Grand Banks Yachts Limited posted a net profit of S$13.40 million for the year ended Jun 30 2026, down 26.5 per cent year-on-year as rising operating and finance costs offset a larger top line.
Basic earnings per share fell to 7.18 Singapore cents from 9.79 cents a year earlier. The board has proposed a final cash dividend of 1.0 Singapore cent a share, matching last year’s payout and bringing the full-year distribution to 1.5 cents, including the interim 0.5-cent dividend paid on 27 Mar 2026. Payment and books-closure dates will be announced later.
Group revenue rose 6.7 per cent to S$173.19 million, driven by a higher volume of new-build yacht deliveries. Construction contracts contributed S$120.97 million, up from S$99.13 million, while brokerage and service revenue held steady. Sales of trade-in and pre-owned boats declined to S$26.06 million from S$34.30 million, tempering overall growth.
By segment, manufacturing and trading remained the main earnings driver, generating pre-tax profit of S$38.51 million (FY25: S$52.26 million). The “Others” segment, which encompasses brokerage, service income and trade-in boats, reported a stronger pre-tax contribution of S$12.94 million, up from S$4.91 million. Group gross profit margin eased to 27.8 per cent from 29.9 per cent, reflecting unfavourable foreign-exchange movements and a shift in sales mix. Total operating expenses climbed 24.1 per cent to S$29.68 million on higher payroll, marketing spend and depreciation.
Cash flow from operations swung to an outflow of S$0.49 million (FY25: inflow of S$31.25 million), weighed down by larger inventories and contract assets. Capital expenditure reached S$33.04 million, funding property acquisitions in the United States, upgrades to the Johor composite facility and enhancements to the recently acquired sailing yacht Palm Beach XI. Year-end cash and fixed deposits stood at S$19.85 million, against S$51.52 million a year earlier. Net borrowings increased to S$13.21 million, while deferred consideration tied to earlier US property and yacht purchases rose slightly to S$21.44 million.
Looking ahead, the yacht builder expects underlying demand in its core US market to remain resilient and notes early signs of recovery in Europe, though it continues to track geopolitical tensions, tariff uncertainties, supply-chain disruptions and cost inflation. Its order book was S$136.4 million at Jun 30 2026, compared with S$156.6 million a year ago. The group has already secured six large-yacht orders in the first quarter of FY27 and will press on with recently completed strategic investments—expanded US marina and service facilities, the Johor composite plant upgrade, new boat models such as the Palm Beach 107 and Grand Banks 73, and an enhanced global marketing platform anchored by Palm Beach XI—to drive sales growth and new revenue streams.