Gama Aviation Share Discussion Threads

[igoe104] 10/1/2016 10:40

Latest forecasts from cantors are.

2016 27.86p EPS, 2.8p divi.

They were before the acquisition as well.

[igoe104] 10/1/2016 10:18

Adam, I`d imagine rivaldo using cantors figures, which is the latest update.

[adamb1978] 10/1/2016 10:03

Rivaldo
I sold out of these at the time of the merger with hangar8 but have kept them on the watch list. How do yo arrive at a single digit 2016 PE? The estimates which I see are just above 23p
Thanks
Adam

[rivaldo] 10/1/2016 07:38

Agreed igoe - at some point the market will cotton on to this stock, which is now on a single figure P/E for 2016 with:

- a healthy Balance Sheet
- solid recurring income
- big growth plans, and now an agreed loan facility for further acquisitions

Nice to see good coverage in the Times:



"Gama Aviation raises the bar with £10m RBS package
at 12:01AM, January 9 2016

Royal Bank of Scotland is backing expansion plans by Gama Aviation, the private jet provider and servicer, with a £10 million funding package.

Gama is using some of the cash to buy Aviation Beauport, the Jersey-based aircraft charter firm, subject to approval from competition authorities.

Gama will pay £2.6 million in cash and is also issuing a million new shares, giving the deal a total value of £5.3 million.

Beauport, established in 1969, is the only premium aircraft provider in the Channel Islands and has a turnover of £6 million.

The competition authority in Jersey is expected to give its ruling on the deal by the end of next month.

RBS is providing Gama with an £8 million revolving credit facility and an overdraft of £2 million.

In Scotland, Gama Aviation runs the air ambulance service, having secured a seven-year contract for £120 million in 2013."

[igoe104] 08/1/2016 16:47

On Air Dining launches new cuisine service targeting London's HNWs



On Air Dining, the UK based culinary concierge company that provides cuisine to private jet companies and owners and which appeared on the Channel 4 documentary ‘The World’s Most Expensive Food’ on 28th December, has announced that it’s to start providing its services to London based clients at their homes and at special venues. The cuisine will be served by On Air Dining chefs and staff.
The company believes that London, fuelled by a huge influx of ultra-high net worth and high net worth individuals in recent years, is now the global capital for the world’s best cuisine. The company uses only the finest ingredients from around the world such as Kopi Luwak Coffee, Kobe Beef, hand dived shell fish and artisanal products from across the UK.

Around 60% of On Air Dining’s ingredients are now sourced from the UK. It points out that the UK wins more awards for its cheeses than the French, and the quality of its cattle is hard to beat.

A new dish created by On Air Dining for the Channel 4 documentary ‘The World’s Most Expensive Food’, and which is now available to clients at home, consists of mahogany and soft shell clams set in a jelly made from its juices; Beluga Caviar; sweet corn puree; umami sponge; crispy onion; Japanese sea weed and oyster leaves; clam chowder foam and golden fennel pollen. Each dish will cost around £190. However, if the client would like to include green sea urchins from the Arctic Circle served live at the table it will cost around £300 per person.


Daniel Hulme, Chief Executive, On Air Dining said: “Where possible, as a business we pride ourselves on sourcing the very best local ingredients and produce. The UK produces amazing, world class produce that is giving the "foodie" countries a real run for their money. This produce takes a huge amount of love, care and investment, and that is why some of it has a huge price tag.”
Daniel Hulme

To date, On Air Dining has only been providing food to the private jet industry, and in the past year it has seen its business grow by 200%, and it expects to more than double its turnover in 2016. Since, 2014, the number of people it employs has increased from 10 to nearly 40.

An example of the growth of the UHNW and HNW market comes from Gama Aviation, the global aviation services company headquartered at Farnborough Airport, and which is one of On Air Dining’s clients. It says that there are now around 1,769 medium to large private jets in Europe, and the UK has the biggest fleet with 267, followed by Germany which has 192.

Gama Aviation operates in excess of $2.5 billion of aviation assets worldwide.

