Gama Aviation has updated investors on the group's approach to the COVID-19 pandemic, including the proactive actions being taken, current trading and outlook.

The group's overriding priority through this period of disruption is the continued safety of its global workforce and clients. It continues to operate under the enhanced preventative and protective measures advised by the World Health Organisation and national health care agencies.

In parallel with its efforts to protect its people and clients, the group is strongly focused on maintaining business continuity. It has fully implemented its working from home policies and reduced on site presence to the minimum necessary, in line with government guidance. All its divisions remain operational and are delivering services in support of its clients' missions, particularly for those delivering critical services such as NHS Scotland, the Ministry of Defence and other government agencies. In addition, the group has other longstanding contracts which contribute recurring revenues.

Additionally, and in view of the uncertain global trading environment, the group is taking pro-active and decisive measures to preserve cash. These measures include but are not limited to; placing annual pay increases on hold, halting recruitment except for critical hires to meet contract commitments, reducing or postponing non-essential expenditure, increasing the emphasis on credit control and pursuing government-sponsored assistance measures. These interventions are being reviewed daily and will be augmented as required.

As the company's divisions remain operational, the impact on the group's revenues has been limited thus far. But with an expected escalation in COVID-19 cases within the group, an increasing focus on containment by national governments and the increased threat of airport closures, demand for services is now reducing at a significant rate.

However, the group benefits from operating to a resilient and robust business model whereby recurring revenues from long standing government and other contracts will provide the group with some mitigation against the profound impact of the downturn in activity levels by maintaining critical revenue flows.

The group retains a USD$50 million credit facility with HSBC of which USD$20 million is currently drawn down. The group currently has USD$9 million of cash on the balance sheet and anticipates further net cash inflow during the remainder of March, particularly from contracted payments under government related contracts.

Despite the proactive measures the company is taking and the underlying resilience of our business model, the COVID-19 crisis is likely to severely impact the group's trading performance. However, due to the fast evolving and unpredictable nature of this pandemic, the board does not believe it is possible to forecast the potential impact with any degree of certainty and that, to do so, could potentially be misleading. Accordingly, it is no longer providing financial guidance for the year ending 31st December 2020.

CEO Marwan Khalek says: “Over the past four decades we have evolved our business model, increased the depth, breadth and scale of our operations and enhanced the skills and expertise of our people in an effort to make our business more resilient to the challenge of periodic economic downturns. The challenge to our business of the COVID-19 crisis is significant and we will continue to manage and operate the business diligently and in the best interest of all our stakeholders in these very difficult circumstances. Our resilient and robust business model, the resolve of our people and the loyalty and support of our clients and shareholders will all be severely tested as we navigate our way through this unprecedented challenge. I am confident that, together, we can prevail and emerge stronger."