Fairline plan eight new models!

[Deleted User YDKXO]

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.

That doesn't alter the fact that Better must think there's a future in Fairline to have pumped further money in. If it was the case that RBS wanted out and Better had felt that the company couldn't be turned around they would have pulled the plug there and then

 

[Hugin]

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.

Sounds plausible...... but we will have to wait till January to find out.

IMHO Fairline needs to come up with something substantial. The existing portfolio is not balanced...... and frankly fails to excite.

The Targa series come in 38ft, 48ft, 50ft and 62ft. If you want to cover all sizes this is not the way to do it. The 38ft comes with stern drives, all 48ft models come with IPS600 but only capable of 30-32 knots (!!) on a good day. The rest are all on shafts. It doesn't look like there has been any consistent portfolio strategy for quite a while. The entry level Targa 34 was simply discontinued with no replacement.... which - if I may say so - is in stark contrast to what Hanse is doing with the Sealine brand; the new entry level Sealine S330 looks really nice (haven't been on it yet though) and is now advertised in both Italy and France for €155.000 (+VAT) with twin D3-170s. I think that's a surprisingly good price for an almost 7 tons twin diesel mobo. It could persuade more than a few to give the Sealine brand a try.

 

[ari]

The 38ft comes with stern drives, all 48ft models come with IPS600 but only capable of 30-32 knots (!!) on a good day. The rest are all on shafts. It doesn't look like there has been any consistent portfolio strategy for quite a while.

I'm sorry, I'm obviously being dense again. You're going to have to explain to me how that's different from Princess (V39 - sterndrives. V48 - IPS600 low 30 knots. All other sports cruisers -shafts). Or Sunseeker for that matter (Portofino 40 - sterndrives. San Remo - IPS600 low 30 knots. All other sports cruisers - shafts)?

 

[Hugin]

I'm sorry, I'm obviously being dense again. You're going to have to explain to me how that's different from Princess

I didn't imply there is a difference. In fact I didn't mention Princess at all; but since it has been brought up..... take a look at Princess' portfolio: Their flybridge and sport cruiser ranges are both fairly complete unlike Fairline's. The flybridge models from 48 to almost 100ft and the sports cruisers from 48 to around 80ft...... and both model ranges have a significantly smaller entry level model; V39 and 43. So Princess has kept their 2 main product ranges intact.... without big gaps..... while also completing their line up in the 30-40 meter class. To me that appears to be a consistent strategy at least...... even if I would say it's a little conservative (and boring).

Fairline's management on the other hand have NOT moved into bigger yachts (ilke Princess and Sunseeker), they have NOT developed a complete range of pod boats (like Prestige), they have NOT followed the Expedition-yacht-light Magellano trend (picked up by more and more builders) and Fairline have also NOT tested the waters for light, fast trawler types like Cranchi (all w. IPS) and Beneteau (going all in for shafts) have done recently. In fact, Fairline haven't done much other than decommissioned their Targa range from the bottom (31 and 34 gone already, 38 looks dated, when will it go?) while simultaneously.... and accidentally I assume.... allowed gaps to develop in both model ranges between 50ft and 60ft....... just compare to how many models Princess have in the mid 50s ft.

When I mention all this it is just to illustrate other builders seem to make deliberate choice about where they are heading, which propulsion technology they believe in and which markets they pursue....... and I believe Fairline has been on auto-pilot for a while; not paying attention to neither their own direction nor the course changes of other builders.

 

[jrudge]

Hugin,

You seem to have it in for Fairline. Anything we should know?

What boat do you currently own?

Do I think Fairline at the parody of good. Well in one way yes ( I have bought 2 off them, one new and very happy with both) and they continue to deliver boats in good volume. But in another no - they were clearly hit by the recession and their financials are weaker than some.

From your post is seems they should simple follow others? So Fairline should decide to build 100 ft trawler yachts with pod drives?

I don't know your line of work, but I can from my own experience say it is difficult and takes time to change any company. This is amplified several fold when it is a capital intensive manufacturing business.