Daniel Hulme continued: “There are now around 80 billionaires living in London alone, 11% more than in 2014, and the number of ultra-high net worth individuals - worth at least $30 million - living in the capital is 7% higher than in 2014.

“Many of these people use private jets and it has helped fuel strong growth in our business, and we are now able to prepare food for them at their homes and elsewhere.”

On Air Dining has designed food for the private aviation market that is akin to what clients enjoy at their favourite restaurants. However, it can cost up to £20,000 to develop a dish for business aviation, and they are specifically designed to counter the impact altitude has on food - salt can lose its taste, for example.

Its private jet menu includes dishes such as miso-braised cod with sesame bok choy and shiitake broth; filet of beef with horseradish chips and tomato fondue; seared yellowfin tuna niçoise with soft-boiled quail eggs and fennel mayonnaise; rose water poached rhubarb and custard cream and cherry and chocolate mille-feuille.

Earlier this year, On Air Dining created a new dessert that costs between £360 and £600. Called Wild Kopi Luwak Coffee Coconut and Gold Dessert, it’s made of the world's rarest coffee beans that cost between £1,000 and £32,500 per kilogram.

The coffee beans are from the purveyors of the world's most exclusive coffee, Bespoke Beverages. These rare beans are so expensive and are known as Black Gold because they have been eaten and digested by wild civet cats in Indonesia, which gives the beans their unique qualities. The process of collecting and using these beans goes back 170 years.

The beans are collected, washed, hand roasted and then graded: Emerald grade costs around £1,000 per kg; Ruby grade some £8,000 per kg and Diamond grade around £32,500 per kg.

[igoe104] 08/1/2016 12:09

I don`t blame you for topping up, rivaldo. this is very much under the radar, with falling fuel prices and expanding etc.

pardon the cliché, these will fly.


Reading between the lines they may well could be lining up something else, as well.


Gama has also agreed a £10m credit line from its principal bankers, RBS which will be used to both fund the cash consideration of the acquisition and provide further expansion capital

[rivaldo] 08/1/2016 09:29

Excellent earnings-enhancing acquisition today.

I've been buying a few more here.

Latest forecasts from Cantors, who have a 400p target, are now out - they show:

last year (2015) : 22.56p EPS, 2.3p divi
this year (2016) : 27.86p EPS, 2.8p divi

I'd imagine those forecasts will now be lifted for today's acquisition.

Assuming the year end trading statement is in line at worst - and the interims outlook was very confident - then there's scope for a 50%+ uplift from here imo, and possibly a lot more.

[igoe104] 08/1/2016 08:13

Gama Aviation Plc (AIM: GMAA)
("Gama", "Gama Aviation" or the "Company")

Conditional acquisition of Aviation Beauport Limited ("Beauport") and

£10,000,000 facility with the Royal Bank of Scotland ("RBS")

Acquisition of Aviation Beauport Limited

Gama Aviation Plc, one of the world's largest business aviation service providers, is pleased to announce the conditional acquisition of Aviation Beauport Limited; a privately owned Jersey based business offering a range of business aviation services. The acquisition of Beauport is conditional upon approval from the Jersey Competition Authority which is expected to complete by the end of February 2016.

The acquisition comprises a consideration of £2,600,000 in cash and the issue of 1,000,000 ordinary shares, which based on Gama's closing share price on 7 January 2016, gives a total consideration of £5,325,000. On completion, the purchase of Beauport will include fixed assets comprising property with a book value of approximately £2,000,000 and a net current asset neutral position including cash of approximately £650,000. In the twelve months to 31 December 2015, Beauport is expected to achieve a turnover of approximately £6,000,000 and generate an EBITDA not less than £725,000. The Board expects the acquisition to be earnings enhancing in the first year.

Beauport has been operating since 1969 and has established itself as the only premier aircraft service provider in the Channel Islands. It provides a suite of business aviation services including aircraft charter, FBO services (including handling, parking and hangarage services) as well as having four aircraft currently under management.

