Fairline plan eight new models!

[ari]

Good for them - just what they need!

Great to see them on the front foot again.

http://www.fairline.com/en/news/plans-to-unveil-eight-new-models-in-3-years-2014

It'll be very interesting to see what they come up with.

 

[EugeneR]

I hope they remain true to their values and give customers - particularly existing owners upgrading - what they want, without risking their future with marmite designs.

 

[Hugin]

Good for them - just what they need!

Great to see them on the front foot again.

No intention of raining on the parade, but 2-3 new models per year seems to be just the normal rate of portfolio renewal. Fairline currently have 8 models (12 when counting major variants), so 2-3 new models per year is not abnormally high.

Bavaria just released 3 brand new motor boat models (8 major variants, 36, 40 and 45 ft)) in less than 2 months and the french very recently introduced 2 new Jeanneau models (36 and 40 ft) and a new Prestige 420 available with or without flybridge

But I hope Fairline will manage to produce something new and innovative..... the industry needs some fresh inputs. And boaters need more incentives to buy new boats - 2 ft. extra length, full beam master and galley up doesn't cut it anymore IMHO

 

[diligaf]

No intention of raining on the parade, but 2-3 new models per year seems to be just the normal rate of portfolio renewal. Fairline currently have 8 models (12 when counting major variants), so 2-3 new models per year is not abnormally high.

Bavaria just released 3 brand new motor boat models (8 major variants, 36, 40 and 45 ft)) in less than 2 months and the french very recently introduced 2 new Jeanneau models (36 and 40 ft) and a new Prestige 420 available with or without flybridge

But I hope Fairline will manage to produce something new and innovative..... the industry needs some fresh inputs. And boaters need more incentives to buy new boats - 2 ft. extra length, full beam master and galley up doesn't cut it anymore IMHO

I agree.

Let's see (not holding my breath). Changing such aged models (T38,Sq42,Sq55/58/60, T58/62 and Sq78) is WELL overdue!

 

[Portofino]

It's 1/2 the solution -new modals ,but and it's a big but ----- I would have been more reassured as an invester if they would have announced -something along the lines ----
"Fairline are moving production of large yachts to new coastal premises , to meet the growing demands from customers for ever increasing size.This new facility at XYZ has the capacity to launch 200 ft boats.,"

As well as new modals inc Sq 105 and Sq 125 along with an artist impression of say Sq 145 to wet the appetite ?

C-pose if new mod launch kinda goes ok ish ? Then test temp of mkt with a view to coastal relocation ??as global economy reckons to improve - With out delay I think they should chase the bigger mkt and enter the 100ft + ASAP
On falling T/O that's a bit late .
(to be clear iam not saying loose the T 38 mkt as well )
It's a twist or stick moment ,hope they do not bust .

 

[MapisM]

I would have been more reassured as an invester if...

I see your point of course, but as an investor, would you be willing to afford whatever it takes for such big move?
And since it's not like there aren't other builders around with an outstanding reputation in 100'+ boats, would you be happy with the uncertainty that goes with that?

I guess it might sound harsh, but frankly speaking the only announcement I would hope for as an investor is that some chinese or russian with more money than sense is willing to buy the company. Mind, not that this would only be true for FL, in this industry!

Other than that, I can't really see for them any realistic strategy, other than more/better of the same...

 

[Deleted User YDKXO]

It's 1/2 the solution -new modals ,but and it's a big but ----- I would have been more reassured as an invester if they would have announced -something along the lines ----
"Fairline are moving production of large yachts to new coastal premises , to meet the growing demands from customers for ever increasing size.This new facility at XYZ has the capacity to launch 200 ft boats.,"

Agreed but if I was the owner thinking about making such an investment, I'd be wanting to see at least 2-3yrs of growing sales turnover of the existing range in a more stable global economic environment before having the confidence that the Fairline brand could stretch that far. In the present situation, it may just be good money after bad. I do hope that the 8 new models are simply not glitzy rehashes of the existing Sq/Targa formulae and something genuinely radical emerges. IMHO there's potential market space for a British take on the Azimut Magellano and/or Botnia Targa style rufty tufty type mobos. Whatever I think Fairline need to something a bit different from competing head on with Princess and Sunseeker who at present have more powerful brands and deeper pockets

 

[rubberduck]

I saw a med builder with a hardtop that folds into the front sun pad, with lowering side windows, I would be interested in such a boat as I get more decrepit !

 

[diligaf]

That was a Riva, great idea but bloody expensive!

 

[rubberduck]

I had been trying to remember, why not do it in canvas, like a car backwards, come on Fairline !!

