Gama Aviation Share Discussion Threads

[rivaldo] 30/9/2015 08:42

The business as a whole looks in terrific shape, and the Balance Sheet is strong with $16m of cash/assets for resale less $2m of borrowings.

In particular, the outlook statement promises much for H2 - and GMAA are hinting at "further strategic acquisitions" to come:

"The Group enters the second half of 2015 in a strong position and the Board remains confident about the outcome for the full financial year.

The business is experiencing strong growth in many of its global divisions underpinned by its high quality revenue streams. Trading in the US region has continued its positive momentum since the period end and the Board is pleased with the trends being seen in the Group as a whole. With the integration now completed, synergies anticipated to be realised through the second half of the year and the business now being positioned to leverage off our increased scale, breadth and depth of service offering, Gama Aviation has a strong platform from which to deliver on-going organic growth whilst also looking to pursue its strategy of adding value enhancing acquisitions to the Group. The Board therefore looks to the future with confidence".

[wjccghcc] 30/9/2015 08:05

Profits look good but cashflow looks quite weak.

[igoe104] 30/9/2015 07:58

Looks good to me as well . Europe much improved as well, and everything in line, good stuff.

[rivaldo] 30/9/2015 07:56

The numbers look good to me too. And they're confident of H2 as well.

It's a really busy morning though so no time - more later!

[gorilla36] 30/9/2015 07:49

mmmmm not so sure. Any thoughts Rivaldo?

[letsgetbizzay] 30/9/2015 07:42

Superb set of numbers. Wouldn't be surprised to see this trading 10% higher at open

[shammytime] 29/9/2015 15:12

Sorry that should have said £250mill

[igoe104] 29/9/2015 13:15

According to digital look Shammytime, revenue is forecasted at 207 million for year end 30/6.

[shammytime] 29/9/2015 11:58

Rumours of revenue smashing the £50mill mark. Should be a good day tomorrow ;-)

[igoe104] 29/9/2015 10:32

Cheers,

Good spot rivaldo.

[rivaldo] 29/9/2015 10:18

Wow - GMAA's partner Wheels Up have raised up to $115m in a financing for European expansion valuing them at $500m, and they're experiencing "hyper growth".....

GMAA should benefit nicely from being in bed with this company:



"N.Y.-based Wheels Up looks ahead to Europe thanks to new investment
Sep 28, 2015, 2:38pm EDT

Wheels Up, a New York-based private aviation company, completed its first closing on a capital raise of up to $115 million from several big name investors, including venture firm New Enterprise Associates, which has a Manhattan office.

Baltimore-based T. Rowe Price Associates Inc. and Boston-based Fidelity Management and Research Co. also backed Wheels Up, which operates as an aircraft broker, as well as a leasing company and card provider. New York-based investment bank Jefferies Group advised the startup throughout the funding round.

"The first meeting we had was with [portfolio manager] Henry Ellenbogen at T. Rowe who led the round," Wheels Up founder and CEO Kenny Dichter told the New York Business Journal. "There was terrific chemistry between Henry 's team and our team."

Dichter would not disclose whether Ellenbogen or any of the other investors have earned a seat on the Wheels Up board of directors. He did say, however, that the plan is to take the company to market in at least two years.

For now, he added, Wheels Up is looking to grow organically, Dichter added. "We've had hyper growth since the day we started," he said. The latest round of financing, which puts the company's value at $500 million, will help expansion overseas. Currently headquartered in Times Square, Wheels Up is looking to set up operations in the United Kingdom, likely in Farnborough, England where the company's partner Gama Aviation is based.

"We expect to have planes on the ground [in Europe] by the end of 2016," Dichter said.

Wheels Up is known for bringing the luxury of a private jet to consumers who aren't high net-worth individuals. The company charges an initiation fee, starting at $15,750 a year, as well as annual dues. Wheels Up also guarantees plane availability 24 hours a day, seven days a week. Among the planes available through the company's own fleet, as well as airplanes accessible through partnerships, are Beechcraft, Cessna, Jet Aviation, JetSuite, Heliflite and VistaJet. In 2013, Wheels Up closed $100 million in debt backed by Beechcraft.

By the end of 2014, Wheels Up had signed up 1,000 members and had grown its aircraft fleet to consist of 27 brand new King Airs and 10 Citation jets from Cessna.

In April, it set up an Uber-like feature in which members can offer ride-sharing options through the startup's app.

