Trading Statement
May 01 2009 - 5:32AM
UK Regulatory
TIDMDML
RNS Number : 5795R
YCO Deuxmil PLC
01 May 2009
YCO Deuxmil plc
Trading Update
YCO Deuxmil plc ("YCO" or the "Company") is pleased to announce the following
trading update for the year ended 31 December, 2008. The audited final results
for the 12 months ending 31 December, 2008, are anticipated to be released and
dispatched to shareholders in the first week of June.
Highlights
* Increased group turnover
* The group trades free of debt
* More yachts under management and construction
* Increase in YCO Crew placements
* Expansion of Yacht Help Group
* Strong Yacht Fuel Services performance
The last twelve months has seen YCO make good progress in expanding and
integrating the range of services offered. In May, the Company completed the
acquisition of YCO S.A.M. which transformed the Company principally from a
supplier of marine fuel to a full services provider to Super Yachts.
Yacht Fuel Services (YFS) recorded an increase in turnover for the period under
review. YFS continues to operate well and has been successful in winning a
considerable amount of new business. The outlook of a stronger US Dollar and a
weaker oil price should have a positive effect on the performance of YFS in
2009, a benefit it has not previously enjoyed following high oil prices in 2008,
as well as gaining new business generated through yachts serviced under YCO
Management.
Yacht Help Group ("YHG") has made a small loss following restructuring costs.
However, the division has progressed well and is now trading in line with the
directors expectations. The company's headquarters have been relocated to
Palma's premier Super Yacht location on Paseo Maritimo in state-of-the-art
premises and a new YHG office has also opened in the critical location of
Antibes (France), in time for the start of the summer season. Additionally, YHG
will open a small operation in Montenegro to coincide with the 2009 summer
cruising season at the new Porto Montenegro development close to Kotor. The
directors anticipate YHG will also benefit from the appointment of an
International Operations Director who will give direction and drive to this
division. Additionally, as with YFS, YHG is expected to benefit from the
enlarged group using its services.
BA Yachts (BAY) continues to trade profitably and grow steadily as a key part of
the group which provides a niche service in the market. As Super Yacht owners
look to operate their yachts more cost-efficiently, BAY's specialist tax
services, which can result in significant financial savings for owners, have
become particularly sought after and the division made a small profit in 2008.
YCO and YCO Crew have grown considerably, with the opening of the new YCO office
in Chelsea, London, and two new YCO Crew offices in Palma and Barcelona.
Historically, Yacht Management has been at the core of the YCO S.A.M. business
model and this department continues to see growth and development. The launch of
the Company's online yacht management software, YCO LIVE, has resulted in a high
level of interest from Super Yacht owners and captains as they acknowledge the
importance of efficient management of an asset during a period where its sale
may prove difficult. The online management portal, which should dramatically
improve the flow of information and overall administration of each vessel, is
now available to all YCO yachts under management, with each yacht's information
fully loaded onto the system. As the number of yachts operating YCO LIVE
increases, YCO expects the interest generated in the software to increase
further. The number of yachts under management increased during 2008 and YCO is
currently in discussions to take on the management of several large yachts.
The New Construction and Project Management department at YCO continues to see
steady growth, with the addition of two significant new projects to the
portfolio, and several refit projects. The department already manages several
projects in excess of 100 metres and as with YCO Management services, represents
a steady and predictable monthly revenue stream.
There has been an industry-wide slow down in the charter market although YCO
continues to see activity in luxury charter vessels in excess of 60 metres.
The sales figures are in line with expectations. Following the Monaco Yacht Show
at the end of September 2008, the global market deterioration in Super Yacht
sales has mirrored the wider worldwide financial crisis. However, the Company is
pleased that the approach to yacht management and service supply, encompassing a
broad product platform, has proven sustainable in spite of substantially reduced
yacht brokerage income. YCO is pleased to announce renewed activity in this area
as we entered the second quarter of 2009.
YCO Crew has grown and following expansion in Europe and investment in IT
infrastructure and online databases, reports a small loss in its second year of
operation. YCO Crew now operates from three fully integrated European
offices and works with yachts all over the world. The Palma office is already
performing strongly and it is anticipated this will be instrumental in the
division achieving further profitability in the near future. To support YCO's
own fleet of yachts, YCO Crew has taken on a member of staff dedicated to
managing the crew recruitment of all yachts under YCO Management and YCO Project
Management. Demand for the company's services remains buoyant.
Overview
The YCO business model is centred around securing yachts for management and
offering high quality support services through the group's companies. The
directors believe that the group is well positioned to take advantage of a
market improvement when it comes and believe the structured approach of ensuring
that each business can stand alone will prove to be fully justified.
The Company continues to invest in group integration and CRM systems to ensure
that the group is in a position to provide a consistently high, comprehensive
service to all existing and new clients. With the anticipated stable revenue
from management clients and the range of secondary support services, the
directors believe that the Company is in a stronger position than many
competitors who rely more heavily on continuous brokerage to secure revenue.
Full provision of reorganisation costs and costs of main Board
restructuring will be included in the figures to 31 December, 2008, leading to a
loss for the year, but providing the platform for growth for the group in 2009.
The group of companies continued to trade free of debt throughout 2008 with
positive cash flow.
For further information contact:
+-----------------------------------------------------+----------------------------+
| YCO Deuxmil plc | |
+-----------------------------------------------------+----------------------------+
| Neil Miller, CEO | +44 (0) 870 608 2124 |
+-----------------------------------------------------+----------------------------+
| | |
+-----------------------------------------------------+----------------------------+
| WH Ireland Limited (Nominated Adviser) | |
+-----------------------------------------------------+----------------------------+
| Adrian Kirk | +44 (0)161 832 2174 |
+-----------------------------------------------------+----------------------------+
| | |
+-----------------------------------------------------+----------------------------+
| Religare Hichens, Harrison Plc (Broker) | |
+-----------------------------------------------------+----------------------------+
| Daniel Briggs | +44 (0)20 7382 7776 |
+-----------------------------------------------------+----------------------------+
| Alan Rooke | +44 (0)20 7382 7781 |
+-----------------------------------------------------+----------------------------+
| | |
+-----------------------------------------------------+----------------------------+
| GTH Communications | |
+-----------------------------------------------------+----------------------------+
| Toby Hall | +44 (0) 207 153 8039 |
+-----------------------------------------------------+----------------------------+
| Christian Pickel | +44 (0) 207 153 8036 |
+-----------------------------------------------------+----------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTCKDKNCBKKKPK
Yco Deuxmil (LSE:DML)
Historical Stock Chart
From Apr 2024 to May 2024
Yco Deuxmil (LSE:DML)
Historical Stock Chart
From May 2023 to May 2024