GMAA.L Share News (GMAA)

(ShareCast News) - Gama Aviation reported 10% revenue growth for the year ended 31 December as it announced the award of two long-term special mission contracts.Total group revenues for the year were up 10% at constant currency compared with 2015, with growth primarily organic and based on a strong overall performance, especially in the second half of the year, with aircraft under management up 12% to 165.Adjusted earnings, excluding exceptional items and amortisation, on a constant currency basis, are in line with market expectations, the company said. Earnings also exclude a material foreign exchange credit, which resulted from the unusually volatile currency fluctuations during the year.Trading in the US Aircraft Management business remained "very robust", delivering strong organic revenue growth of over 20% compared with 2015. Modest margin improvement was also achieved in the year.Meanwhile, US Ground performed well, delivering organic revenue growth of over 10%.Gama said Europe Air continued its steady recovery despite challenging market conditions, following the actions taken by management in late 2015.As far as the contract awards are concerned, the first is a new three-year award for the provision of fixed-wing aircraft maintenance, continuing airworthiness and spare parts for its new Vulcanair P68R fleet. The contract covers the maintenance of four aircraft including daily flight inspections, line maintenance, scheduled maintenance, and the supply of aircraft and mission equipment parts.The second is the award by an existing client of an aerial survey contract for a new initial term of five years. The contract involves the operational management and piloting of the client's aircraft and was awarded following a competitive tender process.Chief executive officer Marwan Khalek said: "We are delighted to be starting the year positively with these two important contract awards, representing over £10m in revenues over the period of the contracts. Both were competitive and wining them reflects our strong special mission capability in the UK both as a primary and secondary contractor. Clients are attracted to our bespoke, turnkey solutions that offer a unique blend of air and ground services which are ideally suited to complex, mission critical, assignments."