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Share Name Share Symbol Market Type Share ISIN Share Description
Gama Aviation LSE:GMAA London Ordinary Share GB00B3ZP1526 ORD 1P
  Price Change % Change Share Price Shares Traded Last Trade
  -27.50p -23.91% 87.50p 220,320 09:48:42
Bid Price Offer Price High Price Low Price Open Price
87.00p 88.00p 99.00p 78.50p 78.50p
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Industrial Transportation 207.36 16.15 22.28 3.9 55.7

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Date Time Title Posts
24/1/201909:02Gama Aviation-
24/1/201908:39GAMA AVIATION : post-merger with Hangar 81,348

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Gama Aviation Daily Update: Gama Aviation is listed in the Industrial Transportation sector of the London Stock Exchange with ticker GMAA. The last closing price for Gama Aviation was 115p.
Gama Aviation has a 4 week average price of 78.50p and a 12 week average price of 78.50p.
The 1 year high share price is 272.50p while the 1 year low share price is currently 78.50p.
There are currently 63,611,279 shares in issue and the average daily traded volume is 16,946 shares. The market capitalisation of Gama Aviation is £55,659,869.13.
camerongd53: I think today's RNS is not a profit Warning but a profit Growth warning and the effect is a 20% drop in the share price. The markets are not forgiving at the moment . It will take a general improvement in global sentiment and the UK in particular as well as a profit increase before the price recovers or grows. Until then shares could be considered relatively good value
rivaldo: Nice mention here: Https:// "Poised for growth If you’re looking for growth buys in the aviation sector, one company you might want to consider is small-cap Gama Aviation (LSE: GMAA). This 35 year-old business provides a mix of charter, fleet management, and maintenance services for corporate and government customers. In February it raised £48m in a share placing. This money will be used to fund the acquisition of operations in Hong Kong and the development of new bases in the US and the Middle East. The group wants to become the “leading global business aviation services group.” Half-year results published today suggests this could take a little time. Revenue rose by just 3% to $104.6m during the first half, while underlying pre-tax profit fell by 6% to $6.6m. However, the company says full-year expectations are unchanged and that its move to a new European base at Bournemouth Airport is on schedule to complete this year, delivering “immediate efficiency savings.” The placing has left the group debt free, except for lease liabilities, and with a net cash balance of $21m. Analysts’ consensus forecasts put the stock on a forecast P/E of 10 in 2018, falling to a P/E of 8 for 2019. I’d want to do some more research before buying, but this looks like a potential growth opportunity to me."
rivaldo: Good to see Simon Thompson remains positive here - I'll paste it whilst it's free to read: Https:// "Simon Thompson 4 hours ago Gama on course for strong second half Shareholders in Aim-traded Gama Aviation (GMAA:187p) suffered a bout of turbulence over the summer after the operator of privately owned jet aircraft reported a flat trading performance in the first five months of the 2018 financial year. (‘Gama shares hit turbulence’, 5 June 2018). In the event, Gama reported a $400,000 decline in its first half underlying pre-tax profits to $6.6m which translated into a 10 per cent drop in adjusted EPS to 11¢. One reason for the shortfall was a near 20 per cent decline in operating profits to $3.39m in Gama’s US air division. This reflected investment made in the US sales force in the final quarter of 2017 to support future growth of this fast growing business. This explains the reduction in divisional operating margins to 1.6 per cent compared to 2.2 per cent in the first half of 2017. However, chief executive Maarwan Khalek points out margins would have been closer to 2.4 per cent (last year’s outcome) without making this investment and having done so should “resume their steady improvement towards a target of between 4 to 5 per cent.” That’s a fair assumption to make given that low double-digit revenue growth is being targeted in the US air business. In the first half, divisional revenues increased by almost 9 per cent to $206m. In Europe, Gama’s ground services division was held back by challenging trading conditions and its operating profits dipped by $116,000 to $4.46m on revenue of $26.7m. Part of the reason was uncertainty over the future of Oxford airport, an issue that has been addressed by moving the bases in Oxford and Farnborough to Bournemouth International Airport. This has doubled engineering capacity, improved the service offering and should support scalable growth. The $2m restructuring cost of the move (to complete in the fourth quarter of 2018) will largely be recouped by rent free periods on its new facility and capital incentives from its new landlord. I am not concerned about the fact that