TIDMGMAA

RNS Number : 2841V

Gama Aviation PLC

08 August 2022

Date: 8(th) August 2022

The information contained within this announcement is deemed to constitute inside information as stipulated under Article 7 of the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.

Gama Aviation Plc (AIM: GMAA)

("Gama Aviation" or the "Company" or "Group")

Half Year 2022 Trading Update

Gama Aviation is today providing an update on trading for the 6 month period ending 30 June 2022 ahead of the anticipated publication of its half year unaudited interim results by the end of September 2022.

H1/22 Trading

The Group has delivered a solid trading performance in the first half of the year. H1/22 revenues are in excess of $130m (H1/21 $106.4m), up by over 20% on the same period last year, evidencing the continued recovery in activity and the benefits of organic investment and growth.

Gross Profits are expected to be up by more than 22% on the same period last year in line with the revenue growth and slightly improved margins.

Whilst there have been some variances in the expected performance across the business units, the overall Group Adjusted EBIT is expected to be in line with management expectations.

Credit Facilities

Further to the disclosures provided in the 2021 Annual Report and Accounts (the "ARA"), the Company is progressing towards securing the new credit facilities required to replace its current revolving credit facility (the "RCF") and Term Loan (together the "HSBC current facilities"), which mature on 14(th) November 2022 and 31(st) January 2023 respectively.

The Company is pleased to report that it has secured competitive terms for the refinancing of its aircraft assets through operating leases, which are expected to close by the end of September.

The Company does not now expect it will require a replacement facility for its current Term Loan. The Board has determined that a $40m credit facility, rather than the current $50m RCF, will be sufficient to meet the working capital and liquidity needs of the Group going forward and discussions are on-going to secure such a facility.

The Company disclosed in the ARA that it had received indicative terms from HSBC for new facilities, which it was negotiating. Those terms included a condition whereby, CKHH would be required to continue to support the new facilities by providing a Letter of Awareness ('LoA') in similar form to the one that supports the current facilities. While the support provided by CKHH for the HSBC current facilities was a letter of awareness setting out its then present intention only, CKHH believes that it is more appropriate for the Company to secure facilities on a standalone basis rather than relying on the unilateral support of one minority shareholder, it has advised the Company that it will not provide such support beyond expiry dates of the HSBC current facilities.

Consequently, the Company is in active dialogue with HSBC on a proposal to amend and extend the current RCF on a standalone basis, to allow the Company the time necessary to source and secure the appropriate facilities and terms with alternative lenders.

A further update on credit facilities will be provided in the half year results announcement or earlier if appropriate.

Cash and Liquidity

As at 29 July 2022, the Company held cash balances totalling $14.4m in addition to having $18m of undrawn funds remaining on its $50m RCF.

Full Year Outlook

The recovery in activity and revenue growth is expected to continue through the second half of the year with full year Adjusted EBIT expected to remain in line with management expectations.

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Gama Aviation Plc +44 (0) 1252 553 029

Marwan Khalek, Chief Executive

Camarco +44 (0) 20 3757 4992

Ginny Pulbrook

Geoffrey Pelham-Lane

WH Ireland +44 (0) 207 220 1666

James Joyce

Ben Good

Gama Aviation - Notes to Editors

Founded in 1983 with the simple purpose of providing aviation services that equip its customers with decisive advantage, Gama Aviation Plc (LSE AIM: GMAA) is a highly valued global partner to blue chip corporations, government agencies, healthcare trusts and private individuals.

The Group has three global divisions: Business Aviation (Aircraft Management, Charter, FBO & Maintenance), Special Mission (Air Ambulance & Rescue, National Security & Policing, Infrastructure & Survey, Energy & Offshore); and Technology & Outsourcing (Flight Operations, FBO, CAM software, Flight Planning, CAM & ARC services)

More details can be found at: http://www.gamaaviation.com/

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(END) Dow Jones Newswires

August 08, 2022 07:52 ET (11:52 GMT)

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