Grand Banks Yachts limited — the builder of Grand Banks and Palm Beach Yachts — reported a fifth consecutive year of profit during a period where the Covid-19 pandemic led to two months of suspended production.
For the fiscal year that ended on June 30, revenue rose 29.7 percent to $103.2 million SGD — about $75.7 million. The company said they had 35 new boat orders for the fiscal year, 20 of which were sold in the second half of the year.
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Grand Banks also said it would consolidate its boat production facilities to Malaysia to improve operational and cost efficiencies. Manufacturing operations for Palm Beach Yachts will move from Australia to Pasir Gudang, with expectations to be completed by December.
The group was forced to close all operations at its 550,000-square feet shipyard at Pasir Gudang from March 18 to May 3 in compliance with the Malaysian government’s Covid-19 restrictions.
“Closing our fifth consecutive year in profit amid the Covid-19 pandemic is a testament to the management team's ability to make swift changes to our operations to remain lean while ensuring a healthy flow of orders,” said Grand Banks chairman Heine Askaer-Jensen in a statement. “As the operating environment remains volatile, we have strengthened our balance sheet, and are better prepared to weather the challenges ahead."
CEO Mark Richards says that the group will keep a cautious outlook and expects that restrictions on travel and boat shows will continue — but the company is well-positioned to absorb any further setbacks.
"The Covid-19 pandemic has resulted in disruption at an unprecedented level; nevertheless, sales have been healthy, and our strong order book will keep the yard busy in the coming year,” Richards said. “We have taken the opportunity to consolidate our manufacturing activities, and optimize efficiency through automation and centralized procurement. We will continue our cost containment efforts while ensuring our yachts are delivered to our customers on time."