Market's view on Gama Aviation
Published on April 2024
- Concerns about the lack of additional details regarding the tender offer, with considerations of selling shares due to the uncertain future of the company.
- Discussion on the tender offer at 95p being increased, leading to a potential takeover by MK, with a small number of shares possibly remaining that could lead to a delisting of GMAA.
- Information on GMAA’s subsidiary Flyertech introducing a new service.
- Details of GMAA’s acquisition of UK air ambulance provider Specialist Aviation Services, highlighting the race against time to prevent the cessation of critical air ambulance services in London and Southeast England.
- Financial details from the acquisition of Specialist Aviation Services showing potential for significant revenue increase and synergies post-acquisition.
- Discussion about the CEO’s control over GMAA affecting the company’s governance and operations, noting a high turnover of CFOs.
- Dialogue about GMAA’s financial status including a £16.5m tender offer to buy back shares, historic EBIT alignment, and £82m of net cash at year-end.
- Analysis of GMAA potentially scaling up their helicopter special mission division by acquiring a company forecasted to generate €27m in turnover.
- Mixed opinions on GMAA’s focus on revenue over profitability and concerns about future cash returns potentially being used for further acquisitions.
- Details on discussions for a major acquisition involving a UK-based provider of helicopter emergency medical services and aircraft repairs and maintenance services.
- An update on the commencement of the £65m Welsh Air Ambulance contract, which started earlier than expected.
- Discussion on the distribution strategy for the 55p per share special dividend.
- Analysis of the financial implications of leases, with different perspectives on whether to consider them as debt due to their obligatory nature.