18 April 2018

 

GYG plc

("GYG", the "Company" or the "Group")

 

2017 FINAL RESULTS

 

A transformative year resulting in double digit revenue growth

 

GYG plc (AIM: GYG), the market leading superyacht painting, supply and maintenance company, today announces its audited results for the year ended 31 December 2017.

 

Financial Highlights

§ Group revenue increased 14.7% to €62.6m (FY16¹ €54.6m)

o  Coating (Refit & New Build) revenue up 16.7% to €53.7m (FY16 €46.0m)

o  Supply revenue up 4.2% to €8.9m (FY16 €8.6m)

§ Adjusted EBITDA² increased 7.6% to €7.2m (FY16 €6.7m)

§ Operating profit of €1.4m which includes €3.9m of exceptional items, mainly related to the IPO  (FY16 operating profit of €1.9m)

§ Net debt position reduced to €6.7m at 31 December 2017 (FY16: €10.4m)

§ Cash of €6.2m as at 31 December 2017 (€6.2m at 31 December 2016)

§ Board has recommended a total dividend of 3.2 pence per ordinary share, reflecting the 6 month period from IPO to the year end

 

Operational Highlights

§ Completed acquisition of ACA Marine coating division in South of France in March 2017

§ Successful placing of £6.9m of new equity and admission to AIM in July 2017. Upon admission, Stephen Murphy was appointed as Chairman and Richard King as Non-Executive Director

§ Enhanced credibility and profile as a result of the IPO demonstrated by recent contract wins including for the previously announced work on Rev 182

§ Record Order Book³ as at 31 December 2017 of €20.4m (up from €17.9m FY16), of which €14.3m is planned to be delivered in FY18

§ Pipeline⁴ of €376m as at 31 December 2017 (up from €267m FY16)

§ Balance sheet strengthened, with repayment of €4.3m of loan notes on IPO

§ Post period end, the Group won the first significant refit project at the newly refurbished Savannah Yacht Center in Georgia, USA on a c.70 metre Dutch-built superyacht

 

1)      Refer to the Financial Performance section for an explanation of the basis of preparation of the twelve- month period ended 31 December 2016 comparative financial information (referred to as "FY16").

2)      Adjusted EBITDA is defined as operating profit before finance costs, taxation, depreciation, amortisation, share based payments and exceptional items. This is an alternative performance measure and should not be considered an alternative to IFRS measures, such as revenue or operating profit.

3)      Order Book is defined as contracted but unbilled New Build and Refit projects across the Group from 1 January 2018 onwards.

4)      Pipeline is defined as the projects the Group are looking to secure, covering the stages from sending a proposal to final negotiation .

 

    

Remy Millott, CEO of GYG commented:

 

"2017 was a transformational year for GYG which included the acquisition of ACA Marine and the successful completion of our AIM IPO in July, enhancing our credibility and profile in the industry. The coating division had a strong performance, delivering 16.7% revenue growth and further establishing GYG's credentials in the new build market with promising results".

 

"We have had an encouraging start to 2018, with a busy first quarter in refit, and good progress to the forward Order Book, having signed some major new build projects which will come on-stream later this year and during 2019 and 2020. I am particularly excited that our first major project has started at the newly refurbished Savannah Yacht Center in the US. This is an important milestone for GYG and this will further accelerate the growth of our US operations".

 

"GYG is well placed to increase its coating market share through an organic growth strategy and to capitalize on the 6% estimated annual growth in our addressable market, as a result of the continued growth of worldwide billionaires buying larger yachts and increasing the global superyacht fleet. As a result, the Board looks to the future with confidence".

 

Analyst meeting

There will be a presentation for sell-side analysts at 9:30am this morning, 18 April 2018, the details of which can be obtained from FTI Consulting.

