GYG, the superyacht painting, maintenance and supply company has announced its audited final results for the year ending 31 December 2020. Despite decreased revenues as a result of the COVID-19 pandemic, GYG reports a strong year operationally with several positive indicators leading for 2021 and beyond.
“2020 has been an exceptional year of trading considering the operational challenges created by COVID-19. I am proud of how GYG has responded and adapted to the considerable disruptions. We have focused on maintaining our premium service to clients and I would like to thank the whole team for their incredible hard work and effort,” explains Remy Millott, chief executive of GYG.
“Despite these unprecedented events, our market position and fundamentals remain strong but also demonstrate how our diversified, global model has created an opportunity to grow our market share and improve our operational model. As a direct result of management’s strategy to drive market share in new build and the ongoing new business development programmes we have been working through since 2019, our order book continued to build throughout the year.”
Group turnover for the year was €58.9m, a decrease of 7.7 per cent over the €63.8m reported for 2019. The Group entered 2020 with its strongest ever order book and this decrease in revenue reflects the direct impact of the pandemic on the group. Pleasingly for GYG, it has reported that no revenues were cancelled, however, some projects were delayed from Q4 2020 into Q1 2021. As a result, coatings division revenue decreased 5.4 per cent to €50.8m from €53.7m in 2019. The supply division revenue decreased by 19.8 per cent to €8.1m from €10.1m 2019, reflecting the considerable disruption to the yachting activity and the wider retail sector during this time.
Despite the unprecedented trading conditions experienced, GYG’s management was able to improve the Group’s operational efficiency resulting in a 15.6 per cent increase in Adjusted EBITDA to €5.2m from €4.5m the previous year, and an operating profit before tax of €1.2m from €1.3m in 2019.
“We started 2020 with a record order book and continued to build on this throughout the year, with a particular focus on higher-value, longer-term new build contracts. We are currently working on several significant turnkey refit projects, utilising the full-service range including bespoke scaffolding, containment, hardware removal, caulking and complete repainting alongside five new build projects,” continues Millott. “In addition to evolving a favourable sales mix, we remain focused on driving further operational efficiencies and margin improvements across the Group. Despite the challenges we have faced, the market fundamentals remain strong, and our record order book not only demonstrates our client’s conviction in the outlook for the industry but also provides better visibility, facilitates efficient planning, and gives us confidence for further market share gains in the year ahead.”
GYG’s growth strategy continues to focus on the development of its new build business as it becomes a preferred supplier for an increasingly large number of the key northern European shipyards. GYG’s growth strategy is further supported by the development of new technologies both independently and in line with industry partners, such as Awlfair SF, the expansion of its wider coatings and supply businesses and opportunities for organic and inorganic growth.
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