Gama Aviation Share Discussion Threads

[rivaldo] 15/3/2018 23:05

I got hold of the full text of Simon Thompson's recent tip, as follows:

"I clearly wasn’t the only one running the slide rule over Aim-traded Gama Aviation (GMAA:258p), an operator of privately-owned jet aircraft, when I rated the shares a buy after the company issued a positive pre-close trading update ahead of results on Monday, 19 March 2018 (‘Primed for gains’, 29 Jan 2018).

Gama has just announced a placing of 19.5m shares at 245p each to raise £48m of new funds to ramp up its growth plans. Two-thirds of the new equity is being purchased by an affiliate of the mighty Hutchinson Whampoa (China), a Hong Kong-based conglomerate operating across a diverse number of sectors including the provision of aircraft maintenance and logistic services. Hutchinson will own 21 per cent of the enlarged share capital of 63.5m shares.

The fundraising makes commercial and strategic sense. Around $19.8m (£14.2m) of the capital will be used to acquire Hutchinson’s Hong Kong aviation interests, including a 20 per cent stake in China Aircraft Services, a company founded in 1995 and one of only three operators that provide maintenance, repair and overhaul aviation services at Hong Kong International Airport. The $16m being paid for that stake implies a value of $80m for the equity, hardly a punchy valuation for a business that made pre-tax profits of $7.8m in its last financial year and has net assets of $72m. More importantly, it gives Gama access to markets that otherwise would have been difficult to access, and in a less capital intensive way, too.

It also makes sense for Gama to deploy $10m on expanding hangar capacity and tooling and equipment at its fast-growing operations on the East and West coast of the US. The company operates from 14 locations across the country and manages a fleet of 200 aircraft, but growth is being held back by capacity constraints, an issue the new capital addresses, as well as providing cross-selling opportunities on the maintenance side of the business. Strategically, it’s a smart call to allocate $5m as seed capital to develop a new $45m aviation centre at Sharjah International Airport, given capacity constraints at Dubai International Airport. It’s not only a lower cost base, but is geographically well located, thereby offering a platform for expansion in the Middle East.

In the near term, the placing will be dilutive to EPS, which is why analyst John Cummins at broking house WH Ireland expects EPS to dip from 32.9¢ to 30¢ this year, even though pre-tax profits are forecast to rise 29 per cent to $22.6m on revenues up 18 per cent to $691m. The payoff will be seen in 2019 when he predicts a 50 per cent hike in pre-tax profits to $33.1m on revenues of $758m to deliver EPS of 41.2¢, or almost 30p, implying the shares are being priced on a forward PE ratio of 8.5. It’s not hard to understand why chief executive Marwan Khalek is investing £625,000 of his own money to purchase 255,000 shares in the placing. I continue to rate Gama’s shares a buy and reiterate my 325p target price. Buy."

[rivaldo] 13/3/2018 11:16

More news and more aircraft to manage:



"2nd Mar 2018
Oxford adds to its Challenger capability

Gama Aviation Oxford adds to its Bombardier Challenger capability with the addition of the Challenger 850 approval.

Oxford, UK, 2nd March 2018 – Gama Aviation Plc, the global business aviation services company, is pleased to announce the addition of the Bombardier Challenger 850 approval to its maintenance certifications.

The new type allows the team to conduct base and line maintenance across a variety of registers including Bermuda, Cayman FAA, Isle of Man, Guernsey and those within EASA.

Scott Corbett, Head of Jet Maintenance, Europe commented: “We have a real passion for the Bombardier Challenger series at Oxford. The addition of the Challenger 850 builds on our existing capability with the 601, 604 / 605 and with high demand expected over the coming years driven by mandates such as ADS-B Out, we’re offering aircraft owners a highly credible UK maintenance location.”

Scott McVicar, Managing Director, Europe Ground commented: “Our jet maintenance base at Oxford continues to excel after an excellent 2017. I believe this is great news for private jet owners, as the facility provides a one-stop location for checks, avionics, upgrades, refurbishment and paint. This saves time, airframe and engine hours and ultimately money.”

Gama Aviation’s Oxford Airport facilities represent the European operations centre of excellence for business jet maintenance. Line and Base maintenance approvals cover the Bombardier Challenger 601, 604 605 850 and Global series, Cessna Citation XLS and Mustangs and the Hawker series across a wide variety of registries including EASA, FAA, Bermuda, Cayman and the Isle of Man."

