TIDMGYG
RNS Number : 7635W
GYG PLC
21 August 2020
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.
21 August 2020
GYG plc
("GYG", the "Company" or the "Group")
Half Year Trading Update
GYG (AIM: GYG), the market leading superyacht painting, supply
and maintenance company, provides the following update on trading
for the six months to 30 June 2020 ("H1").
Following a positive first half of the year and the activity
scheduled for H2 and into 2021, the Board remains confident that
the Group is on track to meet market expectations for the full
year, which have remained unchanged since before the disruption
caused by the COVID-19 pandemic.
Despite the disruption caused by COVID-19 in H1, due to
management's continued focus on driving margin improvements and
enhancing the quality of earnings, the Group expects to report
increased Adjusted EBITDA of EUR1.6m (H1 2019: EUR1.5m). This would
equate to a 22% increase in the Adjusted EBITDA margin. The Board
is confident that this improvement in margin is sustainable and
there is potential for this to be increased further.
The Group expects to report H1 revenues of c.EUR29.1m, (H1 2019:
EUR33.1m). During the pandemic, no contracts were cancelled and, as
a result, most of the associated revenue originally forecast for H1
was delayed into H2.
During the period, the Group also improved the size and
visibility of the Order Book and agreed new bank facilities with
its lenders to further strengthen the balance sheet and provide
resilience against COVID-19 uncertainties.
As previously announced, the Group signed a major New Build
contract in H1 for an 80+ metre yacht, scheduled to start in Q4
2020 and is in advanced negotiations for further New Build projects
for 2021 and 2022. Four of the six New Build contracts signed in
2019 have either started or are due to start in Q3 which will
increase New Build revenues through H2.
As outlined in the Final Results on 22 July 2020, the Group
experienced strong sales momentum in H1 with the signing of several
major Refit contracts for immediate start, increasing Refit
revenues during the traditionally quieter summer months. This
included two contracts, with a combined value of over EUR6m, with
MB92 Group in Barcelona, Spain and La Ciotat, France, and a 70+
metre yacht in Palma, and work on these vessels has already begun.
In addition, a further contract has recently been signed with MB92
Group for a 100+ metre yacht. Work on this project will commence in
the latter part of Q3.
The Group's Supply division, Pinmar Yacht Supply, has had a
solid first half, winning several new contracts as a result of the
targeting of larger yachts for global supply.
As a result of the above and as announced on 22 July 2020, the
Group's Order Book at 30 June 2020 was:
Order Book Total Order Current Year Current Year Forward Order
at: Book +1 Book
30 June 2018 EUR29.9m EUR11.2m EUR13.1m EUR5.6m
------------ ------------- ------------- --------------
30 June 2019 EUR38.6m EUR15.3m EUR18.2m EUR5.1m
------------ ------------- ------------- --------------
30 June 2020 EUR42.7m EUR16.4m EUR20.7m EUR5.6m
------------ ------------- ------------- --------------
GYG will report Interim Results for the six months to 30 June
2020 on 24 September 2020 and will update the Order Book again
then.
Remy Millott, Chief Executive of GYG plc, commented:
"Despite the challenges that the COVID-19 pandemic has
presented, the Group has had a good first half with no projects
cancelled and a significant increase in Refit work over the summer
months, which tends to be a quieter time due to normal
Mediterranean cruising patterns. Most importantly, despite lower
revenues in H1 compared to 2019 and the disruptions encountered in
March and April, we have taken the opportunity to continue further
restructuring of the Group, which has resulted in significantly
improved margins. It demonstrates that the team's focus on
improving margins is starting to flow through and will continue in
H2. This has enabled us to be confident that we are on track to
achieve what we had expected to at the start of the year, despite
the disruption caused by the COVID-19 pandemic."
"The second half has started well with the positive momentum
from H1 being maintained through the summer and into Q3 and Q4. The
Order Book remains strong and the team are working on a number of
potential leads that will further strengthen this through the
second half while maintaining our keen focus on gross margin
improvement. The Board remains confident that the Group is on track
to meet market expectations for the full year and continues to look
to the future with confidence."
For further information:
GYG plc via FTI Consulting
Remy Millott, Chief Executive Tel: +44 (0) 20 3727 1000
Officer
Kevin McNair, Chief Financial
Officer
Zeus Capital Limited (NOMAD & Tel: +44 (0) 20 3829 5000
Broker)
John Goold, Dominic King
Dan Bate, Nick Cowles, Ben Burnett
FTI Consulting (Financial PR) Tel: +44 (0) 20 3727 1000
Alex Beagley
Fiona Walker
Rafaella de Freitas
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, Pinmar Yacht Supply and
Technocraft. 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.
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London Stock Exchange. RNS is approved by the Financial Conduct
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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