the Middle East ground services unit’s $210,000 operating profit at this stage of 2017 reversed into a $68,000 loss. This reflected a 10 per cent decline in revenues resulting from political uncertainty in Saudi Arabia. The situation is now more stable. Also, the Middle East air business actually made up that regional shortfall. Shareholders backed a placing at 245p a share that raised £48m in the spring which means Gama ended the period with $21m (a sum worth 25p a share) of net cash and an untapped 4-year credit facility of $70m priced at 1.9 per cent above Libor. The funds will help support the expansion plans I outlined in my last article (‘Gama shares hit turbulence’, 5 June 2018), as well as strategic bolt-on acquisitions which Mr Marwaan expects to conclude by the year-end. Around $4.3m of exceptional charges were booked in the first half of which $1.8m related to the cost of litigation which includes both the recovery of money outstanding from clients, and proceedings brought by clients. Mr Maarwan asserts that the overall awards and litigation settlements will result in a cash inflow, and only one major case remains outstanding. The company is also “trading in line with full-year forecasts” even though 35 per cent of this year’s expectations were delivered in the first half (against a normal 40 per cent weighting). Analysts at WH Ireland are maintaining their 2018 pre-tax profit estimate of $19.9m and EPS estimate of 26.4¢, implying 16 per cent profit growth on 2017. So, with the share price drifting from 206p when I rated the shares a hold during the summer to 187p, this means that they are rated on a forward PE rate of 9. That rating doesn’t take into account an underleveraged balance sheet and potential to make earnings accretive bolt-on acquisitions. It doesn’t take into account margin expansion in the important US air market either, nor for that matter a reasonable dividend (2.75p a share payout for 2017 financial year). So, although Gama’s shares have disappointed this year, I feel that they are worth holding because if Gama’s management execute on their expansion strategy, and the US economy stays strong, then there should be upside to both profits and the share price. Indeed, WH Ireland still expects EPS growth of 50 per cent in the 2019 financial year, penciling in EPS of 39.8¢ based on pre-tax profits of $32.1m. On the basis of the current sterling dollar exchange rate of £1:$1.30, this implies EPS rising above 30p in 2019 and a forward PE ratio of six. In the circumstances, I would continue to hold the shares."
napoleon 14th: Headline figures are OK, but I'm trying to get my head around the cashflow. Needs a full statement IMO. I'm trying to put an interpretation on this. Cash at close = $21.1M. Cash raised £48.0M. WHY QUOTE IN TWO CURRENCIES??? AHEM....! Cash raised = $67.2M then! The balance on the above is $46.1M (67.2 - 21.1) Cash at 010118 open = ($13M) Improvement in balances = $34.1M (21.1+13) So does that mean a cash burn of $12M? (34.1-21.1) Or does that mean a cash burn of $33.1M (67.2-34.1) EBITDA is just $8.1M. Turnover is vanity, profit is sanity, cashflow is reality. Share price is boring, boring, boring! I hold a few.
napoleon 14th: Boring share price. Sold half a while ago, at a 33% profit. Needs to come up with something solid on Sept. 24th. Thanks for the updates, Rivaldo. At least they confirm things are happening.
rivaldo: Here's a reminder of what GMAA said less than 2 weeks ago: "Trading Outlook With strong growth in the US, steady and encouraging progress in scaling up our Middle East and Asia operations and stable trading in the EU market, supplemented by new business wins in the EU Ground division, the Group's expectations for the full year remain unchanged." Perhaps corrientes is referring to BBA, who are actually a partner of GMAA rather than a competitor.... Incidentally, BBA's share price is down today due to their exceptionals, plus a note on the USA showing slightly softer growth than expected, though still growing. However, their Signature division - which is partnered with GMAA - is outperforming the market. They conclude regarding Signature: "We continue to invest in our Signature network, including recent investments in new technology to enhance our fuel and non-fuel revenue management capabilities. As previously noted, we have been investing in enhanced EPoS and revenue management tools. The Group is confident that the outperformance of the Signature network against the US B&GA market demonstrates the ability of our unrivalled network to deliver value. Signature has recently secured a significant lease term extension with a new 20-year lease (with a possible further five-year extension) at its sole source FBO at Hartsfield Jackson Atlanta International Airport. Here, at what is the world's busiest hub airport, we will invest in a new FBO facility and will launch our Signature Elite™ service (private transfers to/from commercial flights via Signature's FBO facilities)." I note GMAA's price has been marked down today on a mere 7k shares traded!
