If the name Gama Aviation (GMAA) doesn't ring any bells, cast your mind back to December 2014 when Hangar 8 announced a reverse takeover of its larger rival. Management has worked fast to integrate the two companies ahead of the 30 June period-end, which explains why the first-half numbers are confusing. If the companies had been merged in the prior period, revenues would have shown growth of 22 per cent, with underlying cash profits up 74 per cent to $8.2m (£5.4m).
That reflected strong organic growth in the US air and EU ground divisions. The Asian and Middle East businesses remain in start-up phases, with the latter due to break even in future periods. So far, the takeover has involved $2m in one-off restructuring costs.
But the most eye-catching feature of these results was the resignation of Hangar 8 founder Dustin Dryden with immediate effect to pursue what the company calls "non-competing business interests". Before he goes, Mr Dryden has agreed to underwrite $2m worth of uneconomic contracts which were entered into with customers who had mutual business interests with Mr Dryden.
Based on the enlarged company structure, analysts at Cantor Fitzgerald expect pre-tax profits of $18.1m this year, giving EPS of 35.7ȼ.
| GAMA AVIATION (GMAA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 308p | MARKET VALUE: | £132m | |
| TOUCH: | 300-315p | 12-MONTH HIGH: | 378p | LOW: 253p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 118ȼ* | NET CASH: | $9.6m | |
| Half-year to 30 June | Turnover ($m) | Pre-tax profit ($m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2014 | 89.4 | 1.4 | 4.7 | nil |
| 2015 | 115.1 | -0.6 | -2.4 | nil |
| % change | +29 | - | - | - |
Ex-div:na Payment:na *Includes intangible assets of $48.9m, or 114ȼ a share £1 = $1.51 | ||||
