Gama Aviation PLC Half Year 2022 Trading Update (2841V)
August 08 2022 - 6:52AM
UK Regulatory
TIDMGMAA
RNS Number : 2841V
Gama Aviation PLC
08 August 2022
Date: 8(th) August 2022
The information contained within this announcement is deemed to
constitute inside information as stipulated under Article 7 of the
Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act
2018.
Gama Aviation Plc (AIM: GMAA)
("Gama Aviation" or the "Company" or "Group")
Half Year 2022 Trading Update
Gama Aviation is today providing an update on trading for the 6
month period ending 30 June 2022 ahead of the anticipated
publication of its half year unaudited interim results by the end
of September 2022.
H1/22 Trading
The Group has delivered a solid trading performance in the first
half of the year. H1/22 revenues are in excess of $130m (H1/21
$106.4m), up by over 20% on the same period last year, evidencing
the continued recovery in activity and the benefits of organic
investment and growth.
Gross Profits are expected to be up by more than 22% on the same
period last year in line with the revenue growth and slightly
improved margins.
Whilst there have been some variances in the expected
performance across the business units, the overall Group Adjusted
EBIT is expected to be in line with management expectations.
Credit Facilities
Further to the disclosures provided in the 2021 Annual Report
and Accounts (the "ARA"), the Company is progressing towards
securing the new credit facilities required to replace its current
revolving credit facility (the "RCF") and Term Loan (together the
"HSBC current facilities"), which mature on 14(th) November 2022
and 31(st) January 2023 respectively.
The Company is pleased to report that it has secured competitive
terms for the refinancing of its aircraft assets through operating
leases, which are expected to close by the end of September.
The Company does not now expect it will require a replacement
facility for its current Term Loan. The Board has determined that a
$40m credit facility, rather than the current $50m RCF, will be
sufficient to meet the working capital and liquidity needs of the
Group going forward and discussions are on-going to secure such a
facility.
The Company disclosed in the ARA that it had received indicative
terms from HSBC for new facilities, which it was negotiating. Those
terms included a condition whereby, CKHH would be required to
continue to support the new facilities by providing a Letter of
Awareness ('LoA') in similar form to the one that supports the
current facilities. While the support provided by CKHH for the HSBC
current facilities was a letter of awareness setting out its then
present intention only, CKHH believes that it is more appropriate
for the Company to secure facilities on a standalone basis rather
than relying on the unilateral support of one minority shareholder,
it has advised the Company that it will not provide such support
beyond expiry dates of the HSBC current facilities.
Consequently, the Company is in active dialogue with HSBC on a
proposal to amend and extend the current RCF on a standalone basis,
to allow the Company the time necessary to source and secure the
appropriate facilities and terms with alternative lenders.
A further update on credit facilities will be provided in the
half year results announcement or earlier if appropriate.
Cash and Liquidity
As at 29 July 2022, the Company held cash balances totalling
$14.4m in addition to having $18m of undrawn funds remaining on its
$50m RCF.
Full Year Outlook
The recovery in activity and revenue growth is expected to
continue through the second half of the year with full year
Adjusted EBIT expected to remain in line with management
expectations.
END
Gama Aviation Plc +44 (0) 1252 553 029
Marwan Khalek, Chief Executive
Camarco +44 (0) 20 3757 4992
Ginny Pulbrook
Geoffrey Pelham-Lane
WH Ireland +44 (0) 207 220 1666
James Joyce
Ben Good
Gama Aviation - Notes to Editors
Founded in 1983 with the simple purpose of providing aviation
services that equip its customers with decisive advantage, Gama
Aviation Plc (LSE AIM: GMAA) is a highly valued global partner to
blue chip corporations, government agencies, healthcare trusts and
private individuals.
The Group has three global divisions: Business Aviation
(Aircraft Management, Charter, FBO & Maintenance), Special
Mission (Air Ambulance & Rescue, National Security &
Policing, Infrastructure & Survey, Energy & Offshore); and
Technology & Outsourcing (Flight Operations, FBO, CAM software,
Flight Planning, CAM & ARC services)
More details can be found at: http://www.gamaaviation.com/
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END
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