REG - Gama Aviation PLC - New seven year, £65M Air Ambulance contract award

Gama AviationAnnouncement

22/02/2023 13:15

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RNS Number : 7433Q  Gama Aviation PLC  22 February 2023

22(nd) February 2023

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")

New seven year, £65M Air Ambulance contract award

 

Further to the Company's preferred bidder selection announcement of the 2(nd)
November 2022 and following the conclusion of detailed contractual
negotiations, Gama Aviation Plc, the global aviation services provider, is
pleased to announce an award by the Wales Air Ambulance Charity ("WAAC" or the
"Charity"), of a seven-year contract for the provision of Helicopter Medical
Emergency Service ("HEMS").

 

The new seven-year contract, commencing 1(st) January 2024, is for the
operation and maintenance of five Airbus H145 emergency medical service
helicopters, two of which will be supplied by the Group. A primary fleet of
four helicopters will operate from the WAAC's current facilities in Cardiff,
Caernarfon, Welshpool and Dafen providing comprehensive nationwide HEMS
coverage across Wales.  The fifth helicopter will provide back-up for the
maintenance downtime of the primary fleet to ensure service continuity.

 

This contract is expected to deliver overall revenues of c.£65M over its
7-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 on 1st January 2024.  This c.£2.4M of investment will
be funded from the Group's working capital resources and facilities.  The two
helicopters to be supplied by the Group will be procured under operating or
finance leases for the term of the contract award.

 

Mark Smith, Managing Director, Special Mission, commented:  "We are extremely
pleased to have been awarded this contract by the Charity. We look forward to
working closely with the Charity's team as we stand-up the aircraft, flight,
maintenance crews and other resources that are required to deliver this
important, national, service."

 

Marwan Khalek, Group Chief Executive Officer, commented: "I am delighted that
we will be partnering with the Charity for the next seven years to support the
important service they deliver to communities across Wales.  This contract
award is further evidence of the execution of our Group's focused growth
strategy and marks another significant milestone for our Special Mission
business unit in the air ambulance market."

 

ENDS

 

Gama Aviation
Plc                                                                +44
(0) 1252 553 000

Marwan Khalek, Chief Executive

 

Camarco                                                                                +44
(0) 20 3757 4992

Ginny Pulbrook

Geoffrey Pelham-Lane

 

WH
Ireland
+44 (0) 207 220 1666

James Joyce

Sarah Mather

 

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 & MRO), 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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