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Fairline has been sold to new investors. See the full story here
Fairline Sold
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SC35
Well-known member
Looks to be a reasonably positive outcome for the short term.
Portofino
Well-known member
What ever morsel of consumer confidence was left from 2022 s take over has now well and truly vanished.
The elephant in the room is / was dwindling sales , loss of business to competitors. That will accelerate .
Sure there’s is or was a die hard FL type of buyer but there’s not enough of them in play to keep it going .
They just can’t sell enough, the break even bar is higher than ever.
There competition has managed to shift the necessary volume of boat to stay afloat .
If they go down the route of cost cutting to get back into profit on dwindling volumes - the effect on quality components, the touch feel of the thing will plummet ….we might even find Fairline s in Lidl Xmas crackers
- joke btw !
Just saying there’s only so much cost cutting to be done without spoiling the product.
The elephant in the room is / was dwindling sales , loss of business to competitors. That will accelerate .
Sure there’s is or was a die hard FL type of buyer but there’s not enough of them in play to keep it going .
They just can’t sell enough, the break even bar is higher than ever.
There competition has managed to shift the necessary volume of boat to stay afloat .
If they go down the route of cost cutting to get back into profit on dwindling volumes - the effect on quality components, the touch feel of the thing will plummet ….we might even find Fairline s in Lidl Xmas crackers
- joke btw ! Just saying there’s only so much cost cutting to be done without spoiling the product.
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SC35
Well-known member
That's not the only way forwards.
You can identify the more profitable products and chop the weaker ones, you could streamline / parallelise production processes and automate a bit more, outsource some non-core stuff, negotiate better terms with suppliers or find different suppliers, change I.T. suppliers ... improve online presence, partner up with some other premium brand ... there are literally loads of options that don't involve any reduction in the quality of the finished product or spending huge amounts of money.
You can identify the more profitable products and chop the weaker ones, you could streamline / parallelise production processes and automate a bit more, outsource some non-core stuff, negotiate better terms with suppliers or find different suppliers, change I.T. suppliers ... improve online presence, partner up with some other premium brand ... there are literally loads of options that don't involve any reduction in the quality of the finished product or spending huge amounts of money.
ari
Well-known member
Got to love this forum and its band of certain experts.What ever morsel of consumer confidence was left from 2022 s take over has now well and truly vanished.
The elephant in the room is / was dwindling sales , loss of business to competitors. That will accelerate .
Sure there’s is or was a die hard FL type of buyer but there’s not enough of them in play to keep it going .
They just can’t sell enough, the break even bar is higher than ever.
There competition has managed to shift the necessary volume of boat to stay afloat .
If they go down the route of cost cutting to get back into profit on dwindling volumes - the effect on quality components, the touch feel of the thing will plummet ….we might even find Fairline s in Lidl Xmas crackers
Just saying there’s only so much cost cutting to be done without spoiling the product.
ari
Well-known member
This sounds like great news for Fairline and a very positive outcome.
I'm pleased to read that the guy in charge is a boater with real world marine industry experience in this sector.
I'm not sure that the news could be better really, go Fairline!
I'm pleased to read that the guy in charge is a boater with real world marine industry experience in this sector.
I'm not sure that the news could be better really, go Fairline!
PaulRainbow
Well-known member
Any actual facts to support this ?What ever morsel of consumer confidence was left from 2022 s take over has now well and truly vanished.
The elephant in the room is / was dwindling sales , loss of business to competitors. That will accelerate .
Sure there’s is or was a die hard FL type of buyer but there’s not enough of them in play to keep it going .
They just can’t sell enough, the break even bar is higher than ever.
There competition has managed to shift the necessary volume of boat to stay afloat .
If they go down the route of cost cutting to get back into profit on dwindling volumes - the effect on quality components, the touch feel of the thing will plummet ….we might even find Fairline s in Lidl Xmas crackers
Just saying there’s only so much cost cutting to be done without spoiling the product.
Thought not.
Sticky Fingers
Well-known member
SC35
Well-known member
Got to love this forum and its band of certain experts.
I'm an expert in nothing, but I have seen similar things in related businesses that can be made to work.
PowerYachtBlog
Well-known member
Fairline is a bit were Riva was in the nineties, when it was owned by Vickers first in 1991 to 98, and then Stellican in 1999 before being bought by the Ferretti Group in 2000.
The similarities between the two brands, stops there though.
As there is no iconic brand as Riva in the boating World, thanks in most part to its wooden roundabouts of the sixties and seventies.
Today and since a decade Riva is the best selling name of the Ferretti Group portfolio, in both units and sales volume.
Although Fairline has its potential, as it is in the end an important World known boating brand.
Portofino argument if you read between the lines is not incorrect.
In the sense that product development has been so much off and on in the last fifteen years, that in this hustle and bustle Fairline has lost fans and followers.
