GYG Plc (LON:GYG), the market leading superyacht painting, maintenance and supply company, has noted today’s announcement from Harwood Capital LLP that it is no longer considering making an offer for GYG.
Following collaborative discussions throughout the due diligence process, the Board of GYG is in agreement with Harwood’s decision that now is not the appropriate time to progress a potential offer. As such, the Company is no longer in an offer period. The Board welcomes Harwood’s confirmation of its continued support as a significant shareholder in the Company.
As set out in the Group’s interim results for the six months ended 30 June 2021 announced on 30 September 2021, resolution of the previously notified Nobiskrug shipyard administration is a key determinant of the outturn for the current year. GYG is close to reaching contractual resolution on the major refit project and in advanced discussions on the two New Build projects. Once this process is complete, the Board will be in a position to provide a comprehensive update on the 2021 outlook.
In line with previous guidance, based on the Group´s most recent financial forecasts, which include assumptions around contract wins, the timing of revenues, the margins achievable on projects, and a successful resolution to the Nobiskrug situation, the Board believes that the Group can generate sufficient cash to meet its working capital requirements and repay its borrowings as they fall due. As a result, the Board does not believe that it will need to seek additional funding from shareholders in the foreseeable future to maintain operations or to meet its obligations.
In the meantime, GYG plc continues to build its forward order book position, the superyacht market remains on a strong growth trajectory and the Board reiterates its confidence in the medium to longer-term prospects of the business.
