Mainboard-listed Grand Banks Yachts has reported earnings of $5.4 million in 1QFY2025 ended Sept 30, up by 95% y-o-y from $2.8 million in the previous financial year.
This came on the back of reduced operating expenses in 1QFY2025, which fell marginally to $5.1 million.
The group’s revenue for 1QFY2025 saw a 29.1% y-o-y increase to $40 million from $31 million in 1QFY2024 previously, following the recognition of a previously cancelled boat contract that was resold in 1QFY2025.
Similarly, the group’s gross profit for 1QFY2025 was up 29.2% y-o-y to $13.1 million, due to improved operational efficiency at the group’s manufacturing yard in Pasir Gudang, Johor, Malaysia.
Accordingly, gross profit margin in 1QFY2025 remained stable at 32.6%.
The group’s 1QFY2025 profit before tax stood at $7.7 million, a 63.0% increase from $4.7 million in the same period last year.
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Additionally, the group recorded seven new built-to-order and two trade-in boat sales in 1QFY2025 and has maintained a “healthy” net order book of $116.0 million as at Sept 30. This marks an increase from $120 million as at June 30.
The group says this will “buffer against any short-term macroeconomic headwinds such as elevated interest rates, increased operating costs as well as potential supply chain disruptions arising due to geopolitical tensions”.
The group has also launched two new boat models, the Palm Beach 107 and the Palm Beach GT50 RS Outboard model, under its Palm Beach Motor Yachts brand.
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The Palm Beach 107 represents the group’s first model over 100 ft in its portfolio. The group has since received its first order for the model.
Meanwhile, the group adds that the Palm Beach GT50 RS Outboard features outboard propulsion, which offers faster speeds and greater ease of maintenance as compared to its original GT50 model.
Basil Chan, chairman of Grand Banks, says: “It is an encouraging first quarter, and I look forward to the new models contributing to the results in the years to come, in particular the PB107, which will be the Group’s largest yacht to date.”
Mark Richards, CEO of Grand Banks, adds: “All of our efficiency improvements are now flowing to our bottom line which is extremely satisfying for all involved. We have some very exciting new innovations that we are working on to make Grand Banks one of the industry’s pioneers entering the next generation of boat design and performance.”
Shares in Grand Banks Yachts closed flat at 55 cents on Oct 22.