corrientes: Looks like good news = falling share price. These individual bits of good news is just PR ie meaningless without financial elaboration. We haven't a clue whether its significant in terms of profitability, and of course we never hear of any contract losses.
napoleon 14th: Good result eliminates any potential liability; " the Dryden Parties undertake to withdraw their various damages claims against the Company, and to transfer value to the Company by a cash payment and transfer of certain assets; and the Company undertakes to withdraw its debt recovery claims against the Dryden Parties." Share price down anyway! LTBH. GLA.
igoe104: Gama Aviation shares hit turbulence Simon Thompson Shareholders in Aim-traded Gama Aviation (GMAA:206p) suffered a bout of turbulence after the operator of privately owned jet aircraft reported a flat trading performance in the first five months of the 2018 financial year at its annual meeting. Analysts at broking house WH Ireland reined back their full-year pre-tax profit forecasts from $21.8m (£16.3m) to $19.9m, representing 16 per cent growth on last year but well behind the 27 per cent growth I had envisaged when I last suggested buying the shares at 257p (‘Small-cap earnings beats’, 21 Mar 2018) when Gama reported a near 25 per cent uplift in its 2017 underlying pre-tax profit to $17.1m. The reason for the downgrade is mainly due to a more challenging trading environment for Gama’s European ground services division. On the plus side, its US air operation continues to report robust trading, reaping the benefits of the fleet joint venture with BBA Aviation (BBA), and the US ground division continues to pull in new clients and produce strong organic revenue growth. Importantly, the company has the firepower to accelerate its plans in its higher growth Asian and the US operations, having raised £48m in a placing at 245p a share in February, a fundraising heavily backed 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 now owns 21 per cent of Gama’s enlarged share capital of 63.5m shares. Around $19.8m (£14.2m) of the capital funded the acquisition of 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. I understand that the collaboration is "making good progress”. In the Middle East, Gama is using $5m of the fundraising as seed capital to develop a new $45m aviation centre at Sharjah International Airport. It makes sense to do so in light of capacity constraints at Dubai International Airport. Sharjah is well located to be used as a platform for expansion in the Middle East, and is a lower cost base, too. The aviation centre is on track to open in the fourth quarter of 2019. A further $10m from the fundraise is being used to expand hangar capacity and tooling and equipment at Gama’s fast-growing operations on the east and west coast of the US, where Gama operates from 14 locations and manages a fleet of 200 aircraft. Growth has been held back there by capacity constraints, an issue the new capital addresses, as well as providing cross-selling opportunities on the maintenance side of the business. The directors confirm that they “expect to add base maintenance capacity on both coasts in line with our 2018 strategic plan”. The point is that these investments and the ongoing robust organic growth in the US operations still support a step change of profitability in the 2019 financial year, a key reason behind my buy recommendation in March. Also, Gama has strengthened its management team since I published that article, having appointed a new finance director, a director of corporate development and chief operating officer for the US air division. It has also settled four out 10 of the litigation cases outstanding, and is “confident that the overall awards will result in a cash inflow to the company”. True, the placing will be dilutive on EPS in the short term as the new funds are deployed which is why WH Ireland is pencilling in a figure of 26.4¢ this year, down from 31.6¢ in 2017, even though pre-tax profit is set to rise by 16 per cent to $19.9m. However, the broker still expects earnings growth of 50 per cent in the 2019 financial year, pencilling in EPS of 39.8¢ based on pre-tax profits of $32.1m. On the basis of the current sterling dollar exchange rate of £1:$1.34, this implies 2018 EPS of 19.7p, rising to almost 30p in 2019 and a forward PE ratio of 10 and seven, respectively. That’s an incredibly low rating for a company without any debt issues (net debt of less than £10m at the end of 2017 has effectively been wiped out as around £20m of the placing proceeds are earmarked for future acquisitions). Clearly, Gama’s board has to deliver on their expansion plans by targeting high growth regions, and the earnings downgrade resulting from the weaker European business is hardly ideal. However, I feel that the 20 per cent pullback in the company’s share price since March is overly harsh as it’s completely out of proportion to the scale of the earnings downgrade. Price on a price-to-book value of 1.3 times, offering a dividend yield of 1.4 per cent (the final payout of 2.75p a share for the 2017 financial year goes ex-dividend on Thursday 28 June), and with drivers in place to support the 2019 profit growth trajectory, I would recommend riding out this turbulent passage and await the next trading update from the company on 19 July 2018. Hold.
rivaldo: 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.
Gama Aviation share price data is direct from the London Stock Exchange
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