GYG shares have plunged Tuesday after the company released a trading update for the current financial year.
The superyacht supply and maintenance company told shareholders that due to the significant operational and financial disruption caused by Nobiksrug, GYG will deliver a financial outturn for 2021, much lower than previous expectations.
GYG shares are down over 9% at 52p following the news.
The Nobiskrug shipyard administration and ongoing contractual discussions remain unresolved, according to GYG, although it says progress is being made and management is confident of reaching a resolution. However, GYG said it is now clear that work is unlikely to restart on the projects in the current financial year.
Despite the ongoing Nobiskrug issues, GYG said it is confident that it will remain profitable at the EBITDA level in the current year. It also reiterated that it is optimistic that it will meet its working capital requirements and repay its borrowings as they fall due, providing that the Nobiskrug situation is resolved before 31 December 2021, which is expected.
“The Group continues to win market share, as evidenced by the forward Order Book for both New Build and Refit projects, which is increasingly positive. The Superyacht market continues to grow strongly post COVID, especially with regard to global contracted New Build volumes, and GYG remains well positioned to take advantage of these trends over the medium term,” stated GYG.
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