Gama Aviation Share Discussion Threads

[rivaldo] 01/10/2015 09:21

Nice publicity in today's Times - except that Gama's aviation services are largely recurring in nature. The article is incorrect, as GMAA is definitively more than a "jet broker":



"Gama’s revenues flying high in wake of takeover

If there is one business that does well when the City does well, it’s private aviation. Got a heap of clients to take on international roadshows, then who are you going to call but your friendly jet broker?

Need to make an ultra sneaky trip at the last moment to discuss that mega merger, you’re not going to risk flying commercial, are you?

Feeling a bit flush and want to take the girlfriend away for that impromptu long weekend in Ibiza, who you going to call? Not easyJet, right?

Which brings us to Gama Aviation and its fleet of more than a hundred aircraft. Yesterday the AIM-listed shares had a nice pop — up 8½p to 301p — as Gama put out half-year results that showed a 47 per cent rise in revenues to $191 million for the six months to the end of June — not bad in a time of austerity.

With the UK’s growing population of international plutocrats, hedge funders, and bankers, the Farnborough-based business provides the sort of fancy rides that your top one-percenter expects whether they’re travelling for business or pleasure.

In a merger this year with Hangar8, Gama reversed into its listing, which has provided the launch pad for further growth and swelling operations in the US — a new base will open in Chicago. There is also growth in the Middle East and Asia."

[rivaldo] 30/9/2015 12:08

Cantor Fitzgerald reiterate their Buy with a 400p target:

[rivaldo] 30/9/2015 10:36

Brief comment from the IC today - hopefully ST will pick up on these results with more commentary:



"Simon Thompson recommendation Gama Aviation (GMAA), the private jet business which reversed into Air Partner to gain a London listing, has issued strong results for the six months to June. Revenues rose by 22 per cent to $191m against a pro-forma $157m for last year while underlying profits were 69 per cent higher at $4.9m. "

[rivaldo] 30/9/2015 08:42

The business as a whole looks in terrific shape, and the Balance Sheet is strong with $16m of cash/assets for resale less $2m of borrowings.

In particular, the outlook statement promises much for H2 - and GMAA are hinting at "further strategic acquisitions" to come:

"The Group enters the second half of 2015 in a strong position and the Board remains confident about the outcome for the full financial year.

The business is experiencing strong growth in many of its global divisions underpinned by its high quality revenue streams. Trading in the US region has continued its positive momentum since the period end and the Board is pleased with the trends being seen in the Group as a whole. With the integration now completed, synergies anticipated to be realised through the second half of the year and the business now being positioned to leverage off our increased scale, breadth and depth of service offering, Gama Aviation has a strong platform from which to deliver on-going organic growth whilst also looking to pursue its strategy of adding value enhancing acquisitions to the Group. The Board therefore looks to the future with confidence".

[wjccghcc] 30/9/2015 08:05

Profits look good but cashflow looks quite weak.

[igoe104] 30/9/2015 07:58

Looks good to me as well . Europe much improved as well, and everything in line, good stuff.

[rivaldo] 30/9/2015 07:56

The numbers look good to me too. And they're confident of H2 as well.

It's a really busy morning though so no time - more later!

[gorilla36] 30/9/2015 07:49

mmmmm not so sure. Any thoughts Rivaldo?

[letsgetbizzay] 30/9/2015 07:42

Superb set of numbers. Wouldn't be surprised to see this trading 10% higher at open

[shammytime] 29/9/2015 15:12

Sorry that should have said £250mill

[igoe104] 29/9/2015 13:15

According to digital look Shammytime, revenue is forecasted at 207 million for year end 30/6.

[shammytime] 29/9/2015 11:58

Rumours of revenue smashing the £50mill mark. Should be a good day tomorrow ;-)

[igoe104] 29/9/2015 10:32

Cheers,

Good spot rivaldo.

[rivaldo] 29/9/2015 10:18

Wow - GMAA's partner Wheels Up have raised up to $115m in a financing for European expansion valuing them at $500m, and they're experiencing "hyper growth".....

GMAA should benefit nicely from being in bed with this company:



"N.Y.-based Wheels Up looks ahead to Europe thanks to new investment
Sep 28, 2015, 2:38pm EDT

Wheels Up, a New York-based private aviation company, completed its first closing on a capital raise of up to $115 million from several big name investors, including venture firm New Enterprise Associates, which has a Manhattan office.

Baltimore-based T. Rowe Price Associates Inc. and Boston-based Fidelity Management and Research Co. also backed Wheels Up, which operates as an aircraft broker, as well as a leasing company and card provider. New York-based investment bank Jefferies Group advised the startup throughout the funding round.

"The first meeting we had was with [portfolio manager] Henry Ellenbogen at T. Rowe who led the round," Wheels Up founder and CEO Kenny Dichter told the New York Business Journal. "There was terrific chemistry between Henry 's team and our team."

Dichter would not disclose whether Ellenbogen or any of the other investors have earned a seat on the Wheels Up board of directors. He did say, however, that the plan is to take the company to market in at least two years.

