Gama Aviation Share Discussion Threads

[camerongd53] 06/2/2019 11:36

hat - I agree that cash has left the company but a future payment to clear the creditor has also gone so in the long run it is neutral
However if the company wants to invest in M&A, they have $8m less to play with than they thought.

[hatfullofsky] 05/2/2019 22:43

$8m of hard cash just left the building. That's significant. New to this share and opened a spread to catch the bounce ..... that never happened today.Seems bad news follows bad news here. Will give it a couple of days and see where it goes.

[camerongd53] 05/2/2019 14:06

My holding cosst me under £2.00 so when the price was 260p I was nicely ahead. Now I down about 2/3rds. Not a happy bunny!!!


I sought clarification on the RNS. It appears hat this is a balance sheet issue in that cash and creditors have each been over stated in the last accounts by Approx £8m. I was told it did not affect the P&L account which is a great relief!!
Therefore today's price fall of 23.5p or 27% would appear to be a massive over-reaction
As I am full committed to Gama I will not be buying any more shares, otherwise I would be. Could be a good bet as a short/medium term bet DYOR

[corrientes] 05/2/2019 09:15

When the financials are opaque beware. That's what finally made me sell at a loss,quite a while ago now, but not nearly as much as it would have been.

[lbo] 05/2/2019 09:07

What a shambles

[rivaldo] 05/2/2019 08:01

Hmmmm...looks like the previous FD/accounting team were doing a little creative balance sheet massaging, especially given the timing of the "receipts"? Not good. The only positive is that at least the new FD seems to be taking matters in hand.

[roddiemac2] 01/2/2019 13:01

napoleon,

Judith has been known to be very proactive. It would not surprise me if she tried to put " her own man " on the board.

[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.