Grand Harbour Marina plc - Full-Year Results

On 19 April, Grand Harbour Marina plc (GHM) published the 2011 full-year results which for the first time included the contribution from the Turkish Marina, IC Cesme, in which GHM acquired a 45% interest on 18 March 2011.

After a two-year absence, GHM sold two super-yacht berths in Malta in 2011 for a total consideration of €1.2 million. Moreover, pontoon and ancillary fees from the marina in Vittoriosa grew (for the eight consecutive year since starting operations in 2003) by a further 8.7% to a record €2.5 million. On the other hand, costs increased by 21.6% to just under €2.9 million. However, this increase in expenses was solely related to the expenses incurred in relation to the sale of the two super-yacht berths. In fact, excluding such costs, the cost base of the local operation actually decreased by circa 9%. Nonetheless, the sale of the super-yacht berths mainly contributed to the further growth in earnings before interest, tax, depreciation and amortisation (EBITDA) with an increase of €859,346 to €1.2 million. The sales of super-yacht berths also helped the Company to register an operating profit from the local operation for the first time in four years. During 2011, the local marina registered an operating profit of €825,173 (2010: operating loss of €37,269). After accounting for net interest costs (which for the first time includes the full 12-month interest on the 2010 bond issue), other expenses related to the acquisition of the 45% interest in IC Cesme and taxes, GHM’s after-tax loss amounted to €213,247 which is still an improvement over the previous year’s loss of €771,442.

The results of the GHM Group also comprise the contribution from the 45% shareholding in IC Cesme for the period 18 March 2011 (being the date of acquisition) to 31 December 2011. During this period, the Turkish Marina contributed €1.2 million in revenues and €0.9 million in costs which lifted GHM’s EBITDA by a further €0.27 million. However, after deducting GHM’s share of IC Cesme’s depreciation, the Turkish Marina returned a marginal operating loss of €59,393 for 2011. Furthermore, after deducting finance expenses of €0.4 million (mainly relating to the interest cost on the loan from Isbank in Turkey) and accounting for tax, GHM incurred €0.45 million as its share of the after-tax loss of the Turkish Marina.

Combining this two businesses together, GHM reported an after tax loss of €664,052 as the improvement in the results of the Malta marina following the sale of two super-yacht berths were offset by the share of loss emanating from the Group’s 45% interest in the IC cesme marina in Turkey. Nonetheless, this year’s loss is still an improvement over the after tax loss of €771,442 registered in 2010.

The results also revealed that during 2011, the Court of Appeal ruled in favour of the VAT Department in respect of a dispute which the said department had with GHM in relation to VAT due on the sale of three super-yacht berths back in 2008.

Similar to last year, the Directors did not propose a final dividend.

Looking ahead the Directors explained that although the international economic environment remains challenging, enquiry levels with respect to super-yacht berths have increased to such an extent that GHM has built an interesting pipeline of sale opportunities. Nonetheless, the time needed to turn these opportunities in actual sales is still unknown. In the meantime, the Board continuously explorers ways to increase its lettable water area at the marina in Malta within the existing boundaries. Moreover, the Directors look forward to the completion of the landscaping works currently underway at the head of the creek in Bormla and which are expected to be completed by the end of the second quarter of 2012. With respect to the Group’s 45% shareholding in the Cesme Marina, the Directors commented that they are confident that this subsidiary will also help in the growth of GHM which in turn will generate increasing value to shareholders.


Download a copy of the Grand Harbour Marina plc 2011 Preliminary Statement of Annual Results