Grand Banks Expanding into Megayachts
The Singapore-listed Grand Bank Yachts (SGX:G50) is on an expansion course which includes both its range of models and their size, plus a significant upgrade to its Malaysian build facility. At the CYF 2023, the group displayed a Grand Banks 85 and Palm Beach 70.
In terms of models the group which includes the Grand Banks, Eastbay and Palm Beach brands, is making a jump from its current largest models the GB85 and PB85 to a new Palm Beach 101 superyacht which will be launched at an unspecified future date.
Mark Richards, GB Marine Group’s CEO, told IBI: We have received five orders for the GB85 of which two have been delivered and three are still in build. We also have two orders for the Palm Beach 85. Our current order book extends two and half years ahead.”
Regarding the Malaysian build facility Richards explained that the group is investing around SG$10m in a 200,000sqft extension which will take about a year or more to complete. This extension represents about a 25% increase in space to the build facility and it will support the development of larger models; boost production capacity and accelerate build time.
The workforce is now at 900 and growing, having almost doubled from the lowest number during the Covid-19 pandemic. Richards told IBI: “In respect of sales 60% are in the US, 25% in Australia and 15% in Europe.” The company’s US facility is working well and contributing significantly to its sales in North America.
The most recent financial results from Grand Banks show that in the full year ended June 30, 2023, the group reported sales of SG$114.17m compared to SG$75.18m a year ago, up 52% year-on-year. In H2 sales grew 54.4% to SG$64.0m from SG$41.4m, largely due to higher production and the sale of two trade-in boats during the period. A final dividend of SG$0.01 per share for fiscal 2023 ended June 30.
The profit attributable to owners in H2 of FY2022-23 was SG$6.5m an increase of 37.9% from SG$4.7 million a year earlier. Net income was SG$10.11m compared to SG$4.01m compared with the previous year. Basic earnings per share from continuing operations was SG$0.0547 compared to SG$0.0217 a year ago.