YCO sails into the black

Monaco-based super yacht firm YCO has brought forward its half-year results by a day following yesterday’s share price surge, announcing a move into profit at the half-year stage.

The company, whose value has doubled in less than a week, posted a profit before tax of £533,000 for the six months to 30 June compared with a loss of £596,000 a year ago.

Revenue rose 9% to £11.8m from £10.9m and a cost-cutting programme trimmed admin expenses by £271,000 to £3.4m.

Just a few months ago, analysts at Arbuthnot were predicting a profit of £0.4m for the current year on sales of £26.7m, rising to £0.8m and £30.3m in 2012.

But the shares have dropped back today on disappointment at a lack of news on lucrative yacht sales. YCO’s stock can be volatile as investors bet on the next big boat deal.

Brokerage and management divisions did better than expected this time thanks to improving conditions in the superyacht market. Revenue across yacht sales and charter more than doubled and there are some “promising” projects in the pipeline.

But the recession did have had an effect on the number of wealthy holidaymakers sailing back and forth to the Caribbean during the first quarter, denting operating profit and margins at the yacht fuel business.

“During the first half of 2010, the group has continued to reduce costs where practical and to improve operational and cost efficiencies in all areas, leveraging gradually improving market conditions to enable an encouraging performance in almost all areas of operations,” said chief executive Charlie Birkett.

“The board remains confident regarding the outlook for the group for the remainder of 2010 and next year.”

Source: Sharecast

Tags: YCO

Category: Brokerage News