Grand Banks Yachts

Grand Banks Yachts: Recorded second consecutive profitable quarter since 2009, with 3QFY14 net profit of $0.54m (from net loss of $0.72m), although revenue slumped 20.8% y/y to $8.1m. The bottom line was boosted from its significantly improved gross margin of 21.0% (+8.4ppts) due to higher factory utilization and continued efforts to streamline internal efficiencies- reflected on a 43.5% cut in opex attributed to lower SG&A expenses and boosted by recovery of doubtful debts and forfeiture of a deposit. Group sees the recovery of the U.S. luxury boat market, as well as a pick up in buying interest in Singapore and Japan. Boat shows in recent months increased the group’s net order book to $10.6m from $9m in 2QFY14.