(Alliance News) - Taylor Maritime Investments Ltd on Friday said profit had slumped in the first half, as the company pursues its acquisition of Grindrod Shipping Holdings Ltd.
The Guernsey-based vessel investment company said that pretax profit for the six-months that ended on September 30 was USD7.6 million, down 95% from USD127.2 million a year ago.
Taylor Maritime reported a total income for the first half of USD11.6 million, falling 91% from USD129.0 million for the same period last year.
Net asset value per share dropped 2.6% to USD1.6968 as at September 30 from USD1.7420 at March 31.
Total NAV return per share for the first half of financial 2023 was 1.4%, compared to 81% for financial 2022. In October, the company declared a second interim dividend of 2.00 US cents per share.
Chief Executive Officer Edward Buttery said: "As we enter the second half of the financial year, I believe we are positioned to deliver healthy, sustainable earnings despite short-term fluctuations."
Taylor Maritime said it had made three previously announced vessel sales in the first half, as well as agreeing and completing the sale of a Handysize vessel for USD17.2 million. The company's fleet consisted of 27 vessels at the end of the first half, with one having been sold in November, with a value of USD445 million, down 6% from a market value of USD476 million on March 21, for the same portfolio of vessels.
The company, which has a USD118 million stake in Grindrod, announced a cash offer to purchase all issued shares of Grindrod. In October, the company entered into a transaction implementation agreement with Grindrod.
"This acquisition will allow us to take further advantage of favourable market dynamics, while supporting TMI's strategy to own a larger, younger, more carbon efficient fleet," Buttery added.
Chair Nicholas Lykiardopulo said: "The offer for Grindrod Shipping results in an enlarged group enabling the company to take further advantage of the strong earnings environment we anticipate in the medium term."
Taylor Maritime shares were down 1.1% trading at 87.53 pence per share on Friday afternoon in London.
By Harvey Dorset, Alliance News reporter
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Taylor Maritim (TMI)
Taylor Maritim (TMIP)