Shares in Gama Aviation dive after it reveals nearly $8m accounts overstatement
Shares in Gama Aviation fell nearly 19 per cent this morning after it announced it had made a nearly $8m (£6.14m) overstatement in its accounts .
The company said it had received two overpayments in error from its US associate Gama Aviation LLC for $5.75m and $2m in June 2018 and December 2017 respectively.
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Both were reported in cash and trade creditors in the respective half and full year reporting periods.
Both of the overpayments have now been re-paid in full.
Its shares dropped to 71p this morning, having closed last night on 87p.
The aviation services company has had a rocky time recently, with shares falling steeply in January after it said it expected underlying profits to be $3m below its previous guidance.
The company blamed accounting adjustments from a comprehensive balance sheet review process carried out by its new finance team, changes in accounting treatment of "certain organic investment costs” and lower than forecast trading growth in the final quarter of 2018.
Gama said it expects its 2018 performance to be reflected in 2019 with "continuing growth in the US likely to be offset by the challenging market conditions in Europe".
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