 

Enquiries:

 

GYG plc Remy Millott, Chief Executive Officer Gloria Fernandez, Chief Financial Officer	via FTI Consulting Tel: +44 (0) 20 3727 1000
Zeus Capital Limited (NOMAD & Broker) Giles Balleny, Dan Bate (Corporate finance) John Goold, Hugh Kingsmill Moore (Broking)	Tel: +44 (0) 20 3829 5000
FTI Consulting (Financial PR) Alex Beagley Fiona Walker Laura Saraby	Tel: +44 (0) 20 3727 1000

 

  

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

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:

 

·        COATING:

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

 

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

 

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

 

Superyachts require a major survey and 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.

 

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.

 

CHAIRMAN'S STATEMENT 

I am delighted to present my first Chairman's statement as a public company on behalf of the Board of GYG plc.

2017 was a milestone year in the Group's development, with a successful IPO on the AIM Market of the London Stock Exchange in July while also delivering another year of strong growth.  The IPO raised £6.9m which was used to settle pre-existing shareholder loan notes, accrued interest and fees and expenses in relation to the IPO and by the end of the year, net debt had been reduced to €6.7m. Prior to the IPO, significant highlights included the acquisition of ACA Marine in March.

 As such, our strengthened financial position provides us with a strong platform to support future growth and development of the Group. The enhanced credibility and profile that we have gained as a result of the IPO will continue to help us secure larger orders and develop further growth opportunities to generate long-term value for shareholders.

RESULTS

We have delivered solid revenue growth in the year, up 14.7% to €62.6m (FY16: €54.6m), reflecting a good performance across all divisions. Adjusted EBITDA increased 7.6% to €7.2m (FY16: €6.7m), with an adjusted EBITDA margin of 11.5% (FY16: 12.2%). We ended the year with a solid balance sheet and maintained cash at €6.2m at 31 December 2017 (€6.2m at 31 December 2016).

DIVIDEND

As stated in our Admission Document, the Board has adopted a progressive dividend policy with growth in line with the growth in future earnings and the Board is therefore pleased to recommend a total dividend of 3.2 pence per ordinary share for the year ended 31 December 2017, reflecting the 6 months from IPO to the financial year end. If approved by the shareholders at the Annual General Meeting on 29 May 2018, the dividend will be paid on 15 June 2018 to shareholders on the register on 4 May 2018. The ex-dividend date will be 3 May 2018.   

CURRENT TRADING & OUTLOOK

We have had an encouraging start to 2018, with trading in line with the Board's expectations. The Group had a busy first quarter in refit including a number of jobs that were pushed back by the 2017 hurricanes and has seen significant growth to the forward Order Book, having signed some major new build projects which will come on-stream later this year and during 2019 and 2020. Management are highly focused on delivering growth across the divisions in 2018, and the wider GYG team is strongly motivated to continue to deliver a premium quality service to our existing and new customers. I would like to take this opportunity to thank all of our colleagues across the world for their continued hard work to deliver these results. The Group is well positioned to continue to create long-term value for all shareholders.

 

 

Stephen Murphy

Non-Executive Chairman

18 April 2018

 

CHIEF EXECUTIVE'S REPORT

I am pleased to report on GYG's first year end results as a public limited company. Our successful IPO in July 2017 was a major milestone for the Group, further strengthening its position as the global market leader in the superyacht painting, supply and maintenance sector. Together with the acquisition of the majority shareholding in ACA Marine, GYG's flotation on AIM represented a significant achievement for the Board of our Company and I am grateful for the dedicated support of my fellow Directors.

The Group delivered strong results with revenue of €62.6m in the year ended 31 December 2017 reflecting a 14.7% increase compared to FY16, and adjusted EBITDA of €7.2m (FY16: €6.7m), an increase of 7.6%. We ended the year with cash of €6.2m on a par with the previous year and a stronger balance sheet, having repaid €4.3m of loan notes post the IPO. This was achieved alongside a busy corporate agenda and challenging market conditions in the latter half of the year. Strong revenue growth was achieved in the first half, however as previously announced, the third quarter refit programme was affected by the disruption to seasonal cruising patterns from an extraordinary sequence of hurricanes. This caused delays to several major projects, leading to a softening of revenues in the second half of the year. Despite this, I am pleased to report that refit showed a strong recovery in the fourth quarter and as far as we can see these project deferrals resulted in work being postponed into 2018. The Group is well positioned with a strong forward Order Book in a market segment which continues to exhibit solid growth.

