Full Year Trading Update – 2020

GYG (AIM: GYG), the market leading superyacht painting, supply and maintenance company, today provides the following trading update for the year ended 31 December 2020.

Financial and Operational Overview:
Overall the Group delivered a robust performance and effectively managed the considerable disruption caused by the pandemic, albeit some Q4 projects were delayed into Q1 2021 with associated deferral in revenues. As a result, the Board expects to report revenue of €58.5m with Adjusted EBITDA also marginally below current market expectations, and additional COVID-related exceptional costs incurred during Q4. The Group has focused on delivering further operational improvements and has started the new financial year well positioned to deliver an improved level of profitable growth.

This represents a commendable performance which has been delivered in the most extraordinary trading environment that the Group has ever experienced, with its operations impacted by differing lockdown and travel restrictions across Europe and the US throughout the year. The Board remains confident that the Group’s strategy will continue to deliver efficiencies underpinning further margin improvement in the current year and beyond.

Record Order Book:
The Total Order Book in January 2021 stands at €53.8m which is 21% ahead of the same point in the prior year (January 2020: €44.4m). The Order Book for 2021 is currently €40.6m which is a 24% increase when compared to a January 2020 Order Book of €32.8m.

Order Book at: Total Order Book Current Year Forward Order Book*
January 2019 €33.9m €25.3m €8.6m
January 2020 €44.4m €32.8m €11.6m
January 2021 €53.8 €40.6m €13.2m

* Forward Order Book represents orders scheduled for completion in 2022 onwards

The Group has experienced a strong start to the year with Q1 revenues expected to be well ahead of Q1 2020. On the back of this record current year Order Book, the outlook for 2021 remains very positive at this early stage in the year, albeit future changes in lockdowns and travel restrictions may affect the full year performance.

Looking ahead, as previously reported, we have seen a significant uplift in the volume of New Build contracts won by the Group, in addition to the expected flow of Refit projects. These larger, higher value New Build contracts further evidence the Group’s growing market share and will bring a greater degree of revenue visibility as well as being a driver for further profitable growth in the medium term.

Remy Millott, CEO of GYG commented:
“I am delighted that the Group has delivered such a commendable 2020 performance in the most extraordinary trading environment that GYG has ever experienced. The team has worked tirelessly across our operations, contending with changing restrictions, quarantines and lockdowns in different jurisdictions. During 2020, we continued to grow the Order Book and are currently working on a number of significant turnkey Refit jobs alongside a record six New Build projects, of which two are using AkzoNobel’s new Awlgrip Awlfair SF spray filler application. We continue to tender for exciting opportunities both with existing and new shipyards.

“We remain focused on driving further operational efficiencies and margin improvements across the Group. Despite the challenges we have faced, the market fundamentals remain strong and our record Order Book provides better visibility, facilitates efficient planning and gives us confidence for further market share gains in the year ahead. I look forward to providing further details at the Group’s final results in April.”