 

[petem]

I do hope that the 8 new models are simply not glitzy rehashes of the existing Sq/Targa formulae and something genuinely radical emerges. IMHO there's potential market space for a British take on the Azimut Magellano and/or Botnia Targa style rufty tufty type mobos. Whatever I think Fairline need to something a bit different from competing head on with Princess and Sunseeker who at present have more powerful brands and deeper pockets

I agree. It would be difficult to out-Sunseeker Sunseeker (likewise Princess) but not impossible. Does that make sense? Interesting times ahead.

 

[diligaf]

I wonder if Better Capital are preparing for sale? The last few months has surely tested their patience and now they own it all they can announce some good news, divert attention and sell it off. Getting rid of their headache?

Me, cynical?!

 

[Deleted User YDKXO]

I wonder if Better Capital are preparing for sale? The last few months has surely tested their patience and now they own it all they can announce some good news, divert attention and sell it off. Getting rid of their headache?

Me, cynical?!

Thats a given. Better Capital are turnaround specialists and they'll bail out as soon as they find a buyer willing to give them a profit on their investment. Thats not a criticism btw, thats their business

 

[Hugin]

Thats a given. Better Capital are turnaround specialists and they'll bail out as soon as they find a buyer willing to give them a profit on their investment. That's not a criticism btw, that's their business

But Better Capital haven't really achieved turnaround yet, have they? Maybe they are preparing to sell with a loss..... that's also part of the turnaround business; a significant proportion of businesses can't be turned around within the time and money restraints the turnaround specialists calculate with. An old school-mate of mine works for an investment fund specializing in accelerating upstart companies to greatness...... a 20% success rate is enough to make a healthy profit overall. Success for 2 out of 10 is enough to compensate for the 8 that turn out to be partial or complete failures.

 

[Deleted User YDKXO]

But Better Capital haven't really achieved turnaround yet, have they? Maybe they are preparing to sell with a loss..... that's also part of the turnaround business; a significant proportion of businesses can't be turned around within the time and money restraints the turnaround specialists calculate with. An old school-mate of mine works for an investment fund specializing in accelerating upstart companies to greatness...... a 20% success rate is enough to make a healthy profit overall. Success for 2 out of 10 is enough to compensate for the 8 that turn out to be partial or complete failures.

Yes I appreciate that but having recently put more money into the company and come up with what looks like a future strategy for the company, it looks like Better believe that Fairline can yield them a profit and they're not likely to bail out at a loss any time soon. But of course I guess it depends on whether the company does actually begin to turn it's financials around in the next couple of years

 

[nicho]

I see your point of course, but as an investor, would you be willing to afford whatever it takes for such big move?
And since it's not like there aren't other builders around with an outstanding reputation in 100'+ boats, would you be happy with the uncertainty that goes with that?

I guess it might sound harsh, but frankly speaking the only announcement I would hope for as an investor is that some chinese or russian with more money than sense is willing to buy the company. Mind, not that this would only be true for FL, in this industry!

Other than that, I can't really see for them any realistic strategy, other than more/better of the same...

Are they on a strong enough financial footing for all this? They only recently laid off a large % of their workforce?

 

[jrudge]

Don't think they did. The last layoffs I recall were when they invested a chunk of change in their furniture CNC production and made some people redundant - which was the purpose of the investment.

 

[Nick_H]

Yes I appreciate that but having recently put more money into the company and come up with what looks like a future strategy for the company, it looks like Better believe that Fairline can yield them a profit and they're not likely to bail out at a loss any time soon. But of course I guess it depends on whether the company does actually begin to turn it's financials around in the next couple of years

The heavy reported loss last year supports this - they probably under-accrued and over-reserved to allow them better margins over the next 2-3 years in the run up to a sale. They may have been spurred on by the unbelievably hefty price paid by Dalian Wanda for Sunseeker.

 

[Deleted User YDKXO]

The heavy reported loss last year supports this - they probably under-accrued and over-reserved to allow them better margins over the next 2-3 years in the run up to a sale. They may have been spurred on by the unbelievably hefty price paid by Dalian Wanda for Sunseeker.

Yup like a lot of companies in trouble, they sacked the MD and kitchen sinked the accounts

 

[diligaf]

Yes I appreciate that but having recently put more money into the company

Rumour has it this was because RBS wanted out. If they went to the market to sell then it would've been valued and then both RBS and Better would have lost a fortune! I think the final slice was bought as they couldn't afford NOT to buy it.

This latest announcement is nothing other than trying to justify their extra investment in the hopes of building an order book based on future models and selling that rather than trying to sell the current package.

Why wait until AFTER SIBS to announce this? Doesn't make sense!

All IMHO of course!