STRATEGY

The Group's strategy remains the same as that detailed in our Admission Document and we will continue to leverage our market leadership in the refit sector where GYG holds a 30% share (up from 29% at the time of flotation), an 86% customer retention rate, and a preferred supplier status with many of the leading refit shipyards in the core locations. Our addressable coating market is forecast to grow at 6% per annum and we have the platform in place to grow with and above the market. The Group is targeting regional developments in the refit market by continuing to engage and enter into new agreements with shipyards, further strengthening our market position.

The Group aims to increase its market share in new build through an organic growth strategy. The board believes that being a listed group provides reassurance to shipyards due to the scale and security of the Group and provides confidence to them regarding the risk of awarding these large contracts.

In the USA, we are particularly excited about the potential of the newly refurbished Savannah Yacht Center in Georgia ("SYC"). GYG entered into a memorandum of understanding with SYC in August 2016 to establish a new painting facility to cater for superyacht refit projects. Whilst GYG already has bases in Fort Lauderdale and West Palm Beach, these facilities are mainly servicing yachts up to 70 metres therefore SYC opens up the 70+ metre US market. Post period end, the Group's US subsidiary, Pinmar USA, won the first significant refit project on a circa 70 metre Dutch-built superyacht which has started this month and will run for approximately 14 weeks. Management anticipates SYC to form a major part of the US growth strategy as this shipyard capacity comes fully on stream in Q3 2018.

The Board has further targeted improvements to gross margins which are underpinned by a programme of management initiatives to improve production processes and internal systems. As a Group, we will continue to invest in technological, operational and our human resource development which will contribute to margin improvement as well as preserving the market leadership status of our portfolio of brands.

Finally, the Board continues to evaluate earnings enhancing acquisitions to increase market share and enable expansion into new geographic markets or new complementary services to support the Group's long-term strategy.

DIVISIONAL REVIEW

GYG is a market leading superyacht painting, supply and maintenance company offering its services globally through operations in the Mediterranean, Northern Europe and the USA. The Company's brands include Pinmar, Rolling Stock, Pinmar Supply, Pinmar USA, Techno Craft and ACA Marine. GYG's operations are separated into two divisions, coating and supply.

The AIM IPO has certainly raised the profile of the Group providing a platform to engage directly with significant industry participants whilst giving corporate credibility and additional certainty to existing and potential clients.  This has enabled the Group to continue growing market share in a growing market.  In particular, the management team has a strategic focus on new build where it is looking to increase GYG's market share as that market itself continues to expand.

COATING DIVISION        

This division, consisting of the refit and new build markets, performed very well in 2017 with revenue increasing 16.7% to €53.7m (FY16 €46.0m). This performance is underpinned by the industry trend of increasing average vessel size (44% growth in the last 11 years), resulting in a larger surface area to be treated.   Particularly pleasing has been the 20% growth in revenue of the Group's scaffolding company, Techno Craft.

With the recent contract win of a 117 metre new build in Norway and several large refit projects being carried out in new locations, the division is expanding its market share outside Spain while strengthening the Group's reputation as a company that can achieve vast scopes of high quality work in short time frames.

Importantly, the strong results in this division were achieved despite the challenges witnessed in the second half such as the hurricanes in the USA which not only interrupted production for a short period, but also disrupted normal cruising and refit patterns. 

Refit includes repainting and finishing of superyachts, normally as part of a refit programme, and its revenues also include scaffolding, containment and the removal of fittings undertaken by the Techno Craft business. 

