Gama Aviation PLC COVID-19 Update (5166H)
25 March 2020 - 6:03PM
UK Regulatory
TIDMGMAA
RNS Number : 5166H
Gama Aviation PLC
25 March 2020
Date: 25(th) March 2020
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) No 596/2014
Gama Aviation Plc (AIM: GMAA)
("Gama Aviation", "the Company" or "the Group")
COVID-19 Update
Gama Aviation, the global business aviation service provider, is
today updating investors on the Group's approach to the COVID-19
pandemic, the pro-active actions being taken, current trading and
outlook.
The Group's over-riding priority through this period of
disruption is the continued safety of its global workforce and
clients. We continue to operate under the enhanced preventative and
protective measures advised by the World Health Organisation and
national health care agencies.
In parallel with our efforts to protect our people and clients,
the Group is strongly focused on maintaining business continuity.
We have fully implemented our working from home policies and
reduced on site presence to the minimum necessary, in line with
government guidance. All our divisions remain operational and are
delivering services in support of our clients' missions,
particularly for those delivering critical services such as NHS
Scotland, the Ministry of Defence and other government agencies. In
addition, the Group has other longstanding contracts which
contribute recurring revenues.
Additionally, and in view of the uncertain global trading
environment, the Group is taking pro-active and decisive measures
to preserve cash. These measures include but are not limited to;
placing annual pay increases on hold, halting recruitment except
for critical hires to meet contract commitments, reducing or
postponing non-essential expenditure, increasing the emphasis on
credit control and pursuing government-sponsored assistance
measures. These interventions are being reviewed daily and will be
augmented as required.
Current Trading
As the Company's divisions remain operational, the impact on the
Group's revenues has been limited thus far. But with an expected
escalation in COVID-19 cases within the Group, an increasing focus
on containment by national governments and the increased threat of
airport closures, demand for services is now reducing at a
significant rate.
However, the Group benefits from operating to a resilient and
robust business model whereby recurring revenues from long standing
government and other contracts will provide the Group with some
mitigation against the profound impact of the downturn in activity
levels by maintaining critical revenue flows.
Liquidity
The Group retains a USD$50m credit facility with HSBC of which
USD$20m is currently drawn down. The Group currently has USD$9m of
cash on the balance sheet and anticipates further net cash inflow
during the remainder of March, particularly from contracted
payments under government related contracts.
Outlook
Despite the proactive measures the Company is taking and the
underlying resilience of our business model, the COVID-19 crisis is
likely to severely impact the Group's trading performance. However,
due to the fast evolving and unpredictable nature of this pandemic,
the Board does not believe it is possible to forecast the potential
impact with any degree of certainty and that, to do so, could
potentially be misleading. Accordingly, it is no longer providing
financial guidance for the year ending 31(st) December 2020.
Marwan Khalek, Gama Aviation's CEO, said: "Over the past four
decades we have evolved our business model, increased the depth,
breadth and scale of our operations and enhanced the skills and
expertise of our people in an effort to make our business more
resilient to the challenge of periodic economic downturns. The
challenge to our business of the COVID-19 crisis is significant and
we will continue to manage and operate the business diligently and
in the best interest of all our stakeholders in these very
difficult circumstances. Our resilient and robust business model,
the resolve of our people and the loyalty and support of our
clients and shareholders will all be severely tested as we navigate
our way through this unprecedented challenge. I am confident that,
together, we can prevail and emerge stronger."
ENDS
For further information please visit www.gamaaviation.com or
contact:
Gama Aviation Plc +44 (0) 1252 553000
Marwan Khalek, Chief Executive Officer
Daniel Ruback, Chief Financial Officer
Jefferies International +44 (0) 207 029 8000
Simon Hardy
Will Souter
Camarco +44 (0) 203 757 4992
Ginny Pulbrook
Geoffrey Pelham-Lane
Gama Aviation - Notes to Editors
Founded in 1983 on the simple principle of delivering its
clients' missions with passion & dedication, Gama Aviation Plc
(LSE AIM: GMAA) is a highly valued global partner to those who use
aviation as a platform to perform.
The Group has three divisions: Air, Ground & Global
Services. Air services include: aircraft management, special
mission support and charter; with Ground services covering: base
& line aircraft maintenance services, aircraft modification
design and installation and Fixed Base Operations (FBO). Global
Services provides CAM, change management consultancy and industry
leading software.
More details can be found at: https://www.gamaaviation.com/
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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