GYG Plc (LON: GYG), the market leading superyacht painting, supply and maintenance company, has today provided the following trading update for the year ended 31 December 2018.
The Board has today reported that the Group’s trading performance in the last two months of the year, since the trading update announced on 31 October 2018, has improved. As a result, the Group now expects to report revenue for the year ended 31 December 2018 marginally ahead of current market expectations. Revenue is expected to be no less than €44.7m resulting in an Adjusted EBITDA* loss of no more than (€0.95m).
There is no doubt that 2018 was a disappointing year for GYG and the wider industry as a whole. However, the Group has made excellent progress through Q4, winning work from both new and existing clients. The Total Order Book on 21 January 2019 of €33.9m was 61% ahead of the same point in the prior year (21 January 2018: €21.0m). The Order Book for 2019 is currently €25.3m which is a 54% increase when compared to an Order Book for 2018 at the same point in the year of €16.4m. The breakdown of the Order Book is:
|
Order Book at: |
Total |
2018 |
2019 |
2020+ |
|
21 January 2018 |
€21.0m |
€16.4m |
€0m |
€4.6m |
|
21 January 2019 |
€33.9m |
– |
€25.3m |
€8.6m |
The increase in Order Book has greatly improved two year forward visibility and is in the large part due to the New Build strategy the Group has been focusing on through 2018 and into 2019. This strong Order Book position so early in the year is reinforced with good New Build revenue spread throughout the year to mitigate some of the annual Refit seasonality. Further details will be provided on the Order Book in the Group’s Final Results for the year ended 31 December 2018, which are due to be released on 4 April 2019.
(*) Adjusted EBITDA is defined as EBITDA before exceptionals and share based payments.
Remy Millott, CEO of GYG plc commented:
“I am pleased with the Order Book position at this stage in the year and the team is busy engaging with clients across the industry.
“Despite 2018 being a very difficult year for the Group and the wider market, we have made significant progress internally through Q4 2018 to improve the business and how we operate. The changes we have put in place allow us to track operations on a more granular level and provide greater visibility on revenues, gross margins, sales and pipeline. The system also ensures management can address any important issues much earlier than we have been able to in the past. This will enable the team to spend more time with key clients while focusing on winning business from both new and existing customers. I look forward to providing a more detailed update on Q1 when we report our Final Results in April 2019.”
