After a challenging 2018, the Global Yachting Group (GYG) has issued a trading update that suggests the “positive momentum” experienced in the first half of 2019 will result in a “profit performance for the full financial year that will be ahead of current market expectations”.
For the period ended June 30, 2019, the superyacht services and supply group indicated that the better prospects were due to a “performance that has been driven by continued improvement across the business”.
GYG also used the trading statement to announce that the group has appointed a new CFO. It said: “After seven years with the Group and successfully leading the finance function through the IPO in 2017, Gloria Fernandez has informed the Board of her intention not to return to the Group after her maternity leave. The Group’s Interim CFO, Kevin McNair, who has been in place during Gloria´s maternity leave, will continue in the role for the foreseeable future.”
The biggest shareholder in GYG at the time of the document filing was Woodford Investment Management Ltd with 26.01%. Millott held 7.01%.
Remy Millott, CEO of GYG, commented: “I am pleased that the momentum we experienced in Q1 continued through Q2 and that the Group performed well across all business units. We are looking forward to a busy Monaco Yacht Show in September and continued market performance through the remainder of 2019.”
This improvement marks a significant change from GYG’s performance in 2018, the full results for which have recently been filed with Companies House, the UK’s business register. These results showed that group revenue fell 28% to €45m compared with €62.6m in 2017. This reflected the following:
- Coating (refit and new build) revenue fell 33.9% to €35m as against €53.7m in FY17
- Supply revenue rose 7% to €9.5m (FY17 €8.9m)
- Adjusted EBITDA loss of €0.9m as against positive €7.2m for FY17
- Operating loss of €4.3m (FY17 operating profit €1.4m) representing a 407% decline
- Net debt position of €6.6m at December 31, 2018 as against €6.7m a year previous
- Cash of €5.1m at December 31, 2018 compared with €6.2m at December 31, 2017
In the filed documents, GYG indicated that despite a challenging 2018 due to a very soft refit market and lower project wins in new build, GYG had a record order book as of March 31, 2019 of €33.8m – €28.5m ahead of the same time in the previous year.
Millott said in his CEO’s report: “2018 proved to be a very difficult year for GYG which is reflected in our year-end results. There are several major factors that explain the lower than expected revenue and profits, the most significant being an unexpected soft refit market and it taking longer than initially expected to sign contract and grow market share in the new build sector.”
August 12, 2019