31st Jul 2020 14:11
Gama Aviation PLC - Farnborough, Surrey-based aviation service provider - Revenue up 5.1% to GBP246.9 million in 2019 from GBP234.9 million in 2018. As a result, Gama's pretax loss in the year ended December 31 narrowed to USD11.0 million from USD34.2 million. Gama will pay no dividend for 2019, due to Covid-19 related uncertainties, compared to a 2.00p payout in 2018.
More recently, Gama says underlying trading in the second quarter of 2020 "has progressed in line with management's revised assumptions on cost containment, cash preservation measures and maintaining contracted revenue streams". The exception is Hong Kong-based China Aircraft Services Ltd, in which Gama has a 20% stake. This associate faces reduced volumes as a direct results of Covid-19.
Looking forward, the company has suspended financial guidance for rest of the year, yet remains positive. Chief Executive Marwan Khalek expects business aviation "to benefit disproportionately from a drift to this more secure and private form of air travel" when restrictions are lifted.
Current stock price: 35.00
Year-to-date change: down 44%
By Neetika Kurup; [email protected]
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