GYG FY financial outturn seen 'much lower' than previously expected

Superyacht maintenance business GYG said on Tuesday that it now expects to deliver a financial outturn for 2021 "much lower" previously anticipated.

GYG stated that while it was "confident" that it will remain profitable at the underlying earnings level in the current year, "significant operational and financial disruption" caused by shipyard administration woes and ongoing contractual discussions had heavily impacted trading.

The AIM-listed group also reiterated that, after further thorough review, it was confident that it can meet its working capital requirements and repay its borrowings as they fall due, providing that the Nobiskrug situation can be resolved before 31 December.

In regards to the unresolved Nobiskrug shipyard administration and ongoing contractual discussions, GYG said progress was being made and management was now confident of reaching a resolution. However, the group said it was now "clear" that work was unlikely to restart on the project in the current financial year.

"Whilst the projects remain in the group's order book, it is now prudent to assume that the full revenues will be recognised in 2022," said the company.

GYG added that despite "a disappointing year", the wider business continued to perform well, with positive opportunities in both the refit and new build market, meaning its outlook for 2022 and beyond was "encouraging".

As of 1030 GMT, GYG shares had slumped 8.19% to 53.25p.