StockMarketWire.com - Superyacht painting, supply and maintenance group GYG has warned that it expects full year revenues and profits to be below forecasts.

The group said that it had experienced a number of small delays on the start dates of some refit contracts and, while work on these contracts had now begun, a greater portion of it would now be undertaken in Q1 2018.

It aid: ' As a result, the level of revenue deferred is in the range of €3.3m to €4.9m with associated reduction in adjusted EBITDA of between €0.67m and €1.0m.'

It said the key factors contributing to this were:

- The two hurricanes that hit the US and Caribbean in Q3, resulting in disrupted cruising patterns and owners extending their Mediteranean season while they assessed the facilities in the Caribbean cruising grounds. During this period decisions relating to refit programmes were delayed and this will result in a lower than expected revenue in the group's refit businesses.

- A substantial contract that was scheduled to start in late September has been delayed due to the vessel not arriving in dock until the middle of November. Therefore a substantial proportion of this revenue will not be recognised before 2018. The group said management was particularly pleased with the performance in the Technocraft division, which fits scaffolding on and around vessels ahead of refit work being undertaken.

It said the business was experiencing its busiest ever quarter with record Q4 revenue up 66% to date (November up €2m on November 2016, 598%), reflecting the shift in contracted work into Q4 and early 2018. An update said: 'Management expects to report revenue and group profit below expectations.

'Allowing for the lower range, revenue is expected to be at least €61.0m, up 12% on 2016, and EBITDA at least €7.08m, up 6% on 2016.

'Importantly, none of the Group's contracts have been cancelled and, therefore, the scheduled work will be undertaken in 2018 with the company expected to go into 2018 with its highest ever level of in-year order book. Current order book is €18.1m (up 37% on the same date in 2016).

'The board therefore remains confident in the Group's expectations for 2018.'


At 9:23am: [LON:GYG] GYG Plc share price was -17p at 113.5p



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