Grand Harbour Marina plc - Interim Results Review

Grand Harbour Marina plc (GHM) published its interim results to 30 June 2008 following a Board of Directors’ meeting held on 29 August.

Similar to last year, the Directors did not declare the payment of an interim dividend.

During the first six months of 2008, GHM’s turnover increased substantially to €1.08 million from €0.47 million in the comparative period of 2007. This was due to €0.51 million from licensing of super-yacht berths unlike the first six months of 2007 during which no super yacht berth sales were recorded. The Company also recorded a 21% increase in pontoon fees and revenue from other ancillary services.

Personnel expenses increased by 20% to €0.14 million with a similar 19% rise in depreciation to €0.14 million.  Other expenses grew significantly to €0.91 million from the comparative figure of €0.52 million registered in the first half of 2007. This was mainly due to the direct costs of €0.17 million related to the sale of the super yacht berth, and an adjustment in rent payable for the assignment of marina rights, totalling €0.16 million of which €0.11 million relates to the 2007 financial year. As a result total operating expenditure rose by 57% to €1.2 million offsetting the increase in turnover resulting in an operating loss of €0.12 million. However, this loss is 58.9% lower than that incurred in the comparative period last year. Moreover, the Company generated a minimal positive earnings before interest, tax, depreciation and amortisation (EBITDA) of €23,566 compared to the negative EBITDA figure of the first six months of 2007 of €170,007.

Finance income grew substantially from €1,237 in the first half of 2007 to €82,794 in the period under review. Meanwhile finance expenses declined 36% to €0.13 million compared to the first six months of 2007 as the amount of bank loans decreased 3.4% in the first half of 2008 which in turn reduced the Company’s gearing ratio to 76.4%. As a result net finance costs decreased from €0.20 million in the comparative period of 2007 to €0.04 million in the first half of 2008.

The Company incurred a pre-tax loss of €0.16 million during the first half of 2008. After accounting for a tax credit of €0.078 million, GHM posted a loss for the period of €0.085 million which is substantially lower than the loss of €0.17 million registered in the first six months of 2007.

GHM’s total assets dropped by 30.3% when compared to the figure of December 2007 as cash and cash equivalents shrunk by €5.5 million due to the payments made in respect of the 2007 final dividend and taxation. Similarly, shareholders funds’ decreased 29.9% percent compared to the December 2007 level on the payment of the 2007 final dividend amounting to €2 million. The Company’s net asset value per share now stands at €0.49.

The June 2008 interim results of Camper & Nicholsons Marina Investments Limited (CNMI), the majority shareholder of GHM, issued on 18 September via the London Stock Exchange, revealed that a second 30-metre super-yacht berth was sold in July for a value of €0.5 million.

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