Full year results 2020

Operational Highlights

  • New major contracts won and commenced in Special Missions and Technology & Outsourcing
  • The $33m sale of the Group's US Air Associate
  • Maintained continuous global customer service offering despite COVID-19 related operational challenges
  • Continued focus on improvements in the finance function, processes and systems
  • New divisional structure implemented for 2021 to drive strategy
  • In January 2021, completed the strategically significant expansion of the Group's US Ground MRO activities via the acquisition of Jet East

© 2021 Gama Aviation. Commercial in confidence.

1

Financial Highlights

  • Performance reflects impact of Covid-19 global pandemic on aviation sector through both reduced activity and non-cash impairments
  • Benefits from cost reductions and government support
  • Stable H2 underlying performance in controlled businesses despite reduced levels of Covid-19 related government support
  • Maintained strong cash and liquidity position with $16.1m of cash at year end plus an additional $24.7m of undrawn headroom in the Group's $50m
    RCF

Adjusted Revenue:

↓

Adjusted EBIT:

↓

Loss for the year:

$182.0m

$4.3m loss

$14.7m

Down 26% (2019: $246.8m)

Down 178% (2019: $5.6m profit)

(2019: $11.5m)

Net Debt:

↓

Operating Cash Inflow:

↑

Basic loss per share:

$86.6m

$33.7m

23.2 cents

(2019: $98.0m)

(2019: $1.7m)

(2019: 18.2 cents)

↓

↓

© 2021 Gama Aviation. Commercial in confidence.

2

Adjusted Profit & Loss Account

2020

2019

Change

Revenue

$182.0m

$246.8m

-26%

Gross profit

$36.5m

$39.5m

-7%

Gross profit margin

20.1%

16.0%

+4.1 bps

EBIT

($4.3m)

$5.6m

-$9.9m

(Loss)/profit before tax

($6.7m)

$1.6m

-$8.3m

Tax charge

($1.5m)

($1.1m)

-$0.4m

(Loss)/profit for the year

($8.2m)

$0.5m

-$8.7m

Basic and diluted (loss)/earnings per

(13.0c)

0.7c

-13.7c

share

Notes

  • Revenue affected by Covid-19 through reduced flying hours and ground services
  • Gross profit largely unimpacted by reduced flying hour related revenue in the Air divisions
  • Share of loss of CASL Associate impacts Adjusted EBIT by $3.4m. Excluding CASL, 2020 Adjusted EBIT is a loss of $0.9m (2019: $5.3m profit)

© 2021 Gama Aviation. Commercial in confidence.

3

Divisional Performance - Adjusted

Air Division

Revenue:

$98.4m

(-30%)

Gross profit:

$12.1m

(-7%)

EBIT:

$3.3m

(-25%)

  • Air Division profitability impacted by a pandemic-related reduction in activity contributing to Gross Profit shortfalls
  • Revenues and gross profits benefited from the new air ambulance service contracts for the Government of Jersey and the Government of Guernsey, along with a commission on sale of aircraft in Europe

Ground Division

Revenue:

$80.0m

(-22%)

Gross profit:

$21.5m

(-11%)

EBIT:

$0.7m

(-90%)

  • Reduced maintenance, repair and overhaul and fixed based operations in all regions except Asia, which grew despite the challenges
  • Maintenance hours at core Bournemouth facility increased by 11%
  • $5.5m one-off equipment sales 2019, gross profit effect of $2.9m
  • Closure in 2019 of loss-making Fairoaks business

Global Services Division

Revenue:

$3.6m

(+13%)

Gross profit:

$2.9m

(+22%)

EBIT:

-

(-100%)

  • Launch of new 3 new products
  • $2.5m three-year contract with a large business aviation operator
  • Product development amortisation commenced impacting EBIT by $1.0m

Other EBIT

Associates:

($3.3m)

(-356%)

Central costs:

($5.1m)

(-31%)

  • Loss in CASL
  • Reduced income from US Air Associates associate due to sale in March 2020

© 2021 Gama Aviation. Commercial in confidence.

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Gama Aviation plc published this content on 27 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2021 07:04:02 UTC.