Grand Harbour Marina plc - Full-Year Results

On 25 March 2019, Grand Harbour Marina plc (“GHM”) published its financial statements for the year ended 31 December 2018.

Performance Overview

During 2018, GHM registered a 14.4% increase in revenues to a six-year high of €4.73 million reflecting growth in both short-term berthing as well as ancillary services at the Vittoriosa Grand Harbour Marina. In this respect, GHM explained that superyacht visits drove overall business activity higher which, in turn, outweighed the marginal contraction in both annual and seasonal contracts.

Similarly, total costs grew by 14.5% to €3.36 million, reflecting higher HR costs and other operating expenses. Excluding depreciation, EBITDA improved by 4% to €1.58 million compared to €1.52 million in the previous comparable period.

The financial performance of GHM was positively impacted by lower net finance cost, which in 2018 amounted to €0.64 million compared to €0.84 million in 2017, reflecting the full-year effect of the lower coupon on the new 4.5% unsecured bonds issued in July 2017 which were mainly utilised for the early redemption of the old 7% unsecured bonds. As a result of the lower net finance costs, coupled with the growth in EBITDA, the interest cover improved to 2.47 times compared to 1.81 times in 2017. On the other hand, the contribution from GHM’s 45% stake in IC Cesme dropped further to just €0.02 million in 2018 from €0.05 million in the previous financial year reflecting the unfavourable political and economic situation in Turkey.

Overall, GHM reported a pre-tax profit of €0.75 million which is considerably higher than the corresponding figure of €0.41 million generated in 2017. After accounting for a tax charge of €0.33 million, the net profit for the year amounted to €0.42 million, representing a return on average equity of 13.6%.

The Statement of Financial Position as at 31 December 2018 shows that total assets increased by 5.7% to €22.3 million largely reflecting a new loan of €1 million to GHM’s parent company as well as a higher cash balance of €8.33 million compared to €7.67 million as at the end of 2017. Similarly, total liabilities grew by 4.3% to just under €19 million reflecting higher deferred tax liabilities and trade payables. Overall, GHM’s equity base expanded by 14.4% to €3.29 million which, in turn, reflects the retention of all the profits generated by GHM during the period under review.

Dividend

The Directors did not recommend the payment of a dividend.

Outlook

Looking ahead, while noting the important achievements registered throughout 2018, the Directors of GHM reiterated their commitment to continue seeking expansion opportunities in both Malta and abroad, despite the persistent challenging international economic and political outlook in various parts of the world.

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Grand Harbour Marina plc – 2018 Annual Report