GYG PLC Half Year Trading Update (5316U)

TIDMGYG

RNS Number : 5316U

GYG PLC

02 August 2022

The information contained within this announcement is deemed by the Company to constitute inside information for the purposes of Article 7 of Regulation (EU) 596/2014, as it forms part of the domestic law of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

2 August 2022

GYG plc

("GYG", the "Company" or the "Group")

Half Year Trading Update

GYG (AIM: GYG), the superyacht painting, supply and maintenance company, today provides the following trading update for the six months ended 30 June 2022 ("H1").

As announced in the Company's update on 31 May 2022, trading in Q1 2022 was strong and in line with management's forecasts. Trading in Q2 continued that positive momentum, with overall revenue for H1 in line with H1 2021, despite the geo-political challenges facing the industry. The Group's H1 EBITDA performance was strong and the Group continues to trade in line with market expectations for the year ending 31 December 2022 ("FY22"). The Company's order book for the second half of FY22 is robust and in line with management's forecasts, with a strong pipeline of potential projects.

The volatility in the Group's net operating performance in recent years is well documented and has impacted net operational cash flow generation and creditor balances. In 2021, the Group received a EUR3.0 million loan to provide additional working capital from Harwood Capital Management Ltd ("Harwood", the Company's second largest shareholder). During 2022, the Harwood loan balance has been reduced to EUR0.5 million and the parties have agreed to defer settlement of the outstanding balance from 31 July 2022 to 31 August 2022, with all other terms of the loan unchanged. Separately, on 30 June 2022, the Company, in line with bank financing agreements, also repaid EUR1.0 million of term loans advanced by its lending banks (which is in addition to the EUR1.0 million repaid by the Company on 31 December 2021). Overall, these factors are resulting in reduced net capital available to the Group to effectively explore and exploit growth opportunities.

Despite these challenges, the Board remains confident of meeting 2022 full year market expectations* and its attention remains focused on improving profitability levels and margins through both operational and strategic efficiencies, while continuing to deliver a superior product and service to clients.

The Company will today also announce proposals, subject to shareholder approval, for the proposed cancellation of admission of its ordinary shares to trading on AIM ("Proposed Cancellation"). The background to and reasons for the Proposed Cancellation will be set out in that announcement.

*The Board believes that consensus market expectations for the year ending 31 December 2022 are currently revenue of EUR59 million and adjusted EBITDA of EUR5.0 million.

Ends

For further information, please contact:

 
 GYG plc                                  via FTI Consulting 
  Remy Millott, Chief Executive Officer    Tel: [phone] 
  Kevin McNair, Chief Financial Officer    1000 
 Singer Capital Markets                   Tel: [phone] 
  Tom Salvesen                             3000 
  Peter Steel, Amanda Gray 
 FTI Consulting                           Tel: [phone] 
  Alex Beagley                             1000 
  Fiona Walker                             [e-mail] 
  Rafaella de Freitas 
 

Notes to Editors:

GYG is a 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, containment and the removal and repair of fittings

   --        New Build: fairing and painting of new vessels as part of the build process 

-- Supply: the sale and delivery of maintenance materials, consumables, spare parts and equipment primarily to superyachts and trade customers

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August 02, 2022 02:00 ET (06:00 GMT)