[rivaldo] 12/3/2018 09:51

Excellent news - four more large business jets to manage:



"8th Mar 2018

US aircraft management fleet grows

Gama Aviation Signature adds four new large cabin aircraft to US aircraft management fleet.

SHELTON, CT – March 6, 2018 – Gama Aviation Signature, the largest aircraft management company in the United States, announced today that it is expanding its managed aircraft fleet with the addition of four large cabin business jets – a Challenger 350, a Gulfstream 550 and two Gulfstream IV-SP aircraft. Gama Aviation Signature’s growing fleet continues to offer a wide variety of aircraft types to satisfy all client needs. The company currently manages over 200 aircraft in the United States and over 250 worldwide.

The new Gulfstream IV-SP additions are the ideal intercontinental-range business jets. Each cabin measures 45.1 feet long by 7.3 feet wide by 6.1 feet tall, making it spacious and comfortable to accommodate up to 13 passengers. Providing the ideal choice for business or leisure travel, each G-IVSP is equipped with Wi-Fi connection and the latest in-flight technologies for passengers to remain relaxed yet productive. One of the new Gulfstream IV-SPs is currently based at Miami Opa-Locka Executive Airport (OPF) and is already available for immediate charter. The second G-IVSP will call Teterboro Airport (TEB) home and will be available for charter at the end of this month.

These new Gulfstream IV-SPs mark the 28th and 29th Gulfstream jet to Gama Aviation Signature’s US aircraft management fleet. The new Challenger 350 and Gulfstream 550 mark the 2nd Challenger 350 and the 9th Gulfstream 550 respectively.

“We are pleased to offer our clients more options for their intermediate and long range missions,” said KC Ihlefeld, Senior Vice President of Aircraft Management. “These aircraft are perfect additions to our US charter fleet of heavy, midsized and light jets. We expect the aircraft to be in high demand and support as well as contribute to Gama Aviation Signature’s fast-paced US charter business.”

[rivaldo] 07/3/2018 08:58

RNS confirming the CEO's purchase of £625,000 of shares in the recent placing.......quite a show of confidence:

[rivaldo] 06/3/2018 09:38

More good news - GMAA have won a 2 year service contract which could run to 4 years:



"Gama Aviation awarded two year contract.

Gama Aviation Europe wins a two year West Africa transport contract with a comprehensive Challenger 604 solution incorporating its Air & Ground services.

Farnborough, UK, 2nd March 2018 – Gama Aviation Plc, the global business aviation services company, is pleased to announce it has won a competitive tender to supply air & ground services to support a major oil company’s management transportation requirement.

The contract award is for two years with a further two-year option.

Mark Gascoigne, Managing Director, Europe commented: “We are delighted to have extended our relationship with this client winning a hard-fought tender process. By focusing on the end client’s needs, we have been able to create a solution that delivers the right mix of security, safety, resilience and value using a combination of our air and ground assets.”

The contract offers a prime aircraft in the ever-versatile Bombardier Challenger 604 with a back-up fleet aircraft being supplied on an as required basis. Line and AOG maintenance is provided in country with base maintenance taking place at Gama Aviation’s Oxford facility which specialises in Bombardier Challenger 601 / 604 / 605 aircraft.

Scott Corbett, Head of Jet maintenance, Europe commented: “We are well positioned to support this aircraft both down-route and through its contracted lifecycle via our Oxford base. However I also anticipate, according to the aircraft’s mission profile, that we also will draw upon our teams in Nice and Sharjah all of whom have support capabilities that we can draw upon. We believe this, alongside our experience with the type, was a major factor in the client’s decision to award the work to us.”

[corrientes] 05/3/2018 14:43

Hopefully,rivaldo. The problem with exceptionals is that they have a horrible habit of recurring.

[rivaldo] 05/3/2018 10:02

GMAA have only last month raised £48m from institutional investors - including the mighty Hutchison Whampoa, who've taken a 21% chunk of GMAA.

It's hardly surprising that the share price is consolidating briefly given that much immediate market demand will have been sated.

Especially as the share price has doubled in just over a year from the lows.

It's now up to private and other investors to put together all the clues.

We know that results in 2 weeks' time will be good (before known exceptionals) and that the outlook is rosy.

