News Column

Camper & Nicholsons Marina To Raise GBP2.4 Million, Loss Narrows

June 6, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Camper & Nicholsons Marina Investments Ltd Friday posted a narrowed loss for 2013, as consumer confidence began to return to the yachting sector and market conditions improved, and proposed a GBP2.4 million fund-raising for further growth.

The investment company posted a pretax loss of EUR2.4 million, narrowed from a pretax loss of EUR5.3 million in the previous year, as revenue dropped to EUR5.9 million from EUR9.2 million, but this was offset by lower operating costs. In the previous year the company had posted an impairment charge on its Port Louis assets of EUR3.8 million.

The decline in revenues was primarily caused by a change in accounting standards, which means that the company no longer includes revenues from its joint ventures that had been included in the previous year.

Camper & Nicholsons reduced its operating costs to EUR5.5 million from EUR7.0 million as part of its cost reduction programme, which involved cutting its number of senior executives by 40%.

Revenue growth of 12% and 6% at its GHM and and Cesme marinas offset a decline of 12% at its Port Louis marina. Its third party marina services business revenue decreased slightly as projects were deferred, particularly in Europe, it said.

With the programme out of the way, the company said it was now able to shift its emphasis into growing its top line, upping its marketing and implementing a refresh of a brand across its businesses.

To fund its strategy going forward, the company Friday proposed a fund-raising of GBP2.4 million through the issue of 24 million new shares at 10 pence each.

Shares in Camper & Nicholsons Marina are untraded Friday, they last traded at 8.75 pence.

It will use the funds raised to amend its financing facility with Scotia Bank to take up a loan with a lower fixed rate, increase the number of marina berths at its CHM and Cesme businesses to better use its existing water space, and support further growth at its Hong Kong based joint venture.

The company said that it had undertaken an "extensive" brand refresh during the year, which helped more than double its website traffic to more than 3,500 unique visitors per week. It will extend this re-branding to its joint venture Camper & Nicholsons First Eastern later in 2014, launching a global website in Chinese.

Camper & Nicholsons announced its '1782 Club' initiative in January, where it will partner with a group of independently owned and operated marinas to form high-end facilities in popular and emerging yachting locations.

It will initially focus on new marinas in the Mediterranean and Caribbean, then expand to other geographic regions.

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Source: Alliance News

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