SINGAPORE (Aug 28): Grand Banks Yachts, the manufacturer and retailer of luxury motor yachts, has announced a net profit of $0.5 million for the full year ended June, representing a 73.6% decline from its $2 million in earnings for FY16 on a surge in expenses.
FY17 evenue remained stable at $58.7 million, relatively unchanged from a year ago as the group was impacted than longer-than-expected delivery time for the first Grand Banks 60 yacht.
However, total operating expenses surged to $9.9 million from $9 million in FY16, due mainly to higher broker commission fees, boat show expenses, and consultancy marketing fees.
Additionally, the group registered finance costs of $145,000 over the full-year period compared to none in the previous year due to bank borrowings to finance part of the group’s lease renewal consideration of its manufacturing yard in Pasir Gudang, Johor, Malaysia.
A tax expense of $0.4 million was also recorded for FY17 compared to tax credit of $0.7 million in the previous year.
In its outlook, Mark Richards, CEO of the Grand Banks Yachts, says the group has enhanced its manufacturing capabilities through factory improvements and robotics over the past year, apart from implementing a new ERP system and strengthening its key management team.
“We enter FY18 on a strong foundation, and I am very proud of what the whole team has achieved,” says Richards.
“Our new GB60 has undergone vigorous industry-standard tests successfully while maintaining the brand loyalty woven around the Grand Banks legacy… The GB60 will help reposition Grand Banks as a contemporary leading provider of dependable performance motor-yachts,” adds group chairman Heine Askaer-Jensen on the upcoming launch of the group’s new product.
Shares in Grand Banks Yachts closed flat at 28 cents on Monday.
