Gama Aviation Share Discussion Threads

[glaws2] 01/6/2018 11:07

Based on last year there should be a trading update on Tues - AGM day.

[rivaldo] 01/6/2018 09:03

This looks like a large slug of work coming GMAA's way due to the need for regulatory compliance in installing Automatic Dependant Surveillance Broadcast technology:



"MROs, Dealers And Brokers Warn Of ADS-B Logjam
May 30, 2018

Gama Aviation is the latest company to add its voice to the growing chorus of concern that the business-aviation community is flirting with disaster if it continues to ignore the implications of the U.S.’s 2020 deadline for ADS-B conversion/installation.

Duncan Daines, the chief marketing officer for Gama’s Oxford Airport-based London ground MRO unit, warns that operators face increased costs or having their jets grounded if they do not get the work scheduled soon. Experts note there are more aircraft remaining to be outfitted than there are MRO slots available before the deadline.

Failure to comply will result in jets being unable to fly in most classes of North American airspace, limiting their utility so extensively it will effectively mean they are grounded.

“We don’t think operators are taking the 2020 ADS-B mandate as seriously they should,” Daines says. “Exactly the same is happening in the U.S: it’s delay, delay, delay.

“This is a mandate that we do not believe is going to change. Operators need to take action now.”

Clearly, for a company such as Gama, which will fit Honeywell-supplied equipment, there is an obvious business interest in heightening a perceived sense of urgency.

“It does, as an MRO, provide us with a potentially useful market,” Daines says. Yet Daines’s warning cannot be dismissed as an attempt to drum up business through instilling fear or panic. It is, he argues, the product of how many jets the company knows need to have the work done, how few have so far been booked in for the necessary upgrade, and how long conversion takes to carry out.

“There are too many aircraft, not enough maintenance slots, not enough engineers, and not enough parts. It just puts pressure on the system, and when you put pressure on the system, prices go up.

etc"

[rivaldo] 31/5/2018 07:16

Yep, terrific news - which just adds to GMAA's already high future earnings visibility:



"£50 Million Air Ambulance Contract Extension

Gama Aviation Plc, one of the world's largest business aviation services providers is pleased to announce the extension of its seven-year Scottish Ambulance Service contract. The contract extension commences in June 2020 for a further period of three years and is expected to be worth in the region of £50 million over that period.

Marwan Khalek, Group Chief Executive said:

"I am delighted that we have been awarded this contract extension. Our work with the Scottish Ambulance Service over nearly three decades demonstrates the effectiveness of our business model, supplying both Air and Ground support to deliver mission-critical services where high availability and rapid response times are vital.

This is testament to the dedication and expertise of our people, resulting in an excellent track record for delivery that has created an enduring relationship with accompanying contracted revenue streams. The forward visibility these contracts afford allows us to further enhance our support to the Service through the provision of state-of-the-art facilities in Glasgow and Aberdeen."

etc"

[glaws2] 31/5/2018 07:03

Big contract (£50m over 3 years)extension with the Scottish Air Ambulance

[rivaldo] 30/5/2018 09:13

Encouraging to see another brick in the wall just announced, with the appointment of a strong-looking new CFO with extensive experience in much larger businesses than GMAA:

[rivaldo] 25/5/2018 09:14

Looks like another good medium/long-term move, with initial costs offset by property savings/landlord contributions.

This article covering the transfer notes:



"Farnborough, UK-based Gama Aviation is to relocate its TAG Farnborough Airport and London Oxford Airport-based maintenance operations to Bournemouth International Airport, on the south coast of the UK. “Both our European Air and HQ Group functions will remain at Farnborough. It is only our Farnborough maintenance business [plus the jets business at Oxford Airport] that is moving to Bournemouth,” a company spokesperson told AIN."

[igoe104] 24/5/2018 12:45

Gama Aviation PLC Investment in UK maintenance facilities
24/05/2018 12:30pm
UK Regulatory (RNS & others)

