GYG plc (LON: GYG), the market leading superyacht painting, supply and maintenance company, has today announced its audited results for the year ended 31 December 2018.
Financial Highlights
* Group revenue of €45.0m (FY17: €62.6m)
– Coating (Refit and New Build) revenue of €35.5m (FY17: €53.7m)
– Supply revenue up 7% to €9.5m (FY17: €8.9m)
* Adjusted EBITDA1 loss of €0.9m (FY17: €7.2m)
* Operating loss of €4.3m (FY17: operating profit of €1.4m)
* Net debt position2 of €6.6m at 31 December 2018 (FY17: €6.7m)
* Cash of €5.1m as at 31 December 2018 (€6.2m at 31 December 2017)
Operational Highlights
* Despite a challenging 2018 due to a very soft Refit market and lower project wins in New Build, GYG had a Record Order Book3 as at 31 March 2019 of €38.8m, €28.5m ahead of the same point in the prior year (€10.3m as of 31 March 2018)
* Higher visibility of income at an earlier stage with increasing New Build income throughout the year. The announcement of three substantial New Builds over 70m+ in length in Northern Europe since the 2018 year end softened the Refit seasonality
* MB92 Barcelona, one of the leading superyacht Refit centers in the world, recently invested in the South of France, acquiring an established shipyard and one of the largest dry docks in Europe, dedicated to superyachts. GYG has signed a new commercial agreement with MB92 Group to extend the current relationship in Spain to their new French operation
* Significant progress has been made in systems, processes and controls across the Group. The Board has also restructured the organisation’s senior and middle management, with more focus on production and gross margins, pipeline, sales and key industry partnerships, combined with improved technology
Outlook
* Current trading in 2019 is in line with expectations after an encouraging start to the year
* The Group has agreed terms on three New Build contracts since the 2018 year end in Northern Europe and the Board expects to see an upturn in Refit business
* Two major yacht facilities in the US are nearing completion of significant site upgrades which are expected to come online in H1 2019. GYG is well placed in both facilities and the Group’s US team is gearing up for additional expansion, with a strengthening of its workforce and management team
1) Adjusted EBITDA is defined as operating profit before depreciation, amortisation, impairment, share based payments and exceptional items. This is an alternative performance measure, that provides an analysis of the operating results excluding non-cash variables and non-recurring items which can vary substantially from company to company. This indicator is widely used by investors when evaluating businesses, rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt
2) Net debt position is defined as the net cash and cash equivalent balances, less short and long-term borrowings and obligations under finance leases. This is an alternative performance measure used by investors, financial analysts, rating agencies, creditors and other parties to ascertain a company’s debt position.
3) Order Book is defined as contracted but unbilled New Build and Refit projects across the Group.
Remy Millott, CEO of GYG plc commented:
“Despite 2018 being a very difficult year for the Group and the wider market, we have made significant progress internally through Q4 2018 following our focus on improving the business and the way in which we operate. The changes we have put in place have provided greater visibility on future revenues, gross margins, sales and pipeline. The systems also ensure management can address any important issues earlier than we have been able to in the past, enabling the team to spend more time with key clients while focusing on winning business from both new and existing customers.
“The strong Order Book position at this stage in the year and the exciting opportunites that we are being presented with, gives the Board confidence for the future where we are focused on delivering long term shareholder value.”
Analyst meeting
There will be a presentation for sell-side analysts at 9:30am this morning, 04 April 2019, the details of which can be obtained from FTI Consulting.
