Luxury yacht maker Grand Banks Yachts reported a net loss of $1.9 million for the second quarter ended 31 December 2009 compared to a net loss of $2.5 million for the same period last year as market and economic conditions remained unfavourable.

Turnover declined to $7.8 million in the current quarter from $15.6 million a year ago, representing a drop of 49.9%.

The steep decline in revenue resulted in a sharp drop in gross profit from $3.5 million to $0.1 million as underutilisation of the factory and sale discounts took a heavy toll on gross profit.

In tandem with the decline in revenue, management continued to curtail operating expenses which declined by 40.3%.