TIDMGYG
RNS Number : 2873D
GYG PLC
02 March 2022
2 March 2022
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under
retained EU law version of the Market Abuse Regulations (EU No.
596/2014) (the "UK MAR"), which is part of UK law by virtue of the
European Union (withdrawal) Act 2018 . Upon the publication of this
announcement via the Regulatory Information Service, this inside
information is now considered to be in the public domain.
GYG plc
("GYG", the "Company" or the "Group")
Full Year Trading Update
GYG (AIM: GYG), the market leading superyacht painting, supply
and maintenance company, today provides the following trading
update for the year ended 31 December 2021.
Financial and Operational Overview:
Despite many challenges, the Group delivered a robust
performance in 2021, effectively managing the considerable
disruption caused by the ongoing impact of the Pandemic, the
Nobiskrug shipyard filing for insolvency** resulting in certain
projects being delayed or cancelled and, specifically, in Q4
industry supply chain challenges.
Despite these challenges, the Board expects to report 2021
revenue of EUR62.8m (2020: EUR58.9m), evidencing the structural
growth within the industry and the Group's increased market share.
As previously disclosed, the 2021 challenges impacted the Group's
profitability and will result in a modest positive Adjusted EBITDA
for the year, in line with the guidance provided at the Group's
trading update on 9 November 2021.
This represents a commendable performance which has been
delivered in the most volatile trading environment that the Group
has ever experienced. The Board is confident that margins will
revert towards their 2020 levels in 2022. The Board also remains
confident of the potential for the Group's strategy to deliver
additional market share gains and efficiencies, in turn
underpinning the scope for further growth and margin improvement in
the medium to longer-term.
Record Total Order Book:
The Total Order Book as of February 2022 stands at EUR55.4m, up
3% year-on-year (January 2021: EUR53.8m). The Current Year Order
Book for 2022 is EUR36.9m, which is lower than the January 2021
book following two Refit contracts being recently postponed to
2023. The Order Book represents contracts agreed at this date and
as in prior years, the Board will update the market with
significant additional contracts throughout 2022.
Order Book Total Order Forward Order Current Year
at: Book Book*
January 2019 EUR33.9m EUR8.6m EUR25.3m
------------ -------------- ------------
January 2020 EUR44.4m EUR11.6m EUR32.8m
------------ -------------- ------------
January 2021 EUR53.8m EUR13.2m EUR40.6m
------------ -------------- ------------
February 2022 EUR55.4m EUR18.5m EUR36.9m
------------ -------------- ------------
* Forward Order Book represents orders scheduled for completion
in 2023 onwards, excluding the Retail Business, PYS.
**Nobiskrug: the shipyard filed for insolvency in April 2021. In
July 2021, the North German shipbuilding company, Flensburger
Schiffbau-Gesellschaft , was announced as the new owner of the
Nobiskrug yard.
The Group remains focused on delivering operational
improvements, including the use of new technologies to aid
efficiency, and consolidating its market share in Northern Europe.
With record levels of superyachts over 70 metres being built, the
Group has started the new financial year well, with the platform in
place to deliver sustainable long-term growth.
Harwood loan
The Board confirms that, following the Company's announcement on
16 December 2021, the maturity date of the EUR3.0 million short
term loan provided by Harwood Capital Management Limited (an
associate of Harwood Capital LLP ("Harwood"), the Company's second
largest shareholder), has been deferred from 31 March 2022 to 30
April 2022 with all other terms under the loan unchanged. The
current principal outstanding under the loan is EUR2.0 million plus
interest, which the Company expects to settle in full on or before
30 April 2022.
Current Trading and Outlook
The Group has experienced a robust start to the year and
commenced its debt reduction plan, to reduce Group debt (including
the Harwood loan) by EUR5.0m in 2022. The Group has two +70 metre
New Build projects starting in Holland in March and is in advanced
negotiations relating to further New Build contracts. On the back
of a robust Current Year Order Book, the outlook for the Group is
encouraging for 2022, albeit future changes in lockdowns and travel
restrictions as well as the wider geo-political environment may
affect the full year performance.
Remy Millott, CEO of GYG, commented:
"2021 was a year of navigating exceptional challenges. Despite
this, GYG delivered a strong performance in an extremely
challenging environment. Our people have worked tirelessly across
our operations, contending with changing travel restrictions,
quarantines and lockdowns across all jurisdictions. During the year
we persevered, grew market share, continued to grow our Order Book
and produced high quality work, despite the challenges, creating
further goodwill across our existing and new client base. We are
currently working on a number of significant turnkey Refit projects
alongside a number of New Build projects and continue to tender for
exciting opportunities both with existing and new shipyards.
"The super yacht industry remains in a strong growth phase, with
2021 superyacht sales increasing 75%, and we anticipate further
expansion in our premium market segment. Despite the challenges
faced in 2021, the market fundamentals remain strong and our record
Order Book provides good visibility, which facilitates efficient
planning and gives us confidence in our ability to deliver leading
client service. I look forward to providing further details at the
Group's final results in April."
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.
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