A key driver of our business is that superyachts require a major survey and service every five years to comply with certain class regulations, maritime laws and insurance requirements. In addition, our strong warranty and network of relationships with shipyards supports strong repeat business enhancing revenue security.

GYG operates four brands in the refit sector each targeting specific regional markets and segments. Pinmar is the market leading brand focused on the large motor superyachts across all European refit locations. Pinmar USA is the leading brand on the East Coast of the USA, predominantly servicing the motor yacht market. Rolling Stock has its core in the sailing superyacht sector and specialises in metallic and performance coatings in Europe. ACA Marine, the Group's most recent acquisition, is a regional brand focusing on the 40+ metre market in France.

GYG increased the scope of its refit network in 2017, signing commercial agreements with major refit shipyards in the USA and Italy which will facilitate the planned regional growth in 2018, as stated at IPO. The Group also expanded its field sales force to service the enlarged network, implementing a tailored CRM system to manage the sales process.

New Build covers the fairing and painting of new vessels as part of the build process and represents a significant growth opportunity for the Group.

2017 new build revenues were strong with the Group undertaking major projects in Holland, Germany and the USA. The fairing and painting of a new, large (70+ metre) superyacht will typically take 8-12 months, with the largest (150+ metre) vessels taking longer. Correspondingly, such major individual projects produce substantial and consistent revenues over a prolonged period contributing to the annual sales of the coating division.

Historically, GYG has been successful in winning major contracts to fair and finish iconic new build projects through its strong relationships with existing superyacht owners and their representatives. However, the paint contracts for the majority of the 50-70 metre new build projects are awarded by the shipyards to their long standing preferred local suppliers, hence GYG's relatively low market share of 6% in this high value segment. One of the strategic drivers of the IPO was to further penetrate this sizeable market segment to drive the future growth of our new build operations. We are confident that we will be able to demonstrate to the leading new build yards in Holland, Germany and Italy that we can add value and reduce risk through our industry leading quality, production efficiency, project management protocols and global after sales service.

Post period end, we signed a Letter of Intent ("LOI") with the owner of 'REV 182', the world's largest research and expedition vessel currently under construction. The 182 metre vessel, which is scheduled to be started in 2019 and delivered in 2020, will be contracted to the Group's Rolling Stock division and the order includes the supply and application of the exterior filler and paint system for specified exterior areas of the vessel.

This is the third explorer vessel of this type that GYG has been contracted to work on in the last two years, further establishing the Group as the specialist in this type of market. The works are scheduled to commence in 2019, strengthening the order book and providing a good visibility of income for the Group.

SUPPLY DIVISION

The supply business operates through three distinct sales channels, namely retail, trade and superyacht provisioning.

The Supply division delivered revenues of €8.9m, up 4.2% on FY16 (€8.6m). The retail turnover was in line with the previous year while the division's growth came from the increased volumes through the trade accounts and the expansion of yacht provisioning.

OPERATIONAL REVIEW

During 2017, we completed a review of our production processes and have started to implement a number of quality, efficiency and productivity initiatives aimed at improving gross margins and reducing fixed costs. We expect to see the early benefits of these programmes over the course of 2018.

Through the Pinmar brand, GYG continues to lead the industry in terms of the delivery of quality standards. The Pinmar Standard was the first empirically based superyacht paint standard introduced to the industry in 2011, revolutionising the approach to the inspection and acceptance of paint works. In 2018, GYG launched the Pinmar Standard 2.0, an updated version of the standard which incorporates the expanded range of paint manufacturers and products available in the market today.

The Group continues to innovate and invest in new application technology, leveraging its close relationship with all of the main superyacht paint manufacturers. Its adoption and industry development of electrostatic top-coat application is delivering significant time, quality and environmental benefits, further asserting the Group's industry leadership.

GYG continues to develop its Human Resources function with a structured in-house programme of skills development aimed at expanding the coating division production capacity. We continue to strengthen our management team through strategic recruitment, bringing a mix of industry experience and related business expertise. 

