Monday, November 17, 2014

Grand Banks

Grand Banks: As per its profit warning two weeks back, Grand Banks widened its 1QFY15 net loss to $1.3m, from a loss of $0.6m a year ago. Revenue dropped 32% y/y to $6.5m, due to delays in the sale of yachts in its inventory. Gross margin contracted 9.1 ppts to 9.5%, due to amortization of tooling and intangible assets arising from the acquisition of Palm Beach Motor Yacht and restructuring expenses from streamlining of operations. Grand Banks’ order book depleted to $17.5m (4QFY14: $19.8m), which will be recognized over FY15. Amid the uncertainties in the global macro landscape, sales of yachts are expected to be lumpy going forward. The counter remains untraded today. At the last close of $0.215, the stock trades at 0.77x P/B.

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