‘Modest growth’ for Gama Aviation in first half of 2023
Gama Aviation is reporting modest revenue growth, despite posting strong numbers in the US market in the first half (H1) 2023.
Defined as “steady progress” the board remains cautious on its outlook for H2 2023. Any growth has been against the backdrop a challenging economic and business environment, said the firm. Margins were also impacted by inflationary cost pressures as predicted.
Marwan Khalek, chief executive said: “The H1/23 results demonstrate the progress the Group continues to make in consolidating and building upon the significant improvement in financial performance that has been delivered over the last couple of years. This is the result of our diligent implementation of our organic growth strategy and the optimisation of our operational platform and cost base whilst continuing to deliver our clients’ mission.”
Revenue overall grew by 4% to $145m, up from $139.3m at the halfway mark last year. Gross profit was up 3% to $27.6m whilst gross profit margin was down by 0.2% at 19%. Gama posted adjusted earnings before interest and tax (EBIT) of $0.3m, compared to $1.8m in H1 2022.
Net cash inflow from operations came in at $11.6m down from $15.5m in H1 2022. On the other hand, net debt was $66.1m, whilst net bank debt decreased by $12.3m to $22.5m. As of September 21, 2023 cash balances were $9.1m.
Gama said it will continue focusing on bettering operational performance and controlling costs to help mitigate the impact on margins whilst the inflationary and negative economic conditions persist in the UK.
Khalek added: “These results, delivered against a backdrop of a very challenging economic and business environment, again serve to illustrate the robustness and resilience of our business, as well as the unwavering commitment and dedication of our people to delivering our clients’ mission. Despite this uncertain economic backdrop, the pipeline of business opportunities continues to grow, and the Group remains well positioned for the future.”
