Gama Aviation PLC on Wednesday said it is recording a solid trading performance in the second half of 2022, following revenue growth in the first six months of the year.

The Farnborough, England-based aviation services company said that despite some variances in the performance across its business units, the overall group adjusted earnings before interest and tax is anticipated to be in line with management expectations, although Gama Aviation didn’t state its forecast.

Back in late September, Gama reported its interim results. In the six months that ended June 30, Gama Aviation recorded an adjusted Ebit of $1.8 million, compared to a loss of $2.7 million a year before, as revenue rose 30% to $139.3 million. Its pretax loss widened to $4.0 million from a loss of $3.6 million a year before.

At December 19, Gama Aviation held a cash balance of $11.7 million, compared to a cash balance of $39.1 million at September 30, and its net debt was $12.5 million.

On September 27, 2022, Gama Aviation reduced it net bank debt to $13.3 million after completing the sale and lease back of its helicopter assets, resulting in a cash inflow of $27 million. These funds, along with cash at hand, were used to repay Gama Aviation’s $32 million balance due on its revolving credit facility, which matured on November 14.

Gama Aviation added that it is progressing negotiations to secure the funds needed to repay its £20 million term loan, which matures at the end of January.

‘The company is also reviewing its mid to long term financing requirements with a view to maintaining low debt levels in what remains a challenging market in terms of both the availability and cost of debt,’ Gama Aviation said.

Gama Aviation shares were down 7.1% to 57.14 pence on Wednesday afternoon in London.

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