Grand Harbour Marina plc - Interim Results

Monday, September 2nd, 2013

On 30 August, Grand Harbour Marina plc (GHM) published its half-year results covering the six months ended 30 June 2013. GHM is now accounting for its 45% shareholding in IC Cesme marina in Turkey using the equity method (whereby the contribution from this investment is disclosed in one item referred to as ‘Share of loss of equity-accounted investee’) as opposed to the previously adopted method of proportionate consolidation. These changes are in line with amendments to International Financial Reporting Standards (IFRS). As such, the financial statements for the first six months of 2012 and those of the financial year ended 31 December 2012 have been restated to reflect this change and be comparable to the June 2013 figures.

Performance Overview

During the period under review, GHM generated €1.5 million in revenue from berthing and other ancillary services provided at the marina in Malta. This represents a 16% increase over the previous comparable figure of €1.3 million for the six months ended 30 June 2012. There were no berthing sales during the first six months of 2012 and 2013.

Operating expenditure at the marina in Malta also increased by 3.5% to €1.2 million. This led to an operating profit for the marina in Malta of €0.27 million compared to the operating profit of €0.1 million registered in the first six months of 2012.

Net finance costs amounted to €0.34 million mainly representing the €0.1 million interest earned on GHM’s cash balances and the €0.44 million in interest costs payable on the outstanding bonds.

GHM also accounted for a share of loss of the equity-accounted investee related to the 45% shareholding in the Turkish marina IC Cesme. GHM’s share of loss in this respect amounted to €0.08 million compared to €0.22 million in the first six months of 2012 as the marina in Turkey continued to register improved revenue levels (both seaside and landside) whilst cost of sales and normal operating costs were relatively unchanged.

As a result, GHM posted a pre-tax loss of €0.15 million which is significantly lower than the €0.48 million loss incurred during the first six months of 2012. The 2013 interim financials also account for a tax charge of €0.07 million compared to a tax credit of €0.4 million in the first six months of 2012. Overall, GHM reported a net loss of €0.22 million compared to the marginal loss reported in the previous comparable six months. This translates into a negative earnings per share of €0.022.

The statement of financial position shows total assets of €17.8 million representing a 10.6% decline from the figures as at 31 December 2012. The decline is largely due to the reduction of GHM’s cash balances and trade receivables. Total liabilities also contracted by 4.8% during the first six months of 2013 to €14.3 million mainly reflecting the decline in GHM’s trade and other payables. Total equity also dropped by 28.8% to €3.4 million largely reflecting the €1.2 million dividend paid earlier this year in respect to the 2012 financial year.


Looking ahead the Directors noted that following the operational improvements reported by both Grand Harbour Marina and IC Cesme, focus will be maintained on increasing revenue whilst maintaining operating expenditure at a sustainable level.

The Directors also explained that efforts to maximise the return on its assets will continue. Nonetheless, they also noted that although it is currently pursuing a number of long-term berth sales in Malta, market conditions for berth sales remains challenging due to the prevailing global economic conditions and competition from non-EU locations.


Grand Harbour Marina plc – Half-Year Report for the six months ended 30 June 2013.

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