31st Mar 2015 13:05
LONDON (Alliance News) - Gama Aviation PLC said Tuesday that it has entered its first financial year from January 2015 in a strong position, following its formation via the reverse takeover of Gama Aviation Holdings (Jersey) Ltd in a reverse takeover by Hangar 8 PLC last December.
In the half year to end-December Hangar 8 posted a pretax loss of GBP3.4 million, swung from a pretax profit of GBP669,000, as a rise in revenue to GBP36.3 million from GBP30.2 million was offset by higher administrative costs and exceptional items, including costs related to the acquisition of Gama Aviation.
Exceptional costs also included a GBP2.0 million increase in its provision for doubtful debts, a GBP490,000 hit from the strengthening of the US dollar, and a GBP478,000 change in an accounting estimate.
Hangar 8's figures only related to that companies activities, and does not include any figures from Gama Aviation.
The company said that the integration of the two businesses is moving ahead well, with some areas progressing better than management had original expected. It expects the integration to be complete by the end of June.
The first quarter as the new entity has been in line with management expectations. Six aircraft have been added to Gama's fleet since January. It expressed confidence that it will maintain its rate of organic growth throughout the year citing a "promising pipeline."
Its newly agreed joint venture with Hutchison Whampoa China Ltd is progressing as planned, Gama said. It does not expect this venture to add significantly to its cost base during its start-up phase.
"We continue to look forward to an exciting full first year for the group and one in which we are confident we will consolidate our position as one of the world's leading provider of private aviation services," the company said in a statement.
Shares in Gama are trading down 1.7% at 265.02 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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