CEO’S
MESSAGE
Interior of the new Grand Banks 44 Eastbay
Our 300,000-square feet Grand Banks plant in Pasir Gudang,
Malaysia, has been radically overhauled. Its redesigned layout
and upgraded amenities create a more conducive working
environment for our staff.
With a bigger production capacity, the yard can take on Palm
Beach projects when our Australian facility – which can build
up to 7 boats a year – is full. More importantly, the lease on
the Pasir Gudang yard has been extended till 29 October
2052, allowing us to continue operations for many more years.
All that we have done these few years will help the Group
achieve sustainable growth for the long term. These initiatives
cost money but are necessary. As you can see, we managed
to achieve a net profit after tax of S$2.0 million in FY2016.
Over the course of the financial year, we generated net cash
of S$6.5 million from operations.
Our revamped sales and distribution model has also yielded
positive results. Thanks to our dedicated factory-direct sales
team in the U.S. and the improved U.S. market, the Group’s
net order book has remained healthy. The new models have
enabled us to forge stronger ties with customers and given us
more control over our revenue.
As at 30 June 2016, our net order book was S$34.1 million.
This includes orders for our new and improved yacht models:
the Grand Banks 60, Eastbay 44 and the Palm Beach 42.
The remodelled yachts have the best features of both brands,
and are sleeker and more modern. They are built using new
techniques that have enabled us to improve upon their
already-stellar capabilities. These models will be featured in
boat shows in Newport (Rhode Island), Norwalk, Annapolis
and Fort Lauderdale.
We believe we are poised for stronger growth over the next
12 months as we tap renewed boat interest across multiple
geographies and consolidate our leadership in the international
yachting industry. We will continue to invest in our boats,
factories and, most of all, our staff at both Grand Banks and
Palm Beach – without whom we would not be where we are
today.
Thank you once again for your support. We are sailing into a
new chapter of growth and I look forward to another exciting
year. To all colleagues, business associates, customers, and
suppliers, I extend my heartfelt gratitude for your continued
faith in us.
MARK J. RICHARDS
CEO, Grand Banks Yachts Limited
05
GRAND BANKS YACHTS LIMITED
ANNUAL REPORT
2016