The Board sees a strong strategic rationale for the proposed acquisition:

· Jersey is an important market with strong growth potential within the mature European market;

· The newly established Jersey Aircraft Registry provides the opportunity to increase business aviation traffic to the island;

· Jersey not only complements Gama's existing geographical footprint but importantly provides significant access to the high net worth local residents and aircraft owning business domiciled in Jersey both in respect of aircraft management and charter activities;

· The acquisition provides an important extension of Gama's MRO capabilities and allows us to enhance the line maintenance service provision to the airport; and

· The acquisition provides Gama with unique FBO facilities for business aviation in Jersey, offering handling, parking and hangarage services.

Marwan Khalek, CEO of Gama Aviation Plc commented:

"This earnings enhancing bolt on acquisition is an excellent strategic fit for the Group and allows us to extend our product offering in both our European Air and Ground operations. It will also provide unique access and opportunity to be of service to the large number of high net worth individuals who reside in Jersey thereby providing potential growth in customers."

Mike Bell, owner of Beauport commented:

"I am delighted to have Beauport become part of the Gama family of companies, the pre-eminent company in services to the general aviation community. The industry is becoming dominated by fewer but larger players, and Gama is at the forefront of that expansion, and it seemed logical to work with one of the most respected and progressive players in the industry".

£10,000,000 facility with the Royal Bank of Scotland

Gama Aviation is also pleased to announce that it has agreed a £10,000,000 credit line in the form of a revolving credit facility for £8,000,000 and an additional overdraft facility of £2,000,000 from its principal bankers, RBS. This facility will be used to fund the cash consideration of the acquisition of Beauport and will also provide further expansion capital.

Kevin Godley, CFO of Gama Aviation Plc commented:

"The £10,000,000 facility agreed after an extensive competitive process cements our long standing relationship with RBS and provides Gama Aviation with the ability to accelerate on the delivery of our strategy of organic growth and growth by acquisition".

[igoe104] 08/1/2016 08:10

Gama Aviation confirms the conditional acquisition of Aviation Beauport Ltd, a privately owned Jersey based business offering a range of business aviation services, for about GBP5.3m.

The acquisition of Beauport is conditional upon approval from the Jersey Competition Authority which is expected to complete by the end of February 2016.

The acquisition comprises a consideration of GBP2,600,000 in cash and the issue of 1,000,000m shares, which based on Gama's closing share price on 7 January 2016, gives a total consideration of GBP5,325,000.

Gama Aviation is also pleased to announce that it has agreed a GBP10,000,000 credit line in the form of a revolving credit facility for GBP8,000,000 and an additional overdraft facility of GBP2,000,000 from its principal bankers, RBS.

This facility will be used to fund the cash consideration of the acquisition of Beauport and will also provide further expansion capital

[igoe104] 21/12/2015 12:43

I`m expecting a big improvement over the next 12 months regarding GMAA S/P.

business picking up in all areas a cheap fuel price, surely £4 has to be a 12 month target.

[igoe104] 27/11/2015 16:41

Wheels Up poised for European expansion

24 November, 2015
BY: Kate Sarsfield
Las Vegas


US membership-based Beechcraft King Air 350i operator Wheels Up plans to launch a European programme in 2016 and expects to have its first twin-engined turboprop "on the ground" early next year.

Speaking to Flightglobal at last week's National Business Aviation Association convention, Wheels Up founder and chief executive Kenny Dichter said the company is already evaluating possible bases for the aircraft.

"If you look at a map of western Europe there are over 55 key cities that the 350i can connect non-stop from three possible base locations," he says. These could include London City airport and Paris Le Bourget, which Dichter describes as the continent's "most heavily travelled city pair" for business aircraft users.

New York-headquartered Wheels Up began operations in August 2013 on the back of a record order for up to 105 350is. To date, 35 of the bespoke eight-passenger turboprops are in operation, supporting Wheels Up’s 2,000 members, along with 15 pre-owned Cessna Citation XLS superlight business jets. Another five King Airs are scheduled for delivery by year-end.

"Since our launch, we have helped to revolutionise the private aviation space in the US by lowering the price barrier to entry," says Dichter. "We want to do the same in Europe."

