Gamma Aviation's annual results fell short of its expectations and the company adopted a more cautious full-year outlook, citing more 'challenging' market conditions in Europe.
'Given the mixed market conditions, the Board is taking a cautious approach to its 2019 outlook and accordingly expects the financial performance of the Group to deliver an Adjusted EBIT in the range of $10.5m to $11.5m,' the company warned.
The warning comes as the company expected growth in the US to continue through 2019, but more challenging market conditions in Europe, particularly with the continuing uncertainties over Brexit and foreign exchange volatility.
For the Middle East and Asia, absent of any acquisitions, very modest organic growth was expected, the company said.
The sombre outlook on growth comes as the company saw statutory pre-tax losses in 2018 nearly double to $30.8m from $15.7 a year earlier as revenue increased 13.3% to $234.8m/
The company recommended a final dividend of 2 pence per share.
'2018 has been a year of disappointments and of recognising legacy issues. Despite not meeting our financial expectations, the Company has a sound operational platform and in 2018 saw revenue growth in the US Ground and Asia Air Divisions and some modest growth in Europe,' Simon To, Chairman said.
At 9:59am: (LON:GMAA) Gama Aviation Plc share price was +6.5p at 76p