Gama Aviation sees slight fall in first half earnings

Gama Aviation said it expected a fall in first half adjusted earnings before interest, tax depreciation and amortisation to at least $7.5m compared with $8.2m in 2015.

It added that consolidated revenues on a constant currency basis for the half year ended 30 June 2016 will be no less than $205m against $191m in 2015.

“These revenues have been achieved despite the continuation of the challenging trading environment in Europe...the board does not believe that this is likely to change in the short term,” Gama said in a trading statement.

“It is however pleasing to report that the initiatives launched earlier in the year to optimise and right size the European business and its cost base in this challenging market are beginning to generate some improvement in the underlying financial performance in the region.”

Gama said trading in its US business remained strong and it continued to enjoy solid organic revenue and margin growth. Its US Air business added another nine planes to the fleet under management.

Middle East and Asia operations continued to make steady progress with preparation for the start of its Sharjah hangar development well underway.

It said larger acquisitions would be put on hold as they were more likely to be funded largely through the issue of equity so as to contain debt at sensible levels.

"However, at the company's current share price the Board believes the issue of further equity to be too dilutive and is therefore unlikely to pursue such material and transformational opportunities until the share price recovers to a level where such transactions can be more accretive," Gama said.