We continue to improve our business processes, systems and infrastructure to support the growth and improve efficiency of the Group. In 2017, we implemented a new production application software to provide greater visibility and control over production activity, and a sales CRM system that provides data on the worldwide fleet of 5,700 superyachts and facilitates the management of the marketing and sales process. This has further improved our ability to forecast upcoming yacht refits and has provided our managers with a more efficient approach to marketing at the appropriate time before a refit.

MARKET DEVELOPMENTS

The superyacht new build and refit painting market continues to exhibit consistent growth of approximately 6% per annum driven primarily by the refit market which, as previously mentioned, requires regular maintenance programmes. The new build market, particularly the larger superyacht segment (70+ metre), has been fuelled by the continued growth in the number of worldwide billionaires, (estimated 9% CAGR to 2020) and continues to report growing order books and deliveries through 2020, indicating further new build painting and a growing fleet requiring refit.

We have noted the continuing increase in the size of vessels being produced and the demands this places on the global refit shipyard infrastructure. There are a limited number of yards with the infrastructure required to service the growing number of 100+ metre mega-yachts and GYG is well positioned with these yards to complete such orders. Time is a precious factor in the refit of these larger vessels as owners want access to their vessels or the ability to hire out during the main cruising season. The Group's technical leadership and unrivalled experience in repainting the largest yachts to the highest industry standards, meeting clients demanding timescales, further accentuates our competitive advantage.  

OUTLOOK

The Group is well positioned in each of its core markets and the management team is focused on delivering the key objectives of revenue growth and margin improvement. The Group's outlook for 2018 is positive with significant growth expected in the refit sector alongside further new build market penetration.

 

Remy Millott

Chief Executive Officer

 

18 April 2018

 

FINANCIAL REVIEW FOR THE YEAR ENDED 31 DECEMBER 2017⁵

During the year ended 31 December 2017, the Company continued to focus on organic revenue growth through expanding shipyard and client relationships for the Coating division and an increasing offering for the Supply division.

The Company, during this time, also prepared for an IPO of its shares on AIM which was successfully completed on 5 July 2017.  The Company issued 6.9m new shares at a placing price of 100p (the "Placing Price"), raising gross proceeds of £6.9m.  GYG used the funds principally to settle shareholder loan notes and related interest, advisor fees and expenses in relation to the IPO.

The Board believes that the flotation on AIM has increased the Company's overall reputation and profile, broadened and strengthened GYG's shareholder base, and has provided the Company with the ability to incentivise key employees and to use AIM quoted shares as currency for potential future acquisitions.

Financial performance

Year ended  31 December 2017		Coating		Supply		Total reportable segments
		€000		€000		€000
Revenue		53,713		8,925		62,638
Adjusted EBITDA		6,219		972		7,191

 

Combined twelve-month period ended  31 December 2016 5		Coating		Supply		Total reportable segments
		€000		€000		€000
Revenue		46,023		8,568		54,591
Adjusted EBITDA		5,959		726		6,685

 

Consolidated ten-month period ended 31 December 2016 5		Coating		Supply		Total reportable segments
		€000		€000		€000
Revenue		37,292		7,161		44,453
Adjusted EBITDA		4,817		587		5,404

 

5)      The financial information for the ten-month period ended 31 December 2016 is the trading period for GYG plc (former Global Yachting Group Limited) since its incorporation date in February 2016, starting trading on 4 March 2016, to 31 December 2016. As consequence the financial information for the twelve-month period ended 31 December 2017 is not directly comparable with that of the ten-month period ended 31 December 2016. To aid comparison to the twelve-month period ended 31 December 2017 (referred to "FY16"), we have set out above the comparative financial information for the twelve-month period ended 31 December 2016, as well as the ten month information (below). The comparative financial information for the twelve month period ended 31 December 2016 is the combination of:

 

-     The consolidated financial information of Hemisphere Yachting Services, S.L.U. and its subsidiaries for the period from 1 January 2016 to 3 March 2016 (the period until the acquisition by Global Yachting Group Limited); and,

-       The consolidated financial information of Global Yachting Group Limited for the period from 4 March 2016 to 31 December 2016 .