For now, he added, Wheels Up is looking to grow organically, Dichter added. "We've had hyper growth since the day we started," he said. The latest round of financing, which puts the company's value at $500 million, will help expansion overseas. Currently headquartered in Times Square, Wheels Up is looking to set up operations in the United Kingdom, likely in Farnborough, England where the company's partner Gama Aviation is based.

"We expect to have planes on the ground [in Europe] by the end of 2016," Dichter said.

Wheels Up is known for bringing the luxury of a private jet to consumers who aren't high net-worth individuals. The company charges an initiation fee, starting at $15,750 a year, as well as annual dues. Wheels Up also guarantees plane availability 24 hours a day, seven days a week. Among the planes available through the company's own fleet, as well as airplanes accessible through partnerships, are Beechcraft, Cessna, Jet Aviation, JetSuite, Heliflite and VistaJet. In 2013, Wheels Up closed $100 million in debt backed by Beechcraft.

By the end of 2014, Wheels Up had signed up 1,000 members and had grown its aircraft fleet to consist of 27 brand new King Airs and 10 Citation jets from Cessna.

In April, it set up an Uber-like feature in which members can offer ride-sharing options through the startup's app.

For example, if a group of Wheels Up users are heading to Philadelphia to see the Eagles host the New York Giants, and there are six other seats available, Dichter explained, "we can put them up on the app and have other members going in the same direction and decrease the cost."

Private air transportation that costs up to $8,000 an hour elsewhere can cost as little as $3,950 per flight hour through Wheels Up."

[shammytime] 29/9/2015 10:13

Making it's move now. Bargain at this price

[shammytime] 29/9/2015 08:30

Expecting to see a return to 310-320 tomorrow

[goliard] 18/9/2015 07:00

...and a very low oil price helping too hopefully.

[rivaldo] 17/9/2015 23:31

Interims will be out by 30/9, in line with the positive recent trading update, so not long to wait for numbers.

I too liked HGR8 as a separate entity. However, the trading update was interesting in that it noted that Gama's growth elsewhere had nicely offset a decline in HGR8's operations due to the poor O&G markets. So perhaps us shareholders have benefited quite substantially from the merger with Gama....

I'm hoping to hold these shares for some years to come:

- with this being a boom time for airlines
- with GMAA providing an ever-increasing range of aviation services generating good recurring income
- and with GMAA now in the top 4 operators globally being well placed to mop up a series of further acquisitions of smaller providers

[goliard] 17/9/2015 15:32

Rivaldo, I thought I had found such a company with Hanger8. The jury is still out on the new management. I am not pessimistic, I would just like some reassurance in numbers rather than words.

[gorilla36] 17/9/2015 14:24

Goliard - Good points made. They have certainly talked the talk, but the next update needs to walk the walk as regards the share price. I think people have been patient given the merger and the time it takes to bed in, but an upward steady drift in the price is what is required here.

Rivaldo re "Long-term investing is the way to transform the value of your portfolio. Just find a good company in a growing niche with decent management and stick with it."… I agree, perhaps we just have different time scales. I think the next update will be critical.

[igoe104] 17/9/2015 09:52

Decent growth forecasts for next year, and a P/E of 10.6. certainly worth holding at the moment.

Upside is the states, strong demand. Downside is currency headwinds in Europe.

[goliard] 17/9/2015 09:42

There is a lot of PR here. Every new win gets covered somewhere, but do they lose any contracts? We don't know, but I hope not. Lots of hype about synergies and prospects, but maybe a little too much. They refer to 'unprecedented demand' in China and have signed.... wait for it...... 3 aircraft. Unprecedented?

I am heavily invested here and think the story merits staying in, but the numbers need to live up to the hype.

[rivaldo] 17/9/2015 09:00

This reads well following my earlier post about it:



"Gama Aviation establishes new Approved Training Organisation to expand training service

New ATO meets EASA Part-FCL requirements for base training. Will cover up to 30 aircraft types.

Gama Aviation has received EASA approval to conduct the landing training required for the issue of aircraft type ratings.

This enables the company to carry out training programmes under the new interpretation of the European Aviation Safety Agency (EASA) Part-FCL requirements regarding base training.

Gama Aviation has established its own Civil Aviation Authority (CAA) Approved Training Organisation (ATO) which meets the EASA requirement that as “the base training is part of the approved Type Rating course . . . it must be completed under the control of an ATO.”

The ATO initially covers seven types of aircraft including Challenger, Global Express and Gulfstream G550, with more types to be added in the near future. Gama anticipates that within a few months it will be able to provide training on up to 30 aircraft types.

Gama Aviation launched this new ATO to meet the needs of its own roster of more than 450 pilots and 20 students have already completed their type ratings using the facility. However, the company will also be extending the service to other operators.

Hamish Ross, head of training of Gama Aviation said: “As a business we place a huge emphasis on training, across all aspects of our operations. We demand the highest standards and that is why we have established our own ATO, both for our own needs and those of the rest of the industry.”

Gama Aviation has operations in 45 different locations in 17 countries across five continents, making it one of the world’s leading aviation services companies. As well as training, its services include: line and base maintenance; FBO services; engineering design; aircraft management; charter operations; and aviation and ground management systems."