Fairline Gone Pop

oldgit said:
100% Agree
Which is exactly why none of the UK boats of the era made the grade when buying the next boat.

On recent voyages on non tidal rivers and to coastal ports during 2024 cannot recall seeing many new Searays, but very notable the number of new small vessels from european builders with proper cabins and outboards. Had look round a couple and very impressed with practicality and the interior space.

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A Searay 390 came up for sale at the brokers where we bought the Ocean 37, it was just as we were about to make an offer on Hunter, she is a beautiful looking well kept boat with twin 375hp Cats on shafts but totally unsuitable for what we wanted, then we found out she had osmosis and had been stripped back and new gel coat put on, we went with the Ocean 37. The Searay is still for sale.

Sea Ray 390 Express Cruiser - 1989 | Jachtmakelaardij Kappers
 
PaulRainbow said:
If Arrowbolt just bought 75% of Fairline, who owns the other 25% ?

How does selling the company work ? If sold, the creditors get paid (if enough from the sale price) any any left over goes to Arrowbolt and the 25% owner ?

Or what ?
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It's usually the lenders with secured assets (so banks who leant against equipment), then workers, then suppliers and then customers.
 
Been following this topic for some time now and meanwhile I have been analyzing company financials. When a company has a nett loss to sales ratio of >50% there is no proper control over the company. Usually capital goods companies benefit from high(er) sales order intake and are adversly impacted when sales order intake drops. During the covid period there has been an extraordinairy situation that orders books were going through the roof and it was just a matter to time to see this comming down. Now if the management meanwhile has not changed the capacity of the company (both in labor workers and working capital for materials and inventory) it ends up where Fairline's business is currently.

With the significant increased sales prices of yachts, driven by the high costs of materials and components the operational costs would have been offsett more than sufficiently as meanwhile almost all raw materials suchs as polymer, aluminium, copper etc. did came down to pre-covid times. Usually the ratio of material costs vs labor and value add is 50-50% in this type of business.

I might not rule out that "investors" have loaded the company with debt and with the steep increase in finance costs the company is underwater a long while. However having a loss to sales ratio of around 50% does not make sense.

Concerning situation for customers with down payments for their new yacht. New private equity partners will not quickly be in the market for a take over deal without cleansing a significant part of the companies debt. This will most likely affect suppliers who might loose the interest to continue with future business.

Oyster was taken over by a very wealthy business man, who could afford it to run it as a passion and not loose a heritage for the country. Similarly this goes for Aston Martin that I recall never made a single GBP profit. However there is always someone with the passion and symphaty for the brand. Hope for the future customers for Fairline that this is also the case here.
 
Amouage said:
Been following this topic for some time now and meanwhile I have been analyzing company financials. When a company has a nett loss to sales ratio of >50% there is no proper control over the company. Usually capital goods companies benefit from high(er) sales order intake and are adversly impacted when sales order intake drops. During the covid period there has been an extraordinairy situation that orders books were going through the roof and it was just a matter to time to see this comming down. Now if the management meanwhile has not changed the capacity of the company (both in labor workers and working capital for materials and inventory) it ends up where Fairline's business is currently.

With the significant increased sales prices of yachts, driven by the high costs of materials and components the operational costs would have been offsett more than sufficiently as meanwhile almost all raw materials suchs as polymer, aluminium, copper etc. did came down to pre-covid times. Usually the ratio of material costs vs labor and value add is 50-50% in this type of business.

I might not rule out that "investors" have loaded the company with debt and with the steep increase in finance costs the company is underwater a long while. However having a loss to sales ratio of around 50% does not make sense.

Concerning situation for customers with down payments for their new yacht. New private equity partners will not quickly be in the market for a take over deal without cleansing a significant part of the companies debt. This will most likely affect suppliers who might loose the interest to continue with future business.

Oyster was taken over by a very wealthy business man, who could afford it to run it as a passion and not loose a heritage for the country. Similarly this goes for Aston Martin that I recall never made a single GBP profit. However there is always someone with the passion and symphaty for the brand. Hope for the future customers for Fairline that this is also the case here.
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You are making quite a big mistake in conflating operating losses or profits with the costs of servicing acquisition debt. They are not in the same bucket and should not be conflated.
 
In Stoke you are in administration if you can pay back your lone shark, . If you cannot pay it back THEN you will be insolvent.
 
jfm said:
You are making quite a big mistake in conflating operating losses or profits with the costs of servicing acquisition debt. They are not in the same bucket and should not be conflated.
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Certainly I don’t….net income is net income. The value to acquire the company is booked as goodwill on the balance sheet and is not affecting the profit & loss account. The interest cost paid over the associated debt to fund the acquisition is what amounts to the substantial losses. Despite this is common practice in M&A, when it’s bringing the company in administration it simply irresponsible and poor management.
 
jfm said:
Can you not read or understand? Click on the link you provided and it doesn't say what you said in #163.
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fixed charge creditors from fixed charge assets (example given mortgage on a property)
expenses of the liquidation
liquidators fee
preferential creditors (example given employee wage arrears)
prescribed part
floating charge creditors
unsecured creditors (example given suppliers for goods, services and utilities)
interest to unsecured and preferential creditors
shareholders

Seems pretty similar to the order I gave.
 
st599 said:
fixed charge creditors from fixed charge assets (example given mortgage on a property)
expenses of the liquidation
liquidators fee
preferential creditors (example given employee wage arrears)
prescribed part
floating charge creditors
unsecured creditors (example given suppliers for goods, services and utilities)
interest to unsecured and preferential creditors
shareholders

Seems pretty similar to the order I gave.
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The amazing thing is you cut and paste it correctly, then describe it in post 163 incorrectly, and you can't even see that.

Sure there are a few odds and ends that you got right, but not much. Your list was 4 items: lenders with secured assets (so banks who leant against equipment), then workers, then suppliers and then customers
  • First item is wrong. These lenders do not get repaid first simply because they are secured. They get paid to the extent of their security only. Good luck Mr Banker auctioning machinery covered in splashes of polyester resin hoping to get your loan money back.
  • Second item is correct only to the tune of £800 each plus holiday and pension arrears. Perhaps a quarter of what they are owed.
  • Third and fourth items are wrong: customers and suppliers rank equally.
By the way there are pages of the Gazette that have a special legal standing and your description of those pages as "official government" is fair. The page you linked to is not one of those pages.
 
st599 said:
fixed charge creditors from fixed charge assets (example given mortgage on a property)
expenses of the liquidation
liquidators fee
preferential creditors (example given employee wage arrears)
prescribed part
floating charge creditors
unsecured creditors (example given suppliers for goods, services and utilities)
interest to unsecured and preferential creditors
shareholders

Seems pretty similar to the order I gave.
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Time to put the spade down?
 
Wow I would love to be on a beer n natter, with all these astute gents.
I would contribute , I could fetch the beer.
 
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