Grand Harbour Marina plc - Interim Results

On 30 August, Grand Harbour Marina plc published its half-year results covering the first six months of 2012. Below is a short review of the Group’s financial results split between the two operational marinas, namely the fully-owned Grand Harbour Marina in Malta and  IC Cesme marina in Turkey in which the Group has a 40% shareholding. A review of the consolidated results is also provided.

Grand Harbour Marina in Malta (100%)

Income from pontoon fees and ancillary services amounted to €1.3 million – only marginally higher than the corresponding figure of last year. Meanwhile, no super-yacht berth sales were recorded during the period under review as opposed to the €0.4 million generated in the first six months of 2011 in this respect. Operating costs dropped by 16.7% to €1 million mainly reflecting the direct costs incurred during the first half of 2011 in connection with the berth sales. Nonetheless, given the higher drop in revenue than in costs, the earnings before interest, tax, depreciation and amortisation (EBITDA) dropped by 40% to €0.3 million.

Finance costs were unchanged at €0.4 million and mainly relate to the interest accrued on the outstanding 7% bonds which mature in 2020.

After accounting for an income tax credit of €0.4 million, Grand Harbour Marina registered a net profit of €0.2 million during the period under review compared to a €0.2 million loss in the first half of 2011.

IC Cesme Marina in Turkey (45%)

The comparable figures of the Turkish marina cover three and a half months from the date of acquisition on 18 March 2011 to 30 June 2011. On the other hand, the figures for 2012 are for the full six months.

The Directors explained that the operational performance of the Turkish marina was better than budgeted. Seaside revenues almost doubled following a 25% increase in berths leased or reserved on annual contracts. A total of 296 berths are currently occupied – equivalent to 74% of the 400 berths available. Moreover, seaside revenues also improved due to the reduction of initial price discounts as from 1 January 2012 which yielded a 13% price increase. Similarly, the retail village (landside revenue) continued to perform strongly given the increased turnover in several of the outlets and the replacement of some underperforming tenants which led to an increase in revenue in excess of 30%. In aggregate, the IC Cesme marina generated €1.6 million in revenue.

Operating costs amounted to €1.3 million leading  to an EBITDA figure of €0.3 million with the EBITDA margin rising to 18.8%. Finance expenses amounted to €0.4 million and mainly relate to the interest costs on the loans drawn down.

Overall, the Turkish marina reported an after tax loss of €0.5 million.

Consolidated Results

On a consolidated basis, Grand Harbour Marina reported a 1.3% decline in total revenue to just over €2 million due to the lack of berth sales during the period under review which offset the 25.3% increase in pontoon fees and other ancillary services. On the other hand, the Group registered an 8.7% increase in costs mainly reflecting the full six months of operations at the Turkish marina compared to just three and a half months during the first half of 2011.

As a result, the Group registered an 85% drop in operating profit to €33,000. After accounting for net finance costs of €0.54 million (June 2011: €0.48 million) and a tax credit of €0.44 million (June 2011: tax charge of €48,499), the Group’s net loss for the period amounted to €65,232 compared to the net loss of €394,552 reported for the first six months of 2011.


In the half-year report, the Directors revealed that the Company will continue to focus on long-term berth sales in Malta based on the view that the business case for berth ownership has strengthened. In this respect, Grand Harbour Marina is currently in negotiations with a number of potential clients.

Nonetheless, the international economic environment remains challenging particularly due to the prevailing sovereign debt crisis in the Eurozone.

In the meantime, the Group continues to seek ways of increasing the lettable water areas within the existing boundaries of its marinas. Moreover, the Company in Malta continues to actively seek new investment opportunities to be funded by the remaining bond issue proceeds at its disposal.


Download a copy of the Grand Harbour Marina plc 2012 Half-Year Report