There is a lot for Fairline to do to compete with Princess, Sunseeker, Azimut, Ferretti, Galeon, Prestige, Cranchi etc
We can see here the example of Henry here, who has always said he would have liked to put the new Squadron 58 in his bucket list of choices for a new seventeen meter flybridge boat, but with the product taking four years to arrive he went to his usual preferred choice for a Princess, with Sunseeker's Manhattan 55 thrown in the mix of possible alternative.
Imagine how many were in his position. I would say most British buyers of a Princess F55 or SS Manhattan 55 were....
The similarities between the two brands, stops there though.
As there is no iconic brand as Riva in the boating World, thanks in most part to its wooden roundabouts of the sixties and seventies.
Today and since a decade Riva is the best selling name of the Ferretti Group portfolio, in both units and sales volume.
Although Fairline has its potential, as it is in the end an important World known boating brand.
Portofino argument if you read between the lines is not incorrect.
In the sense that product development has been so much off and on in the last fifteen years, that in this hustle and bustle Fairline has lost fans and followers.
There is a lot for Fairline to do to compete with Princess, Sunseeker, Azimut, Ferretti, Galeon, Prestige, Cranchi etc
We can see here the example of Henry here, who has always said he would have liked to put the new Squadron 58 in his bucket list of choices for a new seventeen meter flybridge boat, but with the product taking four years to arrive he went to his usual preferred choice for a Princess, with Sunseeker's Manhattan 55 thrown in the mix of possible alternative.
Imagine how many were in his position. I would say most British buyers of a Princess F55 or SS Manhattan 55 were....
WoodyP
Well-known member
I know nothing about motor boats, but would there be any mileage in going back to producing inland boats and cheaper coastal boats? That's how they started and were successful until they started to try and emulate the luxury market.. Small fires can warm you but big fires can burn you.
Sticky Fingers
Well-known member
Haines and previously Broom do / did that. Prob not the brand strength now.
PowerYachtBlog
Well-known member
Fairline started with inland water boats, but by the end seventies (about ten years in its story) all the boats were all made for offshore, with the exception of the old 32 Phantom.
I would like to see them do a bit more British inspired boats, something inspired to the 36 Turbo, which they gave it a go with the Phantom 43 AC and did not do so well.
Aft cabins are not much in fashion anymore, and even in the US they do not exist anymore.
jfm
Well-known member
WoodyP
Well-known member
I only asked because l worked in Oundle when they had a very busy yard down on the Barnwell road, and I knew many people who were hired and made redundant on a regular basis.
Fire99
Well-known member
This is purely my opinion so I'm riffing as much as the next person. Firstly, great that Fairline has been sold to a party with boating and troubled company turnaround experience, so not just a faceless private equity scheme. I'm guessing the part about not taking on Fairline Yachts and its liabilities means that suppliers may get a poor outcome on monies owed?
Regarding the business model and the idea of returning to inland waterways boats etc, I would say with production costs being very high in the UK, any return to small inland boats would make it extremely difficult to return a profit. The size/profit chart to my mind just doesn't equate in smaller lower cost items..
Inland (ish) boats these days seem to be in the realm of Northman, manufactured in Poland (?). 30something footers with relatively small engines and some coastal ability. There are figures of manufacturing costs in Poland being at least half what they are in the UK..
Soooo, to my mind, Fairline cannot make small, low profit margin boats, competitive. They would either have to develop smaller boats and have them manufactured abroad (not a bad idea to be honest), the iMac of Fairline boats. Or, they need to remain at the higher end and bring in products / innovation that will wow the market.
It's certainly to me a a very tough gig, British boat manufacturing (or any real manufacturing to be honest).
Regarding the business model and the idea of returning to inland waterways boats etc, I would say with production costs being very high in the UK, any return to small inland boats would make it extremely difficult to return a profit. The size/profit chart to my mind just doesn't equate in smaller lower cost items..
Inland (ish) boats these days seem to be in the realm of Northman, manufactured in Poland (?). 30something footers with relatively small engines and some coastal ability. There are figures of manufacturing costs in Poland being at least half what they are in the UK..
Soooo, to my mind, Fairline cannot make small, low profit margin boats, competitive. They would either have to develop smaller boats and have them manufactured abroad (not a bad idea to be honest), the iMac of Fairline boats. Or, they need to remain at the higher end and bring in products / innovation that will wow the market.
It's certainly to me a a very tough gig, British boat manufacturing (or any real manufacturing to be honest).
stelican
Well-known member
jfm
Well-known member
Yes but the deal completing isn't news. The deal exchanging (some weeks ago) was the news.
Portofino
Well-known member
It’s news in the sense from the C date we should start to see change from now on . Fresh ideas ?
stelican
Well-known member
Yes wasn't it Arrow Propulsion first of all.
However onwards and upwards!
