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Grand Banks Yachts
09-10-2012, 08:49 PM.
Post: #31
RE: Grand Banks Yachts
Today (Oct12) the High Court of Singapore has dismissed Cheng Lim Kong's application with costs.....
http://info.sgx.com/webcoranncatth.nsf/V...penelement
Bad luck for Cheng!

Today BT has also published a very well-written and motivated article (p27) on Grand Banks by Mak Yuen Teen (Associate Professor at the NUS Business School) entitled "Responsible shareholder activism?" - a must read IMHO!

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10-10-2012, 06:03 PM.
Post: #32
RE: Grand Banks Yachts
Although the incumbent board of directors have preserved their seats, I find the remuneration of the board (particularly Peter Poli who earns between $250 to $500k) and the CEO/substantial shareholder (Robert Livingston earns between $500k to $750k) to be excessive. Especially when the company is undergoing a difficult time. They could have saved the company nearly a million bucks from cutting their remuneration but did not do so. I find that shareholders are buying the story that Sri Lim Kok Thay will work his magic. Difficult to reconcile the company's official stand and its actions.

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11-10-2012, 10:59 AM.
Post: #33
RE: Grand Banks Yachts
The Straits Times
www.straitstimes.com
Published on Oct 11, 2012
Grand Banks tussle ends in truce after failed bid to replace board


By jonathan kwok

PEACE could break out among the combatants at Grand Banks Yachts after a hostile bid to replace the board was defeated yesterday.

The vote was held during a lengthy meeting at Traders Hotel and ended with the investor who started the move leaving the door open to dialogue.

Substantial shareholder Peter Cheng Lim Kong shook hands with the Grand Banks directors, a scene that would have been unimaginable previously.

In July, Mr Cheng and fellow shareholder Kwah Yeow Khong demanded that the directors at the luxury boat maker be replaced by four of their own nominees, including Mr Cheng as executive director.

Their campaign led to yesterday's meeting, but not before a shadow war between both parties.

Grand Banks directors told shareholders last month that the power struggle had dampened staff morale and business confidence. They said Mr Cheng and Mr Kwah "had not given any rationale nor communicated with current directors and management to better understand the business and explain how they supposedly intend to improve and enhance the operations".

Mr Cheng took Grand Banks to court after a share placement to new investors last month diluted his and Mr Kwah's stakes before the meeting. On Tuesday, the High Court dismissed his application for the new shares to be denied voting rights at yesterday's meeting.

What promised to be an explosive affair at the 21/2-hour meeting turned out to be cordial and polite. Mr Cheng voiced his unhappiness that the new shares would carry votes but Grand Banks independent director Basil Chan said the firm had been seeking strategic investors since January.

The timing of the placement was a coincidence, said Mr Chan, adding that the new investors - theme park operator Koh Cheng Keong and Genting Group chairman Lim Kok Thay - could bring in new opportunities for Grand Banks.

Chairman Heine Askaer-Jensen highlighted steps the luxury boatmaker has taken to return to the black, such as introducing new boat designs.

Mr Cheng's resolutions were defeated at the meeting. He said he did not speak to the board members before the meeting as he was wary that things he said could be given a negative spin.

"But today after hearing me, checking my background, they all said they wanted to talk to me."

He said the directors were "very positive", and that "they all wanted to hear my ideas. I understand them and they understand me better now".

Mr Askaer-Jensen said the day was not about winning or losing: "Grand Banks can win in the longer run from the benefit of a constructive dialogue between shareholders and the board."

A retail shareholder who wanted to be known as Mr Low said the board "can say a lot of things, but actions speak louder than words". The 80-year-old retiree added: "Peter Cheng is also an unknown entity. Since he has some good ideas, it is good to co-opt him to work with the board for the good of the company."

Grand Banks has reported four years of losses. It is on the Singapore Exchange's watch-list, which means it has a time period to turn around its business or face possible delisting.

jonkwok@sph.com.sg
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My Value Investing Blog: http://sgmusicwhiz.blogspot.com/

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18-11-2012, 07:00 AM.
Post: #34
RE: Grand Banks Yachts
1Q results out recently.....
http://info.sgx.com/webcoranncatth.nsf/V...penelement [result announcement]
http://info.sgx.com/webcoranncatth.nsf/V...penelement [press release]

Revenue up sharply; and GP and GP Margin reversed back to positive, even though GP Margin at 17.6% is still below the historical norm of 25/30% range. As production is being ramped up, and with more and increasing boat order now, GP and GP Margin should rise further and take care of themselves. Would Grand Banks return to positive OP, PBT and NP by 3Q? I guess it would just take 2 to 3 more boats produced and delivered in a quarter to achieve that.

