GYG plc (LON:GYG), the market leading global superyacht service and supply group, has announced its audited Final Results for the year ended 31 December 2020.
Financial Highlights
· Group revenue decreased 7.7% to €58.9m (FY19: €63.8m)
o Coatings (Refit and New Build) revenue decreased 5.4% to €50.8m (FY19: €53.7m)
o Supply revenue decrease 19.8% to €8.1m (FY19: €10.1m)
· Adjusted EBITDA1 increased 15.6% to €5.2m (FY19: €4.5m)
· Exceptional costs of €1.0m driven mainly by COVID
· Operating profit decrease of 7.7% to €1.2m (FY19: €1.3m)
· Profit before tax decreased to €0.2m (FY19: €0.8m)
· Net debt position2 of €11.8m at 31 December 2020 (FY19: €8.2m)
· Cash of €3.6m at 31 December 2020 (€5.5m at 31 December 2019)
· Amended banking facilities agreed with improved repayment terms
Operational Highlights
· Robust performance despite COVID-19 disruption with record level Order Book at €41.1m at 31 March 2021
· Active on an unprecedented eight New Build projects during the year in the premium segment across Northern Europe, with work continuing on five of these into 2021
· Largest turnkey Refit project for a 115+ metre yacht in Germany started in Q4 2020
· Exclusive distribution agreement signed with ALTRAD plettac assco GmbH to distribute its specialised scaffolding equipment in the USA
· Expanded customer base and service offering in the Supply division with renewed focus on CRM systems, site consolidation and increased collaboration with Coatings division
· Entered partnership agreement with AkzoNobel to develop and bring to market a unique application methodology for its revolutionary new sprayable filler product
· Continued to build on IT infrastructure upgrades through system developments leading to improvements in operational planning and control
· Continued focus on strategic initiatives to drive operational efficiencies and utilise new innovative technologies, has delivered further improvements in EBITDA margin
Order Book
The Order Book3 at 31 March:
| Order Book at: | Total Order Book | Current Year | Forward Order Book* |
| 31 March 2019 | €38.8m | €16.7m | €22.1m |
| 31 March 2020 | €35.6m | €17.4m | €18.3m |
| 31 March 2021 | €41.1m | €24.5m | €16.6m |
* Forward Order Book represents orders scheduled for completion in 2022 onwards
· Record total Order Book at 31 March 2021, 15.4% increase ahead of same period last year
· Current year Order Book increased 40.1% from 31 March 2020
Current Trading and Outlook
· Positive start to the year with Q1 2021 revenue 21% ahead of same period in 2020 (some of which moved from Q4 into Q1 as previously reported) with improved margin performance despite ongoing disruptions
· Further progress in New Build shipyard relationships and strong sales momentum drives favourable mix of New Build and Refit contracts throughout year ahead, improving visibility and opportunities for additional efficiency gains
· Ongoing discussions with Nobiskrug administrator and related yacht owners give the Directors confidence that a positive outcome will be achieved
· Supply division demonstrating encouraging progress following rebrand and restructure
· We continue to assess further organic and inorganic growth opportunities
· Notwithstanding any ongoing impact from the pandemic, given the strength of the forward Order Book and strong start to the year the Board looks to the year ahead with cautious optimism
(1) Adjusted EBITDA is defined as operating profit before depreciation, amortisation, impairment, performance share plan costs and exceptional items. This is an alternative performance measure used by Directors to assess the operating performance of the Group
(2) Net debt position is defined as the net cash and cash equivalent balances, less short and long-term borrowings and obligations under leases. This is an alternative performance measure used by investors, financial analysts, rating agencies, creditors and other parties to ascertain a company’s debt position
(3) Order Book is defined as contracted but unrecognised revenue from New Build and Refit projects. It does not include revenue already recognised during the year and it does not include any future value for revenue in the Supply division
Remy Millott, Chief Executive of GYG plc, commented:
“2020 has been an exceptional year of trading considering the operational challenges created by COVID-19. I am proud of how GYG has responded and adapted to the considerable disruptions. We have focused on maintaining our premium service to clients and I would like to thank the whole team for their incredible hard work and effort. Despite these unprecedented events, our market position and fundamentals remain strong but also demonstrate how our diversified, global model has created an opportunity to grow our market share and improve our operational model. As a direct result of management’s strategy to drive market share in New Build and the ongoing new business development programmes we have been working through since 2019, our Order Book continued to build throughout the year.
“I am pleased with the strong start to the year; the record Order Book and favourable sales mix provides greater visibility enabling us to further improve operational efficiencies and continue to focus on enhancing margins.”
