Gama Aviation Share Discussion Threads

[napoleon 14th] 28/1/2019 17:48

RNS today : MI Downing UK Micro-Cap Growth Fund, Downing Strategic Micro-Cap Investment Trust recently upped their stake in GMAA from 6.24% to 7.1%.
As I sold well before the latest debacle, I wonder why ? The quoted P/E of 4.15 above is fancyful.......

[steve3sandal] 28/1/2019 17:03

I104 I assume you mean the Board not this board ;0)
I was lucky sold on an earlier tight stop loss. I will continue to follow as Downing Strat Micro got this wrong too and I quite like what their Judith M is trying to do.

May be back to try again if the story changes.

[igoe104] 28/1/2019 13:53

sold out today, at a big loss.

just don't trust this board anymore.
plus highlighted upcoming results could drag these further down. better places to put your money.

[igoe104] 24/1/2019 14:29

CEO has been with the company 35 years, its time of some new blood and some fresh ideas? all this investment in the middle east for what ?

[mfhmfh] 24/1/2019 14:25

surely the CEO has to go

[lionheart69uk1] 24/1/2019 10:59

Does 89p represent a buying opportunity, guys and girls?

[blueball] 24/1/2019 08:39

It certainly is a momentum share.

[corrientes] 24/1/2019 08:23

A;ways bad news here, always peppered with meaningless PR and always tomorrow.This was one of my larger holdings, but thank goodness I sold out months ago.The 'model' is flawed.

[czar] 24/1/2019 07:59

Phew I nearly came back in recently.

[igoe104] 24/1/2019 07:27

Even with all those costs in 2018 , they are still expecting performance to be the same 2019 ?

The CEO needs to go.

[rivaldo] 24/1/2019 07:25

You can certainly rely on GMAA to disappoint :o))

There's a good - and highly profitable - core business here struggling to get out, but management seem incapable of capitalising on it, and more than capable of mucking it up. The accounting adjustments and changes in accounting treatment are likely a condemnation of the previous FD I'm afraid.

[lbo] 24/1/2019 07:03

Another AIM disaster!

[rivaldo] 21/1/2019 11:05

Nice coverage here:



"Gama moves into VIP completions with Lotus purchase
15 January 2019

Business aviation services provider Gama Aviation has made its first move into VIP aircraft completions, following the acquisition of Florida-based MRO firm Lotus Aviation.

Gama has not disclosed the cost of the acquisition, but has funded it using the proceeds of a £48 million ($62 million) equity placement completed in 2018.

“$10 million was set aside to fund our US growth,” says Duncan Daines, chief marketing officer for the Farnborough, UK-headquartered company.

Gama established a foothold in the world's largest business aviation market in 2008 with the acquisition of PrivatAir's US charter and maintenance arm.

"We have grown significantly since then," says Daines, pointing to a fleet of more than 170 aircraft, which Gama manages through its associate company, Gama Aviation Signature.

These include 90 Beechcraft King Air 350is, Cessna Citation Xs and XLSs, which the company operates on behalf of local membership-based programme Wheels Up.

Gama Aviation Signature was formed in January 2017 following the merger of Gama and BBA Aviation's US charter and management operations.

The UK companies own a 49% stake in the operation, with the remainder held by US shareholders.

Gama has full ownership of its maintenance and engineering business in the USA, however, which has expanded from a small operation in 2008 to 19 bases today. "We have grown the maintenance offering in line with the fleet," says Daines.

The company offers aircraft on ground, base and heavy maintenance services, with the latter being provided at its facilities in Dallas, Texas, Opa-locka and Palm Beach, the latter two both in Florida. "With Lotus, we now have completions to add to our portfolio of services, which gives our customers even greater choice," Daines adds.

Dennis Richey, president for Gama Aviation's US ground division, describes the Lotus acquisition as a "significant milestone for our organic growth strategy in the USA".

The Fort Lauderdale-based completions centre and paintshop "adds two new lines of business”, he says. "The depth, breadth and scale we now offer provides a compelling proposition for those operators who wish to simplify their maintenance supply chain."

Meanwhile, Gama has ordered three Airbus Helicopters H145s, the company's first purchase of rotorcraft. The light-twins are scheduled for delivery in the fourth quarter and will enter service in June 2020, in support of an existing long-term contract.

While Gama has not disclosed the customer, the H145s are believed to be headed for Scotland, where they will be used in an air ambulance role, alongside the operator's three King Air twin-engined turboprops. Gama has been providing fixed-wing air ambulance support in Scotland since 1993, with another operator handling helicopter missions.

Gama has also secured a new five-year contract to modify and support four special-mission aircraft from 1 July on behalf of an unnamed European client. This will help to bolster company revenues by nearly £28 million, Gama says."