Revenue in the year ended 31 December 2017 increased 14.7% to €62.6m (FY16: €54.6m) with 16.7% growth in the coating division, reflecting strong performances in new build, scaffolding and containment, and 4.2% growth in the Supply division in 2017. Our Refit division recorded high turnover in the first and second quarters, however the third quarter Refit programme was affected by the multiple hurricane disruption to seasonal cruising patterns causing delays to major projects which led to a softening of revenues in the second half of the year. Refit recovered in the fourth quarter, and the Group are seeing the project deferrals starting to flow through into the order book during 2018.

Operating expenses before share option charges and exceptional items were €57.3m in the year (FY16: €50.1m). The increase in operating costs predominantly reflects higher direct manpower, materials and other operating expenses in line with the increased turnover.

With a gross profit margin across the Group of 27%, and adjusted EBITDA margin of 11.5%, we achieved adjusted EBITDA of €7.2m in the year (FY16: €6.7m); where the main contribution to this growth came from the new build division.

The Group delivered operating profit of €1.4m which includes €3.9m of exceptional items, mainly related to professional fees and other related fees arising in connection with the IPO and the acquisition of ACA Marine, the coating business located in the South of France.  This was against a FY16 comparator of €1.9m which included €2.6m of exceptional items, mainly related to transaction fees in connection with the acquisition of Hemisphere Yachting Services, S.L.U. which was completed on 3 March 2016.

. 

Financial expenses of €0.9m (FY16: €0.9m) related primarily to interest on the syndicated loan and loan notes (both signed in March 2016).

 

Earnings per share and dividends

Net loss for the year was €0.4m (2016: profit €0.1m).  Loss per share was €0.01 (FY16: earnings of €0.01 per share) and adjusted basic earning per share was €0.14 (FY16: €0.31 per share).

Basic earnings/(losses) per share are calculated by dividing net profit / (loss) for the year attributable to the Group (i.e. after tax and non-controlling interests) by the weighted average number of shares outstanding during that year.

Diluted earnings/(losses) per share have been calculated on a similar basis taking into account dilutive potential shares under the agreements disclosed in note 24 of the consolidated financial statements.

Adjusted basic earnings per share are presented to eliminate the effect of the exceptional items, amortisation of intangible assets and performance share plan costs (considering the tax effect of these adjustments).

		Year ended 31 December 2017		Combined Twelve-month period ended 31 December 2016		Ten-month period ended 31 December 2016
(Losses) / earnings for the period attributable to shareholders (€000)		(349)		72		(926)
Weighted average number of shares		30,091,248		12,167,499		12,167,499
Basic (losses) / earnings per share  (€)		(0.01)		0.01		(0.08)
Adjusted basic earnings per share (€)		0.14		0.31		0.22
Dilutive weighted average number of shares		30,460,009		12,167,499		12,167,499
Diluted (losses) per share (€)		(0.01)		0.01		(0.08)
Adjusted diluted earnings per share (€)		0.13		0.31		0.22

As stated in the Admission Document published at the time of the IPO, the Board's intention is to implement a progressive dividend policy in line with the growth in future earnings, subject to the discretion of the Board and to the Company having sufficient distributable reserves.  For the year ended 31 December 2017 (being the first financial period end as an AIM quoted company), the Board recommends a total dividend for the year of 3.2 pence per ordinary share. This reflects an annualised dividend yield of 6.4% (calculated on the Placing Price) pro-rated for the period for which the Company has been AIM quoted before its financial year end (approximately six months).

