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Gama Aviation shares cleared for take-off

The purchase of privately-owned, Jersey-based Aviation Beauport is expected to be earnings enhancing.
Gama Aviation shares cleared for take-off
Pictured is the Challenger 604 - the type of aircraft used by Gama.

Shares in the aircraft charter specialist Gama Aviation (LON:GMAA) were on the runway and cleared for take-off after it unveiled the £5.2mln takeover of one of its rivals and secured a £10mln debt facility.

The purchase of privately-owned, Jersey-based Aviation Beauport is expected to be earnings enhancing.

Last year the business generated underlying earnings (EBITDA) of £725,000 on turnover of £6mln. The book value of its assets is £2mln and AB is sitting on around £650,000 of cash.

Chief executive Marwan Khalek said: "This earnings enhancing bolt on acquisition is an excellent strategic fit for the group and allows us to extend our product offering in both our European Air and ground operations.

“It will also provide unique access and opportunity to be of service to the large number of high net worth individuals who reside in Jersey thereby providing potential growth in customers."

Separately, Gama said it had agreed a new £10mln credit line with the state-owned Royal Bank of Scotland, which includes an £8mln revolving facility.

The shares, down around 17% in the last year, were changing hands for 277p each in early trade, which represents a rise of around 2%

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