Grand Harbour Marina plc - Full-Year Results

Grand Harbour Marina plc published its Preliminary Statement of Results for the year ended 31 December 2006 following a Board of Directors’ meeting held on 4 May 2007.

The Company’s turnover during the year ended 31 December 2006 amounted to Lm1.5 million, in line with the projections given during the February 2007 IPO. The revenue generated during 2006 represents a 48% rise from the previous year largely on account of the sale of one of the largest berths within the marina.

Personnel expenses dropped by 9.4% from 2005 to Lm138,690 whilst other operational expenses increased by 24.3% over the previous year to Lm667,353. Both personnel as well as other operational expenses were largely in line with the Company’s projections. Earnings before interest, tax, depreciation and amortisation of Lm714,765 is more than double the EBITDA generated in 2005 and slightly above projections. The EBITDA margin increased from 32.8% in 2005 to 47% in 2006.

After accounting for depreciation of Lm98,719, Grand Harbour Marina generated an operating profit of Lm616,046 in 2006, 2.5% higher than the operating profit projected during the IPO. Net finance costs increased to Lm124,810 resulting in a pre-tax profit of Lm491,236. Profit for the year of Lm318,552 represents a 76% increase over 2005 and 6.2% higher than the projected profit. Based on the 10 million shares in issue as at 31 December 2006, the Company’s earnings per share amounted to 3c2 (2005: 1c8).

Total assets of Grand Harbour Marina as at 31 December 2006 amounted to Lm4.7 million with shareholders’ funds of Lm1.3 million. The Company’s pre-tax return on equity (profit before tax divided by average equity) in 2006 increased to 42.4% (2005: 30.6%) with a return on assets (profit before tax divided by average assets) also rising from 5.8% in 2005 to 10.1% in 2006. Post-tax return on equity amounted to 27.5%.

On 25 April 2007 the Company issued an announcement detailing a conditional agreement entered into between Camper & Nicholsons Marina Investments Limited and the large shareholders of Grand Harbour Marina (Porto Salvo Holdings Limited, V&F Portelli Limited, Nicholas Maris and Simon Arrol) to acquire a 50% equity stake in Grand Harbour Marina at a price of Lm0.56 per share. Camper & Nicholsons Marina Investments (the closed-ended fund listed on the Alternative Investment Market of the London Stock Exchange) also entered into separate put and call options to acquire a further 20% shareholding at a price of Lm0.56 per share.

Should Camper & Nicholsons enter into an option and increase their shareholding above 50%, this would trigger a mandatory bid to acquire the remaining 3 million shares held in the hands of the General Public. In the Company Announcement, Camper & Nicholsons confirmed that the mandatory bid would be at least equal to the IPO price of Lm0.70 per share. However, Camper & Nicholsons will only exercise the call option provided that the price of the mandatory bid would not exceed Lm0.79 per share. The purchase of the shares by Camper & Nicholsons is still subject to a due diligence exercise of Grand Harbour Marina and the lifting by Grand Harbour Marina shareholders at the Annual General Meeting on 5 June 2007 of certain lock-up restrictions which currently bind the promoting shareholders who sold to the General Public at the IPO. At the Annual General Meeting, the Company is also seeking shareholders’ approval for the authorisation to provide confidential information to Camper & Nicholsons Marina Investments Limited.

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