GYG.L Regulatory News (GYG)

21 November 2017

GYG plc

("GYG" or the "Group")

Trading Update

GYG (AIM: GYG), the market leading superyacht painting, supply and maintenance company, announces the following update on trading: The Group has experienced a number of small delays on the start dates of some refit contracts and, whilst work on these contracts has now begun, a greater portion of this work will now be undertaken in Q1 2018. As a result, the level of revenue deferred is in the range of €3.3m to €4.9m with associated reduction in adjusted EBITDA of between €0.67m and €1.0m. The key factors contributing to this are:

· The two hurricanes that hit the US and Caribbean in Q3, resulting in disrupted cruising patterns and owners extending their Mediteranean season while they assessed the facilities in the Caribbean cruising grounds. During this period decisions relating to refit programmes were delayed and this will result in a lower than expected revenue in the Group's refit businesses.

· A substantial contract that was scheduled to start in late September has been delayed due to the vessel not arriving in dock until the middle of November. Therefore a substantial proportion of this revenue will not be recognised before 2018.

However, management are particularly pleased with the performance in the Group's Technocraft division, which fits scaffolding on and around vessels ahead of refit work being undertaken. The business is experiencing its busiest ever quarter with record Q4 revenue up 66% to date (November up €2m on November 2016, 598%), reflecting the shift in contracted work into Q4 and early 2018.

As a result of the above factors impacting refit, management expects to report revenue and Group profit below expectations. Allowing for the lower range, revenue is expected to be at least €61.0m, up 12% on 2016, and EBITDA at least €7.08m, up 6% on 2016. Importantly, none of the Group's contracts have been cancelled and, therefore, the scheduled work will be undertaken in 2018 with the Company expected to go into 2018 with its highest ever level of in-year order book. Current order book is €18.1m (up 37% on the same date in 2016). The Board therefore remains confident in the Group's expectations for 2018.

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

The person responsible for arranging for the release of this announcement on behalf of the Company is Gloria Ferndandez, the Company's Chief Financial Officer.

Enquiries:

Notes to Editors:

GYG is the market leading superyacht painting, supply and maintenance company, offering services globally through operations in the Mediterranean, Northern Europe and the United States. The Company's brands include Pinmar, Rolling Stock, Pinmar Supply, Pinmar USA, Techno Craft and ACA Marine. GYG's operations can be divided into three key sales channels:

· Refit: repainting and finishing of superyachts, normally as part of a refit programme. Revenues also include scaffolding and containment work;

· New Build: fairing and painting of new vessels as part of the build process; and

· Supply: selling and delivery of maintenance materials, consumables, spare parts and equipment primarily to trade customers.

Superyachts require a major survey service every five years to comply with certain class, maritime laws and insurance requirements. Owners typically undertake an annual haul out and general maintenance to remain ahead of the service intervals and to keep the vessels in optimum condition. Owners often use the major servicing period as an opportunity for repainting the vessel, providing GYG with a source of repeat business.