Gama Aviation scores new European mission contracts

24th Dec 2018 08:36

(Sharecast News) - Aviation services outfit Gama Aviation has been awarded two new contracts, providing steady and profitable revenue growth for the group's European division.Gama's first new contract will see the firm provide maintenance and spare parts logistical support for eight government special mission aircraft from April 2019 through to April 2030 and is expected to deliver revenues of £66m to £88m.The AIM-listed group's second contract, a five-year deal starting July 2019, will see Gama support four special mission aircraft with services ranging from modifications, maintenance and flight operations. Gama expects the deal to deliver revenues of £27.5m.Discussing the contract wins, chief executive Marwan Khalek said: "This is as a direct result of our strategy to continue to build our depth of capability and breadth of service offerings to derive steady and profitable revenue growth for our European division.""These medium and long-term support contracts, which we have a strong track record in winning, significantly improve the forward visibility of our revenues and enhance our earnings in the mid to long term."In other news, Gama revealed it had placed a £20m order for three Airbus H145 helicopters to be delivered in the fourth quarter of its next trading year, with "at least 85%" of the purchase price set to be funded through a loan or lease structure.As of 0835 GMT, Gama shares taken off 1.67% to 118.44p.