Gama Aviation PLC Trading Update (1758G)

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RNS Number : 1758G

Gama Aviation PLC

25 May 2017

25 May 2017

Gama Aviation Plc (AIM: GMAA)

Trading Update

In advance of its Annual General Meeting today, Gama Aviation Plc, the global business aviation services provider, is issuing a trading update for the period from 1 January 2017.

Trading

The Group's trading remains in line with our full year expectations, reflecting both the contribution from acquisitions and organic growth.

Air Division

Our US Air division continues to benefit from strong organic growth as well as the effect of the Landmark merger. The progress made in EU Air during 2016 has continued into this year and the division remains on target to deliver modest growth as anticipated. The Middle East and Asia divisions continue their steady progress.

Ground Division

Our line maintenance network in the US continues to attract new clients demonstrating the good demand we anticipate for this niche service offering. Our EU ground division is benefitting from the increased maintenance activity from contract wins announced at the start of the year as well as the return of some discretionary aircraft improvements and modifications spend, as previously highlighted. Our Middle East ground business has enjoyed a good start to the year with strong growth in movements through our Sharjah FBO. In Hong Kong the roll out of our collaboration with CASL is on track and the division is on target to generate revenues in the second half of this year.

Integration update on recent mergers and acquisitions

Following the merger of the US aircraft management and charter businesses of Gama Aviation (Gama) and BBA Aviation (BBA) at the start of this year, the integration of the Landmark fleet into Gama's US operation is progressing well. The account management and charter sales teams have been fully integrated and the migration of all central functional support from BBA to Gama is nearing completion, with the financial systems migration scheduled for the end of May. The integration of all other departments remains on target to be completed by the end of the year.

In Europe, last year's acquisitions of FlyerTech and Aviation Beauport are on track to achieve planned growth in 2017 after strong first quarter results. Reactions from clients to the acquisitions had been very positive and both businesses are working well within our EU Air and Ground divisions with particular focus on enhancing cross selling opportunities and on new joint sales initiatives.

Marwan Khalek, Chief Executive Officer commented:

We continue to build on the significant progress made last year and trading remains in line with our full year expectations. Our management team has been strengthened with the recent key and high quality appointments across many of our divisions. We are focused on building on the improvements in operating margins, working capital and cash conversion that we delivered in 2016 and the Group remains well positioned to deliver on its strategic objectives.

Notes:

Gama Aviation plc will;

Provide a half year trading update by the 19(th) July 2017.

Announce its interim results for the period to 30 June 2017 on 7th September 2017.

Ends

For further information please visit www.gamaaviation.com or contact:

   Gama Aviation Plc                                        [phone] 

Marwan Khalek, Chief Executive Officer

Kevin Godley, Chief Financial Officer

   Camarco                                                         [phone] 

Ginny Pulbrook

Geoffrey Pelham-Lane

   Jefferies International                                 [phone] 

Simon Hardy

Harry Nicholas

Gama Aviation - Notes to Editors

Gama Aviation (GMAA) is a global business aviation services company that specialises in providing support for individuals, corporations and government agencies. Gama Aviation is now one of the top three global players in a highly fragmented market, with a fleet of over 250 aircraft. Gama operates across Europe, the US, the Middle East, Asia and Africa.

Gama's services can be split into two broad areas: Air and Ground. The Air Operations include aircraft management, special mission and charters, with Ground Services covering aircraft maintenance services, aircraft modification design and installation and Fixed Base operations.

http://www.gamaaviation.com/

This information is provided by RNS

The company news service from the London Stock Exchange

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May 25, 2017 02:01 ET (06:01 GMT)