its managed fleet in the Middle East with the addition of two Learjet 60's and a Piaggio Avanti Evo.

The new arrivals bring Gama’s Middle East’s managed fleet to eleven. All three aircraft will be available for charter, fitting neatly into a category and price point where there is currently low inventory and availability.

The Learjets are also Air Ambulance capable being equipped with Spectrum Aeromed ICU kits, furthering Gama Aviation’s strategy of expanding its special missions offering in the region.

Group chief executive Marwan Khalek said : “I’m delighted with the progress we are making in key markets. This is testimony to the focus we place on understanding our clients and providing them with solutions that deliver the appropriate scale, breadth and depth of service to meet their needs. The Middle Eastern contract wins demonstrate how this strategy has resulted in a strong pipeline and sales.”

[rivaldo] 07/11/2016 13:55

GMAA have from memory indicated more than once in interviews that they won't raise funds at these prices for further acquisitions, and net debt is relatively small so there's no need for fundraising on that front.

I hear what you say about a low ball takeover however, and no doubt some would be pleased to see 180p given where the share price is now!

Incidentally, re today's RNS I notice that Nigel Payne has also resigned from another NED position elsewhere recently (SEC S.p.a), whilst taking over as Chairman at EGS, so I don't read anything particularly into his resignation other than a rebasing of his various directorships.

[twirl] 04/11/2016 08:47

I agree re low share price

Possibly the intent to double size in 2 years points to fund raising which usually depresses share price

My suspicious mind also considers the temptation of the Board to engineer a low ball takeover at say 180p, which as majority shareholders they would benefit considerably.

[rivaldo] 03/11/2016 10:00

GMAA are about to be on a P/E of 4.2 for 2017 given forecasts of 26.11p EPS for this year and 28.81p EPS for 2017.

Even the forecast divi (varying between 2p and 2.77p depending on the analyst) is looking useful now!

It's bizarre igoe104. I can only surmise that a determined seller or two, along with stop losses being hit, has resulted in this (imo) bargain price, especially considering that Europe - which is the sole problem area - is such a small part of the overall operation, and even this is not such a problem area since it's essentially just flat, as this new interview with the CEO indicates:



"GAMA Pitching for Long-Term Success
by Ian Sheppard
November 2, 2016, 8:00 PM

GAMA Aviation—best known in the U.S. for operating Wheels Up’s fleet of King Air 350is—continues to grow its international presence and develop what it believes to be a more-or-less unique model, combining FBOs, a managed/charter aircraft fleet and an MRO.

Marwan Khalek, founder and CEO, told AIN at NBAA 2016 that its managed fleet continues to grow, noting that the company (Booth 3319) will soon add three more aircraft in Hong Kong. In addition, he said, GAMA it is preparing to build a new facility in Sharjah, where it already has an operation, that will allow it to tap far more into the lucrative Middle East market. The company will be expanding more on these plans next month at the MEBAA show.

Meanwhile, AIN recently visited GAMA Aviation’s new FBO in Jersey, where the company held a private viewing event with a range of aircraft from OEM dealers in the UK.

As well as its Wheels Up contract, GAMA Aviation also manages aircraft that it charters out for the owners, and this fleet is growing, Khalek said. “For us, the U.S. has been a good growth market. Wheels Up is evidence of that but we mustn’t lose sight of the success in our core business in the management business, particularly in the U.S.

“Europe remains flat, but the maintenance side is still pretty good. And it’s pleasing that we’re seeing movement in the Far East and Middle East now.” He said the model of managing aircraft for owners and using them for charter remains robust and popular, “particularly in places like Sharjah.”

On Wheels Up starting up in Europe, he said, “It is very much on the horizon and we’re putting in place a complex plan for when they decide it’ll happen.” He suggested that the only reason it hadn’t happened already was the amount of resources being used for growth in the U.S. “We’re really excited about rolling that out,” Khalek said.

