Grand Harbour Marina has registered earnings before tax of €2.6 million for 2012, up from 2011’s €1.2 million following increased revenues and controlled costs. The Vittoriosa marina operator has posted profit after tax of €1.7 million compared to a loss of €0.2 million in 2011.
Income from pontoon fees and ancillary services for the 2012 financial year grew by 11 per cent from €2.5 million to €2.8 million. These revenues were further enhanced by income derived from the sale of a superyacht berth for a total consideration of €3.1 million.
During the board meeting on February 27, the directors proposed a final net dividend of €0.12 per share equivalent to €1.2 million.
When compared to 2011, the company’s operating costs increased by €0.4 million to €2 million, of which €0.25 million were the result of the direct costs related to the sale of the long-term berths, which comprise the capital costs of the berths sold, brokerage commissions, turnover rent payable, and operator fees. The other €0.15 million increase is mainly related to increases in operator fees, repairs and maintenance, marketing and the movement in the provision for bad debts.
Net finance costs remained constant at €0.8 million.
Grand Harbour Marina said the slowdown in the economic performance of the European Union members, growing unemployment in several major economies and the continuing uncertainty in the financial markets continue to pose a challenge as it seeks to continue making gains in operating efficiency, conclude further berth sales and reap the benefits of the investment in IC Cesme Marina in Turkey.
The board is continuing to explore further opportunities for the expansion of its activities in Malta through appropriate partnerships and through maximising the use of water space at the Marina.
Grand Harbour Marina plc’s interest in IC Cesme Marina is held through a joint venture with Turkish group Ibrahim Cecen Investment Holdings. Last year, IC Cesme generated revenues of €4.1 million (GHM’s 45 per cent interest translates to €1.8 million) and incurred operating costs of €2.4 million (GHM – €1.1 million), an increase of 35 per cent and 14 per cent over 2011.
Earnings before interest, tax, depreciation and amortisation stood at €1.3 million (GHM’s interest translates to €0.6 million), an increase of €0.9 million over 2011.
Grand Harbour Marina is disputing a claim for an amount of €160,084 (2011: €160,084) for contract works carried out by a third party at the marina. While liability is not admitted, if defence against this action is unsuccessful, the amount could become due. Following legal advice, the directors do not expect the company to be found liable.