Luxury yacht services firm GYG's share price halves due to weaker trading

 
Alys Key
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The company's shares sank today (Source: GYG)

Shares in Aim-listed superyacht maintenance company GYG fell 45 per cent today after the company warned that trading had been "significantly weaker than expected".

Failure to win some new contracts and delays in others weighed on the group's performance, meaning it only just broke even in the first half.

Shares were down 45 per cent to 72.5p during afternoon trading.

The company said it has an order book that is expected to be completed during 2018 of €12.1m (£10.7m) with a pipeline of potential 2018 projects of €146m, of which at least €25m is highly probable.

GYG, which joined the junior stock market last year, provides maintenance and finishing for both new build superyachts and existing ones being refitted.

In the new build part of the business, GYG was unsuccessful in some of its bids for major contracts, impacting its activity during the peak summer cruising period.

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In order to improve performance, the company said it was developing stronger relationships with yacht-building yards, rather than relying on individuals commissioning new vessels.

Meanwhile, hurricanes prevented some of the group's refit work from being completed to schedule.

"Despite the first half of the year being difficult for the Group and the industry as a whole, we remain confident that the superyacht refit market is returning to normal trading patterns," said chief executive Remy Millott.

"In accordance with our unchanged strategy since listing on AIM in July 2017, we have made significant progress in winning contracts in the New Build sector and this, combined with large Refit contracts in the pipeline for 2019, ensure that we are well placed to take advantage of the many opportunities that are being presented."

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