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18-11-2012, 09:15 AM.
Post: #35
RE: Grand Banks Yachts
(18-11-2012, 07:00 AM)dydx Wrote: 1Q results out recently.....
http://info.sgx.com/webcoranncatth.nsf/V...penelement [result announcement]
http://info.sgx.com/webcoranncatth.nsf/V...penelement [press release]

Revenue up sharply; and GP and GP Margin reversed back to positive, even though GP Margin at 17.6% is still below the historical norm of 25/30% range. As production is being ramped up, and with more and increasing boat order now, GP and GP Margin should rise further and take care of themselves. Would Grand Banks return to positive OP, PBT and NP by 3Q? I guess it would just take 2 to 3 more boats produced and delivered in a quarter to achieve that.

Seems FCF is still negative though. Interesting to track the fortunes of this yacht company, the boardroom tussle was also interesting to follow.

Let's look at the numbers again for the next quarter. Smile
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My Value Investing Blog: http://sgmusicwhiz.blogspot.com/

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07-01-2013, 03:00 PM. (This post was last modified: 07-01-2013, 03:02 PM by dydx.)
Post: #36
RE: Grand Banks Yachts
Having acquired a 14.9% stake in Grand Banks for just $4.68m on 25Sep12, Exa Ltd / Tan Sri Lim Kok Thay has in Dec12 acquired a 50% stake in an Italian yacht company Wider s.r.l. for an undisclosed sum.....
http://www.tradeonlytoday.com/home/52321...n-investor
http://www.wider-yachts.com/en/news-even...-built-150-

More info on Wider and its 2 innovative yachts - Wider 42 and Wider 150.....
http://www.wider-yachts.com/en/company
http://www.wider-yachts.com/en/wider-42
http://www.wider-yachts.com/en/wider-150

With Tan Sri Lim now as a common shareholder of the 2 companies, I guess there is always a possibility for business co-operation between Grand Banks and Wider in the future.

Grand Banks' latest FY12 (ended 30Jun12) AR.....
http://info.sgx.com/listprosp.nsf/07aed3...ersion.pdf

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11-02-2013, 05:04 PM.
Post: #37
RE: Grand Banks Yachts
2Q results out last Thursday (7Feb13).....
http://info.sgx.com/webcoranncatth.nsf/V...penelement [2Q result announcement]
http://info.sgx.com/webcoranncatth.nsf/V...penelement [press release]

2Q's Revenue continued to show a small but important QOQ increase; GP rose smartly QOQ, with GPM reaching 23.7%, not far from the 25/30% historical norm. 2Q's cash loss before forex and reval losses fell to only $317k.

With a much higher 31Dec12 net order book backlog of $16.8m - equivalent to approx. 7.6 months of current production/deliveries - and as GB is ramping up production and expects to recognize a substantial majority of these orders in FY13, I think GB is poised to record its first profit turnaround in 2H. In fact, GB's BOD is confident enough about the business outlook and has decided to issue the following para as outlook statement -

"In line with historical trends, the Group expects the performance in the seasonally stronger 2H 2013 to improve compared to 1H 2013. The Directors believe the Group is on track to return to profitability in either the current financial year or the financial year ending 30 June 2014 and to exit the Watch-List administered by the SGX."

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17-04-2013, 10:47 AM.
Post: #38
RE: Grand Banks Yachts
Grand Banks has issued a very positive announcement this morning (17Apr13).....
http://info.sgx.com/webcoranncatth.nsf/V...penelement

Based on the announcement, Grand Banks is poised to complete production of and deliver up to 10 new boats (out of the outstanding orders for 15 yachts as at 31Mar13) in coming 4Q (Apr - Jun13). If realised, there will be a marked improvement over 2Q (Oct - Dec12) - during which 4 boats were delivered and a revenue of $6.681m was booked.

I am eagerly waiting the coming 3Q results announcement expected early next month.

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18-04-2013, 09:14 AM.
Post: #39
RE: Grand Banks Yachts
The Straits Times
www.straitstimes.com
Published on Apr 18, 2013
High five for luxury yacht maker


By Rachel Scully

LUXURY yacht manufacturer Grand Banks Yachts said yesterday it is on track for its best luxury yacht sales since the global financial crisis.

