GYG PLC Trading Update (7238R)
09 November 2021 - 06:00PM
UK Regulatory
TIDMGYG
RNS Number : 7238R
GYG PLC
09 November 2021
09 November 2021
GYG plc
("GYG", the "Company" or the "Group")
Trading Update
GYG (AIM: GYG), the market leading superyacht painting, supply
and maintenance company, today provides a trading update for the
current financial year.
As a direct result of the significant operational and financial
disruption caused by Nobiksrug, GYG will now deliver a financial
outturn for 2021 much lower than the Board's previous expectations.
Importantly, the Board is confident that the Group will remain
profitable at the EBITDA level in the current year. The Board also
reiterates that, after further thorough review, it is confident
that the Group can meet its working capital requirements and repay
its borrowings as they fall due providing that the Nobiskrug
situation is resolved before 31 December 2021, which the Board
fully expects. On this basis, the Board does not believe that the
Company will need to seek additional funding from shareholders in
the foreseeable future to maintain operations or to meet its
obligations.
As previously reported, the Nobiskrug shipyard administration
and ongoing contractual discussions remain unresolved. Progress is
being made and management is confident of reaching a resolution,
however, it is now clear that work is unlikely to restart on these
projects in the current financial year. Whilst the projects remain
in the Group's Order Book, it is now prudent to assume that the
full revenues will be recognised in 2022.
Looking forward, the Group continues to win market share, as
evidenced by the forward Order Book for both New Build and Refit
projects, which is increasingly positive. The Superyacht market
continues to grow strongly post COVID, especially with regard to
global contracted New Build volumes, and GYG remains well
positioned to take advantage of these trends over the medium term.
Despite a disappointing year, the wider business continues to
perform well with positive opportunities in both the Refit and New
Build market. Consequently, the outlook for 2022 and beyond is
encouraging.
The Board will provide shareholders with an update on the
Nobiskrug situation as and when appropriate.
ENDS
For further information:
GYG plc via FTI Consulting
Remy Millott, Chief Executive Tel: +44 (0) 20 3727 1000
Officer
Kevin McNair, Chief Financial
Officer
Singer Capital Markets Tel: +44 (0) 20 7496 3000
Tom Salvesen
Peter Steel, Amanda Gray
FTI Consulting 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.
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under the UK
version of article 7 of the Market Abuse Regulation (EU) No.
596/2014.
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END
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