Is it the kiss of death? Last night it was announced that Neil Woodford had upped his stake in struggling AIM-listed yacht maintenance outfit GYG from 23.43% to 24.08%. Readers might recall that this tactic rather backfired with fully-listed Kier Group (KIE) and Purplebricks (PURP) and..the list goes on and on.
Oh dear. When Neil Woodford spunked £8 million of other folks cash into the July 2017 100p a pop AIM casino IPO of yacht refitting company GYG (GYG) he thought this would be plain sailing. Oh no. Au contraire. The reverse Midas touch has struck Britain’s most arrogant fund mis-manager withy the second (lack of) profits warning in two months. Now I suggest the banks must be shitting themselves, the shares are 42.5p, sinking like the Titanic, as friendless as the Marie Celeste, and things are only going to get worse.
I Thought I would follow up on both Steve’s piece and Tom’s Bearcast on yesterday’s debacle at GYG (GYG) as I was disappointed that both my colleagues failed to make the obvious Woodford connection but, more importantly, I wonder if the banks will be taking a close look at this as the 30 June banking covenants must be a tad challenging.
On 5th July 2017 it was “GYG, a market leading superyacht painting, supply and maintenance company, is pleased to announce the commencement… of dealings of its ordinary shares on AIM… Placing price 100p, gross proceeds of the placing £6.9 million… Zeus Capital is acting as the company's nominated adviser and broker”. Now a trading update commencing “trading has been significantly weaker than expected”. Uh oh…
Hello, Share Matchers. How’s this for a niche activity: refitting and tarting up superyachts. There can’t be many of them, surely? Wrong. There are more than 1,800 of these big boats. It's the billionaire’s favourite toy.
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