GYG PLC Half Year Trading Update (3806U)
12 Juli 2018 - 8:00AM
UK Regulatory
TIDMGYG
RNS Number : 3806U
GYG PLC
12 July 2018
12 July 2018
GYG plc
("GYG", the "Company" or the "Group")
Half year trading update
GYG (AIM: GYG), the market leading superyacht painting, supply
and maintenance company, today provides the following trading
update for the six months ended 30 June 2018.
Trading has been significantly weaker than expected in the first
half of the year due to lower than expected project wins in New
Build and some additional delays in anticipated Refit contracts
resulting in revenue for the six months ended 30 June 2018 of
approximately EUR25.1 million and approximately breakeven at the
adjusted EBITDA level. However, the Company has an Order Book that
is expected to be completed during 2018 of EUR12.1 million with a
pipeline of potential 2018 projects of EUR146 million, including
EUR25 million made up of high probability prospects. The result for
the Supply division is expected to remain consistent over the
period. As a consequence, the Group expects full year revenue to be
flat on 2017 and adjusted EBITDA to be materially below the Board's
expectations at approximately EUR5 million.
New Build
The Company is pleased to announce two substantial New Build
contracts in Northern Europe alongside the previously announced REV
182 project. These contract wins further highlight the Group's
progress in winning market share in the New Build sector and there
are a number of additional contracts in negotiations for 2019 and
2020. The three confirmed New Build orders are:
-- a circa 140 metre superyacht due to start in early 2019. This
is a significant opportunity as there are only 11 superyachts in
the world which are over this size;
-- a circa 94 metre superyacht due to start in Q4 2018; and
-- the previously announced Letter of Intent with the owner of
'REV 182', the world's largest research and expedition vessel
currently under construction.
However, the Company also bid on a number of material New Build
contracts during H1 2018 which were unsuccessful and, given the
size of these contracts, this has had a significant impact on
revenue and reduced the Company's activity during the summer peak
cruising period, when it typically undertakes less Refit work.
To date, the Company has relied more on its relationships with
existing owners commissioning new boats to win New Build business,
however management has worked hard to develop stronger
relationships with New Build yards and the team has spent
significant time meeting with these shipyards in the first half of
the year in order to secure work on new vessels coming on stream.
As a result of these endeavours, the New Build Order Book currently
stands at EUR13.4 million for 2019 and EUR5.6 million for 2020. For
comparison, at the half year in 2017, the 2018 New Build Order Book
stood at EUR1m.
Refit
In Refit, the Company has seen part of the work previously
scheduled in the second half of 2017, that was impacted by the
extraordinary sequence of hurricanes, flow through into the first
half of this year, with the remainder falling in the second half
and in some cases into 2019. However, the expected benefit of the
2017 contract deferrals has been offset by delays in projects that
were originally scheduled for H1 2018. Despite these challenges,
the second half of the year has started well and there are some
multi million euro Refit contracts in the pipeline, with others
already in the Order Book.
Whilst the first half of 2018 has been challenging for the Group
and the wider industry, the Board is reassured by the significant
momentum that is visible in the Company.
GYG will report Interim Results for the six months ended 30 June
2018 on 20 September 2018.
Remy Millott, CEO of GYG commented:
"Despite the first half of the year being difficult for the
Group and the industry as a whole, we remain confident that the
superyacht refit market is returning to normal trading patterns. In
accordance with our unchanged strategy since listing on AIM in July
2017, we have made significant progress in winning contracts in the
New Build sector and this, combined with large Refit contracts in
the pipeline for 2019, ensure that we are well placed to take
advantage of the many opportunities that are being presented."
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
For further information:
GYG plc via FTI Consulting
Remy Millott, Chief Executive Tel: +44 (0) 20 3727 1000
Officer
Gloria Fernandez, Chief Financial
Officer
Zeus Capital Limited (NOMAD & Tel: +44 (0) 20 3829 5000
Broker)
John Goold
Giles Balleny, Dan Bate
FTI Consulting (Financial PR) Tel: +44 (0) 20 3727 1000
Alex Beagley
Fiona Walker
Laura Saraby
Notes to Editors:
GYG is the market leading superyacht painting, supply and
maintenance company, offering services globally through operations
in the Mediterranean, Northern Europe and the United States. The
Company's brands include Pinmar, Rolling Stock, Pinmar Supply,
Pinmar USA, Techno Craft and ACA Marine. GYG's operations can be
divided into three key sales channels:
-- Refit: repainting and finishing of superyachts, normally as
part of a refit programme. Revenues also include scaffolding and
containment work;
-- New Build: fairing and painting of new vessels as part of the build process; and
-- Supply: selling and delivery of maintenance materials,
consumables, spare parts and equipment primarily to trade
customers.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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