Gama Aviation PLC New seven year, GBP65M Air Ambulance contract award (7433Q)

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RNS Number : 7433Q

Gama Aviation PLC

22 February 2023

22(nd) February 2023

The information contained within this announcement is deemed to constitute inside information as stipulated under Article 7 of the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

Gama Aviation Plc (AIM: GMAA)

("Gama Aviation" or the "Company" or "Group")

New seven year, GBP65M Air Ambulance contract award

Further to the Company's preferred bidder selection announcement of the 2(nd) November 2022 and following the conclusion of detailed contractual negotiations, Gama Aviation Plc, the global aviation services provider, is pleased to announce an award by the Wales Air Ambulance Charity ("WAAC" or the "Charity"), of a seven-year contract for the provision of Helicopter Medical Emergency Service ("HEMS").

The new seven-year contract, commencing 1(st) January 2024, is for the operation and maintenance of five Airbus H145 emergency medical service helicopters, two of which will be supplied by the Group. A primary fleet of four helicopters will operate from the WAAC's current facilities in Cardiff, Caernarfon, Welshpool and Dafen providing comprehensive nationwide HEMS coverage across Wales. The fifth helicopter will provide back-up for the maintenance downtime of the primary fleet to ensure service continuity.

This contract is expected to deliver overall revenues of c.GBP65M over its 7-year term with margins consistent with those derived from the Group's other Special Mission activities.

The Company will invest in standing-up the operation, deploying the requisite capabilities, and other working capital requirements during H2, 2023 to enable the service delivery on 1st January 2024. This c.GBP2.4M of investment will be funded from the Group's working capital resources and facilities. The two helicopters to be supplied by the Group will be procured under operating or finance leases for the term of the contract award.

Mark Smith, Managing Director, Special Mission, commented : "We are extremely pleased to have been awarded this contract by the Charity. We look forward to working closely with the Charity's team as we stand-up the aircraft, flight, maintenance crews and other resources that are required to deliver this important, national, service."

Marwan Khalek, Group Chief Executive Officer, commented: "I am delighted that we will be partnering with the Charity for the next seven years to support the important service they deliver to communities across Wales. This contract award is further evidence of the execution of our Group's focused growth strategy and marks another significant milestone for our Special Mission business unit in the air ambulance market."

ENDS

Gama Aviation Plc [phone]

Marwan Khalek, Chief Executive

Camarco [phone]

Ginny Pulbrook

Geoffrey Pelham-Lane

WH Ireland [phone]

James Joyce

Sarah Mather

Gama Aviation - Notes to Editors

Founded in 1983 with the simple purpose of providing aviation services that equip its customers with decisive advantage, Gama Aviation Plc (LSE AIM: GMAA) is a highly valued global partner to blue chip corporations, government agencies, healthcare trusts and private individuals.

The Group has three global divisions: Business Aviation (Aircraft Management, Charter, FBO & MRO), Special Mission (Air Ambulance & Rescue, National Security & Policing, Infrastructure & Survey, Energy & Offshore); and Technology & Outsourcing (Flight Operations, FBO, CAM software, Flight Planning, CAM & ARC services)

More details can be found at: http://www.gamaaviation.com/

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February 22, 2023 08:07 ET (13:07 GMT)