TIDMYCO
RNS Number : 4453O
YCO Group PLC
19 September 2011
19 September 2011
YCO Group Plc
Interim results for the six months ended 30 June 2011
YCO Group plc ("YCO", the "Company" or the "Group"), a leading
provider of specialist services to superyachts, today announces its
unaudited interim results for the six months ended 30 June
2011.
Financial Highlights
-- Revenue up 22.5% to GBP14.4m (2010: GBP11.8m)
-- Gross Profit increased by 20.5% to GBP4.7m (2010:
GBP3.9m)
-- Operating Profit for Continuing Activities before Finance
Costs and Tax GBP647,000 (2010: GBP633,000)
-- Earnings per share at GBP0.004p (2010: GBP0.008p)
Operational Highlights
-- Sale of Yacht Fuel Services trade and assets to World Fuel
Services for GBP1.75 million in June
-- Enhanced performance from the charter brokerage and sales
division
-- Number of contracted yachts for YCO management increased
10.3% to 64 (2010 year end 58)
-- Number of weeks of charter booked already at 162 (H1 2011)
compared to 175 (FY 2010)
Charlie Birkett, Chief Executive, commented:
"These results reflect a number of very positive developments
that were achieved during the first half, which enabled the Company
to enhance/improve its market position. Through the sale of sale of
Yacht Fuel Services, the Company strengthened its balance sheet and
consolidated its proposition as a leading superyacht broker. This
consolidation, combined with the Company's recent hires, will
ensure YCO can continue to build going forward. As a result of
these developments, the Company has embarked on a strategic
marketing programme to enhance our profile globally. We are
confident that these initiatives will translate into increased
numbers of enquiries and long term YCO clients as the wider
macroeconomic environment improves."
For further information please contact:
YCO Group plc Tel: +377 93 50 12 12
Charlie Birkett, Chief Executive
Arbuthnot Securities Limited Tel: + 44 (0)20 7012 2000
Tom Griffiths / Ed Groome
Media Enquiries - Hudson Sandler Tel: + 44 (0)20 7796 4133
Charlie Jack / Nathan Field
YCO Group Plc
Interim results for the six months ended 30 June 2011
Chairman's Statement
I am delighted to report that the Group has delivered a strong
set of results for the first half of 2011.
Despite continued uncertainty in the wider economy, the Group
has made good progress as a result of the significant restructuring
programme initiated in 2009 which has continued with the sale of
Yacht Fuel Services, further streamlining of the Group's services
to focus on our core areas of expertise in the markets of yacht
management and brokerage. The Group's continual development of its
services and the strengthening of teams across all divisions
remains a key focus for 2011. The superyacht and luxury tourism
markets continue to show signs of gradual recovery and combined
with the significant progress YCO has made as a result of its
restructuring and development programme, the Company has the
confidence to invest heavily in innovative brand and marketing
strategies to re-enforce its position as a leader in the superyacht
services market.
On behalf of the Board I would like to thank all our staff for
their continued professionalism and dedication, which has been
critical in returning the Group to financial health and creating
the foundations for the Group's future success.
YCO Group Plc
Interim results for the six months ended 30 June 2011
CEO's Statement
I am pleased with the Group's performance in all areas during
the first six months of 2011. Significant increases in revenue, up
22.5% to GBP14.4m, and Gross Profit, up 20.5% to GBP4.7m, were
supported by a positive contribution in all the divisions.
The number of yachts contracted across all departments has
increased by 10%, slightly ahead of our expectations. Sales of
superyachts during the first six months were in line with the
Board's expectations. During the period our clients have signed
contracts for several significant yacht construction projects at
leading European shipyards with which YCO will be involved for the
duration of the build. YCO's involvement in these projects
demonstrates our ability to manage all key areas from yacht
construction, through to management, charter and sales. The
management department continues to steadily increase its market
share, attracting new boats to the fleet each month.
