30th Sep 2015 09:47
LONDON (Alliance News) - Business aviation services company Gama Aviation PLC on Wednesday said it swung to a pretax loss in the first half due to one-off costs it booked, as revenue increased following its reverse takeover of Hangar8 PLC late last year.
Gama said its pretax loss for the half to the end of June was USD565,000, compared to a USD1.4 million profit a year earlier, due to it booking USD5.5 million in exceptional costs from the Hangar8 deal. It said the integration of the two companies is on track and said the synergies from the deal will start to flow through in the second half.
Gama said it saw strong organic revenue and margin growth in the US, particularly in its ground operations and said its joint venture in Asia is trading in line with its expectations.
The company said it will not pay an interim dividend but is currently in talks with advisers about a possible capital reduction exercise which would free up funds to pay a dividend at the year end.
"We are very pleased that the first half results have been delivered in line with management's expectations and having handled the challenges that integrations often present, we now enter the second half of the year with full confidence in our ability to grow the business both organically and acquisitively," said Ralph Robins, Gama's chairman.
Shares in Gama were up 2.9% to 301.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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