Grand Harbour Marina plc - Interim Results

Wednesday, August 31st, 2016

On 31 August 2016, Grand Harbour Marina plc published its interim results covering the six months ended 30 June 2016.

Performance Overview

During the period under review, Grand Harbour Marina plc reported a 16.7% increase in revenue to €2.08 million largely reflecting an increase in berthing fees following a 22% rise in annual revenue, a 10% increase in seasonal income and a 26% growth in visitors fees on the back of a strong winter berthing season. Furthermore, the novation fee received by GHM of €0.1 million in respect of the re-sale of a super-yacht berth offset the 10% decline in utility revenues. It is also noteworthy to highlight that for the fifth consecutive year, the Company did not register any berth sales during the first six months of the year and the Directors do not expect any berth sales to be concluded in the near future.

Operating expenses also increased by 11.5% to €1.3 million largely reflecting a marginal increase in personnel expenses and increases in other expenses including rent. This led to an earnings before interest, tax, depreciation and amortisation (EBITDA) figure of €0.79 million, representing a 23.1% increase over the previous comparable period. Similarly, the EBITDA margin improved by 2.31 percentage points to 37.9%.

After accounting for depreciation of €0.15 million, practically unchanged from the previous comparable figure, the Company registered an operating profit of €0.64 million compared to €0.48 million in the first six months of 2015.

Net finance costs decreased by 15.6% to €0.4 million reflecting a lower interest expense.

The Group also reported a share of profit from the shareholding in the IC Cesme marina in Turkey of €0.1 million compared to €0.05 million in the previous comparable period. The marina in Turkey registered unchanged seaside revenues of €1.5 million as the new 46 berthing rental agreements offset the adverse effects that concerns over terrorism are having on the Turkish tourism industry and the decision by 40 boat owners who decided to leave the marina. Nonetheless, the Directors noted that despite the increase in the number of berths rented, the water usage is still at 75% thereby still having further scope for revenue growth. Landside revenues increased by 14.3% to €0.8 million largely reflecting the new lease agreements that were concluded last year. After accounting for direct costs (which increased marginally), unchanged operating expenses and lower depreciation and finance charges, the marina in Turkey registered a pre-tax profit of €0.3 million compared to €0.2 million during the first six months of 2015.

Overall, the Group reported a pre-tax profit of €0.35 million compared to €0.08 million in the first six months of 2015.

After accounting for taxation of €0.16 million (H1 2015: €0.12 million), the Group’s net profit for the period under review amounted to €0.19 million in contrast to the losses registered in previous years.

The Statement of Financial Position as at 30 June 2016 shows a 4.8% increase in total assets to €16.98 million compared to the figures as at 31 December 2015 mainly reflecting the 32% increase in trade receivables to €1.2 million and the 27.1% increase in cash and cash equivalents to €2.46 million. Similarly, total liabilities grew by 4.4% to €13.8 million. Overall, the Group’s equity base expanded by 6.4% to €3.15 million mainly reflecting the profit registered during the period under review. This translates into a net asset value per share of €0.1577 (Dec 2015: €0.1370).

Dividend

The Directors declared a net interim dividend of €0.48 million equivalent to €0.024 per share. The dividend will be paid on 13 September to all shareholders as at the close of trading on 5 September 2016.

Outlook

The Directors noted that during the period under review, both the marina in Malta and that in Turkey reported improved financial results as a result of higher occupancy of berths and a control of expenditure at a sustainable level. Going forward, the Directors shall continue to focus on sustaining the operating efficiency of the marinas whilst seeking new investment opportunities that will enhance profitability.

Download

Grand Harbour Marina plc – Interim Report for the six months ended 30 June 2016.

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