Financial position

Cash and cash equivalents totalled €6.2m at 31 December 2017, on par compared to €6.2m at 31 December 2016 and a stronger balance sheet having repaid €4.3m of loan notes and accrued interest on Admission, bringing the total net debt position to €6.7m at 31 December 2017 (FY16: €10.4m) 

Total assets on the balance sheet were €52.7m as at 31 December 2017, compared to €43.8m as at 31 December 2016 reflecting the acquisition in France and the investment in scaffolding.

Total liabilities were €35.4m (FY16: €32.5m) after the repayment of the above-mentioned loan notes on the 5 July 2017 and total borrowings stood at €12.9m as at 31 December 2017 (FY16: €16.7m).

Cash flow

Net cash from operating activities was €0.4m for the year (FY16: €3.3m) significantly impacted by the exceptional items.  Net cash used in investing activities was €2.2m mainly corresponding to the ACA Marine acquisition in March and significant capex investments in terms of scaffolding (cash from investing activities in 2016: €0.6m) and net cash from financing activities was €1.7m primarily arising from the gross proceeds of the placing on Admission that were used to partially offset the fees and expenses in relation to the IPO and the settlement of the pre-existing shareholders loan notes and accrued interests on Admission (FY16: €1.7m).  Overall net cash inflow for the year was €0.0m (FY16: net cash inflow of €2.9m).

 

 

Consolidated statement of comprehensive income

For the year ended 31 December 2017

		Note				Year ended 31 December 2017   € 000					Period from 11 February 2016 to 31 December 2016 € 000
Continuing operations
Revenue		3				62,638					44,453
Operating costs						(61,235)					(43,680)
Adjusted EBITDA						7,191					5,404
Depreciation and amortisation						(1,822)					(2,133)
Performance share plan						(67)					-
Exceptional items		4				(3,899)					(2,498)
Operating profit						1,403					773
Finance costs - net						(879)					(839)
Profit / (Loss) before tax						524					(66)
Tax		5				(908)					(860)
(Loss) for the period						(384)					(926)
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations						(96)					28
Total comprehensive loss for the period					(480)					(898)
Loss for the period attributable to:
Owners of the company						(349)						(926)
Non-controlling interest						(35)						-
Total comprehensive loss for the period attributable to:
Owners of the company						(445)						(898)
Non-controlling interest						(35)						-
Loss per share (€)		6
From continuing operations
Basic						(0.01)					(0.08)
Diluted						(0.01)					(0.08)

 

 

Consolidated balance sheet

As at 31 December 2017

 

ASSETS		Note		2017 € 000		2016 € 000
Non-current assets
Goodwill		7		9,292		8,704
Other intangible assets				12,720		12,552
Property, plant and equipment				8,352		5,983
Other financial assets				1,621		1,620
Deferred tax assets				601		276
Total non-current assets				32,586		29,135
Current assets
Inventories				3,067		2,068
Trade and other receivables				10,848		6,345
Cash and cash equivalents				6,236		6,207
Total current assets				20,151		14,620
Total assets				52,737		43,755

  

LIABILITIES		Note		2017 € ´000		2016 € ´000
Current liabilities
Trade and other payables				(16,393)		(9,984)
Borrowings		8		(3,278)		(2,107)
Provisions				(304)		(615)
Derivative financial instruments				(16)		(38)
Total current liabilities				(19,991)		(12,744)
Net current assets				160		1,876
Non-current liabilities
Borrowings		8		(9,638)		(14,547)
Deferred tax liabilities				(3,952)		(3,894)
Long-term provisions				(819)		(1,300)
Other financial liabilities				(964)		-
Total non-current liabilities				(15,373)		(19,741)
Total liabilities				(35,364)		(32,485)
Net assets				17,373		11,270
EQUITY
Share capital				106		122
Share premium				7,035		12,046
Retained earnings				10,716		(926)
Translation reserve				(68)		28
Capital redemption reserve				114		-
Share based payment reserve				159		-
Equity attributable to owners of the company				18,062		11,270
Non-controlling interest				274		-
Put option reserve				(963)		-
Total equity		9		17,373		11,270