REG - Gama Aviation PLC - Joint Venture with Peter Bond & Major New Contract

Gama AviationAnnouncement

19/10/2022 17:00

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RNS Number : 4627D  Gama Aviation PLC  19 October 2022

19 October
2022

The information contained within this announcement is deemed to constitute
inside information as stipulated under Article 7 of the Market Abuse
Regulations (EU) No. 596/2014 as it forms part of UK domestic law by virtue of
the European Union (Withdrawal) Act 2018.

Gama Aviation Plc (AIM: GMAA)

("Gama Aviation" or the "Company" or "Group")

Gama Aviation enters into Rotary Special Mission Joint Venture with Peter Bond
and wins Major New Contract in Offshore Helicopter Market

 

 

Gama Aviation Plc, the global aviation services provider, is pleased to
announce that it has entered into a joint venture with Peter Bond to pursue
rotary opportunities as part of the Group's Special Mission SBU (the "Joint
Venture" or "Bond Helicopters Limited").

 

The Joint Venture has won its first contract to support the offshore
operations of an international oil & gas customer in the southern North
Sea for a five-year period (the "Contract").

 

The Joint Venture and this new Contract are central to our strategy to grow
Gama Aviation's position in Rotary Special Mission both onshore and
offshore.

 

Joint Venture

 

Bond Helicopters Limited is structured as a 50:50 equity joint venture.  The
results of Bond Helicopters Limited are expected to be fully consolidated into
the Group's financial statements as part of the Special Mission SBU.

 

The shareholders agreement that the parties agreed to enter into will provide
the Company with the option to call Peter Bond's shareholding in Bond
Helicopters Limited.  This will be valued at the same earnings multiple as
that of the Company at the time the call option is exercised and the
consideration will be the newly issued shares of the Company.  The
shareholders agreement will also provide Peter Bond with an option, after two
years, to put his shares to the Company.  The consideration for the put
option will be in cash and the valuation is conditional on the financial
performance of the Contract with a base level of £1.5m adjusted by the
attributable profit of the Contract.

 

Peter Bond has extensive experience in both fixed and rotary aviation.  He
brings significant sector know-how and expertise having founded and managed
large offshore helicopter businesses, both domestically and internationally,
for some 30 years.

 

New Offshore Contract

 

The new five-year Contract, commencing 1(st) January 2024, is for the supply,
operation and maintenance of five helicopters to support the transportation of
personnel and equipment to and from the offshore installations of a major oil
and gas customer in the southern North Sea.

 

The Contract is expected to deliver overall revenues of c. £130m over its
5-year term with margins consistent with those derived from the Group's other
Special Mission activities.

 

The Company will invest in standing-up the operation, deploying the requisite
capabilities, and other working capital requirements during H2 2023 to enable
the service delivery in January 2024.  This c. £3.5m investment will be
funded from the Group's working capital resources and facilities.  The
helicopters will be procured under operating leases for an equivalent term.

 

Mark Smith, Managing Director, Special Mission, commented:

 

"Our five-year strategic plan for Special Mission, included entry into the
Energy & Offshore market and I am delighted that we have been able to
accelerate the execution of that plan.  Bond Helicopters combines a proven
track record and offshore experience, together with the operational capability
and infrastructure of Gama Aviation's platform giving the Company a clear
differentiator and enhancing our ability to prosecute the opportunities we see
in the offshore market including those in wind, oil & gas and future
decommissioning work."

 

Marwan Khalek, Group CEO, Gama Aviation Plc, commented:

 

"This joint venture and contract award are further evidence of the execution
of our Group's focused growth strategy and marks a significant milestone for
our Special Mission business unit.  As a proven catalyst for driving
shareholder value from the offshore market there can be no greater exponent
than Bond Helicopters.  The Group has enjoyed an excellent working
relationship with Bond Helicopters for over 30 years. Having worked closely
with Peter throughout that period, I am delighted that he has chosen to align
his considerable expertise with those of the Group to help us accelerate our
growth in this important rotary special mission sector, both offshore and
onshore."

 

END

 

Gama Aviation
Plc
+44 (0) 1252 553 029

Marwan Khalek, Chief Executive

 

Camarco
+44 (0) 20 3757 4992

Ginny Pulbrook

Geoffrey Pelham-Lane

 

WH
Ireland
+44 (0) 207 220 1666

James Joyce

Ben Good

 

Gama Aviation - Notes to Editors

 

Founded in 1983 with the simple purpose of providing aviation services that
equip its customers with decisive advantage, Gama Aviation Plc (LSE AIM: GMAA)
is a highly valued global partner to blue chip corporations, government
agencies, healthcare trusts and private individuals.

 

The Group has three global divisions: Business Aviation (Aircraft Management,
Charter, FBO & Maintenance), Special Mission (Air Ambulance & Rescue,
National Security & Policing, Infrastructure & Survey, Energy &
Offshore); and Technology & Outsourcing (Flight Operations, FBO, CAM
software, Flight Planning, CAM & ARC services)

 

More details can be found at: http://www.gamaaviation.com/
(http://www.gamaaviation.com/)

 

 

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