Fairline Yachts saw its turnover increase by 55% in 2022 to £48m, however alongside this, the luxury boatbuilder had an operating loss of £18.1m, up from £17.7m in 2021.
The company’s latest accounts show 2022 remained a challenging year for the boatbuilder, with operations and results impacted by shortages of key parts and supply chain issues.
These factors increased the time taken to manufacture the boats and also impacted the efficiency of production during the year.
However, despite these difficulties, the boatbuilder continued to invest in new product development as part of its product investment strategy with the launch of a new Squadron 68, a Phantom 65 as well as new entry and mid-sized models.
And the boatbuilder says demand for models has remained strong with the sales team continuing to strengthen its global dealer network as well as building out the sales order book to 2025 and beyond.
And the directors say the forecast for 2024 shows an improvement in both turnover and profitability as the business returns to a stable platform, with improvements in operational performance, supported by a good forward order sales book.
At the end of 2023, most of the 2024 production slots were sold and allocated out to 2025.
And the directors add that while the unaudited accounts for 2023 show the boatbuilder has been impacted by global supply chain uncertainties, there is an improvement compared to 2022 as the business implements its change strategy.
In June 2021, Fairline Yachts Holdings Ltd became the sole shareholder of Fairline Yachts Ltd, with additional investment injected and a new board of directors appointed.
The directors have worked with the ultimate shareholder, Hanover Active Equity Fund II, and other financial institutions and have increased financing facilities to support the business going forward.
In 2023, the company received equity funding from Hanover to cover its working capital needs and the directors believe these facilities along with cashflow from operations will allow the company to operate within its financing needs. The company has received a letter of support from Hanover in terms of further funding.