Further afield, the GAMA Aviation CEO also said, “We’re relaunching the Africa business,” without elaborating, before concluding that the company has “a well defined strategy, partly through organic growth and some by acquisition.” He suggested that “consolidation must continue,” and GAMA has a list of possible opportunities that it is pursuing, but will not risk rushing and doing the wrong deal.

Aircraft-wise, the company will not purchase any more aircraft itself, but will keep those it has on long-term contracts such as the Scottish Air Ambulance (King Airs). But this special missions part of its business is something he hopes to expand on an international basis. “We’re looking to use our experience in new opportunities.”"

[igoe104] 03/11/2016 00:08

Weird share this one, fallen over 60% over the last 12 months. its like having a slow leak that keeps dripping away day after day.

extremely frustrating to say the least.

[rivaldo] 02/11/2016 09:07

More good vibes....“We have had a very successful year on the managed aircraft side":



"Gama Aviation Riding High With New Aircraft, Maintenance Base
Nov 1, 2016

UK-based Gama Aviation continues to expand, adding a new maintenance base in Massachusetts and adding aircraft, including turboprops and jets, to the Wheels Up fleet, which accounts for most of its U.S. operations.

The present-day Gama Aviation, which is based at TAG Farnborough Airport, launched via a merger with Hangar8 in late 2014, immediately creating one of the five largest business aircraft operators in the world, valued at some $200 million.

“Gama Aviation now manages 106 aircraft in the U.S. and another 50 worldwide, with several more to come by year end,” says Gama’s U.S. president Tom Connelly. “We have had a very successful year on the managed aircraft side. The majority of our aircraft are internationally capable.

“With operating bases in New York, Palm Beach, Van Nuys, London, Dubai and Hong Kong, Gama is uniquely capable of handling our clients’ needs around the world and back again.”

In addition to an expanding Gama Aviation fleet, “Gama Engineering continues to grow our line and AOG maintenance bases in support of our managed aircraft operations,” Connelly says. As an example, Gama late this past summer acquired the Technicair maintenance business at Hanscom Field in Bedford, Mass., increasing the firm’s northeast coverage.

Gama also this year signed a partnership agreement with CAE for business aviation training on more than 30 aircraft types. Together they have certified more than 170 pilots.

“Gama continues to enjoy very positive and growing relationships with our major training partners, Flight Safety, CAE, and TRU,” Connelly reports.

“With the complexity of newer aircraft avionics and increasing changes to the ATC system both in the U.S. and around the globe, the need for corporate aircraft owners to have a management company with the operational infrastructure and safety management systems in place is vitally important to sustained safe and compliant operations,” he says. "

[corrientes] 01/11/2016 15:40

That's what I thought two or three months ago,but no show.Maybe Europe is falling off a cliff,which seems highly likely now.

[shakeypremis] 01/11/2016 15:30

This looks set to benefit from the currency mauling GBP has faced vs the Dollar. It's worth investing in based on that alone for a short term 6 month punt.

[corrientes] 01/11/2016 12:37

Are we talking about the same GMMA whose share price is crashing in slow motion ?

Just what is wrong here ?

[rivaldo] 01/11/2016 11:07

GMAA's partner Wheels Up still growing like topsy:



"Wheels Up Hits 3,000 Members, Vows To Triple Rolls
by James Wynbrandt
October 31, 2016, 1:30 PM

Wheels Up, the membership-based aircraft access program launched three years ago, has just exceeded 3,000 members and vows to triple membership over the next three years, company founder and CEO Kenny Dichter said on Monday at NBAA 2016. The Wheels Up fleet now stands at 70 aircraft—55 King Air 350i twin turboprops and 15 factory-refurbished Citation XLSs—operated by Gama Aviation....

.....Revenue at Wheels Up is now $250 million annually, and member retention rates are “better than 85 percent,” Dichter said. He believes retention will cross 90 percent with the addition of recent program benefits....

