UK-based Fairline Yachts celebrated the brand's 50th anniversary in 2017 with a 144% increase in turnover. Profit was £24.1 million, up £14.2 million from 2016. This data is given by International Boat Industry portal, which analyzed the company's latest financial report for the UK's Unified State Register of Companies.
Profits rose by £2.1m in the UK, almost £4.9m in other European countries and almost £7.2m in the rest of the world.
The shipyard's cost of production rose from £12.9m to £28.1m in 2017.
In terms of losses, Fairline also recorded a net loss of £8.8m (excluding tax) in the last financial year. This is an increase of £3.3 million over 2016. The company is generally satisfied with these figures.
« The board believes this is an acceptable result that allows for growth, scaling the size of operating changes and the condition of the assets acquired from Fairline Boats»," IBInews quoted the company's report as saying.
The company had a gross loss of £4m (£3m in 2016) and an operating loss of £9m (£5m in 2016).
As at 31 December 2017, Fairline Yachts spoke of £6m of share capital, but the figure has changed to £8.3m after accounting for £14.3m of profits and losses. A total of £14.2m of new loans were issued to existing shareholders after the year end to address this.
In addition, in June and October 2018, part of the loans outstanding by the reporting date and the post year-end loans were capitalised internally, resulting in share capital of £14m and £5m respectively. The capital balance at the time of these financial statements (by 16 November this year) was £25 million.
« 2017 was the second year for the company (following the purchase by Russian investors - ed.). The brand celebrated its 50th anniversary and the speed at which the company was able to grow, develop its dealer network and launch award-winning new models reflects the strength of the brand and its heritage. The second year was impressive»," the report said.
Fairline's new legal entity launched in 2016, «promised to offer an updated product portfolio». Fairline Yachts has kept its word. Already in 2017, the Squadron 53 and Targa 63 GTO were released. And in 2018 they were followed by Targa 43.
The collaboration between Italian designer AlbertoMancini and Danish naval architects Vripack and Slovenian engineering and design studio J&J resulted in the F-Line 33 and Squadron 64. The boats will be unveiled in early 2019.
«At the time of writing (November 2018), about 20 orders have been received for these two models. The F-33 is being built in Aundle , Northamptonshire, England, and the Squadron 64 is being built at a shipyard in Southampton, England, at a site acquired in late 2017 called Fairline Marine Park»," the report said.
The company plans to continue its investment in Fairline Marine Park early next year as part of the second phase of its development programme. Production began here in August this year. This was a major milestone for Fairline.
«The shipyard not only allows the company to build boats over 18 meters in length, but also provides the opportunity to triple production capacity, creating a solid foundation for future growth»," the report notes.
As for Fairline's workforce, it has almost doubled from 223 employees in 2016 to 406 by the end of 2017.
« Having regained its market position and provided a platform for future growth, the company is now focused on optimizing business processes and generating profits from operations», continues the report.
To this end, starting next year, for example, Fairline is introducing a new enterprise resource planning (ERP, Enterprise Resource Planning) system.
« This vital investment reflects the very poor state of the IT systems inherited from Fairline Boats. During 2019, the company will competently migrate to an efficient integrated platform»," the report says.