For example, if a group of Wheels Up users are heading to Philadelphia to see the Eagles host the New York Giants, and there are six other seats available, Dichter explained, "we can put them up on the app and have other members going in the same direction and decrease the cost."

Private air transportation that costs up to $8,000 an hour elsewhere can cost as little as $3,950 per flight hour through Wheels Up."

[shammytime] 29/9/2015 10:13

Making it's move now. Bargain at this price

[shammytime] 29/9/2015 08:30

Expecting to see a return to 310-320 tomorrow

[goliard] 18/9/2015 07:00

...and a very low oil price helping too hopefully.

[rivaldo] 17/9/2015 23:31

Interims will be out by 30/9, in line with the positive recent trading update, so not long to wait for numbers.

I too liked HGR8 as a separate entity. However, the trading update was interesting in that it noted that Gama's growth elsewhere had nicely offset a decline in HGR8's operations due to the poor O&G markets. So perhaps us shareholders have benefited quite substantially from the merger with Gama....

I'm hoping to hold these shares for some years to come:

- with this being a boom time for airlines
- with GMAA providing an ever-increasing range of aviation services generating good recurring income
- and with GMAA now in the top 4 operators globally being well placed to mop up a series of further acquisitions of smaller providers

[goliard] 17/9/2015 15:32

Rivaldo, I thought I had found such a company with Hanger8. The jury is still out on the new management. I am not pessimistic, I would just like some reassurance in numbers rather than words.

[gorilla36] 17/9/2015 14:24

Goliard - Good points made. They have certainly talked the talk, but the next update needs to walk the walk as regards the share price. I think people have been patient given the merger and the time it takes to bed in, but an upward steady drift in the price is what is required here.

Rivaldo re "Long-term investing is the way to transform the value of your portfolio. Just find a good company in a growing niche with decent management and stick with it."… I agree, perhaps we just have different time scales. I think the next update will be critical.

[igoe104] 17/9/2015 09:52

Decent growth forecasts for next year, and a P/E of 10.6. certainly worth holding at the moment.

Upside is the states, strong demand. Downside is currency headwinds in Europe.

[goliard] 17/9/2015 09:42

There is a lot of PR here. Every new win gets covered somewhere, but do they lose any contracts? We don't know, but I hope not. Lots of hype about synergies and prospects, but maybe a little too much. They refer to 'unprecedented demand' in China and have signed.... wait for it...... 3 aircraft. Unprecedented?

I am heavily invested here and think the story merits staying in, but the numbers need to live up to the hype.

[rivaldo] 17/9/2015 09:00

This reads well following my earlier post about it:



"Gama Aviation establishes new Approved Training Organisation to expand training service

New ATO meets EASA Part-FCL requirements for base training. Will cover up to 30 aircraft types.

Gama Aviation has received EASA approval to conduct the landing training required for the issue of aircraft type ratings.

This enables the company to carry out training programmes under the new interpretation of the European Aviation Safety Agency (EASA) Part-FCL requirements regarding base training.

Gama Aviation has established its own Civil Aviation Authority (CAA) Approved Training Organisation (ATO) which meets the EASA requirement that as “the base training is part of the approved Type Rating course . . . it must be completed under the control of an ATO.”

The ATO initially covers seven types of aircraft including Challenger, Global Express and Gulfstream G550, with more types to be added in the near future. Gama anticipates that within a few months it will be able to provide training on up to 30 aircraft types.

Gama Aviation launched this new ATO to meet the needs of its own roster of more than 450 pilots and 20 students have already completed their type ratings using the facility. However, the company will also be extending the service to other operators.

Hamish Ross, head of training of Gama Aviation said: “As a business we place a huge emphasis on training, across all aspects of our operations. We demand the highest standards and that is why we have established our own ATO, both for our own needs and those of the rest of the industry.”

Gama Aviation has operations in 45 different locations in 17 countries across five continents, making it one of the world’s leading aviation services companies. As well as training, its services include: line and base maintenance; FBO services; engineering design; aircraft management; charter operations; and aviation and ground management systems."

[gorilla36] 10/9/2015 16:25

rivaldo - The problem is none of this "good news" is being reflected in the share price, on the contrary we have now resumed our gentle but constant fall. We have gone nowhere in a year. The next update had better start to move the price or that is me gone I'm afraid.

[rivaldo] 10/9/2015 09:38

Featured in today's Shares Mag:

"Business aviation services company Gama (GMAA:AIM) has successfully integrated
Hangar8 and a recent trading update confirmed that synergies are flowing strongly and demand for its expanded aviation and ground services is
healthy.

