Superyacht servicer GYG reassures on impact of Russia sanctions

31st Mar 2022 15:35

(Sharecast News) - Superyacht painting, maintenance and supply company GYG announced on Thursday that terms have been agreed on both of the Nobiskrug New Build projects that were suspended in 2021.

The AIM-traded firm said one of the projects would restart at the Nobiskrug shipyard in Germany under new ownership, and the second would be completed in another northern Europe shipyard, which the board said represented "a new opportunity" for the group.

It said the works were scheduled to recommence on both projects in the second quarter.

GYG also updated shareholders on the geopolitical impact of Russia's ongoing invasion of Ukraine, with current industry estimates putting Russian superyacht ownership at between 7% and 10% of the global market.

The company's board said it believed its current exposure was in line with those figures.

To counter any possible disruption, it said it was focussed on leveraging its global capabilities, with operations across the Mediterranean, northern Europe and the United States.

GYG said it had a "solid pipeline" of prospective work, spanning more than 185 projects amounting to around €200m (£168.89m) of potential revenue.

As it said in a trading update on 2 March, GYG's total order book as of February stood at €55.4m, and remained stable at that level, the directors added.

"No international industry is immune from current geopolitical events," said chief executive officer Remy Millott.

"GYG is a global business with a diversified international client base and as a result of our leading industry position and premium brands, we are continuing to take market share and build a strong pipeline of opportunities in the short and medium term.

"Trading in the first quarter remains in line with our forecasts and I would like to thank the entire team for their dedication to deliver superior service across our Pinmar and Technocraft brands and their continued pursuit to convert our robust international pipeline to the order book."

GYG said it would announce its final results for the year ended 31 December on 27 April.