Trading Statement

 

TIDMDML 
 
RNS Number : 5795R 
YCO Deuxmil PLC 
01 May 2009 
 

 
 
 
 
 
 
 
 
YCO Deuxmil plc 
Trading Update 
 
 
YCO Deuxmil plc ("YCO" or the "Company") is pleased to announce the following 
trading update for the year ended 31 December, 2008. The audited final results 
for the 12 months ending 31 December, 2008, are anticipated to be released and 
dispatched to shareholders in the first week of June. 
 
 
Highlights 
 
 
  *  Increased group turnover 
  *  The group trades free of debt 
  *  More yachts under management and construction 
  *  Increase in YCO Crew placements 
  *  Expansion of Yacht Help Group 
  *  Strong Yacht Fuel Services performance 
 
The last twelve months has seen YCO make good progress in expanding and 
integrating the range of services offered. In May, the Company completed the 
acquisition of YCO S.A.M. which transformed the Company principally from a 
supplier of marine fuel to a full services provider to Super Yachts. 
 
 
Yacht Fuel Services (YFS) recorded an increase in turnover for the period under 
review. YFS continues to operate well and has been successful in winning a 
considerable amount of new business. The outlook of a stronger US Dollar and a 
weaker oil price should have a positive effect on the performance of YFS in 
2009, a benefit it has not previously enjoyed following high oil prices in 2008, 
as well as gaining new business generated through yachts serviced under YCO 
Management. 
 
 
Yacht Help Group ("YHG") has made a small loss following restructuring costs. 
However, the division has progressed well and is now trading in line with the 
directors expectations. The company's headquarters have been relocated to 
Palma's premier Super Yacht location on Paseo Maritimo in state-of-the-art 
premises and a new YHG office has also opened in the critical location of 
Antibes (France), in time for the start of the summer season. Additionally, YHG 
will open a small operation in Montenegro to coincide with the 2009 summer 
cruising season at the new Porto Montenegro development close to Kotor. The 
directors anticipate YHG will also benefit from the appointment of an 
International Operations Director who will give direction and drive to this 
division. Additionally, as with YFS, YHG is expected to benefit from the 
enlarged group using its services. 
 
 
BA Yachts (BAY) continues to trade profitably and grow steadily as a key part of 
the group which provides a niche service in the market. As Super Yacht owners 
look to operate their yachts more cost-efficiently, BAY's specialist tax 
services, which can result in significant financial savings for owners, have 
become particularly sought after and the division made a small profit in 2008. 
 
 
YCO and YCO Crew have grown considerably, with the opening of the new YCO office 
in Chelsea, London, and two new YCO Crew offices in Palma and Barcelona. 
 
 
Historically, Yacht Management has been at the core of the YCO S.A.M. business 
model and this department continues to see growth and development. The launch of 
the Company's online yacht management software, YCO LIVE, has resulted in a high 
level of interest from Super Yacht owners and captains as they acknowledge the 
importance of efficient management of an asset during a period where its sale 
may prove difficult. The online management portal, which should dramatically 
improve the flow of information and overall administration of each vessel, is 
now available to all YCO yachts under management, with each yacht's information 
fully loaded onto the system. As the number of yachts operating YCO LIVE 
increases, YCO expects the interest generated in the software to increase 
further. The number of yachts under management increased during 2008 and YCO is 
currently in discussions to take on the management of several large yachts. 
 
 
The New Construction and Project Management department at YCO continues to see 
steady growth, with the addition of two significant new projects to the 
portfolio, and several refit projects. The department already manages several 
projects in excess of 100 metres and as with YCO Management services, represents 
a steady and predictable monthly revenue stream. 
 
 
There has been an industry-wide slow down in the charter market although YCO 
continues to see activity in luxury charter vessels in excess of 60 metres. 
 
 
The sales figures are in line with expectations. Following the Monaco Yacht Show 
at the end of September 2008, the global market deterioration in Super Yacht 
sales has mirrored the wider worldwide financial crisis. However, the Company is 
pleased that the approach to yacht management and service supply, encompassing a 
broad product platform, has proven sustainable in spite of substantially reduced 
yacht brokerage income. YCO is pleased to announce renewed activity in this area 
as we entered the second quarter of 2009. 
 
 
YCO Crew has grown and following expansion in Europe and investment in IT 
infrastructure and online databases, reports a small loss in its second year of 
operation. YCO Crew now operates from three fully integrated European 
offices and works with yachts all over the world. The Palma office is already 
performing strongly and it is anticipated this will be instrumental in the 
division achieving further profitability in the near future. To support YCO's 
own fleet of yachts, YCO Crew has taken on a member of staff dedicated to 
managing the crew recruitment of all yachts under YCO Management and YCO Project 
Management. Demand for the company's services remains buoyant. 
Overview 
The YCO business model is centred around securing yachts for management and 
offering high quality support services through the group's companies. The 
directors believe that the group is well positioned to take advantage of a 
market improvement when it comes and believe the structured approach of ensuring 
that each business can stand alone will prove to be fully justified. 
 
 
The Company continues to invest in group integration and CRM systems to ensure 
that the group is in a position to provide a consistently high, comprehensive 
service to all existing and new clients. With the anticipated stable revenue 
from management clients and the range of secondary support services, the 
directors believe that the Company is in a stronger position than many 
competitors who rely more heavily on continuous brokerage to secure revenue. 
 
 
Full provision of reorganisation costs and costs of main Board 
restructuring will be included in the figures to 31 December, 2008, leading to a 
loss for the year, but providing the platform for growth for the group in 2009. 
The group of companies continued to trade free of debt throughout 2008 with 
positive cash flow. 
 
 
For further information contact: 
 
 
+-----------------------------------------------------+----------------------------+ 
| YCO Deuxmil plc                                     |                            | 
+-----------------------------------------------------+----------------------------+ 
| Neil Miller, CEO                                    | [phone]       | 
+-----------------------------------------------------+----------------------------+ 
|                                                     |                            | 
+-----------------------------------------------------+----------------------------+ 
| WH Ireland Limited (Nominated Adviser)              |                            | 
+-----------------------------------------------------+----------------------------+ 
| Adrian Kirk                                         | [phone]        | 
+-----------------------------------------------------+----------------------------+ 
|                                                     |                            | 
+-----------------------------------------------------+----------------------------+ 
| Religare Hichens, Harrison Plc (Broker)             |                            | 
+-----------------------------------------------------+----------------------------+ 
| Daniel Briggs                                       | [phone]        | 
+-----------------------------------------------------+----------------------------+ 
| Alan Rooke                                          | [phone]        | 
+-----------------------------------------------------+----------------------------+ 
|                                                     |                            | 
+-----------------------------------------------------+----------------------------+ 
| GTH Communications                                  |                            | 
+-----------------------------------------------------+----------------------------+ 
| Toby Hall                                           | [phone]       | 
+-----------------------------------------------------+----------------------------+ 
| Christian Pickel                                    | [phone]       | 
+-----------------------------------------------------+----------------------------+ 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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