The Singapore-listed company, which has faced internal turmoil over the past year or so, expects to complete five yachts for buyers in the region by June 30, the end of its current financial year.

Buyers from Singapore, Japan and Micronesia contributed to the sales, up from an average of two to three yachts since 2010.

The yachts are priced from US$850,000 (S$1.05 million) for a 43ft boat to US$4 million for a 76ft one.

Mr Hank Compton, the company's regional sales manager for Asia, Europe and the Middle East, said: "The rise in expendable income and better boating facilities in Asia have helped boost sale figures.

"In addition, boats seem to be growing more popular and mainstream in Asia."

Grand Banks will be introducing two new designs of its luxury yachts - the 43 Heritage EU and the 54 Heritage EU - at the Singapore Yacht Show from today to Sunday at ONE°15 Marina Club.

Acting chief executive Peter Poli said he is optimistic and encouraged by the growing demand as the US economy picks up and as Asians appreciate luxury yachts.

He said distributors are gradually more open to holding one or two yachts in stock as customers like to see what they are buying.

The average time for a yacht to be built is six months.

However, Mr Poli acknowledged that the industry still faces some challenges. "Buyers can be tough negotiators and they had more power to demand discounts of up to 20 per cent when sales were down in the last four years," he said. "It's going to take a while before they will be prepared for that mindset change and pay prices that reflect market value."

He added that a long-term challenge for the industry is to ensure that buyer experience and reliability are maintained despite the growing numbers of boaters.

Mr Poli replaced CEO Robert William Livingston II at the start of the year after a period of boardroom upheaval.

Businessman Shallum Eptison, 56, who owns 20 boats and yachts, expects the industry to keep up with technological improvements.

He said: "Buyers often look for good electronics, telephone systems, global positioning system and even after-market service. This is especially important for long journeys or when you're sailing in rural and pristine areas."

The avid yachtsman hails from Palau, a cluster of islands east of the Philippines.

rjscully@sph.com.sg
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My Value Investing Blog: http://sgmusicwhiz.blogspot.com/

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18-04-2013, 09:28 AM.
Post: #40
RE: Grand Banks Yachts
Confirmation that the rich is getting richer as a result of the WALL of Money slushing around the world

(18-04-2013, 09:14 AM)Musicwhiz Wrote: The Straits Times
www.straitstimes.com
Published on Apr 18, 2013
High five for luxury yacht maker


By Rachel Scully

LUXURY yacht manufacturer Grand Banks Yachts said yesterday it is on track for its best luxury yacht sales since the global financial crisis.

The Singapore-listed company, which has faced internal turmoil over the past year or so, expects to complete five yachts for buyers in the region by June 30, the end of its current financial year.

Buyers from Singapore, Japan and Micronesia contributed to the sales, up from an average of two to three yachts since 2010.

The yachts are priced from US$850,000 (S$1.05 million) for a 43ft boat to US$4 million for a 76ft one.

Mr Hank Compton, the company's regional sales manager for Asia, Europe and the Middle East, said: "The rise in expendable income and better boating facilities in Asia have helped boost sale figures.

"In addition, boats seem to be growing more popular and mainstream in Asia."

Grand Banks will be introducing two new designs of its luxury yachts - the 43 Heritage EU and the 54 Heritage EU - at the Singapore Yacht Show from today to Sunday at ONE°15 Marina Club.

Acting chief executive Peter Poli said he is optimistic and encouraged by the growing demand as the US economy picks up and as Asians appreciate luxury yachts.

He said distributors are gradually more open to holding one or two yachts in stock as customers like to see what they are buying.

The average time for a yacht to be built is six months.

However, Mr Poli acknowledged that the industry still faces some challenges. "Buyers can be tough negotiators and they had more power to demand discounts of up to 20 per cent when sales were down in the last four years," he said. "It's going to take a while before they will be prepared for that mindset change and pay prices that reflect market value."

He added that a long-term challenge for the industry is to ensure that buyer experience and reliability are maintained despite the growing numbers of boaters.

Mr Poli replaced CEO Robert William Livingston II at the start of the year after a period of boardroom upheaval.

Businessman Shallum Eptison, 56, who owns 20 boats and yachts, expects the industry to keep up with technological improvements.

He said: "Buyers often look for good electronics, telephone systems, global positioning system and even after-market service. This is especially important for long journeys or when you're sailing in rural and pristine areas."

The avid yachtsman hails from Palau, a cluster of islands east of the Philippines.

rjscully@sph.com.sg

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