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Grand Banks Yachts swings into the black in Q1

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The Grand Banks 55 Aleutian RP yacht.

GRAND Banks Yachts managed to swing to a net profit of S$1.2 million in the first quarter ended Sept 30, from a net loss of S$1.3 million in the year-ago period.

Following restructuring efforts after a major acquisition, gross profit margin jumped to 24.5 per cent from 9.5 per cent over the comparative periods, Grand Banks said on Tuesday.

The builder of the Grand Banks brand of luxury yachts said net profit rose after introducing initiatives to integrate design, production and marketing following the acquisition of Palm Beach Motor Yacht Co Pty Ltd of Australia, which was completed on Aug 1, 2014.

Revenue during the first quarter more than doubled to S$14 million from S$6.5 million a year ago, on the back of progressive recognition of orders, which included revenue contribution from the first two Palm Beach yachts being built in Malaysia.

"The latest quarter reflects initiatives undertaken in the past 12 months which will assist us in enhancing shareholder value, moving forward," said Grand Banks chairman Heine Askaer-Jensen.

Barring any unforeseen circumstances, the board of directors expects the group's fiscal 2016 performance to improve significantly compared with fiscal 2015.