Gama Aviation PLC reported “solid” performance on Monday as it expects revenue to increase by more than 20% as well as an increase in gross margin, while negotiating new credit facilities.
For the six months ending June 30, the Farnborough, England-based aviation services company reported revenue of over $130 million, an increase of around 22% from $106.4 million of the previous year, which shows the continued recovery of its activities.
Looking ahead, Gama Aviation expects gross profit to grow more than 22% year-over-year, in line with revenue growth and improved margins , did he declare. Adjusted earnings before interest and taxes are expected to be in line with management’s expectations, despite some variances in expected performance between its business units.
In addition, Gama Aviation expects a continued recovery in business and revenue growth in the second half of the year.
The company is seeking to replace its revolving credit facility and term loan which mature in November and January respectively. It is progressing towards securing new facilities and is in “active dialogue” with HSBC on a proposed extension of the current revolving credit facility, to allow sufficient time to secure the new facility with alternative lenders.
The aeronautical services company will publish its interim results by the end of September.
Gama Aviation shares fell 2.7% to 55.00 pence in London on Monday afternoon.
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