Hopefully that will trigger a further re-rating.

[corrientes] 05/3/2018 09:20

If only the marker believed that.

[igoe104] 05/3/2018 09:03

Legal actions are good, when you make a gain out of it.

bring it on.

[corrientes] 05/3/2018 08:53

This share is baffling. If it wasn't for these legal actions which seem to act as a drag on the price, for I can't think of any other negative now that cash flow is getting better,I think we would be considerably north of here.

[rivaldo] 05/3/2018 07:18

Good news, with a new Asian contract win - and it's encouraging that they say they've had a "fast start" to 2018::



"Bombardier Global 6000 enters Asia fleet

Gama Aviation adds Bombardier Global 6000 to aircraft management fleet in Asia.

Hong Kong, 27th February 2018 – Gama Aviation, is pleased to announce the addition of a Bombardier Global 6000 to its aircraft management fleet in Asia.

Following a competitive process, Gama Aviation’s ability to support the aircraft locally and international were amongst the defining factors in the client’s final decision. The addition of the Global 6000 follows the recent addition of a Gulfstream G550 to the fleet, which also required global support given its mission profile.

Sergio Oliveira e Silva, General Manager, Asia said: “I am delighted with the fast start we have had to the year. Our new client wanted a high-quality team who could fully support their mission wherever they were. With our local, regional and international resources, strong working relationship with Bombardier and deep experience with the Bombardier Global series of aircraft, we deliver just that. Few aircraft management companies in Asia can think global and deliver local in the way that we can; consequently, we are witnessing strong interest in our offer when clients wish to maximising the performance of their aircraft.”

[rivaldo] 01/3/2018 07:51

GMAA'S American JV partner BBA reported results this morning - and they were excellent for the Signature division which we're interested in, as well as showing good potential going forward:



"Underlying operating profit in Flight Support increased by 12.0% to $329.4 million (2016: $294.0 million), driven by continued strong underlying operational performance in Signature Flight Support and an $11.6 million contribution from acquisitions. Underlying operating profit includes our Signature TECHNICAir™ and our aircraft management and charter business which is accounted for as a joint venture. On an organic basis, adjusting for acquisitions ($11.6 million), FX ($0.6 million) and disposals ($7.8 million), underlying operating profit increased by 11.3%."

"Signature Flight Support's locations delivered another strong performance in a good growth environment, as we started to capture the benefits of our strong and customer-relevant network."

"Signature is well positioned to focus on optimising its unique and high quality global network of FBOs and line maintenance locations, through the provision of a broader range of B&GA services to our extensive customer base and enhancing network performance to accelerate value creation. The unique Signature network has the unmatched ability to satisfy the needs of our customers at many more locations that they want to fly to, supporting anticipated continued outperformance in 2018 and beyond.

In 2017 Signature expanded its affiliate FBO programme, Signature Select®. It signed an extended licence agreement with Fly Across at Toluca International Airport in Mexico, just a 30-minute drive from Santa Fe, the country's financial and business district. This location increases the Signature Select® network to 19 locations globally and we continue to look for further opportunities to expand this proposition.

Signature has continued to invest in its current network, with the successful opening of its newly constructed FBO, with premium hangar space to satisfy the growing tenant demand, at Boeing Field, Seattle which completed in June 2017. It also secured a new strategic lease at Washington Dulles International Airport."

[rivaldo] 28/2/2018 15:33

£20,000 just bought at 272p when the full published offer is 270p.

It seems there are still keen buyers around.

[rivaldo] 28/2/2018 12:48

News:



"27th Feb 2018

Gama Aviation Asia delivers first Gulfstream G650/650ER engineering course in Hong Kong.

Hong Kong, 27th February 2018 – Gama Aviation Plc, the global business aviation services company, is pleased to announce the completion of the first of its theory and practical training courses run in-conjunction with Global Jet Services and China Aircraft Services Limited (“CASL”) for the Gulfstream G650/G650ER.

Eleven engineers from four local MRO’s attended the course for seven weeks receiving B1 / B2 training with formal approvals from Hong Kong CAD, EASA, GCAA and the FAA.

