A strong first half driven by project win momentum

 

We are pleased to announce our unaudited interim results for the six months ended 30 June 2019.

Financial Highlights

  • Group revenue increased 31.2% to €33.1m (HY18: €25.2m)
    • Coatings (Refit and New Build) revenue increased 37.1% to €27.3m (HY18: €19.9m)
    • Supply revenue increased 8.8% to €5.7m (HY18: €5.3m)
  • Adjusted EBITDA(1) increased to €1.5m (HY18: loss of €0.1m)
  • Operating profit increased to €0.1m (HY18: loss of €1.4m)
  • Profit before tax increased to €0.1m (HY18: loss of €1.7m)
  • Net debt (2) of €5.9m as at 30 June 2019 (HY18: €10.5m; FY18: €6.6m)
  • Cash of €5.8m as at 30 June 2019 (HY18: €2.3m; FY18: €5.1m)

(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.

Operational Highlights

  • Strong first half driven by positive momentum in both New Build and Refit
  • Six New Build contract wins significantly improved Group’s Total Order Book(3) to €38.6m whilst mitigating the impact of seasonality in Refit sector
  • Normalisation of Refit market and Group’s disciplined focus on pipeline management had positive impact on Group’s contract win rate
  • Steady growth continued in Supply division with an increased sales focus on securing new yacht and trade accounts
  • Continued innovation and investment in new application technology, leveraging a strong relationship with all the main superyacht paint manufacturers

Order Book and Pipeline

The Order Book at 30 June 2019 was in its strongest ever position and provides more forward visibility than ever before:

Order book at: Total Order Book Current Year Current Year +1 Current Year +2
30 June 2019 €38.6m €15.3m €18.2m €5.1m
30 June 2018 €29.9m €11.2m €13.1m €5.6m
30 June 2017 €15.2m €12.7m €2.5m €0.0m

 

Post period end

  • Signed contracts for two New Build projects with an existing shipyard partner in Northern Europe (60+m and 70+m vessels) with work due to commence in H1 2020

Outlook

  • The Group has made significant progress in developing new relationships with shipyards and establishing GYG as an alternative preferred supplier in the New Build sector
  • The team is encouraged by the increasing number of enquiries for 2019-20
  • While recognising the return to profitability during H1, the Board believes that operating margins can be further improved going forward
  • The Board also believes that GYG is well positioned to benefit from the growth opportunities in New Build and greater shipyard capacity in Refit. It maintains a positive outlook for the future

Remy Millott, Chief Executive of GYG plc, commented:

“GYG has had a strong first half of 2019 and I am pleased that this momentum has continued into H2. Our focus on gaining market share in the New Build sector is delivering solid results as evidenced by our New Build contract wins and the significant increase in the average value of contracts we are tendering for. This, and the normalisation of conditions in the Refit market, has resulted in the Group’s strongest ever forward Order Book at the half year and we look forward to the second half with confidence”.

To view the full announcement, please click here.