Grand Harbour Marina plc - Full-Year Results
On 1 April 2021, Grand Harbour Marina plc (“GHM”) published its financial statements for the year ended 31 December 2020.
Performance Overview
During 2020, revenues at the ‘Grand Harbour Marina’ in Malta eased minimally to just under €4.1 million as the company succeeded in keeping a healthy customer base. Pontoon and superyacht annual revenues, as well as superyacht seasonal sales, reached record high levels in 2020 but these were marginally outweighed by the low traffic of pontoon and superyacht visitors which was significantly impacted by the restrictions related to COVID-19.
Despite the stable revenue streams, operating expenses contracted significantly to €2.43 million compared to €2.83 million in 2019 reflecting the positive impact of the COVID-19 wage supplement as well as the company’s efforts to improve cost and operational efficiencies. Excluding depreciation and amortisation charges, the EBITDA generated by the company from its operations at the Grand Harbour Marina surged by over 20% to €2.05 million compared to €1.68 million in 2019. Net finance costs also trended lower to €0.86 million (-4.2%) as the higher income from investments in debt securities offset the slight increase in finance costs.
In contrast, GHM’s financial performance was dented by the share of loss amounting to €0.86 million (2019: share of profit of €0.06 million) related to the company’s 45% equity stake in IC Cesme. The performance of the marina in Turkey was mostly negatively impacted by the devaluation of the Turkish Lira against the euro currency as well as the restrictions related to COVID-19 which had an adverse effect on landside revenues.
Overall, GHM reported a pre-tax loss of €0.06 million compared to a pre-tax profit of €0.45 million in 2019. After accounting for a tax charge of €0.33 million, the net loss for the year amounted to €0.39 million (2019: net profit of €0.21 million).
The Statement of Financial Position as at 31 December 2020 shows that total assets increased by 17.6% to €27.4 million as the drop in cash balances to €1.53 million (31 December 2019: €4 million) was outweighed by the higher levels of trade receivables and loans to parent company. On the other hand, total liabilities remained virtually unchanged at €24.9 million. As a result, GHM’s equity base contracted by 20.7% to €2.55 million compared to €3.21 million as at the end of 2019.
Dividend
The Directors did not recommend the payment of a dividend.
Outlook
Commenting on the outlook, GHM explained that the pandemic is expected to continue impacting the more lucrative parts of its business. Nonetheless, the company reiterated that it has sufficient resources to meet all its payment obligations including, but not limited, salaries and annual bond interest payments, as well as the redemption in full of the €15 million bonds maturing in 2027.
GMH noted that it continues to take steps to mitigate risks and exploit opportunities as they arise, with the main focus being enhancing the sustainability of the business for the benefit of all stakeholders.
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