....Looking overseas, Wheels Up plans expansion into Europe “late next year or in early 2018,” with a fleet of 10 to 12 King Airs, Dichter said. He noted King Airs are the greenest aircraft in their class and, given Europe’s size, can reach 48 of the 60 most popular city pairs for business aviation flights."

[twirl] 27/10/2016 11:47

not today as 2 buys and one rollover.

[roddiemac2] 27/10/2016 09:53

Someone is still dumping sizeable lines of stock .The question has to be asked,-- do they know something we don`t?

[igoe104] 20/10/2016 13:02

Wheels Up Lays Foundation for European Expansion.

[rivaldo] 11/10/2016 13:58

Good to see a £13,500 buy at 135p move the price up today.

[chasbas] 10/10/2016 12:09

Jeffries Int appointed Adviser/Broker from 17th June. Have they published anything post H1 results on 19th Sep? (Gama's H1 slides on its website are worth a look) Looks like 55K of institutional buying today at 135p? IMHO Jeffries and Gama's management need to go on the front foot to tell the story to investors via Edison/Proactive Investors etc. They should be providing confidence building words and Directors should be buying big time.

Gama's statement that they want to double revenue in 2 years must have frightened the market without any hint how they can do it: Trading statement of 13th July rules out issuing shares at current level to finance large transformative deals. Are we talking mergers then?

I don't think going private is the answer as they want to be a consolidator. BBA Aviation is +32% this year. Frustrating!!

[rivaldo] 07/10/2016 10:17

Cheers igoe104, good article. The current share price is bonkers imho :o))

[igoe104] 07/10/2016 08:24

Gama Aviation Set to Double in Size over the Next Two Years.

Gama Aviation has told investors that it will double the size of its business in the next two years. The global business aviation company announced the target as it realised strong interim results for the first six months of 2016.
Revenue rose 13.3% to $209.8 million giving Gama Aviation an adjusted profit before tax of $9.6 million.
Gama now manages 153 aircraft – up from 139 in June 2015. The company had a gross profit margin of 13.3%. This was down 3% from June 2015 because most of the growth came from lower margin aircraft operations – including Gama’s contract with Wheels Up.
“We have delivered a solid set of results in challenging markets, demonstrating our business model and the benefits of our geographic diversity” said Marwan Khalek, CEO of Gama Aviation. “We are on track to grow our business in a fragmented market and will double the scale of the business within two years.”
Gama will need to acquire some other business to do this, but Khalek stresses that the company will only invest if companies add to shareholder value. “We have no interest in just making acquisitions for the sake of acquiring things,” says Khalek. “We will only buy at the right price, where there is a strategic fit and where putting one plus one together creates more than two. We are not obsessed with scale for the sake of it.”
Gama grew strongly in the US in the sixth months up to June 30. Sales for the aircraft operating business rose to $109.8 thousand – up from $76.2 thousand in the same six months of 2015. Gama managed 105 aircraft at the end of June 2016 in the US – compared with 78 aircraft in June 2015. It will add at least another 30 Wheels Up aircraft by the end of 2018. The air business had an adjusted EBITDA of 2.4%. The company now has nine maintenance bases in the US, with ground revenues flat at $6.1 million, but with a 16.2% EBITDA.
“Aircraft operations may not give the best yields, but it is important to note that we are making money from them in this market which is different to some of our competitors,” says Khalek. “Air is not a loss leader.”
Khalek says that operating aircraft also acts as a shop front for the rest of Gama’s businesses.
European revenues fell 16.5% to $74.2 million because Gama cut several African contracts that were originally agreed by Hangar8. Although these were profitable, they were being managed from Europe and were also taking up a lot of management time. Although revenue was down, the European EBITDA rose 11.7% at adjusted currencies to 1.7%.
Gama’s Middle Eastern business broke even despite a 15.1% fall in aircraft operations. The maintenance business was up 40%. The Asian business now has three aircraft and contributed $8. 5 million in revenues