Grand Banks Yachts has reported earnings of $7.6 million for the 1HFY2025 ended Dec 31, 2024, a marginal 9.2% increase from the $6.9 million in the same period a year before.
Earnings per ordinary share for 1HFY2025 rose to 4.05 cents, while net asset value per ordinary share increased to 51.07 cents as at Dec 31, 2024.
The mainboard listed builder of yachts has proposed an interim dividend of 0.5 cents per ordinary share as a result. It said that its higher earnings could be attributed to the high level of boat-building activity at its facility in Pasir Gudang, Johor, Malaysia.
The company booked eight new boats and three trade-in boats for the period under review, lifting revenue in the reporting period by 3.4% to $67.2 million from $65.0 million.
However, 1HFY2025 gross profit declined 8% to $21.7 million and gross profit margin declined to 32.4%, primarily due to a higher proportion of lower-margin trade-in boats.
Total operating expenses for 1HFY2025 decreased to $10.8 million from $12.7 million in 1HFY2024, mainly due to lower goodwill warranty and sales commissions, partially offset by higher payroll and depreciation expenses.
See also: Jardine Matheson posts loss of US$468 mil, but underlying net profit stood at US$1.47 bil
Net cash stood at $5.2 million, lower than the $8.9 million in the corresponding reporting period due to lower trade receivables and contract assets and higher trade payables. This was partially offset by lower contract liabilities and higher inventories, prepayments and taxes paid.
Cash and cash equivalents declined to $35.3 million as at Dec 31, 2024, and net order book declined to $109.8 million.
The group opened a new office within Kona Mai Marina in San Diego California in November, and says it continues to be on the look out for opportunities in the US.
“The 1H FY2025 performance results reflect our combined focus on boat design, service quality and internal efficiencies. We will build on this foundation by expanding our Pasir Gudang yard so as to meet growing demand for bigger boats while strengthening our market presence within the USA,” says CEO Mark Richards.
Shares in Grand Banks Yachts closed 0.5 cents higher or 0.775% up at 65 cents on Feb 12.
