Gama Aviation narrows losses as revenues soar
Aviation services provider Gama Aviation saw revenues soar during the first six months of the year, helping it to narrow pre-tax losses for the period.
Pre-tax losses narrowed 25% to $1.8m as revenues shot up 22.5% to $121.8m, driven by the ground division, where revenues and gross profits grew by 31.1% and 28.5% respectively. The group highlighted the expansion of its US ground business and a strong performance in Europe, driven by recent contract wins and enhanced capacity at the new Bournemouth facility.
The performance of its air division remains stable in "a very challenging market environment", it said.
Administrative expenses fell 7.1% to $20.7m, helping to offset a 325% increase in finance costs to $2m.
Adjusted earnings before interest and tax came to $2.9m - a 12.7% year-on-year drop, while net debt skyrocketed 758% to $24.9m in the six months ended 30 June.
Chief executive Marwan Khalek said: "The results for the half-year demonstrate the initial positive impact of the changes we have undertaken to strengthen our operational platform.
"The macroeconomic climate remains challenging but given the resilience of our business and the steps we have undertaken to bring the business back on track, we are pleased to report that the outlook for the full-year 2019 remains in line with the group's previous guidance."
As of 1020 BST, Gama shares had dipped 0.75% to 74.44p.