Gama Aviation (LSE:GMAA)
Intraday Stock Chart
Today : Thursday 24 May 2018

TIDMGMAA
RNS Number : 2129P
Gama Aviation PLC
24 May 2018
Thursday 24th May 2018
Gama Aviation Plc (AIM: GMAA)
("Gama Aviation", "the Company" or "the Group")
Investment in UK maintenance facilities
Gama Aviation Plc, one of the world's largest business aviation services providers is pleased to announce the transfer of its primary turboprop and jet maintenance facilities from its 25,000 sq ft facility at Farnborough Airport and its 48,000 sq ft facility at London Oxford Airport into a flagship 135,000 sq ft secure facility at Bournemouth International Airport during the second half of 2018. The move will provide necessary capacity for expansion of the company's European Ground business, which grew by 20% in 2017, while delivering immediate efficiency savings.
Restructuring costs of c.$2m, which will be funded out of operational cashflow, will be incurred largely in 2018 and treated as either exceptional items or capital expenditure, with no impact on underlying profitability of the Group. The cash costs related to the restructuring will be offset by the end of the first half of 2019 through capital contributions by the new landlord and a rent-free period. The transfer will deliver near-term efficiency savings and revenue synergies which are expected to more than offset the costs of additional space from 2019 onwards, while also laying the foundations for further growth.
Neil Medley, Group Chief Operating Officer said:
"To support the continuing growth of our high performing UK maintenance business we are investing in a flagship maintenance facility to provide the capacity for maintaining all types and sizes of business aircraft for European clients. This will in turn allow the growth and development of our talented pool of engineers, as we add a range of new capabilities to broaden our service offering."
Marwan Khalek, Group Chief Executive said:
"This investment in a large, secure and modern MRO facility removes the physical constraints on our Ground business and is a powerful signal of our intent as we accelerate our growth strategy in Europe."
Steve Rigby, Chief Operating Officer, Rigby Group (owners of Bournemouth International Airport) said:
"We are delighted to welcome Gama Aviation to Bournemouth International Airport. This move will create a major new facility for business aviation as a core component of the strategic development of the airport."
Gama Aviation's Europe Air division, and its Ground facilities in Aberdeen, Glasgow, Jersey, Fairoaks and Doncaster are unaffected by the above.

[rivaldo] 24/5/2018 11:05

Downing Micro-Caps also had this to say further down the report which I missed first time around :o))

"Gama Aviation PLC (Gama)

Gama is a global business aviation service provider, headquartered at Farnborough airport. It focuses on air operations (business aircraft management, special missions and charter of business aircraft) and ground operations (engineering, design, software, maintenance, repair and overhaul (MRO), passenger handling and consultancy).

Investment case

· Organic growth: we expect natural growth to be aided by the increasing cost of compliance which naturally favours players with scale, crowding out the smaller, localised operators that characterise the business aviation market. We also expect margin growth through operational efficiencies and new higher margin activities.

· Consolidation: Gama is one of the top three global players in the sector. Owing to the crowding out mentioned above, the fragmented market, and Gama's public listing, we believe that the company has the potential to be the consolidator of the market.

· Re-rating: underlying the operational and market opportunity, we believe that the business is misunderstood and undervalued by the market. Key to a rerating will be Gama's ability to closely control working capital and consistently generate free cash flow. These are aspects which we believe are improving with every successive reporting period."

[rivaldo] 24/5/2018 07:25

Downing Micro-Cap investment Trust - who have a £5.4m stake in GMAA - reported results this morning, and they're rather pleased with how GMAA are doing so far:



"Gama is delivering exactly on our investment case. In February 2018, the company raised £48 million to deliver a number of organic growth initiatives in Asia, the Middle East, and the US, as well as further inorganic growth initiatives. As part of this, it also gained a material strategic investor in Hutchison Capital Holdings Limited who now own 21% of the equity. The Board was also strengthened in the period. We believe that these growth initiatives could be transformational for the business in the mid to long term.

Post period end, the business posted a positive set of full year results. The focus has been on free cash flow generation and, pleasingly, Gama generated US$14 million in 2017. Operating margins continue to improve across the segments in line with management's long-term targets of 5% in the Air division and 20% in the Ground division."

[rivaldo] 18/5/2018 09:00

Given that GMAA have a longstanding and successful FBO at Sharjah airport, this report from Sharjah reads well given the expansion, increased number of passengers etc (with a brief name check for GMAA):



Excerpts:

"H.E Sheikh Faisal bin Sauod Al Qassimi, Director of Sharjah Airport Authority, spoke and presented a video which revealed the final shape of Sharjah International Airport after the expansion. The program was followed by the segment “Journey to the Top”, which included a video that featured the airport’s prominent figures and showcased the significant achievements during the past year and during the first quarter of 2018. An LED interactive show unveiled the airport’s new logo and identity, prior to the event’s conclusion, which honored the authority employees and strategic partners."

"H.E Sheikh Faisal bin Sauod Al Qassimi, Director of Sharjah Airport Authority.....reviewed SIA’s most prominent achievements during the past year, emphasizing the number of passengers who traveled through SIA in 2017 increased to 11.4 million, while the airport recorded 76 thousand takeoff and landing movements, a success, in light of the regional and global challenges facing the aviation sector. He also pointed out that SIA benefited from its geographical location and proximity to many seaports in raising air traffic."

[soundbuy] 17/5/2018 13:51

Cheers for that.........just back from a stroll and the offer............zzzzzzz

[rivaldo] 17/5/2018 12:16

SoundBuy, I can't remember any comment from Downing on the legals.