[mfhmfh] 11/1/2019 08:47

interesting acquisition yesterday:

hxxp://lotusaviationgroup.com/

[napoleon 14th] 24/12/2018 17:39

I'm sooooo glad I sold @ 50% above today's close when I mistook the thread's header as saying "post merger with hangover, M8!"

That said, those are excellent contract wins. I don't doubt the intrinsic merit of the share based on GMAA's capacity in the long term, but this time I let the trend be my friend...

In fact, IMO 2019 could be another year to forget, so overall I kept all my coppers LTBH & ditched the wealth robbers... There will be a time to get back in, but not just yet IMHO.

I wish you all a merry Crimbo and a healthy, wealthy 2019, even if that means shorting the hell out of it!

[rivaldo] 24/12/2018 11:01

The main point here is the terrific forward visibility this gives GAMA (along with other long-term contracts like Scottish Air Ambulance etc).

I'd guess there's a level of investment needed for the new contract win for next year which keeps the EPS effect initially neutral, but with the forward cost weighting (so to speak) then margins and EPS improvement should respond markedly after that.

[dan_the_epic] 24/12/2018 09:13

Using range middles, and assuming linear fashion is 12.5m of revenue over the next 5 years. sounds like its already in 2019 forecasts, might be single digit accretive after

[jeevsje] 19/12/2018 08:24

Had to pay 3p over ask to get 8000 shares yesterday. Literally, no shares available to buy.

[jeevsje] 18/12/2018 08:34

Estimated value of contract could be in excess of 50 million dollars :).

[igoe104] 12/12/2018 09:55

These could easily quickly turn around, just look at opg for example.

[rivaldo] 12/12/2018 09:47

Cheers igoe104, beat me to it! Interesting comments from GMAA's chief marketing officer from the first article above:

"Daines noted the company’s expected 2018 financial performance caused the markets to react negatively in October, given that it is a listed company, but Gama Aviation does tend to perform better in the second half of years. “The basic fundamentals of the business are really strong,” he said, pointing to two major contracts that are almost finalized. These are “amazing contracts” that he couldn’t divulge, but the work is “ideally suited to Bournemouth,” he added.

In terms of the overall business, Gama manages and operates 230 aircraft. The U.S. locations “continue to expand,” he said, as Wheels Up, for which Gama operates a fleet of King Airs and Citations, keeps growing strongly.

Finally, Daines said that Gama is doing well in China. “It’s our smallest operating region but there’s plenty of potential,” he said."

[igoe104] 12/12/2018 08:33

Gama Pushes Ahead with Saudi Venture

Gama Aviation has established a company in Saudi Arabia through a wholly owned venture with an undisclosed local partner, which will give it the opportunity to enter the lucrative market through the management of private aircraft.
Richard Lineveldt, Gama Aviation managing director, Middle East, said that the company (Static S8) had required clarity on the changes being introduced by the General Authority of Civil Aviation (GACA) to the regulation of business jets before proceeding with its venture, which obtained regulatory approval in 2017.
GACA had originally set March 31 this year as the final deadline for registration changes, but then gave market participants an extra nine months to comply. In the case that pertains to Gama, these call for aircraft to be registered on a GACA operator certificate (OC) under Part 125 for non-commercial (private) operations. New regulations have also been promulgated under Part 121 special unscheduled (SU, previously known as GACA Part 135) for commercial charter operations.
“The Saudi authorities have changed some of the regulations, in terms of the operational structure [of business aviation]," Lineveldt said. "Initially, our main concern, because we had clients affected by it, was the change from Part 91 to Part 125. You can as an individual go and apply for your own Part 125 certificate or you can go with traditional management companies. We saw a potential business opportunity there because it is the largest market in the region, so we established a company in Saudi Arabia, which has obtained operating approval Part 125. So for the past year, we’ve had this approval, and we have slowly started to get the word out about it and hope it will be attractive to various clients."
Lineveldt said the company is based in Jeddah, where the majority of its clients are located and from where most of the aircraft located in Saudi Arabia tend to operate.
“We are [moving in] the traditional way in which Gama sets itself up in new territories. The shortest route to growing the local business to is to establish a private management business there. The next step is to install other avenues, charter being one of them,” he said.
“We haven’t started to work on the charter certificate. We will continue to look at the demand for aircraft charter [in Saudi Arabia] but our core business around the world is [managing] private aircraft for individuals and corporations. We will look to branch out into the rest of the services Gama offers, including maintenance and FBO.”
Lineveldt said Gama’s entry into the Saudi market was a prudent first move pending eventual development of a complete portfolio of services. He also implied that the Saudi market needed new blood.
“This is a very good time for Gama to come in as a well-established brand into the kingdom. We don’t have a legacy in Saudi Arabia. The market is calling out for a large, established operator of a reputable brand with no legacies

[jeevsje] 12/12/2018 08:21

With news of the two excitung contracts to come in anytime, MMs have put limit on buy orders. NT to buy.