He likens the business aircraft market to a pyramid containing around 60,000 users. At its apex are the "tiny percentage" of high-end business jet customers, Dichter says. "With Wheels up, we are opening up the pyramid to a lot more people and believe we can grow it to a million users."

To help fund its European expansion, Wheels Up in September raised $115 million from a handful of private investors. It has also appointed UK business aviation services provider Gama Aviation to operate the 350is on its behalf – an extension of the partnership already in place between the membership programme and Gama’s US subsidiary Gama Charters.

"The company is already a long-established King Air maintenance provider and operator, so it is well placed to support our fleet in Europe," says Dichter.

[rivaldo] 17/11/2015 08:28

GMAA's partner Wheels Up are forecasting "unprecedented" 50% revenue growth next year - and there's plenty of mentions of GMAA in this article:



Extracts:

"Kenny Dichter, co-founder and CEO of Wheels Up (Booth N137), a membership-based private aviation club, predicts a 50% boost in revenue next year and an 80% increase in revenue flight hours."

"There are a small percentage of people at the top of the pyramid who can afford a Boeing Business Jet or a Gulfstream. Business aviation currently has only about 50,000 to 60,000 users. We’re opening up the pyramid to a lot more people. We believe we can grow it to 500,000 to a million users." Dichter’s high-profile clients include New England Patriots head coach Bill Belichick, Serena Williams and Caitlyn Jenner.

"Winners fly Wheels Up. This is a service for the working wealthy, more of a utility than a luxury."

"Gama Aviation has extensive operating experience in Europe, helping to clear the path for expansion into Europe."

[shackles83] 05/11/2015 19:07

Has anyone noticed NetJets are now offering aircraft management in Europe?

[gorilla36] 05/11/2015 14:28

Rivaldo - Indeed I guess that is possible, we shall see.

[rivaldo] 05/11/2015 13:42

Cheers gorilla - but I wasn't thinking of holidays at all. I should have been clearer. You gotta think outside the box!

I'm thinking about general travel in the local and wider area, for business, for rich individuals, for officialdom etc. What's happening now affects perceptions in general, and all of the categories I've mentioned will be looking to see if their travel arrangements need to be made safer now that (seemingly) ISIS are carrying out these kinds of actions.

So private aviation services may end up with extra traffic and usage at some point, be it short or long-term.

[gorilla36] 05/11/2015 12:32

rivaldo - With all due to respect to my high opinion of your board contributions here and elsewhere I think your last comment is delusional. Sharm is a mass package holiday destination. Rich people who can afford private jets can also afford to holiday somewhere safer (perceived).

[rivaldo] 05/11/2015 10:01

GMAA may well benefit short-term and long-term from the current sad tidings at Sharm-El-Sheikh, with increased usage of its private facilities and aviation services in the Middle East.

[igoe104] 03/11/2015 07:57

You would think this should be going up not down with the falling prices at the pumps. should be a massive saving on costs for airlines.

Small sells and no buys are depressing the price at the moment.

[igoe104] 02/11/2015 15:03

Only 2,737 traded as well, this stock is extremely liquid.

[gorilla36] 02/11/2015 13:50

One has to ask what is the catalyst to make this go higher.

[rivaldo] 29/10/2015 23:17

Twirl, DD has left the Group to "pursue his own personal non-competing business interests". He therefore had £millions tied up in a company he had no control over. I suspect he's done what anyone would do in those circumstances, including me!

GMAA have won a very significant award - I'd normally discount such awards, but this one looks pretty meaningful:



"Gama Aviation’s Sharjah base wins prestigious award at Aviation Business Awards in Dubai

Gama Aviation has been named the 2015 Fixed Base Operator of the Year in the Aviation Business Awards at a ceremony in Dubai.

Gama Aviation’s operations in Sharjah were recognised for providing its customers with outstanding service and facilities over the past 12 months. The award, which was judged on a number of criteria including innovation, design, customer satisfaction and investment, was collected by Martin Ringrose, Gama Aviation’s managing director for the Middle East region.

