SINGAPORE (Feb 8) Grand Banks Yachts saw its net profit swell 62.4% to $677,000 for the 2Q ended December, from $417,000 a year ago.

2Q18 revenue surged 61.8% to $20.3 million, from $12.6 million a year ago.

This was driven by the sale of two inventory boats and one trade-in inventory boat, as well as a higher number of yachts reaching construction milestones for revenue recognition.

Total operating expenses rose 35.6% to $3.3 million in 2Q18, led by higher selling and marketing expenses, which jumped 61.3% to $2.0 million.

This was on the back of higher costs incurred from boat shows, boat demonstrations, advertising, and payroll as Grand Banks scaled up its marketing efforts.

As at end December, cash and cash equivalents stood at $9.9 million.

“The improvement in our top- and bottom-line reflects our enhanced production capabilities and strong demand for the Grand Banks and Palm Beach brands. We are on track to delivering more boats this year and will build on this momentum to accelerate our growth,” says Grand Banks’ CEO, Mark Richards.

In a separate filing to SGX on Thursday, Grand Banks announced that it has established a Strategic Committee to assist the board in the development of the group’s long-term strategic plans, including the evaluation and monitoring of the implementation of the management’s strategic plans.

To be helmed by non-executive independent director Gary James Weisman, the Strategic Committee will also include Grand Banks’ chairman and non-executive independent director Heine Askaer-Jensen as well as CEO and executive director Mark Richards.

The committee will also review areas identified by the management as having a material impact on the group’s long-term strategies, and recommend strategic initiatives including any change in business direction, new markets, new products, and any major re-organisation or investment/divestment proposals made by the management.

Shares of Grand Banks closed at 33 cents on Wednesday.

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