Potential reclassification of 2017 & '18 Accounts

RNS Number : 5711U

Gama Aviation PLC

29 March 2019

 

This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) No 596/2014

29^th March 2019

Gama Aviation Plc (AIM: GMAA)

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

Potential 2017 and 2018 Accounting Re-statements or Re-classifications

During the course of this year's audit and further independent work undertaken by Deloitte LLP, which had been separately commissioned by the Board, two matters have arisen which may require the re-statement or re-classification of the Company's financial statements.

2017

On 5 February 2019, the company announced that it had received two overpayments, in error, from Gama Aviation LLC, its US Air associate. The payment in respect of the year ended 31 December 2017 is now expected to be approximately $5m, not approximately $2m as previously indicated.  This will require the re-statement or re-classification of the balance sheet as at 31 December 2017. This re-statement or re-classification will not impact the income statement for either 2017 or 2018.

2018

The overpayment in respect of the half year end 30 June 2018 of $5.75m may also require a similar re-statement or re-classification in the interim results to be published in respect of the half year ending 30 June 2019. This re-statement or re-classification will not impact the income statement for 2018 or 2019.

The interim results for the half year ended 30 June 2018 included a capital contribution to Gama Aviation LLC, its US Air associate, of $3.6m made during that period. This item was treated as acquisition expenditure and accounted for within Equity Accounted Investments and Other Reserves.  This item is still under consideration but may be treated as an exceptional cost within the 2018 financial statements.

Full year results

Given the time required to consider these matters and conclude the audit, the Company is now intending to announce its results on or before the 24 April 2019 subject to the conclusion of the audit.

For more information contact:

Gama Aviation Plc                                                        [phone]

Marwan Khalek, Chief Executive Officer

David Stickland, Chief Financial Officer

Camarco                                                                        [phone]

Ginny Pulbrook

Geoffrey Pelham-Lane

Jefferies International                                                  [phone]

Simon Hardy

Will Soutar

Gama Aviation - Notes to Editors

Gama Aviation Plc (AIM:GMAA) is a global business aviation services group that specialises in providing support for individuals, corporations and government agencies; allowing them to deliver on the promises they make.  

The Group's services are split into two divisions: Air and Ground. Air services include aircraft management, special mission support and charter.  Ground services cover aircraft maintenance services, aircraft modification design and installation, and Fixed Base Operations (FBO).

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

 

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