Gama Aviation grows H1 revenue by a third
Gama Aviation’s revenue has increased by almost a third (30%) in its half-year results for the first six months of 2022 compared with the same period in 2021.
The charter and aviation services company reported that its revenue for the first six months to June 30th 2022 was $139.3m, up from $107.3m in the first half (H1) of last year. A significant proportion of this ($20.3m) came from the company’s maintenance, repair and overhaul (MRO) services firm Jet East, which the group acquired in January last year. Due to acquiring the company, Gama spent $244,000 on related costs.
Gross profit also increased by a third (32%) from $22.3m in 2021 to $29.5m, with the gross profit margin up by 0.4 percentage points. Gama’s cash-in-hand increased as well, from $10.2m in H1 last year to $11.4m this year. The firm’s net debts have been reduced from $100.6m to $86.4m.
Marwan Khalek, CEO, Gama Aviation said: “This improvement is underpinned by the group’s focused growth strategy and the continued operational improvements made across the business, demonstrating the continued resilience of the group’s business model.”
Margins are likely to be impacted by inflationary cost pressures and supply chain challenges in the coming months, according to the group, causing the board to “maintain its cautious approach” for the remainder of the year. Despite this, the board said it expects full-year results to be in line with management expectations.
Gama said it continues to pursue the recovery of long-standing trade receivables amounting to about $3m. The litigation has been ongoing for years, involving the founder of Hangar8 (a business which merged with Gama in 2015) Dustin Dryden. Gama and Dryden settled, with Dryden handing over cash and assets worth an undisclosed amount, however Gama announced in its full- year accounts for 2019, published in 2021, that it was still pursuing recoveries.