However, GMAA in their presentation at Mello recently stated definitively (from my memory anyway) that there would be a net cash inflow from these cases.

I can rarely remember a company being so positive on a legal outcome. GMAA themselves stated in the 2017 final results that when:

"all these proceedings, some of which are with the same counterparties, are determined or settled, the Board expects the overall awards and settlements to result in a cash inflow to the Company".

[soundbuy] 17/5/2018 11:09

Have Downing commented on the legal wranglings......doesn't seem to sit too pretty with somebody.....

Hard to find value out there at present and this just sticks out..........keep coming back to it......hmmmmm......

[igoe104] 15/5/2018 15:15

You don't have to wait long Corrientes, resolution is next month.



Hopefully a spike back up to £2.50 will be on the cards as well.

[corrientes] 15/5/2018 10:35

Sorry, but I still feel that until a successful resolution of these various legal claims is settled, the share price will go nowhere.Uncertainty is a killer. These contract wins are surely just part and parcel of what you'd expect of a company of this size.

I just hope the legal claims being made, primarily by Mr Dryden, are virtually all Hangar8 related issues.

[rivaldo] 14/5/2018 11:26

The maintenance and servicing of one of these aircraft definitively does not come cheap. And this is the third such win already this year.

As for profitability, operating profit increased 28% last year to $18.7m from $14.6m in 2016. This year PBT is forecast to be £16.02m, i.e around $21.5m.

Next year, as the newly financed growth fully kicks in, PBT is expected to rise to £24.5m - this against a £135m m/cap.

And of course we're expecting further earnings-enhancing acquisitions any time soon, which would increase EPS nicely from 21.3p EPS this year and 29.2p EPS next year.

[pireric] 13/5/2018 13:24

Isn't the point that all these contract wins are small in the scheme of total revenues... it probably covers client base churn

[igoe104] 13/5/2018 13:13

Hopefully you won't have to wait long Correntes, its next month, unless we get an appeal etc. I FEEL these will shoot up, when we get a positive outcome.

[corrientes] 13/5/2018 10:32

Is this the equivalent of turnover is vanity, profit is sanity ?

With all these wins, the stock market should be getting a sniff of greatly increased profitability,but its not there. Must be a cash problem, or dare I say waiting on the outcome of the legal issues, regardless of the board expecting a net receivable.

[rivaldo] 13/5/2018 07:22

Excellent - another service contract win.....



"11th May 2018

Gama Aviation Europe adds Bombardier Global 6000 to its managed fleet.

European Air team add Bombardier Global 6000 management contract after competitive bid. The aircraft represents the third Global 6000 to enter the fleet since the start of the year.

Farnborough, 11th May 2018 – Gama Aviation, the global business aviation services company, is pleased to announce the addition of a Bombardier Global 6000 to its European fleet. The announcement follows the recent introduction of two Global 6000’s into the Asia fleet.

Gama Aviation’s ability to support the aircraft locally and internationally were amongst the defining factors in the client’s final decision. Although primarily for private use, the aircraft will be available on a limited basis for charter out of Farnborough, representing one of the newest Global 6000’s within the UK charter fleet.

Mark Gascoigne, Managing Director, Europe Air said: “I’m delighted that our new client selected us after a hard-fought process. We offered a simple solution, that combines our high level of local client service with our ability to leverage our unique global scale, breadth and depth to support the aircraft wherever and whenever the owner flies.”

[corrientes] 11/5/2018 08:47

Primae facie it seems that positive comments about GMAA are from a parallel universe to this one,unless the alleged continuous selling by a significant holder is the culprit.

[rivaldo] 11/5/2018 07:45

Positive trading statement today from BBA, particularly re Signature, whose revenues are up 13.9% - which should reflect well on GMAA's merged Signature business in the USA:

[rivaldo] 08/5/2018 10:15

Good start to the week, and moving up smoothly again. Encouraging to hear from mrnumpty that shares are in such short supply.

[mrnumpty] 08/5/2018 09:33

Purchase of 1200 shares , via the " fill or kill " order , successful at £ 2.26 at 9.00 this morning . Correctly shown on the Hargreaves Lansdowqn site as a purchase .

[mrnumpty] 08/5/2018 09:06

I tried to add 1200 shares this morning on-line with Hargreaves Lansdown , but this instruction was repeatedly refused . As the NMS is only 750 shares , I tried to purchase this amount , but I was again refused . I then thought that I would try two purchases each of 600 shares , but again no success . Having 'phoned Hargreaves lansdown , I have placed a " fill or kill order " for the full 1200 shares . Presumably a shortage of shares with the dear market makers . Good luck all .