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 €62.8m (2020: €58.9m), 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 €55.4m, up 3% year-on-year (January 2021: €53.8m). The Current Year Order Book for 2022 is €36.9m, 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 at:
||Total Order Book
||Forward Order Book*
* 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.
The Board confirms that, following the Company’s announcement on 16 December 2021, the maturity date of the €3.0 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 €2.0 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 €5.0m 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.”