GYG warns profits 'significantly below' water line
By Iain Gilbert
Date: Wednesday 31 Oct 2018
(Sharecast News) - Superyacht servicing outfit GYG warned on Wednesday that it had sunk to a loss due to struggles to convert its pipeline.
Having lifted the lid on a poor half-half performance last month, the AIM-listed group said that rough seas had continued in the refit market.
As a result, GYG expects revenues to fall roughly 29% year-on-year to €44m for the calendar year, dragging the group to an EBITDA loss of roughly €1.2m - a marked turnaround from the €7.2m profit turned in a year earlier.
The group also highlighted delays to a number of projects planned for the second half and maintenance undertaken at its shipyard facility, which had decreased utilisation, as major setbacks.
However, GYG assured investors it was entering 2019 with a strong order book.
Looking forward, GYG's pipeline stood at €309m, with a 2019 relevant pipeline of potential projects of €178m - €34.5m of which were in advanced contractual discussions and negotiations.
Chief executive Remy Millott, said: "Despite 2018 being a very disappointing year for the company, we have made significant progress in many areas of the business. We have recently restructured the management team so there is a more concentrated focus on production and gross margins, pipeline, sales and key industry partnerships, combined with improved technology which will enable prospecting and engaging with clients much earlier than we have done in the past."
"While 2018 is a year the industry will wish to put behind it, I am confident in GYG's long-term prospects and I am excited by the deals we have signed and the ongoing discussions we are having, both with existing and new customers and shipyards."
As of 0945 BST, GYG shares, which were floated in July last year at 100p and have since topped 147p, plummeted almost 40% on Wednesday to 39.9p.
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