Grand Banks Yachts issues warning of first quarter loss

JUST as Grand Banks Yachts appeared to be turning around its business, the Singapore-listed company has warned investors that it will record a loss for the quarter ended Sept 30.

Last month the company received in-principle approval from the Singapore Exchange to be removed from a watchlist of financially-struggling companies.

The approval came after Grand Banks had recorded a full-year net profit of $1.03 million in August, after a full-year loss $5.2 million the previous year.

However, in an announcement to the SGX today, Grand Banks said it expected to record a first quarter loss, in part because its yachts are "taking longer to sell than originally planned".

It also cited other factors such as restructuring costs arising from the streamlining of the company's operations.

Grand Banks warned investors to exercise caution when dealing in the company's shares ahead of the release of its first quarter financial results in the next week or so.