Charter activity has been in line with our expectations and the
recruitment of a highly respected sales and charter team late in
2010 has given the Company additional momentum in our core markets.
With additional personnel due to be joining YCO in September, we
anticipate continued performance improvements from these teams.
To support our core services, the Group has developed its
Concierge division and during the period entered into an agreement
with global concierge provider Quintessentially, which has enabled
a much improved support service to contracted yachts and charter
clients. YCO Crew recruitment has returned its headquarters to
Antibes where it now operates with additional personnel who have
joined in the first six months of the year.
As a result of these positive developments achieved during the
first half, the Company has the confidence to further develop the
strategic marketing programme that was started in the first half of
2011. This programme will ensure that YCO's highly respected
services and brand are recognised globally by the increasing number
of people who buy and charter superyachts. The Company is confident
that these initiatives will translate into increased number of
enquiries and long term YCO clients as the wider macroeconomic
environment improves. This programme will support the strengthened
brokerage teams ahead of the forthcoming Monaco Yacht Show, where
YCO will have significant presence. As a result we look to build on
the significant progress made in the first half and look forward
with confidence.
Charlie Birkett
Chief Executive
Condensed Consolidated Income Statement
For the six months ended 30 June 2011
Continuing Discontinued Total
operations Operation 6 months
YCO Group YFS* 30/06/11
Note Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000
Revenue 5,353 9,105 14,458
Cost of sales (1,146) (8,594) (9,740)
Gross profit 4,207 511 4,718
Administrative expenses (3,560) (300) (3,860)
Loss on disposal of trade
and assets of YFS 7 - (220) (220)
Operating profit/(loss) 647 (9) 638
Finance costs (317)
Profit before tax 321
Taxation (144)
Profit for the period 177
===========
Earnings per share
Basic GBP0.0037p
Diluted GBP0.0035p
* YFS represents the results of disposal of the trade and assets
of YFS during the period.
Due to the disposal of YFS, comparative numbers have been re-presented
to reflect that these are discontinued items. Further information
on the transaction is given in note 7.
Condensed Consolidated Income Statement
For the six months ended 30 June 2010
Continuing Discontinued Total
operations Operation 6 months
YCO Group YFS 30/06/10
Unaudited Unaudited Unaudited
Note GBP'000 GBP'000 GBP'000
Revenue 5,685 6,142 11,827
Cost of sales (2,026) (5,852) (7,878)
Gross profit 3,659 290 3,949
Administrative expenses (3,026) (147) (3,173)
Operating profit 633 143 776
Finance costs (243)
Profit before tax 533
Taxation (149)
Profit for the period 384
===========
Earnings per share
Basic GBP0.0080p
Diluted GBP0.0076p
Condensed Statement of Comprehensive Income
For the six months ended 30 June 2011
6 months 6 months 12 months
ended ended ended
30/06/11 30/06/10 31/12/10
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Profit for the period 177 384 491
Other comprehensive income:
Foreign exchange translation
differences 39 (50) (15)
Total comprehensive income for
the period 216 334 476
=========== =========== ==========
Total comprehensive income attributable
to:
Equity shareholders of the company 216 334 476
=========== =========== ==========
Condensed Consolidated Statement of Financial Position
As at 30 June 2011
At 30/06/11 At 30/06/10 At 31/12/10
Unaudited Unaudited Audited
GBP'000 GBP'000 GBP'000
Non -current assets
Goodwill 13,436 15,233 15,231
Intangibles 293 235 222
Property, plant and equipment 594 420 478
Total non-current assets 14,323 15,888 15,931
------------ ------------ ------------
Current assets
Inventories - 3 -
Trade and other receivables 4,155 3,738 3,341
Cash and cash equivalents 1,383 786 505
Total current assets 5,538 4,527 3,846
------------ ------------ ------------
Current liabilities
Trade and other payables 3,214 4,619 3,913
