24th Sep 2021 11:02
(Alliance News) - Gama Aviation PLC on Friday said it swung to a loss in the first half of its financial year despite increased revenue, which was partially mitigated by rising expenses.
Shares in the aviation services company sunk 5.3% to 35.50 pence each in London on Friday morning.
Farnborough, England-based Gama Aviation swung to a pretax loss for the six months to June 30 of USD1.5 million from a USD1.7 million profit a year prior. In 2019, pretax loss narrowed to USD1.3 million from USD2.4 million in 2018.
Adjusted pretax loss narrowed USD3.5 million from USD4.4 million last year. For the first half of 2019, adjusted pretax profit came in at USD2.9 million, having narrowed from USD4.4 million in 2018.
Revenue jumped 14% to USD106.4 million from USD93.7 million, partially mitigated by a 35% rise in administrative expenses to USD22.8 million from USD16.9 million.
Chief Executive Marwan Khalek said: "Our first half of 2021 results reflect the continuing impact of Covid-19 on the group...the group has delivered a near breakeven performance and continues to generate positive operating cashflows despite the challenging pandemic."
Gama last made a payout of 2.0 pence as a final dividend in 2018.
Looking ahead, Gama said: "With a strong liquidity position, the group is well placed to weather the remainder of this crisis and is very well positioned to recapture the growth opportunities that will accompany the emerging recovery in the private aviation market from the easing of lockdown measures and travel restrictions."
"Despite the challenges posed by the pandemic on the aviation sector we continue to evolve and strengthen our robust and resilient business to address the impact on the group's performance and ensuring the long-term stability of the group whilst remaining poised for renewed growth post pandemic," the group added.
By Greg Roxburgh; [email protected]
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