GYG order book strong after tough 2020

Superyacht service and supply company GYG reported a 7.7% fall in group revenue in its final results on Monday, to €58.9m (£51.2m).

The AIM-traded firm said revenue for coatings, both refit and new build, was down 5.4% to €50.8m for the year ended 31 December, while supply revenue slid 19.8% to €8.1m.

Its adjusted EBITDA, however, rose 15.6% to €5.2m, with the company reporting exceptional costs of €1.0m, driven mainly by the Covid-19 pandemic.

Operating profit was down 7.7% to €1.2m, and profit before tax came in at €0.2m for the year, compared to €0.8m at the end of 2019.

GYG’s net debt position widened to €11.8m as at 31 December, from €8.2m a year earlier, while cash at year-end stood at €3.6m, down from €5.5m year-on-year.

During the year, the company agreed amended banking facilities with improved repayment terms.

“2020 has been an exceptional year of trading considering the operational challenges created by Covid-19,” said chief executive officer Remy Millott.

“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.”

Millott said that, despite the “unprecedented” events, the company’s market position and fundamentals remained strong, but also demonstrated how its “diversified, global model” has created an opportunity to grow its market share and improve its 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.”