Financial liabilities - borrowings
and interest bearing loans 22 22 18
Current taxes payable 610 169 97
Total current liabilities 3,846 4,810 4,028
------------ ------------ ------------
Net current assets/(liabilities) 1,692 (283) (182)
Non-current liabilities
Financial liabilities - borrowings
and interest bearing loans 49 7 -
Net assets 15,966 15,598 15,749
============ ============ ============
Condensed Consolidated Statement of Financial Position
(continued)
As at 30 June 2011
At 30/06/11 At 30/06/10 At 31/12/10
Unaudited Unaudited Audited
Note GBP'000 GBP'000 GBP'000
Equity and reserves
Share capital 8 170 168 168
Share premium 15,379 15,209 15,209
Retained earnings 417 133 240
Other reserves - 162 171
Translation reserve - (74) (39)
Total equity 15,966 15,598 15,749
===== ============ ============ ============
Condensed Consolidated Statement of Statement of Changes in
Equity
For the six months ended 30 June 2011
Share Share Retained Other Translation
capital premium earnings reserves reserve Total
Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2011 168 15,209 240 171 (39) 15,749
Comprehensive
income for
the period - - 177 - 39 216
Share issue 2 170 - (171) - 1
At 30 June
2011 170 15,379 417 - - 15,966
========= ========= ========= ========= =========== =========
At 1 January
2010 168 15,209 (251) 195 (24) 15,297
Comprehensive
income for the
period - - 384 - (50) 334
Exchange
difference
expense - - - (33) - (33)
At 30 June 2010 168 15,209 133 162 (74) 15,598
======== ======== ======== ======== ======== ========
Audited Audited Audited Audited Audited Audited
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2010 168 15,209 (251) 195 (24) 15,297
Comprehensive
income for the
period - - 491 - (15) 476
Equity to be
issued - - - (24) - (24)
At 31 December
2010 168 15,209 240 171 (39) 15,749
======== ======== ======== ======== ======== ========
Condensed Consolidated Statement of Cash Flows
For the six months ended 30 June 2011
6 months
ended 6 months 12 months
30/06/11 ended 30/06/10 ended 31/12/10
Unaudited Unaudited Unaudited
Note GBP'000 GBP'000 GBP'000
Cash flows from
operating activities
Cash generated from
operations 6 271 604 837
Finance costs (317) (246) (401)
Corporation tax paid - - (20)
Net cash
(outflow)/inflow
from operating
activities (46) 358 416
----------- ---------------- ----------------
Cash flows from
investing activities
Purchase of
intangibles (172) (67) (113)
Purchase of plant and
equipment (178) (20) (278)
Proceeds from sale of
tangible assets 14 15 13
Net proceeds from
disposal of YFS 7 1,312 - -
Interest received - 3 5
Net cash
inflow/(outflow)
from investing
activities 976 (69) (373)
----------- ---------------- ----------------
Cash flows from
financing activities
Repayment of loan to
related parties - (52) (66)
Repayment of finance
lease (52) (11) (22)
Net cash outflow from
financing
activities (52) (63) (88)
----------- ---------------- ----------------
Net increase in cash
and cash
equivalents 878 226 (45)
=========== ================ ================
Cash and cash
equivalents at
beginning of period 505 560 560
Foreign exchange
currency
translation - - (10)
Cash and cash
equivalents at end
of year 1,383 786 505
=========== ================ ================
Represented by: Cash
at bank and in hand 1,383 786 505
Notes to the Condensed Consolidated Financial Statements
For the six months ended 30 June 2011
1. General information
YCO Group Plc is a company incorporated in England and Wales and
quoted on the Alternative Investment Market ("AIM") of the London
Stock Exchange.
2. Basis of preparation
This consolidated interim financial information has been
prepared in accordance with International Financial Reporting
Standards ("IFRS") as adopted by the European Union and on the
historical cost basis, using the accounting policies which are
consistent with those set out in the Company's Annual Report and
Accounts for the year ended 31 December 2010. This interim
financial information for the six months to 30 June 2011, which
complies with IAS 34 'Interim Financial Reporting', was approved by
the Board on 15 September 2011.
