REG - Taylor Maritime Taylor Maritime -TMI - Full Year Results for the Year Ended 31 March 2023

Taylor MaritimeAnnouncement

27/07/2023 07:15

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RNS Number : 3277H  Taylor Maritime Investments Limited  27 July 2023

27 July 2023

 

Taylor Maritime Investments Limited (the "Company")

 

Full Year Results for the Year Ended 31 March 2023

 

Taylor Maritime Investments Limited (TMI / TMIP), the specialist dry bulk
shipping company, announces its full year results for the financial period
ended 31 March 2023.

 

KEY FINANCIAL HIGHLIGHTS

·         NAV total return of 4.7%

·         Audited NAV per Ordinary Share of US$1.71 and Total NAV of
$566 million

·         Grindrod Shipping Holdings Limited ("Grindrod") investment
amounted to $362 million

·         Profit for the year of US$26.2 million Dividends paid in
respect of the period, including special dividend, amounted to 10.97 US cents
per Ordinary Share

·         Dividend cover was 2.6x for the year ended 31 March 2023
(excluding the special dividend)

·         Combined fleet of 51 vessels, including the TMI and
Grindrod Shipping fleets 1  (#_ftn1) , with total market value of US$997
million

·         Average net time charter rate of US$14,500 at the end of
the year

·         Average annualised unlevered return in excess of 17.5% at
the end of the year

 

COMMENTARY

·         The Group's Total Net Asset Value ("NAV") return per
Ordinary Share was +4.7% (31 March 2022: +81.3%) for the year ended 31 March
2023

·         As at 31 March 2023, the TMI fleet consisted of 23 vessels
(31 March 2022: 31 vessels) with a total market value of US$373 million (31
March 2022: US$546 million)

·         TMI fleet's average net time charter rate as at 31 March
2023 was approximately US$14,500 per day (31 March 2022: US$18,600 per day),
with an average duration of four months (31 March 2022: six months) and
generating an average annualised unlevered return of 17.5% (31 March 2022:
24%)

·         On 19 December 2022 the Group completed a further
acquisition of a 57.9% holding in Grindrod at a price of US$21.00 per share.
As at 31 March 2023 the Group's total stake in Grindrod amounted to 83.2% (31
March 2022: 26.6%)

·         Key financial highlights in respect of Grindrod:

o  The Grindrod investment amounts to US$362 million

o  Grindrod's fleet consisted of 28 vessels with a total market value of
US$624 million 2  (#_ftn2) , including 13 Supra/Ultramax vessels and 15
Handysize vessels

o  The Company received US$31.6 million by way of dividends from Grindrod
during the year to 31 March 2023 including a special dividend of US$5.00 per
share (c.US$25 million) which was used to part-finance the December share
acquisition

·         The combined fleets of TMI and Grindrod numbered 51
vessels, comprising 38 Handysize vessels and 13 Supra/Ultramax vessels, with a
total market value of US$997 million(2). As at 31 March 2023, the average age
of the combined fleet was 10 years (31 March 2022: 11.4 years)

·         The Company declared dividends of 10.97 US cents per
Ordinary Share in the year ended 31 March 2023 (31 March 2022: 3.50 US cents).
In addition, the Company declared an interim dividend on 27 April 2023 of 2 US
cents per Ordinary Share in respect of the quarter ended 31 March 2023, which
was paid on 31 May 2023.  Dividend cover was 2.6x for the year ended 31 March
2023 (excluding the special dividend)

·         The Company's outstanding debt balance was US$222 million
as at 31 March 2023 (31 March 2022: US$140 million) resulting in a debt to
gross assets ratio of 27.8% (31 March 2022: 19.1%).  The Company committed to
reaching a target of 25% debt to gross assets ratio within a period of 18
months of entering into the loan facility for the acquisition of Grindrod

 

Commenting on performance in the full year period, Frank Dunne, Senior
Independent Director and Interim Chair said:

"Over the year the group delivered a total NAV return of 4.7% continuing to
deliver regular and stable dividends for our shareholders.  It has been an
active year with a significant strategic investment in Grindrod and selective
divestment of other assets.  The priority post the Grindrod acquisition
remains to reduce debt and to realise synergies available from this
investment.  Now under the stewardship of our recently-appointed Chair, Henry
Strutt, we, as a Board, keep the use of free cash under constant review and
will continue to do so, factoring in the Company's share buyback policy."

Edward Buttery, CEO, added:

"This was a period during which we were able to build on a particularly robust
inaugural period post IPO.  TMI's fleet consistently achieved index beating
rates.  At the same time, there was significant investment activity, we
divested 8 ships at an average IRR of 83% and executed our plan to secure a
controlling stake in Grindrod, in the process, creating a larger, younger and
more efficient overall fleet.  This remains a compelling acquisition
harnessing what remains a favourable mid-term market backdrop and despite
current macroeconomic headwinds.  We are focused on deleveraging and
strengthening our balance sheet which should position TMI to capitalise on the
structural upside we anticipate going into 2024 and beyond to deliver
attractive shareholder returns."

