“Under Mark’s leadership, the Group worked
hard to integrate its design and production
processes in Australia and Malaysia, revamp
its sales and distribution model, and refresh
its portfolio of premium yachts.”
HEINE ASKAER-JENSEN
Chairman of the Board of Directors
DEAR SHAREHOLDERS,
The financial year to 30 June 2016 (“FY2016”) marked a
fresh start for Grand Banks Yachts Limited (“Grand Banks” or
“the Group”). We were profitable after tax in each of the four
quarters.
SETTING SAIL
The turnaround came on the back of our corporate
transformation over the last two years, during which we
acquired Australia-based Palm Beach Motor Yacht Co Pty Ltd
(“Palm Beach”) and appointed champion sailor Mark Richards
as Chief Executive Officer.
Under Mark’s leadership, the Group worked hard to integrate
its design and production processes in Australia and Malaysia,
revamp its sales and distribution model, and refresh its portfolio
of premium yachts.
We enhanced manufacturing processes at our 300,000-square
feet facility in Pasir Gudang, Malaysia, enabling it to take on
additional projects whenever our Australian yard is full. This has
lifted our overall productivity, allowing us to scale up production
of Palm Beach boats. The lease on the Pasir Gudang yard has
been extended to 29 October 2052.
FINANCIAL REVIEW
With the various changes, the Group achieved a net profit after
tax of S$2.0 million in FY2016. Both brands – Grand Banks
and Palm Beach – were profitable. This was a significant
turnaround from a net loss of S$4.8 million in the previous year
(“FY2015”). Included in our FY2016 net profit was a tax credit
of S$0.7 million.
Gross profit margin rose to 17.4% in FY2016 from 9.9% in
FY2015. Revenue increased 49.7% to S$58.7 million, as we
sold more yachts, received more orders and with more yachts
achieving construction milestones for revenue recognition in
view of changes to our production processes, sales model and
billing arrangement.
Earnings per share amounted to 1.07 Singapore cents,
compared to a loss per share of 2.62 cents for FY2015 while
net asset value per share was 24.71 Singapore cents as at
30 June 2016, up from 24.34 Singapore cents as at 30 June
2015. Cash and cash equivalents came to S$16.4 million.
The Group recorded net order book of S$34.1 million as at
30 June 2016. This includes orders for our new yacht models.
02
GRAND BANKS YACHTS LIMITED
ANNUAL REPORT
2016
CHAIRMAN’S
STATEMENT
