Grand Banks Yachts Reverses To S$2M Net Profit
Published: Tuesday, 30 August 2016
Grand Banks Yachts Limited (“Grand Banks” or “the Group”) reported a net profit of S$2.0 million for the 12 months ended June 30 2016 (“FY2016”), reversing a net loss of S$4.8 million a year ago (“FY2015”), driven by the integration of its two yacht brands.
(Table: Grand Banks Yachts Limited)
The Group, which owns the Grand Banks and Palm Beach brands, also received a boost to its FY2016 bottom line through a deferred tax asset.
Gross profit margin rose to 17.4% from 9.9% as initiatives put in place over the last two years to streamline operations and boost efficiency bore fruit. These included the adoption of a factory-direct sales model and enhancement of manufacturing processes.
(Photos: Grand Banks Yachts Limited Facebook - Puget Sound Grand Banks Rendezvous)
Revenue increased 49.7% to S$58.7 million from S$39.2 million in FY2015, with more yachts achieving construction milestones as the Group ramped up manufacturing at its Pasir Gudang yard in Johor. In FY 2016, it sold eight inventory yachts and received orders for all four of its new models – the Grand Banks 60, Eastbay 44 and 52, and Palm Beach 42.
As at June 30 2016, the Group had an order book of S$34.1 million. It generated net cash of S$6.5 million from operations in FY2016, compared to S$2.7 million in FY2015. Cash and cash equivalents amounted to S$16.4 million, compared to S$21.7 million as at June 30 2015.
(Palm Beach 42 at the Bay Harbor Lake Marina In Water Boat Show 2016)
Earnings per share for FY2016 amounted to 1.07 Singapore cents, compared to a loss per share of 2.62 cents for FY2015. Net asset value per share was 24.71 Singapore cents as at June 30 2016, up from 24.34 Singapore cents as at June 30 2015.
For the fourth quarter ended June 30 2016 (“4Q FY2016”), the Group broke even, reversing a loss of S$2.4 million for the same period a year earlier (“4Q FY2015”). Revenue for 4Q FY2016 increased 16.8% to S$16.0 million from S$13.7 million for 4Q FY2015.
“Our financial turnaround in FY2016 underscores the success of the initiatives put in place since 2014. We will build on the momentum to further strengthen our market position and drive sustainable growth,” says Grand Banks Chairman Heine Askaer-Jensen.
(Eastbay 44 SX)
The Group acquired Australia-based Palm Beach Motor Yacht Co Pty Ltd. August 2014 and successfully integrated the operations of both Grand Banks and Palm Beach brands in FY2016.
“We have set in motion a corporate transformation starting with the integration of both our brands. The Group is now in a stronger position and we look forward to the launch of our new yacht models. Our order book remains healthy and we look forward to doing even more to create value for shareholders,” says Grand Banks CEO Mark Richards.