 

Click or paste the following link into your web browser to view the annual
report:

http://www.rns-pdf.londonstockexchange.com/rns/3277H_1-2023-7-26.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3277H_1-2023-7-26.pdf)

 

Copies of the Annual Report are also available on the Company's website
(https://taylormaritimeinvestments.com/investor-centre/results-and-presentations/
(https://taylormaritimeinvestments.com/investor-centre/results-and-presentations/)
) and on the National Storage Mechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) ).

 

 

ENDS

 

 For further information, please contact:

Taylor Maritime Investments Limited      IR@tminvestments.com (mailto:IR@tminvestments.com)

 Edward Buttery

 Camilla Pierrepont

 Jefferies International Limited          +44 (0) 207 029 8000

 Stuart Klein

 Gaudi Le Roux

 Montfort Communications                  TMI@montfort.london (mailto:TMI@montfort.london)

 Alison Allfrey

 George Morris Seers

 Sanne Fund Services (Guernsey) Limited   +44 (0) 203 530 3107

 Matt Falla

Notes to Editors

 

About the Company

Taylor Maritime Investments Limited is an internally managed investment
company listed on the Premium Segment of the Official List, its shares trading
on the Main Market of the London Stock Exchange since May 2021.  The
Company specializes in the acquisition and chartering of vessels in the
Handysize and Supra/Ultramax bulk carrier segments of the global shipping
sector.  The Company invests in a diversified portfolio of vessels which are
primarily second-hand.  TMI's fleet portfolio numbers 22 vessels in the
geared dry bulk segment.  The ships are employed utilising a variety of
employment/charter strategies.

 

On 20 December, the Company announced it acquired a controlling majority
interest in Grindrod Shipping Holdings Ltd ("Grindrod") (NASDAQ:GRIN,
JSE:GSH), a Singapore incorporated, dual listed company on NASDAQ and
the Johannesburg Stock Exchange.  Grindrod owns 21 geared dry bulk vessels
complementary to the Company's fleet.  They are mostly Japanese built,
including 13 Handysize vessels and 8 Supra/Ultramax vessels.  Grindrod has
seven vessels in its chartered in fleet with purchase options on four.

 

The combined TMI and Grindrod fleet numbers 50 vessels (including chartered in
vessels).

 

The Company's target dividend policy is 8 cents p.a. paid on a quarterly
basis, with a targeted total NAV return of 10-12% per annum over the medium to
long-term.

 

The Company has the benefit of an experienced Executive Team led by Edward
Buttery and who previously worked closely together at the Commercial Manager,
Taylor Maritime.  Established in 2014, Taylor Maritime is a privately owned
ship-owning and management business with a seasoned team that includes the
founders of dry bulk shipping company Pacific Basin Shipping (listed in Hong
Kong 2343.HK) and gas shipping company BW Epic Kosan (formerly Epic
Shipping) (listed in Oslo BWEK:NO).  Taylor Maritime's team of industry
professionals are based in Hong Kong,  Singapore and London.

 

For more information, please visit www.taylormaritimeinvestments.com
(http://www.taylormaritimeinvestments.com/) .

 

About Geared Vessels

Geared vessels are characterised by their own loading equipment. The Handysize
and Supra/Ultramax market segments are particularly attractive, given the
flexibility, versatility and port accessibility of these vessels which carry
necessity goods - principally food and products related to infrastructure
building - ensuring broad diversification of fleet activity and stability of
earnings through the cycle.

 

IMPORTANT NOTICE

The information in this announcement may include forward-looking statements,
which are based on the current expectations and projections about future
events and in certain cases can be identified by the use of terms such as
"may", "will", "should", "expect", "anticipate", "project", "estimate",
"intend", "continue", "target", "believe" (or the negatives thereon) or other
variations thereon or comparable terminology. These forward-looking statements
are subject to risks, uncertainties and assumptions about the Company,
including, among other things, the development of its business, trends in its
operating industry, and future capital expenditures and acquisitions. In light
of these risks, uncertainties and assumptions, the events in the
forward-looking statements may not occur.

 

References to target dividend yields and returns are targets only and not
profit forecasts and there can be no assurance that these will be achieved.

 

LEI: 213800FELXGYTYJBBG50

 

 1  (#_ftnref1) Excluding three vessels without purchase options

 2  (#_ftnref2) Inclusive of total market value of Grindrod fleet, not just
the Company's 83.23% stake

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