Grand Banks Yachts posts first full-year profit in six years

Building yachts to order at Grand Banks Yachts. Stronger demand for luxury boats in North America and Asia helped Singapore-listed yacht maker Grand Banks Yachts post its first full-year profit in six years. -- PHOTO: ST FILE
Building yachts to order at Grand Banks Yachts. Stronger demand for luxury boats in North America and Asia helped Singapore-listed yacht maker Grand Banks Yachts post its first full-year profit in six years. -- PHOTO: ST FILE

SINGAPORE - Stronger demand for luxury boats in North America and Asia helped Singapore-listed yacht maker Grand Banks Yachts post its first full-year profit in six years.

The builder of two luxury boat brands recorded net profit of $800,000 for the fourth quarter - its third consecutive quarter of profit. This was a reversal from a $2.3 million net loss in the same period last year.

Revenue for the fourth quarter came in 12 per cent higher at $13.2 million from $11.8 million last year.

The company's improved performance in the last three quarters lifted net profit for the full year ended June 30 to $1 million, from a loss of $5.2 million in the previous financial year.

Revenue for the full year rose 14.5 per cent to $40.3 million from $35.3 million a year earlier, on the back of stronger sales in North America.

The region, which accounts for 63.3. per cent of the company's global sales, entered a second year of recovery after sales plunged following the global financial crisis. Asian buyers are also "showing more interest", the company said in a statement on Wednesday.

Asia accounted for 19.4 per cent of sales in the 2014 financial year.

Annual operating expenses fell from $9.5 million a year earlier to $6.5 million, its lowest level in five years.

This was due to forfeiture of dealer deposits, reductions in travel and entertainment expenses and lower employee numbers after the company's offices in the United States and Australia were restructured.

Earnings per share increased to 0.66 cent from a loss of 4.64 cents the previous year. Net asset value per share stood at 29.46 cents as at Jun 30 this year, compared with 33.17 cents on the same date last year.

In view of its financial performance, the company intends to submit an application to exit from the Singapore Exchange's watch-list.