(Alliance News) - Shares in GYG PLC plummeted Thursday despite swinging to an interim profit amid strong revenue and order book growth, and confirming momentum continued into the second half of the year.
Shares in GYG were 19% lower at 40.10 pence in London on Thursday.
For the six months ended June, the superyacht painter and maintainer swung to a EUR62,000 pretax profit from a EUR1.7 million loss the year prior. This was after revenue rose to EUR33.1 million from EUR25.2 million the year before.
"GYG has had a strong first half of 2019 and I am pleased that this momentum has continued into the second half," GYG Chief Executive Officer Remy Millott said.
"Our focus on gaining market share in the new build sector is delivering solid results as evidenced by our new build contract wins and the significant increase in the average value of contracts we are tendering for," Millott added. "This, and the normalisation of conditions in the refit market, has resulted in the group's strongest ever forward order book at the half year and we look forward to the second half with confidence".
At the end of June, the total order book at GYG stood at EUR38.6 million compared to EUR29.9 million the year prior.
In a separate announcement on Thursday, GYG said it signed two contracts for two new build superyacht projects in northern Europe. Both vessels are currently under constrcution, with GYG due to start coating work on both in the first half of 2020.
"I am pleased to have signed these two New Build contracts on the first day of the Monaco Yacht Show," Millott said. "These projects strengthen our order book for 2020 and further increase our market share in the important new build sector. The commercial team is working on more opportunities with our major shipyard partners and I look forward to updating shareholders on our progress."
By Ahren Lester; ahrenlester@alliancenews.com
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