TIDMYCO
RNS Number : 8821G
YCO Group PLC
19 May 2011
YCO Group plc
("YCO", the "Company" or the "Group")
Results for the year ended 31 December 2010
YCO Group plc, a leading provider of specialist services to
superyachts, today announces its audited preliminary results for
the year ended 31 December 2010.
HIGHLIGHTS
Financial Highlights
! Revenue up 9% to GBP27.0m (2009: GBP24.7m)
! Gross profit increased by 19% to GBP8.3m (2009: GBP7.0m)
! Operating profit before exceptional items increased to
GBP930,948 (2009: GBP82,277)
! Profit before tax of GBP588,000 (2009: GBP31,000)
! EPS 1.02p (2009: 0.02p)
* Exceptional items totalled GBP330,080
Operational Highlights
! Brokerage department bolstered by recruitment of industry
leading team
! Number of Sales up 50% to 9 (2009: 6)
! Number of Charter Weeks sold increased 13% to 175 (2009:
155)
! Number of Contracted Yachts increased 13% to 58 (2009: 51)
Charlie Birkett, Chief Executive of YCO Group, commented:
"Our focus in 2010 was to build on the successful restructuring
programme implemented in 2009 and this has delivered impressive
results across the Group. Strengthened brokerage teams and
operations have helped to achieve a considerable increase in Group
profitability. Current enquiry levels across all core service
divisions are promising and accordingly we look forward to further
growth whilst maintaining YCO's reputation for innovation and
client service."
For further information please contact:
YCO Group plc
Charlie Birkett, Chief Executive Tel: +377 93 50 12 12
Arbuthnot Securities
Tom Griffiths / Ed Groome Tel: + 44 (0)20 7012 2000
Hudson Sandler
Charlie Jack / Nathan Field Tel: + 44 (0)20 7796 4133
CHAIRMAN'S STATEMENT
I am delighted to deliver my maiden statement as Non-Executive
Chairman of YCO Group and I thank my predecessor, Peter Jay for his
continued support and hard work during his tenure, which saw a
critical period of transition for the Group.
Through the continued restructuring of the Group, I am pleased
to report that YCO has significantly increased its profitability
and it remains wholly focused on maintaining this trend.
In 2010, YCO continued to extend its reach worldwide. A
permanent presence in the Middle East was established in Doha and
the Group continues to explore opportunities to increase its levels
of activity across a wider geographical base.
The Board was strengthened during the period with Ian Petts
appointed as Finance Director, after serving YCO in Monaco since
2008 and Rishi Malliwal, an experienced corporate lawyer, joining
as Non-Executive director.
The Board continues to assess the efficiency of the Group's
operations, ensuring that the company's personnel, brand, service
offering and reputation for innovation maintains its leading
position in the marketplace.
I would like to thank all of the Group's employees for their
commitment and hard work in achieving an excellent set of results.
It is exciting to work alongside YCO founders Gary Wright and
Charlie Birkett and I have every faith in their growth strategies
for the Group and their ability to continue to take YCO
forward.
Rear Admiral Scott Lidbetter - Non Executive Chairman
19 May 2011
CHIEF EXECUTIVE'S STATEMENT
Review of Business Operations
Brokerage
After an encouraging performance by the brokerage division in
2009 the Board took the opportunity to further strengthen the team
during 2010, attracting four well regarded sales and charter
brokers from a leading competitor. The ongoing recruitment and
retention of industry leading employees remains core to our
strategy. Overall, both sales and charter performed ahead of
expectations, both in terms of the sales, and also in securing new
Central Agency Yachts.
During the period YCO continued to offer its clients industry
innovating services, most recently an iPad based application
designed as a brokerage tool. A superyacht search facility,
'YachtBox' is the first application of its kind and was well
received at its launch at the Monaco Yacht Show.
Management
As well as increasing the number of yachts under management, YCO
took delivery of two new superyachts from the prestigious German
shipyard Lurssen (one above 80m and one above 120m). Both yachts
had been overseen by YCO Project Management throughout construction
and moved seamlessly to the Operational Management fleet. Overall
the department has maintained a satisfying market share and its
reputation among captains and owners for its knowledge and service
levels continues to grow.