Any change is a risk, and what are Fairline known for? Trawler yachts? 120 ft yachts? No, they build 40-80 odd feet sports and flybridge boats. They rationalised the Phantom range some while ago and now have sports and fly across a range of sizes. They have just launched a new 48, and for example the S65 had a massive refresh some 18 months ago. The quality from my recent and totally first hand experience is excellent. So is the after sales from the factory and their dealers.

Do they need to do something to make more money. Yes they do. Do they simply say - oh look - Sunseeker are doing xxx, and do it as well? That is not really a very sensible way to run most businesses. Some element of copying etc is always inevitable, but it depends on your ability to execute.

From what I have seen the Better Capital way is to seek to make structural changes to the business to make it more efficient. On this they have changed the way they manufacture furniture, moved into mixed model lines and so on. Can they do more yes, but to slag off their strategy (continually looking at your recent posts) when (a) you don't know what it is and (b) in a forum where in effect they have nil right of reply is not really achieving anything.

Better Capital are not dummies, and it is their cash on the line. Like anything we as outsiders can look on and say do something different, but at least make it constructive.

 

[Hugin]

Hugin, You seem to have it in for Fairline

No, not at all. Fairline builds excellent boats and I hope they will make it back to profitability. This thread owes its existence to an announcement from Fairline: Stuart McCullough, commercial director at Fairline Boats, said: "We're excited to be announcing these plans to introduce eight new models over the next three years

And this: The Oundle-based boatbuilder has yet to give any further details on the size or layout of these new models, but promises that the 2015 London Boat Show (9-18 January) will feature "a real statement" about the future of the company's product range.

Clearly Fairline wants our attention on the issue. That's the only reason I/we debate Fairline's product range

From your post it seems they should simple follow others? So Fairline should decide to build 100 ft trawler yachts with pod drives?

I can get my ahead around why you think I suggest something like that...... all I suggested - if I suggested anything at all - was that Fairline comes off the autopilot. Hopefully January's announcement will shows us just that.

I don't know your line of work, but I can from my own experience say it is difficult and takes time to change any company.

I currently run a small internet business and it has been reasonably good in 2012+2013, but in February this year my turn-over collapsed as a trusted business partner cheated me...... that certainly brought me off the auto-pilot and made me question everything...... including if it was time for a career change. New ways and procedures were tried over the summer and I'm now at 90% of what I had before the collapse. I'm not saying this is easy - especially not in the capital intensive boat building industry - but inactivity in the face of changes is the surest path to failure.

Any change is a risk, and what are Fairline known for? Trawler yachts? 120 ft yachts? No, they build 40-80 odd feet sports and flybridge boats.

Yes, any change is a risk..... and sometimes no change is an even bigger risk. And I'm not the one to know how acute that is for Fairline, but it's clear things can stay the same for very long.
You don't become known for producing something until you actually start producing it...... Fairline was not always know for 40-80 ft flybridge and sport cruisers. You just need to read a few threads on this forum and you will see posters referring to their Fairline 25s of yesteryear. Here's a reminder of what Fairline was once (also) known for

http://www.jonesboatyard.co.uk/boat-sales/fairline-fury--boats-for-sale.html

Was Azimut known for Magellano-style boats just 8-10 years ago? No, Azimut had an idea and accepted the risk of testing it. I don't know how profitable the Magellano boats have been for Azimut but they are certainly known for them now. Other builders are eying the same market with similarly styled boats, so one could assume there is decent money in it. Was Seaway known for Green boating and hybrid propulsion just 5 years ago? No, same story as with the Magellano boats..... you get known for what you do - and if you start doing something else; and do it well; you get known for that instead.

Can they do more yes, but to slag off their strategy (continually looking at your recent posts) when (a) you don't know what it is and (b) in a forum where in effect they have nil right of reply is not really achieving anything.

I don't see there's anything wrong with having a frank discussion; stating one's beliefs, opinions and observations.... even as an outsider and even if it doesn't achieve anything but the satisfaction from exchanging views with others. If that is insufficient justification then we are facing the death of internet debating.

Better Capital are not dummies, and it is their cash on the line. Like anything we as outsiders can look on and say do something different, but at least make it constructive.

I agree they are not dummies, but even the best of turnaround specialists don't get it right every time....... and IMVHO Better Capital are now already looking at plan B and possibly even C for Fairline.