GYG PLC COVID-19 Update (6367H)
March 26 2020 - 3:00AM
UK Regulatory
TIDMGYG
RNS Number : 6367H
GYG PLC
26 March 2020
The information contained within this announcement is deemed by
the Company to constitute inside information stipulated under the
Market Abuse Regulation (EU) No. 596/2014. Upon the publication of
this announcement via the Regulatory Information Service, this
inside information is now considered to be in the public
domain.
26 March 2020
GYG plc
("GYG", the "Company" or the "Group")
COVID-19 Update
GYG (AIM: GYG), the market leading superyacht painting, supply
and maintenance company, today provides 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 EUR9.0 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 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."
For further information:
GYG plc via FTI Consulting
Remy Millott, Chief Executive Tel: +44 (0) 20 3727 1000
Officer
Kevin McNair, Chief Financial
Officer
Zeus Capital Limited (NOMAD & Tel: +44 (0) 20 3829 5000
Broker)
John Goold, Dominic King
Dan Bate, Nick Cowles, Ben Burnett
FTI Consulting (Financial PR) Tel: +44 (0) 20 3727 1000
Alex Beagley
Fiona Walker
Rafaella de Freitas
Notes to Editors:
GYG is the market leading superyacht painting, supply and
maintenance company, offering services globally through operations
in the Mediterranean, Northern Europe and the United States. The
Company's brands include Pinmar, Pinmar Supply, and Technocraft.
GYG's operations can be divided into three key sales channels:
-- Refit: repainting and finishing of superyachts, normally as
part of a refit programme. Revenues also include scaffolding and
containment work;
-- New Build: fairing and painting of new vessels as part of the build process; and
-- Supply: selling and delivery of maintenance materials,
consumables, spare parts and equipment primarily to trade
customers.
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END
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