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04 March 2010 - YCO shares rocket over 100%
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By Liggie Pelekani
This week, YCO Group plc, provider of specialist services to superyachts had some excellent news on the stock market, with its share prices rocketing by more than 100%. This news comes after the Group released its pre-close trading statement last week, which states that it will expect to break even for the financial period to 31 December 2009.
Synfo.com asks Charlie Birkett, Partner & Group CEO at YCO what the company attribute their success to: "The depth of our experience, the breadth of our service offering and most importantly, our dedication to our clients make up the core around which YCO has grown. YCO combines the philosophy of a boutique company with the credibility and financial transparency of a publicly listed one. The team at YCO also collectively offers a yachting background which is virtually unmatched elsewhere in the industry. This, and the fact that YCO has its roots in yacht management rather than brokerage gives us a more specialist and knowledgeable edge. As we have grown, the services we now provide cover almost every aspect of yachting, which appeals to clients who have come to trust us and who can now rely on YCO for an even more comprehensive provision of yacht services."
Charlie Birkett, partner & group CEO
The Group's pre-close statement begins by saying that whilst the broader economic climate of 2009 placed considerable pressure on the superyacht industry, the Group was able to undertake a number of initiatives focused on implementing cost efficiencies across the business whilst improving the Group structure for cross selling services. The board is confident that these changes will lead to further sale and charter revenue opportunities.
In addition to the considerable reduction of corporate overheads, the board has reported that it is starting to see the benefits of the restructured group in a market place that shows clear signs of recovery. In the final quarter of 2009 the Group saw important yacht sale transactions completed from which the benefits will be received in 2010. Despite a very challenging market with lower fuel volumes delivered throughout the industry, the Group continued to build market share and benefited from advantageous currency exchange rates.
Synfo.com asks Charlie Birkett how the company are doing so far this year compared with last year, "We have had a promising and busy opening to 2010, which further consolidates the positive turnaround in the second half of 2009 that the Group's companies experienced. We attribute this to slightly improved market conditions, but primarily to a thorough overhaul of the Group's structure, which enabled us to dramatically reduce operating costs, run the Group more efficiently and pursue new business opportunities more aggressively. We have just published our new hardback 2010 charter catalogue 'The Yachts', which has been well received by YCO clients and prospective clients alike. Most recently, the Abu Dhabi Yacht Show, where YCO had a prominent presence, was very interesting and we're optimistic that exhibiting there will prove to have been worthwhile in the coming months. Overall, our outlook for 2010 is more positive than this time last year."
The Group also reports that it has reached a settlement with a former business partner over disputed fees and accordingly is set to receive 250,000 GBP and an additional 30,000 GBP to cover legal costs incurred by the group.
Last year YCO Group reported a pre-tax loss of 684,000 GBP on revenues of GBP 28.5m. The Group says it has management contracts in place with more than 50 yachts and is tendering for a number of other yacht management contracts.
Related Links YCO - company profile | company website
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