Cantor Fitzgerald’s Robin Byde believes that ‘growth prospects for Gama, across all regions, organically and through potential M&A, are excellent.’"

[rivaldo] 09/9/2015 11:47

This good news hasn't been posted:



"Gama Hutchison Responds to Increase in Demand with Delivery of New Aircraft in Hong Kong
Published: 14 August 2015 Written by INT821

Gama Hutchison, the Hong Kong-based joint venture between Gama Aviation Plc and Hutchison Whampoa, has today announced that it has signed a management contract for a Bombardier Global business jet, taking its fleet in Hong Kong to three aircraft.

Marwan Khalek, CEO of Gama Aviation Plc commented: “Since launching our joint venture with Hutchison Whampoa in January of this year we have received unprecedented demand for our services in Asia Pacific.

One of the reasons we offer such an attractive proposition to our clients in the region is the size, breadth and depth of our service, which means we are able to offer considerable savings to our customers through economies of scale. The signing of the management contract for this aircraft is in line with our planned operations and will only bring costs down further as we look forward to growing our footprint in what we view as a key growth market for the business.”

Recent analysis of the Asia Pacific business aircraft fleet carried out by Gama Aviation has reveals a strong preference for larger, longer-range aircraft. Large jets accounted for 69% of business aircraft deliveries to China during the period between 2010 and 2014, compared to 47% for Asia Pacific and 33% globally. Indeed, a sixth (18%) of all global heavy jet and jet airliner deliveries between 2010 and 2014 went to Asia Pacific, with half of these going to China.

Since its merger with Hangar8 in January 2015 Gama Aviation has taken advantage of its greater scale by successfully renegotiated a 400-location global tender for fuel. Given a Group consumption of more than 40 million litres last year, the company has naturally sought an economy of scale from providers and has embarked on a series of other scale-led procurement deals that it expects to lead to significant further savings for its client base across the world.

Gama Aviation now holds management contracts on over 140 business aircraft globally, making it one of the world’s leading aviation services companies, with operations in 45 different locations in 17 countries across five continents."

[rivaldo] 04/9/2015 07:30

WH Ireland's monthly magazine WHI Spy is just out for September, and GMAA is the main company featured....which will hopefully bring in some interest:



"FLYING HIGH AND SCOPE FOR FURTHER EXPANSION

Gama Aviation (GMAA)
FTSE AIM | Share price: 305p | Market Cap: £130m
www.gamaaviation.com

Gama Aviation is a global aviation services operator with 144 aircraft under management in 44 locations and spanning 5 continents. Though it was founded in 1983 the business joined AIM earlier this year following a reverse takeover
of its smaller rival Hangar8 – a move which has greatly expanded its geographic reach.

It operates aircraft on behalf of aircraft owners, providing a raft of services from aircraft management and charter through to engineering and support services. Gama can also deliver: crew personnel, fuel, insurance, hangar
space, valeting as well as all travel arrangements.

The private aviation market is growing but the major opportunity for Gama is the fact that the industry remains highly fragmented. In Europe nearly 80% of fleet operators manage just 2 to 5 business aircraft and only 9 companies manage a fleet in excess of 20 aircraft. The US market is not dissimilar
in its composition. Gama has a market share of less than 1.6% of the EU fleet and 0.5% of the US fleet there is clearly scope for more acquisitions.

What we like

The aviation market has stringent and increasing regulation with the expense of obtaining an Air Operator Certificate (AOC) proving a major barrier of entry for new competitors. Sub scale operators will struggle to afford this regulatory burden and are unable to match the integrated offering of the likes of Gama.

Up to 80% of its gross margin is contracted and there is a high degree of nondiscretionary spend to maintain aircraft.

Gama also expects further potential from its 5 year contract with US based Wheels Up, a membership based private aviation operator to manage aircraft.

Restructuring post the deal with Hangar8 has allowed Gama to extract significant
cost savings and it recently confirmed it was performing in line with expectations.

Trading on less than 12x 2016 earnings the shares look undervalued given the growth potential. Results later this month should provide a useful opportunity for investors to take a closer look.

Estimates to Dec 2014 (E) 2015 (E) 2016 (E)
Revenue (£m) 282.3 323.9 371.9
EBITDA (£m) 14.1 20.9 23.8
EPS (p) 11.6 22.9 26.9
P/E (x) 26.3 13.8 11.3
DIV (p) Nil 2.25 2.75
Yield (%) N/A 0.7 0.9"