Last checked at 27 Jul 2023 07:00
27 July 2023
Taylor Maritime Investments Limited (the "Company")
Full Year Results for the Year Ended 31 March 2023
Taylor Maritime Investments Limited (TMI / TMIP), the specialist dry bulk shipping company, announces its full year results for the financial period ended 31 March 2023.
KEY FINANCIAL HIGHLIGHTS
· NAV total return of 4.7%
· Audited NAV per Ordinary Share of US$1.71 and Total NAV of $566 million
· Grindrod Shipping Holdings Limited ("Grindrod") investment amounted to $362 million
· Profit for the year of US$26.2 million Dividends paid in respect of the period, including special dividend, amounted to 10.97 US cents per Ordinary Share
· Dividend cover was 2.6x for the year ended 31 March 2023 (excluding the special dividend)
· Combined fleet of 51 vessels, including the TMI and Grindrod Shipping fleets[1], with total market value of US$997 million
· Average net time charter rate of US$14,500 at the end of the year
· Average annualised unlevered return in excess of 17.5% at the end of the year
COMMENTARY
· The Group's Total Net Asset Value ("NAV") return per Ordinary Share was +4.7% (31 March 2022: +81.3%) for the year ended 31 March 2023
· As at 31 March 2023, the TMI fleet consisted of 23 vessels (31 March 2022: 31 vessels) with a total market value of US$373 million (31 March 2022: US$546 million)
· TMI fleet's average net time charter rate as at 31 March 2023 was approximately US$14,500 per day (31 March 2022: US$18,600 per day), with an average duration of four months (31 March 2022: six months) and generating an average annualised unlevered return of 17.5% (31 March 2022: 24%)
· On 19 December 2022 the Group completed a further acquisition of a 57.9% holding in Grindrod at a price of US$21.00 per share. As at 31 March 2023 the Group's total stake in Grindrod amounted to 83.2% (31 March 2022: 26.6%)
· Key financial highlights in respect of Grindrod:
o The Grindrod investment amounts to US$362 million
o Grindrod's fleet consisted of 28 vessels with a total market value of US$624 million[2], including 13 Supra/Ultramax vessels and 15 Handysize vessels
o The Company received US$31.6 million by way of dividends from Grindrod during the year to 31 March 2023 including a special dividend of US$5.00 per share (c.US$25 million) which was used to part-finance the December share acquisition
· The combined fleets of TMI and Grindrod numbered 51 vessels, comprising 38 Handysize vessels and 13 Supra/Ultramax vessels, with a total market value of US$997 million2. As at 31 March 2023, the average age of the combined fleet was 10 years (31 March 2022: 11.4 years)
· The Company declared dividends of 10.97 US cents per Ordinary Share in the year ended 31 March 2023 (31 March 2022: 3.50 US cents). In addition, the Company declared an interim dividend on 27 April 2023 of 2 US cents per Ordinary Share in respect of the quarter ended 31 March 2023, which was paid on 31 May 2023. Dividend cover was 2.6x for the year ended 31 March 2023 (excluding the special dividend)
· The Company's outstanding debt balance was US$222 million as at 31 March 2023 (31 March 2022: US$140 million) resulting in a debt to gross assets ratio of 27.8% (31 March 2022: 19.1%). The Company committed to reaching a target of 25% debt to gross assets ratio within a period of 18 months of entering into the loan facility for the acquisition of Grindrod
Commenting on performance in the full year period, Frank Dunne, Senior Independent Director and Interim Chair said:
"Over the year the group delivered a total NAV return of 4.7% continuing to deliver regular and stable dividends for our shareholders. It has been an active year with a significant strategic investment in Grindrod and selective divestment of other assets. The priority post the Grindrod acquisition remains to reduce debt and to realise synergies available from this investment. Now under the stewardship of our recently-appointed Chair, Henry Strutt, we, as a Board, keep the use of free cash under constant review and will continue to do so, factoring in the Company's share buyback policy."
