Grand Banks Yachts exits SGX watch-list

Luxury boat maker Grand Banks Yachts is off the Singapore Exchange’s (SGX) watch-list from Thursday, marking a turnaround for the hitherto troubled firm which entered the list in 2011.

Comments

Guanyu said…
Grand Banks Yachts exits SGX watch-list

Andrea Sohsandrea
08 October 2014

Luxury boat maker Grand Banks Yachts is off the Singapore Exchange’s (SGX) watch-list from Thursday, marking a turnaround for the hitherto troubled firm which entered the list in 2011.

Stronger demand for luxury boats in North America and Asia had lifted its earnings - the firm reported a full year net profit of S$1.03 million in August, against a loss of S$5.2 million last year.

This came on the back of a 14.5 per cent rise in revenue to S$40.3 million, its highest in five years.

Tight control of its costs also led to its annual operating expenses falling to its lowest level in five years, at S$6.5 million, or down 31.5 per cent from the previous year. This was due in part to the restructuring of its offices in the US and Australia.

The profitable year helped Grand Banks escape prospects of being delisted.

Under SGX rules, it had to have S$40 million in market capitalisation and achieve pre-tax profit within two years from entering the watch-list in December 2011, or get taken off the exchange. The group had applied for an extension beyond Dec 5 last year to meet these requirements, and was given until the end of its financial year in June 30.

With the worst over, the firm is now intent on charting a new path, after the acquisition of Australian yacht maker Palm Beach Motor Yacht and the induction of its owner Mark Richards as the chief executive officer of the enlarged group.

Grand Banks bought Palm Beach for up to A$10 million (S$11 million), through A$8 million in cash and the rest from the issuance of new Grand Banks shares.

Grand Banks said that the deal helps it to expand its products beyond its existing three series of yachts, and will enable it to leverage on Palm Beach’s modern technology and methods in building luxury motor yachts.

Both brands will be kept distinct - Palm Beach’s boats are designed as day boats while Grand Banks’ are for longer-range cruising.

The counter closed 1.5 cents, or 6.4 per cent, higher at S$0.25 on Tuesday, before the announcement.

Popular posts from this blog

Two ex-UOBKH staff charged with lying to MAS over due diligence reports on a Catalist aspirant