GYG plc (LON:GYG), the market leading superyacht painting, maintenance and supply company, has announced its audited Final Results for the year ended 31 December 2019.
Financial Highlights
· Group revenue increased 41.8% to €63.8m (FY18: €45.0m)
o Coatings (Refit and New Build) revenue increased 51.5% to €53.7m (FY18: €35.5m)
o Supply revenue up 6.3% to €10.1m (FY18: €9.5m)
· Adjusted EBITDA1 increased to €4.5m (FY18: loss of €0.9m)
· Operating profit of €1.3m (FY18: operating loss of €4.3m)
· Profit before tax increased to €0.8m (FY18: loss of €4.6m)
· Net debt position2 of €8.2m at 31 December 2019 (FY18: €7.8m)
· Cash of €5.5m at 31 December 2019 (€5.1m at 31 December 2018)
Operational Highlights
· Six major contract wins in the New Build sector during the year and €11.2m of New Build revenue generated in 2019 (FY18: €3.7m)
· Significantly improved the Group’s Total Order Book to €42.7m as at 30 June 2020 up from €38.6m at 30 June 2019
· 46% increase in the number of Refit projects undertaken during the year, generating €42.5m of revenue (FY18: €31.8m)
· Expanded customer base and service offering in the Supply division with renewed focus on CRM systems and collaboration with Coatings division
· Entered collaboration agreement with Akzo Nobel to develop and bring to market an application methodology for its new sprayable filler product
· Restructured senior management team to provide greater focus on important drivers including sales, operations and logistics
· Several strategic initiatives implemented to improve gross margins and deliver operational efficiencies
Order Book
The Order Book at 30 June 2020 provides more forward visibility than ever before:
| Order Book at: | Total Order Book | Current Year | Current Year +1 | Forward Order Book |
| 30 June 2018 | €29.9m | €11.2m | €13.1m | €5.6m |
| 30 June 2019 | €38.6m | €15.3m | €18.2m | €5.1m |
| 30 June 2020 | €42.7m | €16.4m | €20.7m | €5.6m |
Outlook and COVID-19
· Encouraging first half of 2020 following 2019 operational improvements and increased levels of activity in both New Build and Refit, providing a robust outlook
· Contingency plans implemented to manage effects of COVID-19 leading to two-week suspension of projects in Spain, UK and France
· Projects in Northern Europe and USA continued with some disruption due to adjustments to operating protocols and travel restrictions
· Majority of operations restored by early May, complying with appropriate health and safety measures
· Bank facilities improved and balance sheet strengthened to provide resilience against COVID-19 uncertainties
· No projects cancelled during COVID-19 period enabling the Group to enter H2 with a record Order Book
· Strong sales momentum in H1 with the signing of several major new Refit contracts for immediate start
| (1) (2) | Adjusted EBITDA is defined as operating profit before depreciation, amortisation, impairment, performance share plan costs and exceptional items. This is an alternative performance measure used by Directors to assess the operating performance of the Group.Net debt position is defined as the net cash and cash equivalent balances, less short and long-term borrowings and obligations under 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 unrecognised revenue from New Build and Refit projects. It does not include revenue already recognised during the year and it does not include any future value for revenue in the Supply division. |
Analyst Conference Call
There will be a conference call/webcast for sell-side analysts at 10:30am BST this morning, the details of which can be obtained from FTI Consulting.
Remy Millott, Chief Executive of GYG plc, commented:
“2019 was a transformational year for GYG and I am pleased that we ended the year with a record Order Book that provides both consistency and sustainability of earnings. Having signed six New Build contracts in the year and further wins in 2020, there is no doubt that management’s focus on the Northern European shipyards has delivered results and helped to offset the seasonality of the Refit market.
Having invested in systems and processes through 2019, the team’s focus for 2020 has been and remains on improving our gross margins to deliver a stronger Group EBITDA performance, along with improving cash flows and reducing debt.
With regard to the COVID-19 pandemic, I would like to thank the team for their professionalism and agility during this time. The health and safety of our staff, suppliers and customers remains our top priority and thanks to the specific improvements made during 2019, we were well equipped to respond quickly and effectively. With the appropriate health and safety measures in place, the projects which were temporarily suspended are now underway and we can continue our high standard of service across our operations.
The Group has had an encouraging first half of 2020 and GYG’s outlook is healthy. Our brands are well positioned to exploit further opportunities both in Europe and the USA to deliver sustainable growth and increasing shareholder value. The Board looks to the future with confidence.”
