Marina rip off pt II

[Observer]

Time for a new thead on this and I'll add a little factual comment, which John Watson may confirm or not.

1. MDL's latest filed accounts (to 31.12.01) show pre-tax profit of £4.4M. Capital employed is £80Mish (depends exactly how you measure it) so ROCE (return on capital employed) is in the order of 4-5%, which is somewhat on the low side. If I was a shareholder, I'd be looking for 10% minimum.

2. Premier Marina's latest filed accounts to 31.3.02 show £2.4M pre-tax profit on capital employed of £22Mish so their ROCE is more healthy at about 11%.

What does this prove? Not much except (a) MDL's financial performance is not exactly in the stratospheric range (which is why, I believe, John Watson was brought in); and (b) Premier Marinas are doing better but still comfortably within the expected performance range.

Are marina prices a rip-off. Emphatically not. They're taking advantage now of the (for the moment) buoyant consumer market by increasing prices ahead of inflation (but not excessively so). And why shouldn't they? In a year or two, if they're forced to reduce prices because the economy has turned sharply down (which, from my business standpoint, looks increasingly likely), are we, as berth-holders, likely to offer to pay more to help them through hard times?

Let's face it, spending on leisure boating is at the zenith of discretionary spending. If we don't like the prices, or can't afford them, we can and will turn off the tap pretty quickly.

 

[lauradee]

return on capital

while we would all like to see a 10% return on capital, those days have passed, that is why we are seeing all these non performing endowment policies sticking it to us!!

in fact if you know of a company that is producing that sort of return please let me know !!

i was told by a broker on the hamble that MDL is a private co and that it is not "listed" so we cant buy shares in it.

i also know from my own experience of being a director of a ltd co that the figures can be legally set out so that not much can be garnered from the figures lodged at company house.

 

[Observer]

Re: return on capital

I'm not an investment expert so can't help you with publicly traded stocks.

Both MDL and Premier are privately owned, so far as I can see, but why is that relevant?

So far as reliability of the accounts are concerned, that's what auditors do ... "true and fair view of the company's financial position" etc. In these cases, the companies rely (directly or indirectly) on external debt and they would have to deliver on trading performance to ensure renewal of lending facilities.

 

[kingfisher]

Whether they make a profit or not, how much their ROI is, isn't that much of an issue. I believe you get what you pay for, even on the south coast of the UK. You pay for the posh facilities, the 24/7 service, the security fencing, the 16-year old kid that helps you moor your boat in its berth....

Marina's on the continent (i.e. Wemeldinge, Port Zeelande,...) in the Netherlands charge a similar rate for similar services. But over here we have a choice: you can still moor your boat on a city quai (ie Flushing, Terneuzen...), pay community rates, where the harbour master is a volunteer, use public showers,....

The type of yachtie in each port is different. There is also no market for more than a few of these premier marinas on the Dutch coast.I believe the high South coast rates are not to be blmamed on MDL or similar, but basically because you guys have no alternative.

Let's put it this way: this is the list of services offered on the website of Sovereign Marina. Except for the obvious (fire extinguishers and life-rings) how much of this do you *really* need ?

-CCTV coverage and security controlled access to pontoons
No, my boat has been on a public pontoon for 3 years, never has anything happened. Why? Is Holland crime-less than the UK? Doubt it, but I look after my naighbours boat, and the first boat on each pontoon is a live aboard.
-Free car parking
I park on a public square, free, never been broken into.
-First class toilet and shower facilities are available 24 hours
Regulars now where the key to the facilities is stored
-Each berth has a 16 or 32 amp electrical supply operated either on pre-purchased credit cards or metered supply
OK, needed. 16Amp, free if not overused
-Fresh drinking water is available from hoses located at strategic points on each pontoon
OK, needed
-Falcon System 2000 pontoons are designed to give maximum stability and safety
Ours a re bit less posh. Again, you get what you pay for
-Mooring cleats are fitted to each berth in convenient positions
Duh
-24 hour, 365 day staffing
Why? Am I checking in at 0200 am? Can't it wait untill the morning? Harbour master goes out for lunch, and goes home in the evening
-Up to 8 weeks free storage ashore for annual berth holders (subject to availability)
No storage
-All berths are close to emergency stations with fire extinguishers and life-rings and each pontoon has emergency access to ladders
Obviously
-Free storage of trailers and cradles for annual berth-holders
I don't have a trailer, so I have to pay for other people's ? No thank you
-24 hour, self-serving fuelling pontoon
Why would I need fuel at 0300 am?
-Marine diesel (Gasoil) on two pumps
No fuel in Terneuzen, use jerrycans or sail to Breskens
-Lead replacement petrol (LRP – the old 4)
-Unleaded petrol
-Liquid Petroleum Gas (LPG) for dual fuel vessels
Who sails on LPG?????
-Range of engine oils
I do not pay my marina to stock 15W40
-High freeboard design for ease of use
-Free holding tank pump out facility
OK, needed
Waste oil tank for disposal of hazardous paints and oils
OK, needed
Free waste oil and battery collection
OK, needed
Paper towels
Yes, definitely willing to pay for that!



Group of people on the pontoon: skipper is the one with the toolbox.
http://sirocco31.tripod.com