UK builder also reports £8.8m ‘acceptable’ loss for the year.
The UK’s Fairline Yachts continued down the path to recovery in 2017, the company’s 50th anniversary year, with turnover up by 144% to £24.1m.
According to its latest financial results, filed with UK business registry Companies House, Fairline recorded a net loss of £8.8m in 2017. “The Board of Directors considers this to be an acceptable result given the pace of growth, the scale of the operational changes and the state of the assets acquired from Fairline Boats,” reads a statement.
The summary of key financial figures for 2016-17 is as follows:
- Turnover: £24.1m in 2017 compared with £9.9m in 2016
- Cost of sales: £28.1m in 2017 versus £12.9m in 2016
- Gross loss: -£4.0m in 2017 vs -£3.0m in 2016
- Operating loss: £9.0m in 2017 vs £5.0m in 2016
- Loss before tax: £8.8m in 2017 vs £5.5 in 2016
In terms of turnover, the whole of it is attributable to the company’s business activity. It was generated by the following regions:
|Rest of Europe||10.679||5.813|
|Rest of world||9.407||2.212|
As of December 31, 2017, Fairline Yachts’ called-up share capital was £6m but after taking account of the profit and loss account figures of £14.3m, this left a total of £8.3m. To address this after the year-end, a total of £14.2m of new loans with existing shareholders were issued.
Additionally, in June and October 2018, a portion of the loans outstanding at the balance sheet date and those issued post year-end were capitalised to equity, resulting in share capital issed of £14m and £5m respectively. The share capital balance as at the date of these financial statements is £25m. The documents were completed on November 16, 2018.
In the strategic report filed with Companies House, Fairline Yachts states: “2017 was the second year for the company. However, the brand is in its 50th year and the speed with which the company has been able to grow, develop its dealer network, and launch award-winning new models reflects the strength of the brand and its heritage. The second year of the company was an impressive year.”
The report said that when the company started operations in January 2016, “it promised to offer a new product portfolio.” The report highlights the launch of the Squadron 53 and the new Targa 63 GTO in 2017 as examples of this and reflects on the notable orders achieved and awards won. This was followed by the Targa 43 in 2018.
The report also speaks of the new design partnerships formed with Italian designer Alberto Mancini, Dutch naval architecture business Vripack, and J&J, the Slovenian design and production engineering studio. The new F-Line 33 and the Squadron 64 have already emerged from these partnerships.
The report adds: “At the time of writing (November 2018), nearly 20 orders have been received for these two new products. The F-33 is being built at the Oundle plant, while the Squadron 64 is being built at the new Southampton facility, now called the Fairline Marine Park, which was acquired in late 2017.
Of this facility, the report states that it “not only critically secures the option for the company to build boats over 18m (60ft), it also gives the opportunity for overall production capacity to triple, thus creating a strong foundation for the future growth. Production at the Fairline Marine Park started in August 2018.”
In terms of workforce growth, the overall headcount nearly doubled during 2017 from 223 in 2016 to 406 by the end of 2017. The report also refers to the appointment of David Tydeman as the new executive chairman.
The report continues: “Having restored a market position and secured a future growth platform, the company is now focused on optimising its business processes and achieving profitable operations.” Early 2019 will see the launch of the F-33 and the Squadron 64 models as well as continued investment in the Fairline Marine Park as part of Phase 2 of the company’s development.
Fairline is also implementing a new ERP system which is planned to go live at the start of 2019. “This essential investment,” the report adds, “reflects the very poor state of IT systems acquired from Fairline Boats and during 2019 the company will properly move onto an efficient integrated platform.”