3. Significant accounting policies
Except as described below, the accounting policies applied are
consistent with those of the annual nancial statements for the year
ended 31 December 2010, as described in those annual nancial
statements.
Taxation
Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual
earnings.
Finance costs
Finance costs have been reclassified to include all such costs
related to the financing of the Group that do not arise from the
operating activities of the group, such as costs associated with
the Group's listing on AIM. This represents a change in the
classification of these expenses compared to the annual financial
statements and has been conducted to improve the relevance of the
presentation. The effect of this change has been to increase
finance costs and decrease operating costs by GBP298,000,
GBP237,000 and GBP383,000 for the respective accounting periods
ended 30 June 2011, 30 June 2010 and 31 December 2010.
Significant accounting policies
These condensed consolidated interim Financial Statements are
unaudited and have been prepared on the basis of accounting
policies consistent with those applied in the Consolidated
Financial Statements for the year ended 31 December 2010.
There are no new standards effective for the first time in the
current financial period with significant impact on its
consolidated results or financial position.
4. Segmental analysis
The chief operating decision-maker has been identified as the
senior management. They review the Group's internal reporting in
order to assess performance and allocate resources. Management has
determined the operating segments based on these reports.
The senior management considers the business from both a
geographic and service perspective. From a service perspective,
management assesses the performance of support services and client
services.
-- Support services; includes the crew recruitment services,
human resource consultancy and included the Yacht Fuel Services
(YFS) distribution services until the trade and assets were sold on
23 June 2011.
-- Client services; includes the yacht brokerage and charter
services, yacht construction and maintenance consultancy services
and also includes the logistical and management support
services.
The senior management assesses the performance of the operating
segments based on a measure of adjusted earnings before interest
and tax. This measurement basis excludes the effects of
non-recurring expenditure from the operating segments, such as
restructuring costs and impairments when the impairment is the
result of an isolated, non-recurring event. The costs of corporate
head office and other costs which are not controlled by the
operating divisions are allocated to these divisions. Interest
income and expenditure are not included in the result for each
operating segment that is reviewed by senior management. The assets
of the company are not split into these segments for management
information.
Other information provided, except as noted below, to the senior
management is measured in a manner consistent with that in the
financial statements.
Client
services Support services YFS Total
Six months ended Unaudited Unaudited Unaudited Unaudited
30 June 2011 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 5,187 166 9,105 14,458
Segment result 725 (78) 211 858
Loss on disposal of
trade and assets
of YFS - - (220) (220)
Operating profit /
(loss) 725 (78) (9) 638
Finance costs (317)
-----------
Profit before tax 321
Taxation (144)
-----------
Profit for period 177
===========
Client
services Support services YFS Total
Six months ended Unaudited Unaudited Unaudited Unaudited
30 June 2010 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 5,435 250 6,142 11,827
Operating profit /
(loss) 776
Finance costs (243)
-----------
Profit before tax 533
Taxation (149)
-----------
Profit for period 384
===========
Client Support
services services YFS Total
Twelve months ended Unaudited Unaudited Unaudited Unaudited
31 December 2010 GBP'000 GBP'000 GBP'000 GBP'000
Revenue 11,401 335 15,293 27,029
Operating profit /
(loss) 983
Finance costs (395)
-----------
Profit before tax 588
Taxation (97)
-----------
Profit for period 491
===========
Rest
of the
Europe Americas World Total
Geographical analysis Unaudited Unaudited Unaudited Unaudited
Revenue from external
customers GBP'000 GBP'000 GBP'000 GBP'000
Six months to 30 June 2011 3,441 8,031 2,986 14,458
Six months to 30 June 2010 6,236 2,159 3,432 11,827
5. Earnings per share
6 months 6 months 12 months
ended 30/06/11 ended 30/06/10 ended 31/12/10
Unaudited Unaudited Audited
Earnings per ordinary
share pence Pence pence
Basic - pence 0.37 0.80 1.02
Diluted - pence 0.35 0.76 1.00
================ ================ ================
The profit per ordinary share is based on the Group's profit for
the period of GBP177,000 (30 June 2010 - GBP384,000 profit; 31 December
2010 - GBP491,000 profit) and a basic and diluted weighted average
number of shares in issue of 48,190,175.
