Gama Aviation makes 'encouraging' start to year

Business aviation services provider Gama Aviation said trading in the first six months of the year was “encouraging", and remained in line with its expectations on Tuesday.

The AIM-traded firm added in its trading update that, in the half-year to 30 June, it made “good progress” in improving its cash conversion, with net debt reducing during the period.

“This has been a busy and encouraging trading period for Gama Aviation and trading remains in line with our full year expectations,” said chief executive officer Marwan Khalek.

“We have continued to target and deliver organic growth and operational efficiencies as well as improvements in our working capital and cash conversion.”

It said its US air division continued to benefit from strong organic growth, underpinned by the contracted growth on the ‘Wheels Up’ contract and buoyant markets.

The Landmark integration was continuing to progress as planned, with full integration still expected by the end of the current financial year.

Within its EU air division, Gama said it continued to build on the operational efficiencies made in 2016 with notable margin improvements in the first half of the year.

The Middle East and Asia air divisions had a positive six months, the board added, with new contract additions that it said should improve top line growth and bottom line performance in the second half of the year.

In its ground division, Gama’s line maintenance offering in the US showed “promising” organic growth, the board claimed, with recent contract wins expected to flow through in the second half of the year.

Its EU ground division continued to show the benefits of the modest pick-up in discretionary spend, as well as increased maintenance activity arriving from the contract wins announced earlier in the year.

Gama’s Middle East ground division reportedly had a “productive” first half, with revenues and margins ahead of the comparative period due to “continued improvements” in the number of movements through the company’s Sharjah FBO, as well as strong parking and hangarage returns.

“We are pleased with the progress that we are making on all fronts and together with the recent strengthening of the European management team we remain well placed to deliver on our strategic objectives,” Marwan Khalek added.