Grand Harbour Marina p l c : Approval of Interim Financial Statements

COMPANY ANNOUNCEMENT

GRAND HARBOUR MARINA P.L.C.

(THE "COMPANY")

Approval of Interim Financial Statements

Date of Announcement	29 August 2022
Reference	198/2022
Capital Markets Rules	5.16.20

This is a company announcement being made by the Company in compliance with Chapter 5 of the Capital Markets Rules:

QUOTE

The Board of Directors approved the half-yearly report of the Company for the financial period 1 January 2022 to 30 June 2022, a copy of which is attached herewith and is also available on the Company's website:

https://en.cnmarinas.com/grand-harbour-marina/notification%20&%20publication

UNQUOTE

Signed:

________________________

Louis de Gabriele Company Secretary

Grand Harbour Marina p.l.c.

Interim Condensed Consolidated Financial Statements

Six months ended 30 June 2022

Company Registration Number: C 26891

Grand Harbour Marina p.l.c.

	Page
Interim Directors' Report pursuant to listing rules 5.75.2	1
Interim Condensed Consolidated Financial Statements
Condensed consolidated statement of financial position	4
Condensed consolidated statement of profit or loss and other comprehensive income	5
Condensed consolidated statement of changes in equity	6
Condensed consolidated statement of cash flows	7
Notes to the interim condensed consolidated financial statements	8
Interim Directors' Statement pursuant to listing rules 5.75.3	34

Grand Harbour Marina p.l.c.

Interim Directors' Report pursuant to listing rules 5.75.2

Period Ended 30 June 2022

The Directors present their interim report together with the unaudited condensed consolidated interim financial statements of Grand Harbour Marina p.l.c. ("GHM" or "the Company") and its subsidiary, Maris Marine Limited (together referred to as "the Group"), and the Group's beneficial interest of 45% in a joint arrangement, IC Cesme Marina Yatirim, Turizm ve Islemeleri Anonim Sirketi ("IC Cesme"). The Group is itself a subsidiary of Camper & Nicholsons Marina Investments Limited ("CNMIL" or the "Parent Company").

Business Review

Grand Harbour Marina p.l.c. Consolidated

Total revenue at GHM decreased from €1.9 million to €1.7 million, while the Group's share of revenues at IC Cesme amounted to €0.7 million in 2022, in line with last year's first half. Both EBITDA and profit before tax at GHM fell by €0.1 million compared to 2021, whilst profit after tax of €0.1 million reached 2021 levels. The Group's share of EBITDA at IC Cesme fell by €0.1 million, while the share of profit before tax and share of profit after tax increased by €1.4 million and €1.2 million respectively, reflecting Cesme's non-monetary gains arising from Turkey being classified as a hyperinflationary economy (see note 6).

Grand Harbour Marina
			H1 Results
€m	2022	2021	2020	2019	2018
Marina operating revenues	1.7	1.9	2.1	2.0	2.3
Direct costs	(0.3)	(0.4)	(0.4)	(0.4)	(0.6)
Operating expenses	(0.6)	(0.6)	(0.7)	(0.7)	(0.8)
EBITDA	0.8	0.9	1.0	0.9	0.9
Profit before tax	0.2	0.3	0.4	0.2	0.5
Profit after tax	0.1	0.1	0.2	0.1	0.3
Capital expenditure	0.1	-	-	-	0.1

Sales revenues in 2022 contracted by €0.2 million when compared to the comparative period of 2021, on the back of lower utility consumption by superyachts.

The Company registered EBITDA of €0.8 million (Jun 2021: €0.9 million). With net finance costs of €0.4 million (primarily made up of €0.3 million bond interest cost, €0.2 million interest expense on lease liabilities less interest receivable of €0.2 million) and depreciation of €0.2 million, the Company achieved a €0.2 million profit before tax (Jun 2021: €0.3 million) and a €0.1 million profit after tax (Jun 2021: €0.1 million). GHM paid €0.7m dividends during the period ended 30 June 2022 (Jun 2021: €nil).

Valuation

The market capitalisation of GHM on the Malta Stock Exchange on 29 August 2022 amounted to €14.0 million (18 April 2022: €12.4 million).

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Grand Harbour Marina p.l.c.

Interim Directors' Report pursuant to listing rules 5.75.2

Period Ended 30 June 2022

IC Cesme
		H1 Results (for 100% of the Marina)
€m	2022	2021	2020	2019	2018
Seaside revenues	1.1	1.1	1.0	1.1	1.2
Landside revenues	0.6	0.5	0.5	0.8	1.1
Total revenues	1.7	1.6	1.6	1.9	2.1
Direct costs	(0.3)	(0.1)	(0.2)	(0.2)	(0.2)
Operating expenses	(0.8)	(0.6)	(0.7)	(0.8)	(1.2)
EBITDA	0.6	0.9	0.7	0.9	0.7
Net finance charges and other costs	(1.2)	(1.6)	(1.9)	(0.8)	(0.5)
Gain on net monetary position (IAS 29)	3.0	-	-	-	-
Profit/ (Loss) before tax	2.4	(0.7)	(1.2)	0.1	0.2
Profit/ (Loss) after tax	1.7	(0.9)	(0.9)	0.2	0.2
Capital expenditure	0.1	0.2	-	3.1	-

IC Cesme Marina, the Company's 45% joint venture with IC Holdings, faced unprecedented inflation rates and geo-political uncertainties during the first half of 2022, which caused a 19% devaluation of the Turkish Lira to the Euro, moving from a 2021 closing rate of 14.68 to a 2022 mid-year closing rate of 17.52.

Nevertheless, when compared to last year's comparative results, Cesme improved slightly the performance on landside revenues, whilst matching the seaside revenues and occupation rates. The €0.1 million increase in landside revenues were achieved due to contract renewals at increased Turkish Lira prices in line with inflation. With regards to seaside revenues, the increase in revenue from annual contracts were set-off by an equivalent decrease in seasonal and visitor contracts.

Operating expenses and direct costs increased to €1.1 million (Jun 2021: €0.7 million) due to the higher cost base inflicted by a significant increase in price index during the first six months of 2022. After foreign exchange losses, net finance charges, depreciation, and IFRS 16 related costs totalling €1.2 million, IC Cesme made a loss before tax of €0.6 million (Jun 2021: €0.7 million) and a loss after tax of €1.3 million (Jun 2021: €0.9 million). However, as detailed in note 6, subsequent to Turkey's economy and currency being classified as hyperinflationary, Cesme applied IAS 29 Financial Reporting in Hyperinflationary Economies to its financial position and performance as at 30 June 2022, which resulted in an increase in profit before tax and profit after tax of €3.0 million each, consequently reclassifying Cesme's profit before tax and profit after tax to €2.4 million and €1.7 million respectively.

The Group's 45% share of IC Cesme's after tax profit amounted to €0.8 million (Jun 2021: loss of €0.4 million) and this is included within its total share of profits of equity-accounted investees.

Group Outlook

Throughout the pandemic, and now against the backdrop of developments in the Russia-Ukraine conflict, the Group's focus has been to firmly monitor on an ongoing basis, the direct and indirect impacts of these situations on its business model and cash flow generation.

The Board of Directors reaffirm the Group is well-positioned to honour its financial obligations as they fall due with particular reference to the interest payable on the listed bonds, as well as bank borrowings and other related obligations.

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