Grand Banks Yachts expects net loss for 1FY22 due to construction disruption and increased costs

Further details on the group’s performance will be disclosed mid next month.

Grand Banks Yachts (GBY) expects to report a net loss for the 1HFY22, advising shareholders and potential investors to exercise caution when dealing in its shares.

In a filing, GBY CEO Mark Richards said the loss is mainly due to the prolonged shutdown of the company’s manufacturing facility in Pasir Gudang during the three months ended Sept 30, 2021, in compliance with movement control order issued by the Malaysian government.

The disruption affected the construction schedules for pre-sold boats, impacting revenue recognition in 1QFY22.

Although boat construction activities were resumed mid-Sept 2021, the loss of revenue and the combined impact of the accrued fixed overhead costs in 1QFY22, increased freight costs amid disruptions in sea freight, as well as rising material costs are expected to result in a net loss for 1HFY22.

Further details on the group’s performance will be disclosed mid next month.

Malaysian billionaire Lim Kok Thay, who is the controlling shareholder of troubled cruise operator Genting Hong Kong is a substantial shareholder of GBY.

Shares in GBY closed flat at 31.5 cents on Jan 21.

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