GYG PLC Trading Update (0360X)
21 November 2017 - 6:01PM
UK Regulatory
TIDMGYG
RNS Number : 0360X
GYG PLC
21 November 2017
21 November 2017
GYG plc
("GYG" or the "Group")
Trading Update
GYG (AIM: GYG), the market leading superyacht painting, supply
and maintenance company, announces the following update on trading:
The Group has experienced a number of small delays on the start
dates of some refit contracts and, whilst work on these contracts
has now begun, a greater portion of this work will now be
undertaken in Q1 2018. As a result, the level of revenue deferred
is in the range of EUR3.3m to EUR4.9m with associated reduction in
adjusted EBITDA of between EUR0.67m and EUR1.0m. The key factors
contributing to this are:
-- The two hurricanes that hit the US and Caribbean in Q3,
resulting in disrupted cruising patterns and owners extending their
Mediteranean season while they assessed the facilities in the
Caribbean cruising grounds. During this period decisions relating
to refit programmes were delayed and this will result in a lower
than expected revenue in the Group's refit businesses.
-- A substantial contract that was scheduled to start in late
September has been delayed due to the vessel not arriving in dock
until the middle of November. Therefore a substantial proportion of
this revenue will not be recognised before 2018.
However, management are particularly pleased with the
performance in the Group's Technocraft division, which fits
scaffolding on and around vessels ahead of refit work being
undertaken. The business is experiencing its busiest ever quarter
with record Q4 revenue up 66% to date (November up EUR2m on
November 2016, 598%), reflecting the shift in contracted work into
Q4 and early 2018.
As a result of the above factors impacting refit, management
expects to report revenue and Group profit below expectations.
Allowing for the lower range, revenue is expected to be at least
EUR61.0m, up 12% on 2016, and EBITDA at least EUR7.08m, up 6% on
2016. Importantly, none of the Group's contracts have been
cancelled and, therefore, the scheduled work will be undertaken in
2018 with the Company expected to go into 2018 with its highest
ever level of in-year order book. Current order book is EUR18.1m
(up 37% on the same date in 2016). The Board therefore remains
confident in the Group's expectations for 2018.
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.
The person responsible for arranging for the release of this
announcement on behalf of the Company is Gloria Ferndandez, the
Company's Chief Financial Officer.
Enquiries:
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, Hugh Kingsmill
Moore
Giles Balleny, Dan Bate
FTI Consulting (Financial Tel: +44 (0) 20 3727 1000
PR)
Alex Beagley
Fiona Walker
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.
Superyachts require a major survey service every five years to
comply with certain class, maritime laws and insurance
requirements. Owners typically undertake an annual haul out and
general maintenance to remain ahead of the service intervals and to
keep the vessels in optimum condition. Owners often use the major
servicing period as an opportunity for repainting the vessel,
providing GYG with a source of repeat business.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTURORRBBAAUUA
(END) Dow Jones Newswires
November 21, 2017 02:01 ET (07:01 GMT)
Gyg (LSE:GYG)
Historical Stock Chart
From Apr 2024 to May 2024
Gyg (LSE:GYG)
Historical Stock Chart
From May 2023 to May 2024