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Rodriguez Group publishes results for the 1st Half Year 2011/2012

New-Build

The half-year financial statements of Rodriguez Group and the related financial reports, as approved by the Supervisory Board on May 25 and certified by the statutory auditors, are available on Rodriguez Group’s website.

As the Group announced in its May 15 press release, revenue was down 42% over the period (€ 30.2 million in 2011/2012 compared to € 52.3 million in 2010/2011), as a result of the Group’s focus on producing new, larger units. Moreover, because of its policy of inventory reduction and limiting trade-ins, established in 2010/2011, the sale of pre-owned yachts is intended to become a secondary business.

Rodriguez Group expects a significant increase in sales over the 3rd quarter of the 2011/2012 fiscal year, mainly thanks to transactions involving new, larger units (40 to 50 meters) that are completed or under construction.

Despite limited revenue from the sale of new yachts over the period, and thus a reduced gross margin, Rodriguez Group has managed to limit the decline in operating income from recurring operations thanks to the maintenance of its fixed and variable operating costs.

Therefore, the operating loss from recurring operations has gone from € 5 million in 2010/2011 to € 12.8 million in 2011/2012.

Over the second half of the 2011/2012 fiscal year, Rodriguez Group expects to implement a drastic new program to reduce its fixed costs, with the objective of further lowering its break-even point and freeing up additional resources to finance its growth.

This cost reduction plan will be implemented in three parts:
- reduction of payroll, focusing resources on the Group’s core business and improving the efficiency of its operational organization;
- streamlining of its overseas presence by implementing partnerships instead of running offices;
- strict management of overhead costs.

This will accompany the current effective and rigorous management of working capital requirements, facilitated by advantageous credit terms negotiated with its shipyard partners.

Rodriguez Group hopes to benefit from the virtuous effects of these measures before the end of the 2011/2012 fiscal year.

For the year ended March 31, 2012, the Group reported a net loss of € 17.2 million, compared to a loss of € 10.2 million for the year ended March 31, 2011.

Management has stated that Rodriguez Group is doing everything possible to make the 2012 summer season a success, backed by the quality and innovativeness of the products developed by the Group’s shipyard partners - Sanlorenzo, Italyachts and Cerri - and the effectiveness of a business policy that is structured around and adapted to market constraints.

The increase in net debt over the period, amounting to € 3.8 million, mainly comes from the adjustment of bond debt for € 1.4 million and the adjustment of bank loans for € 0.6 million, which have translated into an increase in their balance sheet value.

In addition, the decline in cash and cash equivalents, which went from € 25.8 million as of September 30, 2011 to € 22.2 million as of March 31, 2012, is simply an immediate consequence of the seasonal nature of the business and the investments carried out by the Group for the construction of new units.

Rodriguez Group has entered the season on a sound footing and hopes that the 2nd half of 2011/2012 will confirm the suitability of the strategic direction taken by the new management, under the leadership of Eric de Saintdo.

Rodriguez Group
+33 4 97 21 81 81
[email protected]
www.rodriguezgroup.com

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