GYG plc (LON:GYG), the market leading superyacht painting, supply and maintenance company, has today provided an operational update in the current COVID-19 environment.
In response to the evolving COVID-19 pandemic the Board has implemented contingency measures to ensure the health and wellbeing of its employees while maintaining services to clients. The Group is constantly monitoring the everchanging situation across its global markets to ensure compliance with both national and local travel and health advisories. Currently, the Group is maintaining operations, albeit with more stringent health and safety protocols in place, in most of its shipyard locations in Northern Europe and the USA, with a reduced level in Spain and France. To the extent that operations have been suspended in certain shipyards, the Group´s work within those yards will have been delayed rather than lost as it principally relates to projects in process which will need to be completed as soon as operations recommence. In the meantime, GYG has been able to mitigate much of the commercial impact through the use of government support mechanisms which have recently been put in place. All back-office staff are working remotely, supported by our global IT systems.
The Group is in daily communication with its partners and customers. To date, there have been no contract cancellations and we continue to have a robust 2020 Order Book. We have had a strong start to Q1, however it remains too early to accurately predict the potential impact on the Group’s 2020 performance as it will depend upon a range of factors, primarily the extent and duration of the disruption.
In the meantime, the Group is taking steps to maximise its operational flexibility, reduce costs and preserve cash. The positive financial performance in FY2019 and the beginning of FY2020 have resulted in the Group´s balance sheet being in a stronger position to withstand the impact of the current market uncertainty. As at 20 March 2020, GYG had access to cash and working capital facilities in excess of €9.0 million and, at current operational levels, this would be sufficient to allow the Group to continue trading in the foreseeable future.
Delay to Reporting Final Results
As outlined in its Full Year Trading Update on 29 January 2020 the Board confirmed that it expected the Group’s results for the year ended 31 December 2019 to be marginally ahead of market expectations at that time, and the Board confirms that still to be the case. Notwithstanding this, having considered recent guidance from the FCA and FRC and the advice of its auditors, the Company has decided to delay the publication of its 2019 Final Results until greater clarity is provided by the regulators on the uncertainties created by the COVID-19 pandemic. The Group will provide an update to the reporting schedule as and when appropriate.
Remy Millott, CEO of GYG plc commented:
“We are extremely proud of all of our staff who have responded to the challenges presented by the crisis with great commitment and professionalism. With the continued dedication of our staff and in consultation with our partners and advisers, we shall continue to respond to the situational changes and strive to maintain business as usual during this challenging period. Looking beyond the current situation, we remain confident in maintaining our market leading position and continuing to grow the business.”