J D McHenry, President, CEO, Global Jet Services, Inc. commented: “This most recent class was an excellent example of how the continued partnership of Gama Aviation Asia and GJS will successfully support a global business aviation maintenance market. The class concluded with awarding a large group of students from multiple geographic regions with their respective certificates required by Hong Kong CAD, EASA, GCAA or FAA. They were all served at this central site provided by Gama Aviation. The combined talents, expertise, and flexibility demonstrated by this alignment of quality training providers are proof of a highly effective maintenance training solution, available to a diverse audience with specific requirements.”

Sergio Oliveira e Silva, General Manager, Asia commented: “This G650/650ER engineering course is the first of its kind in Hong Kong that combines the skills of our team, CASL’s comprehensive business jet maintenance approvals and the talents of Global Jet Service’s instructors. Running this very well attended course in Hong Kong saved local companies thousands of dollars in travel and accommodation costs, removed the inconvenience of having valuable resources in different time zones and allowed the engineers to return home to their families at the end of the day. Based on the success of this G650/650ER engineering course we will be running further Gulfstream and Bombardier courses in 2018.”

[rivaldo] 26/2/2018 23:07

Lovely close, with buying at 268p and 269p near the end of the day.

[rivaldo] 26/2/2018 15:06

Continuing to move up, with buying now coming in at the full 265p offer price.

[rivaldo] 25/2/2018 08:03

This article in the Times suggests GMAA's aviation servicing market is only getting bigger and bigger:



"Private jets chartered for as little as $500
February 24 2018

After the financial crash of 2008 the writer Tom Wolfe imagined the dismay of bankers and chief executives forced to give up their private jets and move through the clogged intestines of commercial airports.

A decade later executives are flying privately once more. Yet there are also signs that some of the great unwashed multitude are joining them. Tumbling prices for second-hand private jets have pushed many owners to charter their aircraft rather than sell at a loss.

Companies have sprung up selling seats on Gulfstreams and Bombardiers for not much more than they might pay on Delta Airlines. Industry observers have recorded a 10 per cent increase in charters and prices as low as $500.

Bob Seidel, who runs a jet charter company called Alerion, said that since 2000 the resale value of some jets had dropped from $32 million to $4 million.

He thought that American television might have helped too. “Shows like The Bachelor, where they are taking private jets everywhere,” had helped to popularise the idea of private jet travel, he said.

Among his customers he counts a cat that flew to London on a Gulfstream jet, sent by a woman whose daughter had gone to university there. “Her daughter missed the cat,” he said. “It was the only passenger on the plane.”

[rivaldo] 23/2/2018 12:27

Good to see GMAA still looking strong. The price held nicely when the markets fell despite a few panickers, and it's moving back up on low volumes. Which hopefully means there's not much stock around.

[rivaldo] 19/2/2018 13:34

Cheers glawsiain, starting to move nicely now.

325p would be a start, but WH Ireland's 370p is more realistic imo.

[fizzypop] 19/2/2018 12:28

Thx glawsiain.

[glawsiain] 19/2/2018 12:16

Simon thompson has just published an update, hence the noon spike. A couple of quotes:

"The fundraising makes commercial and strategic sense. Around $19.8m (£14.2m) of the capital will be used to acquire Hutchinson’s Hong Kong aviation interests, including a 20 per cent stake in China Aircraft Services, a company founded in 1995 and one of only three operators that provide maintenance, repair and overhaul aviation services at Hong Kong International Airport. The $16m being paid for that stake implies a value of $80m for the equity, hardly a punchy valuation for a business that made pre-tax profits of $7.8m in its last financial year and has net assets of $72m."

...

"In the near term, the placing will be dilutive to EPS, which is why analyst John Cummins at broking house WH Ireland expects EPS to dip from 32.9¢ to 30¢ this year, even though pre-tax profits are forecast to rise 29 per cent to $22.6m on revenues up 18 per cent to $691m. The payoff will be seen in 2019 when he predicts a 50 per cent hike in pre-tax profits to $33.1m on revenues of $758m to deliver EPS of 41.2¢, or almost 30p, implying the shares are being priced on a forward PE ratio of 8.5. It’s not hard to understand why chief executive Marwan Khalek is investing £625,000 of his own money to purchase 255,000 shares in the placing. I continue to rate Gama’s shares a buy and reiterate my 325p target price"

[glawsiain] 19/2/2018 12:02

last trading statement says "Gama Aviation will release its full year results on 19(th) March 2018. "