Edward Buttery, CEO, added:
"This was a period during which we were able to build on a particularly robust inaugural period post IPO. TMI's fleet consistently achieved index beating rates. At the same time, there was significant investment activity, we divested 8 ships at an average IRR of 83% and executed our plan to secure a controlling stake in Grindrod, in the process, creating a larger, younger and more efficient overall fleet. This remains a compelling acquisition harnessing what remains a favourable mid-term market backdrop and despite current macroeconomic headwinds. We are focused on deleveraging and strengthening our balance sheet which should position TMI to capitalise on the structural upside we anticipate going into 2024 and beyond to deliver attractive shareholder returns."
Click or paste the following link into your web browser to view the annual report:
http://www.rns-pdf.londonstockexchange.com/rns/3277H_1-2023-7-26.pdf
Copies of the Annual Report are also available on the Company's website (https://taylormaritimeinvestments.com/investor-centre/results-and-presentations/) and on the National Storage Mechanism (https://data.fca.org.uk/#/nsm/nationalstoragemechanism).
ENDS
For further information, please contact:
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Notes to Editors
About the Company
Taylor Maritime Investments Limited is an internally managed investment company listed on the Premium Segment of the Official List, its shares trading on the Main Market of the London Stock Exchange since May 2021. The Company specializes in the acquisition and chartering of vessels in the Handysize and Supra/Ultramax bulk carrier segments of the global shipping sector. The Company invests in a diversified portfolio of vessels which are primarily second-hand. TMI's fleet portfolio numbers 22 vessels in the geared dry bulk segment. The ships are employed utilising a variety of employment/charter strategies.
On 20 December, the Company announced it acquired a controlling majority interest in Grindrod Shipping Holdings Ltd ("Grindrod") (NASDAQ:GRIN, JSE:GSH), a Singapore incorporated, dual listed company on NASDAQ and the Johannesburg Stock Exchange. Grindrod owns 21 geared dry bulk vessels complementary to the Company's fleet. They are mostly Japanese built, including 13 Handysize vessels and 8 Supra/Ultramax vessels. Grindrod has seven vessels in its chartered in fleet with purchase options on four.
The combined TMI and Grindrod fleet numbers 50 vessels (including chartered in vessels).
The Company's target dividend policy is 8 cents p.a. paid on a quarterly basis, with a targeted total NAV return of 10-12% per annum over the medium to long-term.
The Company has the benefit of an experienced Executive Team led by Edward Buttery and who previously worked closely together at the Commercial Manager, Taylor Maritime. Established in 2014, Taylor Maritime is a privately owned ship-owning and management business with a seasoned team that includes the founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic Shipping) (listed in Oslo BWEK:NO). Taylor Maritime's team of industry professionals are based in Hong Kong, Singapore and London.
For more information, please visit www.taylormaritimeinvestments.com.
About Geared Vessels
Geared vessels are characterised by their own loading equipment. The Handysize and Supra/Ultramax market segments are particularly attractive, given the flexibility, versatility and port accessibility of these vessels which carry necessity goods - principally food and products related to infrastructure building - ensuring broad diversification of fleet activity and stability of earnings through the cycle.
IMPORTANT NOTICE
The information in this announcement may include forward-looking statements, which are based on the current expectations and projections about future events and in certain cases can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target", "believe" (or the negatives thereon) or other variations thereon or comparable terminology. These forward-looking statements are subject to risks, uncertainties and assumptions about the Company, including, among other things, the development of its business, trends in its operating industry, and future capital expenditures and acquisitions. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur.
References to target dividend yields and returns are targets only and not profit forecasts and there can be no assurance that these will be achieved.
LEI: 213800FELXGYTYJBBG50
[1] Excluding three vessels without purchase options
[2] Inclusive of total market value of Grindrod fleet, not just the Company's 83.23% stake