The Aviation Business Awards, which are in their ninth year, were held at the Park Hyatt hotel in Dubai and recognised the best businesses in Middle Eastern business aviation, with awards covering ground handling, maintenance, repair and operations, airports and airlines.....

.....Martin Ringrose commented: “Earlier this year we undertook a significant expansion of our operations in Sharjah, which included acquiring additional aircraft parking space to meet growing demand and expanding the responsibilities of our MRO team. We are delighted that our dedication to providing our customers with unrivalled service has been recognised at the 2015 Aviation Business Awards and we look forward to further growing our presence in the Middle East through high-quality, client-focused service.”

Gama Aviation also conducted a review of the handling rates in Sharjah and, as a result, has been able to reduce the basic handling prices by 20%. This ensures that the Sharjah FBO, just 30 minutes from Downtown Dubai is extremely competitive when compared to similar offerings in the region notably Dubai World Central (60+ minutes away from Downtown Dubai).

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. Its services include: line and base maintenance; FBO services; engineering design; aircraft management; charter operations; training; and aviation and ground management systems."

[twirl] 27/10/2015 17:42

Rivaldo>> why do you think Dryden sold.

[rivaldo] 22/10/2015 07:25

Indeed igoe. I was correct in my earlier post's assertion that the large volumes were Dryden's holding as per last night's RNS - hopefully this means the overhang is cleared and GMAA can continue its long-term uptrend.

Perhaps we'll also get an RNS telling us who's been doing the buying.

More news - GMAA are certainly thinking creatively in linking up with a high-end chalet provider:



"Art de Vivre is partnering with Gama Aviation to offer private jet charter services to complement their stunning Alpine chalet collection for the 2015/16 Winter season"

[igoe104] 21/10/2015 09:52

I`d imagine we should see a big buy come in soon, which will indicate the sells have been mopped up by a fund. Hopefully now we will start to see the share price creeping up.

[rivaldo] 21/10/2015 08:49

News re Scottish expansion:



"Gama Aviation Opens Unique New Base for NHS Scotland
October 21, 2015 03:00 AM Eastern Daylight Time

FARNBOROUGH, England--(BUSINESS WIRE)--Gama Aviation (LSE:GMAA), the global aviation services company, has opened a new purpose built base at Glasgow airport to support its contract with the Scottish Ambulance Service (SAS).

The base will house Scotland’s national specialist transport and retrieval service (SCOTSTAR) for critically ill NHS patients and will be the first time anywhere in the UK that all the country’s national retrieval services will operate from a single, central base.

This provides the Scottish Government with the huge benefit of being able to combine the external expertise of Gama Aviation with the clinical care of its own services. SCOTSTAR brings together the Scottish Neonatal Service (SNTS), the Transport of Critically Ill and Injured Children Service and the Emergency Medical Retrieval Service, with the SAS, which co-ordinates the teams. The result is a single integrated national service with a sustainable multidisciplinary medical and clinical team, making best use of the range of air and road transport by providing immediate access to specialist aircraft and vehicles.

Gama Aviation has carried out air operations for the SAS since 1993 with its current contract due to run until 2020. The number of flights operated by the company has grown annually – last year Gama Aviation carried out 491 missions out of a total of 2,654 cases to which the SCOTSTAR teams responded.

Gama Aviation currently operates two Beechcraft King Air 200C fixed wing turboprop aircraft based at Glasgow and Aberdeen airports, along with two dedicated Eurocopter EC145T2 helicopters located in Glasgow and Inverness. This core fleet is supplemented when needed by Eurocopter Super Puma helicopters based in both Shetland and Aberdeen.

Ryan McGrath, Regional Manager Scotland, from Gama Aviation, said: “The contract with the Scottish Ambulance Service covers some of the most important missions we undertake as they can literally be a matter of life or death. Our investment in the new base will allow for a seamless incident response and patient transfer which is a bespoke service for Scotland. This highlights the advantage to our clients of pairing their own capabilities with our external aviation expertise to deliver a high quality, cost effective service.”

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. Its services include: line and base maintenance; FBO services; engineering design; aircraft management; charter operations; training; and aviation and ground management systems."