09 November 2021
("GYG", the "Company" or the "Group")
GYG (AIM: GYG), the market leading superyacht painting, supply and maintenance company, today provides a trading update for the current financial year.
As a direct result of the significant operational and financial disruption caused by Nobiksrug, GYG will now deliver a financial outturn for 2021 much lower than the Board's previous expectations. Importantly, the Board is confident that the Group will remain profitable at the EBITDA level in the current year. The Board also reiterates that, after further thorough review, it is confident that the Group can meet its working capital requirements and repay its borrowings as they fall due providing that the Nobiskrug situation is resolved before 31 December 2021, which the Board fully expects. On this basis, the Board does not believe that the Company will need to seek additional funding from shareholders in the foreseeable future to maintain operations or to meet its obligations.
As previously reported, the Nobiskrug shipyard administration and ongoing contractual discussions remain unresolved. Progress is being made and management is confident of reaching a resolution, however, it is now clear that work is unlikely to restart on these projects in the current financial year. Whilst the projects remain in the Group's Order Book, it is now prudent to assume that the full revenues will be recognised in 2022.
Looking forward, the Group continues to win market share, as evidenced by the forward Order Book for both New Build and Refit projects, which is increasingly positive. The Superyacht market continues to grow strongly post COVID, especially with regard to global contracted New Build volumes, and GYG remains well positioned to take advantage of these trends over the medium term. Despite a disappointing year, the wider business continues to perform well with positive opportunities in both the Refit and New Build market. Consequently, the outlook for 2022 and beyond is encouraging.
The Board will provide shareholders with an update on the Nobiskrug situation as and when appropriate.
For further information:
Remy Millott, Chief Executive Officer
Kevin McNair, Chief Financial Officer
via FTI Consulting
Tel: +44 (0) 20 3727 1000
Singer Capital Markets
Peter Steel, Amanda Gray
Tel: +44 (0) 20 7496 3000
Rafaella de Freitas
Tel: +44 (0) 20 3727 1000
Notes to Editors:
GYG is the market leading superyacht painting, supply and maintenance company, offering services globally through operations in the Mediterranean, Northern Europe and the United States. The Company's brands include Pinmar, Pinmar Yacht Supply, and Technocraft. GYG's operations can be divided into three key sales channels:
· Refit: repainting and finishing of superyachts, normally as part of a refit programme. Revenues also include scaffolding and containment work;
· New Build: fairing and painting of new vessels as part of the build process; and
· Supply: selling and delivery of maintenance materials, consumables, spare parts and equipment primarily to trade customers.
This announcement contains information which, prior to its disclosure, was inside information as stipulated under the UK version of article 7 of the Market Abuse Regulation (EU) No. 596/2014.