In the financial year ended 30 June 2016 (“FY2016”), revenue
surged 49.7% to S$58.7 million from S$39.2 million a year ago
(“FY2015”), driven by the sale of more yachts, higher volume
of orders, and more yachts achieving construction milestones
due to changes to its production processes, sales model and
billing arrangement.
Sales in the U.S., the Group’s largest market, accounted for
78.6% of global sales, while Australia accounted for 16.9%.
Revenue contribution from Japan and Europe came to 4.2%
and 0.3%, respectively.
During the year, the Group changed its production processes,
sales model and billing arrangement with customers. As such,
the Group is able to better estimate the outcome of construction
contracts and corresponding probable flow of economic benefits
to the Group earlier in the production process of the boats, as
compared to previously. This had a favourable impact on the
Groups’ revenue and gross profit.
Gross profit for FY2016 improved to S$10.2 million from
S$3.9 million for FY2015, while gross profit margin increased
to 17.4% from 9.9%. The higher margins were a result of
initiatives undertaken by the Group to integrate both its brands
– Grand Banks and Palm Beach. These initiatives included
streamlining of internal and operational efficiencies, adoption of
a factory-direct sales model, increased marketing efforts and
the enhancement of manufacturing processes.
Total operating expenses increased to S$9.0 million from
S$8.6 million over the comparative periods due to higher boat
demonstration and boat show expenses as well as a bonus
provision.
In the year under review, the Group recorded a tax credit of
S$0.7 million which lifted the Group’s bottom line.
As a result of the above, the Group recorded a net profit after
tax of S$2.0 million in FY2016, a positive swing of S$6.8 million,
from a net loss of S$4.8 million in FY2015.
In FY2016, the Group’s cash flow from operations increased
to S$6.5 million from S$2.7 million in FY2015 primarily due
to the reversal to a net profit. This has been used to partially
fund the renewal of the Pasir Gudang yard lease and for future
working capital.
Cash and cash equivalents as per the cash flow statement
amounted to S$16.2 million as at 30 June 2016 compared to
S$16.8 million as at 30 June 2015.
Earnings per share for FY2016 increased to 1.07 Singapore
cents from a loss of 2.62 cents for FY2015 while net asset value
per share was 24.71 cents as at 30 June 2016, up from 24.34
cents as at 30 June 2015.
The Group’s aggregate net order book came to a healthy
S$34.1 million as at 30 June 2016. The order book was lifted
by orders for new yacht models, namely the Grand Banks 44,
Grand Banks 60 and Palm Beach 42.
06
GRAND BANKS YACHTS LIMITED
ANNUAL REPORT
2016
FY2016
FINANCIAL HIGHLIGHTS
