Business
Corporate & Board Update
Corporate & Board Update.
About this update from Gulf Marine Services Plc
[{"type":"text","content":"\n \nRNS Number : 7012J Gulf Marine Services PLC 21 August 2019 \n\n \n21st August 2019\n \nGulf Marine Services PLC (\"the Company\")\nCorporate & Board Update\n \nGulf Marine Services (GMS) provides the following update on management and directorate changes, trading expectations for Full Year 2019, and capital structure and covenants. \n \nManagement and Directorate Changes\nSince announcement of the Group's 2018 results earlier this year, the Company has been in the process of a fundamental governance and management overhaul with the replacement of the Chairman, the CFO and all but the most recently appointed non-executive Directors. \nThe Board today announces that Mr Duncan Anderson has resigned from the role of CEO and as a Board Director with immediate effect. Mr Anderson will remain available to assist the Board with an orderly handover of his duties and responsibilities. \nMr Tim Summers, formerly non-Executive Chairman, is taking over the interim role of Executive Chairman whilst the Company finds the best placed candidate to take the business into a new chapter. \n \n2019 Trading \nThe Company had previously guided to overall 2019 trading being at similar levels to 2018. Over recent weeks, the Board and the Company's new CFO have conducted a detailed review of the Company's year-to-date financial performance and forecast activity levels for the fleet, particularly in relation to the Company's large E-class vessels. The review has established that 2019 EBITDA will be lower than in 2018, in an expected range of $45-$48m. \nThe revised EBITDA forecast has been compiled following a vessel-by-vessel analysis and having made a prudent, revised assessment of the existing contractual and new business prospects. This is how the Company will be assessing its business going forward.\nLooking ahead to 2020, the order book shows improvement, with almost half of the Company's fleet already secured on firm contracts for the year, which is a stronger position than at the same point 12 months ago. Nevertheless, market conditions remain challenging, although there are a number of material new tender opportunities which GMS is pursuing in the near term.\n \nCapital Structure and Covenants\nManagement, the new Board and the Group's advisors, have been in negotiat...