GYG, the market leading superyacht painting, supply and maintenance group, has announced its audited results for the year ended 31 December 2017. The results follow a year of transition for GYG that has seen the group complete the acquisition of ACA Marine, float on the AIM stock exchange, engage in multiple partnerships, secure a letter of intent for the landmark REV 182 project and take on senior staff. GYG’s results for 2017 were described by Zeus Capital, the independent banking boutique, as being “robust…[and] marginally ahead of our forecasts reset in November”.
GYG’s revenue increased by 14.7 per cent in 2017 to €62.6m from €54.6m in 2016, thanks in large to organic growth generated through building market share in both the new build and refit coatings markets, leading to a 7.6 per cent growth in adjusted EBITDA. In an exclusive interview in October 2017, SuperyachtNews revealed that GYG considers growth in the new build sector to be fundamental to its long-term prosperity.
“We are maintaining our forecasts on the back of these results and are comfortable with our assumptions given the strength of its [GYG’s] order book, the growth dynamics of the market and its market leading position within this,” comments Zeus Capital. Zeus Capital has forecast that in the year ending 31 December 2020, GYG will be generating revenue of €88m with an adjusted EBITDA of €12.4m.
“Now that we are a listed company, people have started contacting us because they know we are one of few players looking for acquisitions and opportunities. We realise that we are probably at the point soon where we need to start looking at acquisitions,’ explains Remy Millott, CEO of GYG. “We’ve got lots of head room with organic growth so we are looking for the right opportunities, we aren’t going to rush into anything for the sake of it. The market for large superyachts is growing, and this shift suits us perfectly because it is the sector of the market that we enjoy and excel in.”
From 2006 to 2017, the average size of GYG’s superyacht projects has grown from 54m to 78m. Projects in 2017 have included 116m M/Y Ulysses II, 107m M/Y Andromeda and 155m M/Y Al Said amongst others. Key to GYG’s future strategy is to continue growing its new build business by fostering long term relationships with leading northern European shipyards, as well as developing refit partnerships globally.
International infrastructure developments in the large superyacht sector, such as MB92’s new syncro lift, provide a wealth of opportunities for GYG. Further strategic channels include acquisitions, expanding GYG’s supply capacity internationally and continuing with on-going incremental improvements in efficiencies and synergies.
“We have had an encouraging start to 2018, with a busy first quarter in refit, and good progress to the forward order book, having signed some major new build projects which will come on-stream later this year and during 2019 and 2020,” continues Millott. “I am particularly excited that our first major project has started at the newly refurbished Savannah Yacht Center in the US. This is an important milestone for GYG and this will further accelerate the growth of our US operations.
“GYG is an incredibly exciting place to be at the moment. Not only is the business growing, but it has provided the superyacht market as a whole with greater credibility. Investors are now starting to look at this sector seriously. There have of course been some challenges, but so far so good, it has been a great experience and our expectations for ourselves are high.”
Let us hope that GYG’s continued success proves to be a torch bearer for serious investment in the superyacht market.
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