(Alliance News) - GYG PLC on Friday said it expects good first-half results with no contracts cancelled due to Covid-19.
The superyacht painting, supply and maintenance company expects to report an adjusted earnings before interest, tax, depreciation and amortisation of EUR1.6 million, up from EUR1.5 million a year prior. This would equate to a 22% increase in the adjusted Ebitda margin, the company said.
The higher earnings were due to cost control. Revenue is expected to be at EUR29.1 million, down 12% from EUR33.1 million year on year.
"The board is confident that this improvement in margin is sustainable, and there is potential for this to be increased further," GYG said.
The company said that no contracts were cancelled due to Covid-19 and, as a result, some revenue originally forecast for the first half was delayed into the second half.
Chief Executive Remy Millot said: "Despite the challenges that the Covid-19 pandemic has presented, the group has had a good first half with no projects cancelled and a significant increase in refit work over the summer months, which tends to be a quieter time due to normal Mediterranean cruising patterns.
"Most importantly, despite lower revenues in the first half compared to 2019 and the disruptions encountered in March and April, we have taken the opportunity to continue further restructuring of the group, which has resulted in significantly improved margins."
GYG's total order book on June 30 was at EUR42.7 million, up from EUR38.6 million a year ago.
GYG will report its interim results for the six months to June 30 on September 24.
Going forward, Millot said: "The second half has started well with the positive momentum from the first half being maintained through the summer and into the third and fourth quarters. The order book remains strong and the team are working on a number of potential leads that will further strengthen this through the second half while maintaining our keen focus on gross margin improvement."
GYG expects to meet market expectations for the full year.
GYG shares were up 1.0% at 78.30 pence each on Friday morning in London, having initially risen to 83.50p.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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