golfygolfy
New member
PVB thanks for the welcome. I had not invested too much, have already assumed in my head investment is gone. I would however help anyone else who might be affected much more / group if they make contact with me directly.
What's going on at Discovery yachts?
- Thread starter Seven Spades
- Start date
Bathdave
Well-known member
As I understand it there was a rights issue more recently than the Crowdfunding, and I would think that those who invested in that must have a better prospect of success in action for misrepresentation as the litigation was in train when the rights issue was made
Did you make a follow up investment in the rights issue?
golfygolfy
New member
Bathdave apologies did not see you post so slow response. I was not aware of a rights issue so no.
pvb
Well-known member
The administrator of the company has now filed his Statement of Proposals at Companies House. It makes fascinating reading, and details how much the company was sold for. There's also a full list of the shareholders (including all those unfortunate people who invested in the crowdfunding).
https://beta.companieshouse.gov.uk/...Y0NmFkaXF6a2N4/document?format=pdf&download=0
https://beta.companieshouse.gov.uk/...Y0NmFkaXF6a2N4/document?format=pdf&download=0
dunedin
Well-known member
Sad but fascinating reading if you have a mind for these things, thanks for posting.
I typed some other comments but decided perhaps safer not to post online
Norman_E
Well-known member
On reading that it appears that the German company that owned 55% has bought the whole business, plus the moulds and plant & machinery, and is injecting a further £2million. Whilst existing shareholders and creditors have lost out the buyer must have some confidence that he can make something of a business that has lost money for years.
Frogmogman
Well-known member
I guess Herr Schnaebele/Binti Holdings were faced with either losing what they had already invested, or rolling the dice and buying the company out of the wreckage with a view to turning it around. It is possible to make money from building boats after all, but it's not easy.
Discovery are in a competitive segment of the market. Consider the competition; Amel offer a very finely honed product, with attention paid to every last detail. Contest also have a fantastic reputation. The newly revitalized Oyster now seem to be going about things the right way, and offer the attraction of the Oyster World Rally. The likes of Beneteau have extremely competent offerings at this level too.
Discovery have a mountain to climb because the way Andrew France was treated will be fresh in people's minds. Shoddy workmanship combined with indifference from the builder is not a good look; buyers are unlikely to parted from their money for a semi bespoke yacht build if they are not convinced of the professionalism of the builder.
Discovery are in a competitive segment of the market. Consider the competition; Amel offer a very finely honed product, with attention paid to every last detail. Contest also have a fantastic reputation. The newly revitalized Oyster now seem to be going about things the right way, and offer the attraction of the Oyster World Rally. The likes of Beneteau have extremely competent offerings at this level too.
Discovery have a mountain to climb because the way Andrew France was treated will be fresh in people's minds. Shoddy workmanship combined with indifference from the builder is not a good look; buyers are unlikely to parted from their money for a semi bespoke yacht build if they are not convinced of the professionalism of the builder.
Simon__
Member
I can’t understand the legitimacy of this. If it was the couples home which they lived on to fulfill their personal dream of completing a circumnavigation, how can it be a company asset? There doesn’t appear to be a business.
Edit: Possible indicators of an abusive practice is an interesting read here:VBNB46000 - VAT Business/Non-Business Manual - HMRC internal manual - GOV.UK
Several newspapers mention they acquired the initial funds following their home burning down. They appear to be serially unfortunate.
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kof
Active member
What's wrong with it? It's a perfectly legal way to manage an asset and it doesn't have to be a viable "business". Until HMRC or whomever decides to change the rules then why not use it?
Frogmogman
Well-known member
Now, I'm going to be careful what I say, because Andrew France is a) an ex para and b) clearly quite litigious.
IIRC, the vehicle through which he bought his Southerly was a Channel Islands Company - Elusive Yachting Limited.
Some might suggest that the reason for doing this might be to try and swerve the £300 000 of VAT which would otherwise have been due on what was reportedly a £1,5 million yacht, but I wouldn't like to speculate on that.
If it is the case that Elusive Yachting is a channel islands company, then your HMRC manual is not relevant.
AndrewfromFal
Active member
Would this explain his hurry to get the boat out of the UK when defects had already manifested themselves, rather than giving the yard time to fix them?
RickMac
New member
As I understand HM Revenue & Customs procedures surely he would have been able to avail himself of zero VAT rating procedures anyway, as documented under their 'sailaway’ boat guidelines? A vessel that is removed from the UK under its own power and within 6 months of the date of delivery (The date of delivery is the date the boat leaves the manufacturer or supplier.) can be zero VAT rated.