GYG reports a ‘transformational’ 2019, after gains in New Build sector

Superyacht painting, maintenance and supply company GYG has reported a “transformational” 2019 – after winning a bigger share of the New Build sector – according to its audited final results for the year ended December 31st 2019. It also reported strong sales momentum in the first half of 2020.

Group revenue rose by 41.8% to €63.8m, buoyed by a 51.5% increase in revenue to €53.7m in its Coatings division, covering refit and new build. Supply revenue rose by 6.3% to €10.1m.

GYG chief executive Remy Millott said: “2019 was a transformational year for GYG and I am pleased that we ended the year with a record order book that provides both consistency and sustainability of earnings. Having signed six new build contracts in the year and further wins in 2020, there is no doubt that management’s focus on the Northern European shipyards has delivered results and helped to offset the seasonality of the Refit market.

‘Six new build contracts’

Earnings before interest, tax, depreciation and amortisation (EBITDA) reached €4.5m compared with a loss of €0.9m during the 2018 financial year; boosted by six major contract wins in the New Build sector.

Operating profit climbed to €1.3m, after an operating loss of €4.3m in the previous financial year. Profit before tax increased to €0.8m versus a 2018 loss of €4.6m.

During 2019, GYG agreed a partnership with Akzo Nobel to develop and market an application methodology for its new sprayable filler product. The group also restructured its senior management team to provide greater focus on important drivers including sales, operations and logistics. Several strategic initiatives were said to have improved gross margins and delivered operational efficiencies.

GYG described the first half of 2020 as “encouraging”, despite the Covid-19 global pandemic forcing a two-week suspension of projects in Spain, UK and France. Projects in Northern Europe and USA continued with some disruption due to adjustments to operating protocols and travel restrictions.

Record order book

Most operations were restored by early May, complying with appropriate health and safety measures. No projects were cancelled during the health crisis, enabling the group to start the second half with a record order book.

“The group has had an encouraging first half of 2020 and GYG’s outlook is healthy,” said Millott. “Our brands are well positioned to exploit further opportunities both in Europe and the USA to deliver sustainable growth and increasing shareholder value. The Board looks to the future with confidence.”

The company said its target market – the 40m-plus superyacht fleet – continued to grow at a steady 3.5%, with an average of 66 new vessels added to the fleet each year. “Independent market research predicts that the 40m+ fleet will continue to deliver a similar number of yachts per year through 2024, as the group rate reduces to a compound annual growth rate [CAGR] of about 3.2%,” according to GYG.

Meanwhile, more information about GYG is available here.

GYG 2019 results – at a glance

• Group revenue up 41.8% to €63.8m
• Coatings (Refit and New Build) revenue up 51.5%
• Supply revenue up 6.3% to €10.1m
• Adjusted EBITDA up to €4.5m (FY18: loss of €0.9m)
• Operating profit of €1.3m (FY18: operating loss of €4.3m)
• Profit before tax increased to €0.8m (FY18: loss of €4.6m)
• Net debt of €8.2m at December 31st 2019 (FY18: €7.8m)
• Cash of €5.5m at December 31st 2019 (€5.1m at 31 December 2018).