Grand Harbour Marina registered an increase in revenue, a decrease in operating costs and an increased profit of 64 per cent in 2009, company chairman Lawrence Zammit announced yesterday.
Mr Zammit told the company's AGM: "Notwithstanding the fact that the yachting industry has been negatively impacted by the economic environment, the board of directors, in line with its stated objective to strengthen the fundamentals of the business, sought to increase revenue and continue to contain costs.
"In fact, total revenue increased from €1,478,512 in 2008 to €2,053,407 in 2009, an increase in revenue which is attributable to an increase in tariffs, increased occupancy, pontoon fees and ancillary revenue. And although no new berth sales were registered in 2009, we are now beginning to see evidence of clients' willingness to commit to berth acquisitions."
Operating costs for 2009 amounted to €1,900,805 compared to €2,403,746 in 2008. This resulted in an increase in earnings before interest, tax, depreciation and amortisation of 64 per cent from €93,241 to €152,602.
Mr Zammit said last December the Inland Revenue announced that long-term super-yacht berth licensing agreements which took place on or after November 1, 2005 and which give effect to the transfer of rights over immovable property are subject to a final withholding tax of 12 per cent on the consideration received. This resulted in a reduction in the tax liability of Grand Harbour Marina p.l.c. for the years to December 31, 2008, previously estimated on the basis of taxable income brought to tax at the rate of 35 per cent, of €1,233,367.
He said the decrease in total assets to €11,175,188 at December 31, 2009 from €11,867,771 at December 31, 2008, was mainly related to a decrease in cash and cash equivalents, trade receivables and depreciation. The decrease in total liabilities to €5,788,302 at December 31, 2009 from 31 €7,304,098 at December 2008, was mainly related to the decrease in the bank loan and company tax. As a result the value of net assets as at December 31, 2009 has increased by €823,213.
"Our pontoon berths have remained at full occupancy, and the waiting list of clients seeking berths has been maintained. Our berth rental pricing was increased once more in 2009. Berthing rates in Malta remain materially below those of similar marinas in other EU countries. During 2009, GHM also managed a number of berths located in Dockyard Creek on behalf of the Malta Maritime Authority," added Mr Zammit.
Referring to Grand Harbour Marina's bond issue at the beginning of this year, Mr Zammit explained how in January the company issued €12,000,000 of bonds, bearing interest at a rate of seven per cent, redeemable in 2020 and subject to an early redemption option that may be exercised by the company between 2017 and 2020.
"Our intentions in issuing the bond are in line with those communicated at the time of our Initial Public Offer in 2007. During February we exercised our option and prepaid our term loan facility with HSBC Bank p.l.c. and we shall be considering further waterside and landside investments within the marina itself and within Malta as well as considering options to co-invest with Camper & Nicholsons in existing and new investment marinas outside of Malta with a focus on the Mediterranean."
Mr Zammit said the global economic climate continued to exert a negative impact on the company's activity, especially in the area of berth sales, even if there still exists a shortage of berths when compared to demand.
"This is why we will continue to strive to make the company profitable before taking into account berth sales. We shall continue seeking windows of opportunity presented by the current scenario such that we render more value to the Company's shareholders in the coming years," he said.