Gama Aviation’s profit up 33% after ‘transformative effect of Jet East acquisition’

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by Mike Stones

June 9, 2023

Gama Aviation has posted gross profit up 33% to $55.1m and revenue up 21% to $285.6m, after praising the “transformative effect” of its Jet East acquisition, in audited results for the year ended December 31st 2022.

Adjusted EBITDA profit was up $11.1m to $22.9m while adjusted EBIT profit climbed $13.1m to $8.8m. The company reported net cash inflow from operating activities of $31.4m compared with $5.2m in the previous year. A loss of $1.4m was reported for the year down from a loss of $6.3m in 2021.

Marwan Khalek, chief executive, Gama Aviation welcomed the group’s improved revenue and EBITDA performance in core markets and highlighted the contribution of US maintenance, repair and overall (MRO) company Jet East. “It is particularly pleasing to see the transformative effect the addition of Jet East has had to our US MRO business and how the additional focus we’ve placed on the Special Mission sector will deliver future financial performance through the capture of attractive multi-year contracts,” said Khalek.

Part of its Business Aviation strategic business unit, Jet East was acquired in 2021. Gama highlighted continued investment in airport infrastructure with the acquisition of a hangar in Statesville, North Carolina, to provide additional capacity and fuel further organic growth. It also noted strong US sales of aviation, enterprise resource planning software products in its Technology and Outsource unit.

Two contract wins in the fourth quarter of 2022 achieved by its Special Mission strategic business unit also boosted the company’s full-year financial performance, according to the results statement. These were the award of seven-year, five-aircraft contract with the UK Air Ambulance Charity and a North Sea offshore, multi-aircraft contract with Bond Helicopters running for five years. (Bond Helicopters is the group’s joint venture with Peter Bond, launched to target opportunities within the UK offshore energy market).

Khalek said the business would continue to build “positive momentum” this year despite the challenging environment. That was despite the challenging environment created by the high inflation, high interest rates and the uncertainties arising from the “protracted conflict in Europe”.

Meanwhile, in a separate development, Gama Aviation has won the tender for the construction of a new hangar to be built at Jersey Airport work from Ports of Jersey. The 60,000sqft (5,574sqm) facility its expected to take up to two years to complete and is subject to planning approval. The plans are said to include provision for new facilities to transfer patients by air ambulance, aircraft servicing space and a terminal for private jet passengers. (Pictured is a Citation XLS).

Gama Aviation 2022 results – at a glance