31st Oct 2018 10:11
LONDON (Alliance News) - GYG PLC shares plunged on Wednesday as the super yacht service and supply company guided for its annual earnings to be "significantly" below market expectations.
Shares in GYG, which stands for Global Yachting Group, were trading down 36% at 42.04 pence each.
The Mallorca-headquartered company said its revenue and profit have been hurt by a challenging trading environment in the second half.
Revenue for 2018 is expected to be EUR44.0 million, down year-on-year from EUR62.8 million, with the deterioration partly due to delays in a number of projects.
The firm guided for a earnings before interest, taxes, depreciation and amortisation loss of GBP1.2 million, down from an adjusted Ebitda profit of EUR7.2 million a year ago.
"In light of this, the board is taking a more cautious view in relation to future years' revenue and earnings," the company added, including not paying a dividend for the year to December-end. A year ago GYG paid a total dividend of 3.2p per share.
However, while the firm expects its 2018 results to be disappointing, it said it enters 2019 with a strong order book of EUR18.2 million, with further EUR6.5 million secured for 2020.
Chief Executive Officer Remy Millott said: "While 2018 is a year the industry will wish to put behind it, I am confident in GYG's long term prospects and I am excited by the deals we have signed and the ongoing discussions we are having, both with existing and new customers and shipyards."
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