Shares in superyacht services group YCO jumped over 100 per cent this week following its pre-close trading statement. Such a rise would normally indicate a possible takeover but on this occasion it appears to primarily be down to the statement. With so few public companies in this niche market there is little opportunity to see a financial performance that gives an indication of how the superyacht market stands. If this rise is any such indication then recovery would seem to be on its way.

In the pre-close trading statement YCO stated that it anticipated breaking even in 2009. "Cost efficiencies," YCO says, "and improved cross-selling services are expected to lead to further sale and charter revenue opportunities. Despite a much weaker marketplace and exceptional one-off costs associated with restructuring, the board anticipates it will break even." YCOs CEO Charles Birkett commented that "The position would be further strengthened if signs of recovery in the superyacht sale and purchase market continued."

Within the group Your Help Group, its provisioning and agency services arm, benefited from a restructuring of its senior management resulting in its activities in France and Spain operating profitably in the second half. YCO states it now has contracts to manage more than 50 superyachts with tendering in progress on others. In 2008 the group reported a pre-tax loss of £684,000 on revenues of £28.5m.


Superyacht Business / David Robinson, 3 March 2010