SINGAPORE (Oct 27): Grand Banks Yachts ( Valuation: 0.90, Fundamental: 2.25) has reversed into the black in 1Q with a net profit of $1.2 million compared to a net loss of $1.3 million a year ago.

Following restructuring efforts after a major acquisition, gross profit margin increased to 24.5% from 9.5% a year ago.

The SGX Mainboard-listed builder yachts said net profit rose after introducing initiatives to integrate design, production and marketing following the acquisition of Palm Beach Motor Yacht Co of Australia, which was completed on Aug 1, 2014.

1Q revenue more than doubled to $14 million from $6.5 million a year earlier, due to progressive recognition of orders – which included revenue contribution from the first two Palm Beach yachts being built in Malaysia.

Gross profit increased to $3.4 million from $0.6 million over the comparative periods.

Together with improved internal efficiencies in two manufacturing locations, this helped lift gross margin to 24.5%.

Total operating expenses stood at $2.1 million in 1Q, similar to a year ago.

Heine Askaer-Jensen, Chairman of Grand Banks, says, “The latest quarter reflects initiatives undertaken in the past 12 months which will assist us in enhancing shareholder value, moving forward.”

Barring any unforeseen circumstances, the group expects FY2016 performance to improve significantly compared to FY2015.

Grand Banks Yachts last traded at 23 cents.