Gama Aviation shares drop after profits slashed in half-year results
Shares in Gama Aviation dropped by more than six per cent this morning as the company reported that profit halved over six months.
Pre-tax profit dropped from $8.7m (£6.3m) to $3.2m in the six months to June 2017, and underlying profit dropped 5.7 per cent to $6.6m, however the company saw a rise in revenue from $101.6m to $104.6m.
Full-year expectations were unchanged despite the slump, which was caused by challenging market conditions in Europe, the group said.
The European business delivered a flat performance in difficult market conditions, Gama said.
Gama completed a capital raise of £48m in March through the placing of 19.6m shares at 245p each.
The firm also made strategic investments in Asia, secured a new facility at Bournemouth Airport and began investing in a new Business Aviation Centre at Sharjah Airport and new maintainence facilities on the east and west coasts of the US.
Gama Aviation chief executive Marwan Khalek said: "The first half of the year has been a busy period with the equity placing and refinancing completed, and progress across our operations.
"We continue to scale up across all geographies and service lines and develop our pipeline of value enhancing acquisitions. We remain confident in delivering our future growth plans and strategic objectives."