Grand Harbour Marina plc - Full-Year Results

Thursday, March 30th, 2017

On 30 March, Grand Harbour Marina plc (GHM) published its Annual Report covering the financial year ended 31 December 2016.

Performance Overview

During 2016, the Group reported a 13.5% increase in revenue to €4.2 million (2015: €3.73 million) reflecting improved turnover at the Grand Harbour Marina on the back of a higher level of superyacht visitors with growth across annual, seasonal and visitor berthing. On the other hand, for the fourth consecutive year, the marina failed to register a superyacht berth sale. Nonetheless, the Marina reported a €0.1 million fee related to the resale of a 75 metre berth.

Operating expenses also increased by 13.1% to €2.69 million (2015: €2.37 million) given increases in personnel expenses as well as other operational costs.

As a result, earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €1.55 million compared to €1.35 million in the previous financial year.

After accounting for an unchanged depreciation charge of €0.31 million, GHM reported an 18.4% increase in operating profit to €1.24 million (2015: €1.05 million).

GHM also reported a 9.3% drop in net finance costs to €0.29 million (2015: €0.27 million).

The share of profit from equity accounted investees, namely the 45% shareholding in IC Cesme Marina in Turkey, also increased by 7% during the financial year under review to €0.29 million (2015: €0.27 million). During 2016, the Turkish marina registered increases in both seaside (+11% – as the marina improved the utilisation of the water area) as well as landside (+16% – as the retail properties remained fully occupied and the marina benefited from the full-year effect of the increase in rents which came into effect during 2015) revenue, which is denominated in Turkish lira. However, the improvements were offset by the depreciation of the Turkish lira against the euro. In fact, in euro terms, the marina only reported a €0.1 million increase in revenue to €5.4 million. On the expenditure side, costs of sales also increased by €0.1 million to €0.4 million whilst other operational costs at the Turkish marina remained unchanged at €2.9 million as the reduction in operator fees and the benefit of a weaker Turkish Lira on certain domestic cost items were offset by the adverse impact of cost inflation. This resulted in an unchanged EBITDA of €2.1 million and after accounting for a €0.4 million depreciation charge, €0.8 million net finance costs and a €0.4 million tax charge (forward losses have now all been utilised), the Turkish marina registered a net profit of €0.64 million (2015: €0.55 million).

Overall, the Group reported a 62.6% increase in pre-tax profits to €0.75 million. After accounting for a tax charge of €0.38 million (2015: €0.26 million), GHM reported a net profit of €0.38 million representing an 86.6% increase from the previous year’s comparable figure of €0.20 million. This translates into an earnings per share of €0.19 (2015: €0.01).

The Statement of Financial Position shows a 3.5% increase in total assets to €16.78 million (2015: €16.21 million) as the 4.3% drop in the value of ‘property, plant and equipment’ to €5.4 million (largely reflecting the depreciation charge for the year) and the 43.9% decline in cash balances to €1.09 million were offset by the 10.4% increase in the loan to the parent company which now amounts to €4.24 million, as well as the 72.3% increase in the assets held in trust (as the sinking fund for the bond in issue) to €1.93 million.

Similarly, total liabilities increased by 5.3% to €13.95 million reflecting an 11.8% increase in ‘trade and other payables’ to €2.66 million as well as a 0.4% rise in borrowings to €10.81 million.

Overall, shareholders’ funds contracted by 4.5% to €2.83 million as the profit for the year under review was offset by the €0.48 million interim dividend.  This translates into a net asset value per share of €0.142 (2015: €0.148).

Dividend

The Directors are not recommending the payment of a final dividend. The Company had paid an interim dividend of €0.024 on 13 September 2016.

Outlook

In their concluding remarks, the Directors noted that emphasis on improving the operating efficiency at both Grand Harbour Marina and IC Cesme Marin will persist to strengthen the sustainability of the Company. Furthermore, the Directors reiterated their confidence that the investment in IC Cesme will continue reaping benefits, thereby generating increased value for shareholders.

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Grand Harbour Marina plc – 2016 Annual Report and Financial Statements

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