The Group continued to develop its management service offering
globally by transferring management personnel permanently to the
Gulf. YCO continues to look to developing regions in the superyacht
market for potential growth opportunities.
YCO Crew
YCO crew achieved improved results, making more placements in
2010 than in 2009. In Palma, YCO Crew relocated to larger offices
and is now able to offer logistical support to YCO managed yachts
based or passing locally. The division remains an excellent client
source for the Company's yacht management division and as such the
Board was satisfied with its performance and looks to strengthen
the recruitment team in 2011.
Yacht Fuel Services
The fuel services division maintained its position in the
marketplace, performing in line with expectations. In early 2010
the division remained affected by reduced transatlantic yachting
traffic however, and the Board continues to review its position
within the Group.
Yacht Help Group (now YCO Client Concierge)
During the year the decision was taken to withdraw YHG
operations from Spain and France, with all activity transferred to
YCO's expanded offices in Monaco and Palma (YCO Crew). Now 'YCO
Client Concierge', the division's service offering has been further
strengthened by a partnership with a leading global concierge
provider with offices in 60 further cities worldwide. The board
views this as a positive development of YCO's existing concierge
services, an area of the business which has traditionally
differentiated YCO from competitor charter firms.
Financial Review
We are very pleased with our financial performance over the
period after posting a small maiden profit in 2009. Profits have
increased dramatically from break even to close to GBP1m before
exceptional items of GBP330k, which includes VAT provision of
GBP150k, goodwill of GBP102k for the liquidation of Yacht Help
Group Gibraltar and fixed asset write off of GBP77k for the closure
of offices in Palma and Barcelona. An increase in charter contracts
and office expansion means that cash is slightly lower than
forecast at GBP500k but YCO remains largely free of debt and very
well positioned for further growth in 2011.
Outlook
YCO remains focused on building on the excellent client,
operational and personnel achievements made in 2010. It will do
this through the ongoing development of our client services as well
as leveraging the YCO brand through strategic marketing initiatives
that will help ensure YCO maintains its position as a leader in the
superyacht industry. As part of this YCO intends to implement an
Employee Incentive Scheme in 2011 to retain and attract the
industry's leading talent - being the only UK listed superyacht
services company gives YCO a unique industry advantage in this
respect.
The superyacht marketplace is showing signs of gradual recovery.
In 2010, the number of superyacht sales across the industry was
higher than the previous year and in the first quarter of 2011 YCO
has seen an increase in enquiries for sales, charter and yacht
management. With several prospects also commissioning the build of
new yachts, YCO is currently involved commercially with every major
shipyard in northern Europe, a significant milestone.
As founders of YCO, Gary Wright and I are pleased with the
Company's performance and welcome new arrivals to the board and the
Group, in particular the new Director of Sales and Charter, Neil
Cheston. We would like to thank the whole YCO team for enabling us
to achieve very encouraging results for 2010.
The Group is confident that in this improving market, with its
industry leading client service offering and team of highly
respected yacht managers and brokers, YCO can continue to build on
the momentum gained in 2010 and accordingly the Board looks forward
with optimism.
Charlie Birkett - Chief Executive Officer
19 May 2011
Consolidated Income Statement
for the year ended 31 December 2010
2010 2009
Notes GBP GBP
Revenue 27,028,837 24,694,534
Cost of sales (18,696,080) (17,704,305)
Gross profit 8,332,757 6,990,229
Administrative expenses (7,401,809) (6,907,952)
Operating profit 4 930,948 82,277
Analysed as :
Operating profit before exceptional
items 930,948 82,277
Exceptional items 6 (330,080) -
Operating profit 600,868 82,277
Finance costs 3 (18,128) (55,977)
Finance income 3 5,708 4,504
Profit before tax 588,448 30,804
Income tax charges 7 (96,888) (19,851)
Profit for the year 491,560 10,953
Attributable to:
Owners of the company 491,560 10,953
============= =============
Earnings per share expressed
in pence per share: 6
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