Gama Aviation PLC Contract Awards (3627L)
December 24 2018 - 2:00AM
UK Regulatory
TIDMGMAA
RNS Number : 3627L
Gama Aviation PLC
24 December 2018
24(th) December 2018
Gama Aviation Plc
("Gama", the "Group" or the "Company")
Contract Awards
Gama Aviation Plc ("Gama"), one of the world's largest business
aviation service providers, is pleased to announce the following
special mission contract awards within its European Air &
Ground divisions.
The first, an 11-year contract commencing 1(st) April 2019, is
for the provision of maintenance and spare parts logistical support
for eight government special mission aircraft and is for
substantially the same scope of services and terms as the Company
currently provides under a similar contract that is due to expire
on 31(st) March 2019. The contract is expected to deliver revenues
of between GBP66m and GBP88m over the period.
The second, a new 5-year contract commencing 1(st) July 2019, is
to support four special mission aircraft by drawing upon a range of
specialist services unique to Gama Aviation's holistic business
model including aircraft modifications, maintenance and flight
operations. This new contract is expected to deliver overall
revenues of approximately GBP27.5m over the 5-year term.
The combined effect of both contracts is expected to be neutral
to earnings in 2019 and accretive thereafter.
Finally, the Company is pleased to report that it has placed a
GBP20m firm order for 3 Airbus H145 Helicopters to be delivered in
Q4 2019. The helicopters will be deployed in support of an existing
long term contract from the 1(st) June 2020 when the Company will
be delivering the rotary element of the service directly rather
than through its current sub-contractor. It is expected that at
least 85% of the purchase price will be funded through a
traditional loan and/or lease structure.
The Company's CEO, Marwan Khalek, commented;
"We are delighted with these contract awards which endorse the
Company's strength in the UK special mission market segment. This
is as a direct result of our strategy to continue to build our
depth of capability and breadth of service offerings to derive
steady and profitable revenue growth for our European division.
These medium and long-term support contracts, which we have a
strong track record in winning, significantly improve the forward
visibility of our revenues and enhance our earnings in the mid to
long term."
Ends
For further information please visit www.gamaaviation.com or
contact:
Gama Aviation Plc +44 (0) 1252 553029
Marwan Khalek, Chief Executive Officer
Camarco +44 (0) 20 3757 4992
Ginny Pulbrook
Geoffrey Pelham-Lane
Jefferies International +44 (0) 207 029 8000
Simon Hardy
Will Soutar
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Gama Aviation - Notes to Editors
Gama Aviation Plc (AIM:GMAA) is a global business aviation
services group that specialises in providing support for
individuals, corporations and government agencies; allowing them to
deliver on the promises they make.
The Group's services are split into two divisions: Air and
Ground. Air services include aircraft management, special mission
support and charter. Ground services cover aircraft maintenance
services, aircraft modification design and installation, and Fixed
Base Operations (FBO).
More details can be found at: http://www.gamaaviation.com/
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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