Superyacht servicer GYG's shares sink as it warns over delays 

Superyacht services company Global Yachting Group's (GYG) shares sank on Thursday after the Aim-listed business issued a profit warning.
GYG’s shares almost halved after a trading update revealed “significantly weaker than expected” demand.
The Mallorca-based company - which floated last summer - said it had not won as many bids for new-build yacht contracts as expected and had been hit by delays in refits of vessels.
Revenue in the six months to the end of June was €25.1m (?22.2m) and the business broke even. This led management to warn full-year revenue would be flat and adjusted earnings before interest, tax, depreciation and amortisation would be “materially below” the €5m previously forecast.
The blow to the superyacht business is unusual because the sector has been largely unaffected by previous financial storms. Ultra-high net worth individuals, who tend to buy superyachts, have not reduced spending despite global pressures.
GYG sources parts for superyachts, paints the vessels and carries out other maintenance on them.
Superyacht servicer GYG's shares sink as it warns over delays 

GYG will work on Rev 182, the largest research and expedition yacht in the world
Despite the warning about this year’s earnings, the company emphasised it had a strong order book and much of the slowdown was because of delays, rather than the market drying up. Some of the deferments were caused by what GYG called “an extraordinary sequence of hurricanes”.
Remy Millott, chief executive, added: “Despite the first half of the year being difficult for the group and the industry as a whole, we remain confident that the superyacht refit market is returning to normal trading patterns.”
GYG said it has €12.1m of work on its books for the rest of the year and €146m of order prospects, €25m which it described as having a “high probability” of winning. Orders for 2019 are €13.4m and €5.6m for the following year.
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The business is working hard to land more new-build work rather than rely on refits of existing customers’ yachts.
GYG said it agreed several major new contracts, including a 140-metre (460ft) superyacht on which work is due to start early in 2019 - a major coup for the company as there are only 11 larger superyachts in the world.
Other work includes a 94 metre vessel on which work is due to start later this year, and REV 182, the world’s largest research and expedition vessel.
Superyacht servicer GYG's shares sink as it warns over delays 

Chief executive Remy Millott said he is 'confident' the market will return to normal
Analysts at Zeus Capital called the update “clearly disappointing”, but said the “industry dynamics remain attractive… with superyacht numbers continuing to grow.”
GYG shares were down 47.5pc at 69.24p in lunchtime trading.
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