On 31 August, Grand Harbour Marina plc (GHM) published its 2011 half-year results which, for the first time, also included the performance of the Turkish Marina, IC Cesme, in which GHM acquired a 45% shareholding. The figures with respect to the Turkish marina in the 2011 Half-Year Report relate to the period from acquisition on 18 March 2011 to 30 June 2011.
GHM reported a significant increase in revenue from €1.1 million in the first six months of 2010 to €2.1 million during the period under review. This was due to the sale of a 30-metre super yacht berth in Malta for a total consideration of €436,320 as opposed to no berth sales in the previous corresponding period. Moreover, GHM registered a further 22.6% increase in pontoon and ancillary service fees from the Malta marina to €1.3 million. The company also benefitted from income of €327,528 arising from the portion of the revenue generated in Turkey. GHM reported that the Turkish Marina currently has a 57% occupancy of its pontoon berths while all the retail outlets in the marina were fully occupied.
Nonetheless, GHM incurred higher costs mainly related to the super-yacht berth sale and the new operating costs related to IC Cesme in Turkey. This resulted in earnings before interest, tax, depreciation and amortisation (EBITDA) of €503,136 with the marina in Malta contributing 97% of this figure whilst the marina Turkey accounting for the resultant balance.
Depreciation also increased by 63.8% to €283,666 following the consolidation of the proportionate share of the Turkish marina’s financials leading to an operating profit of €219,470. At the operating profit level, the Turkish Marina is still loss making given that it is still in its infancy stages. In fact, the Directors expect this operation to register improvements as the business matures over the coming years.
After accounting for net finance costs of €479,677 (up 61.8% due to the impact of a full 6-months of interest paid on the bonds issued in early 2010) as well as acquisition costs of €85,846 related to the acquisition in the Turkish marina, GHM reported a pre-tax loss of €346,053 compared to the pre-tax loss of €463,157 in the previous comparable six months.
The tax charge amounted to €48,499 resulting in a loss for the period under review of €394,552 (June 2010: loss of €463,157).
Looking ahead, the Directors explained that they expect both marinas to continue reporting improved performances whilst also seeking other investments to further grow the business of GHM.
Download a copy of the 2011 Half-Yearly Report of Grand Harbour Marina plc