Superyacht firm makes a big splash on debut

THERE are about 1,900 billionaires in the world, a number of whom were moored in Monte Carlo last week for its annual yacht show

THERE are about 1,900 billionaires in the world, a number of whom were moored in Monte Carlo last week for its annual yacht show.

The largest superyacht event in the industry, the show is not just a chance for the super-rich to show off their vessels – it is also a major business opportunity, not least for newly listed AIM company GYG.

The firm is mainly involved in painting and refitting superyachts – pleasure craft that are more than 40 metres long or weigh more than 500 tons.

It floated in June at 100p and the shares have risen to 137½p. But there is plenty of potential for growth and the firm intends to pay generous dividends from 2018.

Coating and painting a superyacht can take six to 12 months, transforming it into a fully seaworthy vessel, with a surface that is hardwearing and appealing. Such work is not cheap, especially as up to 100 specialist craftsmen can be involved full-time. The superyacht painting market is worth more than $427 million (£250m) and is expected to reach £350 million by 2050.

The number of billionaires is growing, with superyachts increasing in sync. In 2015, there were 1,800 billionaires and 1,835 super-yachts. By 2020, there are expected to be 2,500 billionaires and 2,285 superyachts. At the same time, the vessels are getting bigger. Ten years ago, the average boat that GYG painted was 54 metres long. Today it is 80 metres and some boats are up to 150 metres long.

These massive craft have to be serviced every five years to comply with regulations, and are often docked for maintenance annually, too. The work is highly specialised and GYG is a leading player with a 30 per cent share of the market.