GYG predicts revenue growth of $4.3m in 2021

Conor Feasey
By Conor Feasey March 21, 2022 15:57

GYG predicts revenue growth of $4.3m in 2021

Superyacht paint and service company GYG is predicting revenue growth of $4.3m (€3.9m) in 2021, as revenue reaches $69.4m (€62.8m), according to its trading results for the year ended December 31st, 2021.

GYG’s final results for the 2021 financial year are to be confirmed in April.

The company said the results had been impacted by disruptions caused by the Covd-19 pandemic and the Nobiskrug shipyard filing for insolvency. This had meant some projects were delayed or cancelled and, specifically, particularly in the fourth quarter of last year, as the industry grappled with supply chain challenges. The challenges faced last year will result in what the company referred to as “modest positive adjusted earnings before interest, taxes, depreciation, and amortisation” (EBITDA) for the year.

“2021 was a year of navigating exceptional challenges,” said GYG CEO Remy Millott,

“Despite this, GYG delivered a strong performance in an extremely challenging environment.” During the year the company continued to grow its market share and order book. “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.

Despite what the company called “the most volatile trading environment that the group has ever experienced,” it predicted margin growth this year. GYG’s total order book, as of February 2022, stands at $61.2m (€55.4m), an increase of 3% from $59.4m (€53.8m) in January 2021. The company’s current year order book for 2022 is at $40.8m (€36.9m), a decrease of $4m (€3.6m) compared with January 2021, as two refit contracts were postponed to 2023.

The business said it remained focused on delivering operational improvements, including the use of new technologies to aid efficiency, and consolidating its market share in Northern Europe.

Record levels of superyachts over 230ft (70m) being built, according to the company. “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,” said Millott. The group has two new build projects with vessels in this category starting in Holland in March. It is also in advanced negotiations relating to further new build contracts.

GYG said it was optimistic about the business prospects for this year – notwithstanding the Covid pandemic, changes in lockdowns and travel restrictions and, what it called the wider geo-political environment. “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,” said Millott. GYG’s final results are due for publication in April.

 

GYG’s latest trading update – at a glance

  • Predicting revenue growth of nearly $4.3m (€3.9) in 2021
  • Revenue reaches $69.4m (€62.8m)
  • Disruptions caused by Covd-19 and Nobiskrug shipyard insolvency
  • GYG’s total order book, as of February 2022, stands at $61.2m (€55.4m), an increase of 3% compared with January 2021, as two refit contracts were postponed to 2023
  • Two new build projects in the 230ft (70m) category starting in March.

 

Source: GYG trading results.

 

Conor Feasey
By Conor Feasey March 21, 2022 15:57