Grand Banks Yachts G50 has reported earnings of $6.9 million for the 1HFY2024 ended Dec 31, 2023, a 91.7% increase over its earnings of $3.6 million for the corresponding period last year.
For the half-year period, revenue improved 29.5% y-o-y to $65.0 million as production activity increased at the company’s facility in Pasir Gudang, Malaysia.
Gross profit increased by 67.1% y-o-y to $23.6 million in line with the higher revenue while gross profit margin (GPM) increased by 8.2 percentage points to 36.3%, in line with the accelerating construction and sales of luxury boats.
Profit before tax stood at $10.5 million, more than double over the $4.4 million recorded in 1HFY2023.
Earnings per share (EPS) stood at 3.71 cents on a fully diluted basis.
Cash flows from operating activities registered $8.9 million for 1HFY2024 compared to $11.6 million a year ago. The positive cash flow was mainly due to the higher profit during the period under review, lower inventories and an increase in contract liabilities. This was partially offset by higher receivables and contract assets, as well as a decrease in payables.
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As at Dec 31, 2023, cash and cash equivalents stood at $42.8 million.
For 1HFY2024, Grand Banks has declared an interim dividend of 0.5 cents per ordinary share, to be paid on March 15. No dividend was declared for 1HFY2023.
The company secured 11 new boat orders in 1HFY2024, bringing its net order book to $137.3 million as at Dec 31, 2023.
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In its outlook statement, the company says the strong order book, combined with its robust balance sheet, will serve as a buffer against headwinds, such as supply chain disruptions arising from geopolitical uncertainties, and macroeconomic challenges.
CEO Mark Richards says: “Our performance shows we are reaping early successes in our efforts to ramp up production and reduce lead times. We continue to see healthy demand and visitor volume at recent boat shows, reflected in 11 new boat orders in the reporting period.”
The group has also begun building a new factory at its Pasir Gudang yard which, upon completion, will increase total shop floor space by more than 25%. The expansion will increase production capacity and internal efficiencies, shorten wait times and facilitate construction of bigger, sleeker and more fuel-efficient yacht models.
“The expansion at our Pasir Gudang yard will enhance our manufacturing capabilities and help us achieve faster delivery times. On the sales and marketing front, we are developing our service yard in Stuart, Florida, USA to provide even better after-sales services in order to cement our presence in the USA, our main market,” adds Richards.
Shares in Grand Banks closed 0.5 cents higher or 1.7% up at 30 cents on Feb 13.