6. Reconciliation of operating profit to net cash inflow from
operating activities
6 months 6 months 12 months
ended 30/06/11 ended 30/06/10 ended 31/12/10
Unaudited Unaudited Unaudited
GBP'000 GBP'000 GBP'000
Operating profit for
the period 638 776 983
Adjustments for:
Depreciation of
property, plant and
equipment 76 98 161
Loss on disposal of
property, plant and
equipment - 72 100
Amortisation of
intangibles 74 48 111
Goodwill impairment - 100 102
Loss on disposal of
trade and assets of
YFS 220 - -
Revaluation of deferred
share consideration - (48) (23)
European VAT provision - - 150
Operating cash inflow
before movements in
working capital 1,008 1,046 1,584
---------------- ---------------- ----------------
Decrease in inventories - 1 4
(Increase)/decrease in
trade and other
receivables (551) 1,277 1,931
Decrease in payables (186) (1,720) (2,682)
Net cash inflow from
operating activities 271 604 837
================ ================ ================
7. Yacht Fuel Services
On 23(rd) June 2011 YCO Group PLC sold the business and assets
of YFS division to World Fuel Services Europe Ltd for a total
consideration of GBP1,750,000 million settled in cash. Goodwill of
GBP1,794,265 originally associated with the initial purchase of
Yacht Fuel Services Ltd was written off on 23(rd) June 2011.
The accounts for the six months ended 30(th) June 2010 and
twelve months ended 31(st) December 2010 have been re-presented to
take account of the discontinued operations, being the disposal of
the YFS division.
The trade and assets of the Yacht Fuel Services business which
we were disposed of were as follows:
At 23/06/11
Unaudited Unaudited
GBP'000 GBP'000
Goodwill 1,794
Property, plant and equipment -
Inventories -
Trade receivables 1,614
Cash and cash equivalents -
Trade payables (1,876)
Net assets disposed 1,532
Loss on disposal of trade and
assets (220)
Total consideration 1,750
Sale costs (176)
Less working capital deduction (262)
1,312 1,312
Satisfied by:
Cash 1,214
Deferred cash 98
Net consideration 1,312
===============
The deferred consideration is due to be settled in cash on or before
31 December 2011.
8. Share capital
The issued share capital as at 30 June 2011 was 48,487,789
ordinary shares of GBP0.0035p each. (30 June 2010 - 48,166,401
ordinary shares of GBP0.0035p each; 31 December 2010 - 48,166,401
ordinary shares of GBP0.0035p each).
9. Contingent liabilities
At the end of the interim period, YCO Limited had GBP44,000 (30
June 2010 - GBP247,000) (31 December 2010 GBP12,000) overdrawn
balances in clients' accounts. In the event that the yacht owners
do not pay the overdrawn amount in the clients' accounts, and YCO
are unable to recover the amounts, the Group would be liable for
the balance to the bank.
10. Status of interim accounts
The unaudited interim financial information for the six month
period ended 30 June 2011 does not constitute statutory financial
statements within the meaning of Section 435 of the Companies Act
2006. The comparative figures for the year ended 31 December 2010
are extracted from the statutory financial statements which has
been filed with the Registrar of Companies and which contains an
unqualified audit report and did not contain statements under
Section 498 to 502 of the Companies Act 2006.
12. Status of interim accounts
Copies of this interim financial information document are
available from the Company at its registered office at 18 Coulson
Street, London, SW3 3NB and on the Company's website
www.ycogroup.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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