24th Jan 2019 09:50
LONDON (Alliance News) - Shares in Gama Aviation PLC plunged on Thursday as the company guided for its annual profits to be lower than expected.
Gama shares were trading down 23% at 88.00 pence each.
For 2018, the aviation services provider expects adjusted operating profit to be USD3 million below its previous guidance. At the end of October, Gama already guided for a USD3 million operating profit drop. In 2017, the firm generated underlying operating profit of USD18.7 million.
The company blamed the expected profit drop on changes in accounting, lower than expected share of associates profits and "positive" but lower than forecast fourth quarter trading.
Gama's board is now conducting a "thorough and full review" of its financial reporting methodology, in order to simplify it and improve the consistency of financial information.
For 2019, the company said it is taking a "cautious approach" and expects its performance to be flat on 2018.
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