Fairline Yachts Ltd made a £21.7 million loss for the year ended 31 December 2023, an increase on the £18.8 million loss in 2022.
The company’s annual report and financial statements for the period show the company had a turnover of £41.1 million (2022 – £48.3 million), down 15% on the previous year and an operating loss of £19.9 million (2022 – £17.8 million).
There was a gross loss of £6.7 million (2022 – £4.1 million), £33.3 million falling due to creditors within the next year and net current liabilities of £8.5 million (2022 – £22.5 million).
With regards to turnover, the UK saw an increase to £5.8 million (2022 – £280,000), however the rest of Europe saw a large decline to £18.1 million (2022 – £35 million). Turnover for the rest of world was £17.2 million (2022 – £13.1 million).
In their strategic report, directors Hitesh Katechia and Martyn Hicks state 2023 remained a challenging year for the company as the operations and results were impacted by shortages of key parts due to the disruption of the availability of key commodities in the global supply chain.
Efficiency of production
The directors point to the subsequent increase in time taken to manufacture the boats which impacted the efficiency of production during the year.
The report states that challenges in the global supply chain remain, together with the global economic impact of the Ukraine War which is leading to further economic uncertainty in 2024.
However, despite these pressures, the company has continued to invest in new product development as part of its new product investment strategy.
During the period, Fairline launched a new mid-sized model – the Squadron 58 – and a new entry model – the Targa 40.
“Looking forward, the board of directors and the company’s leadership team will remain focused on extending the product offering, reviewing product pricing to ensure market competitiveness, continuous improvement of our dealer network, improving relationships with suppliers and better after sales support to the entire network,” said the directors in their report.
Improving technology
“In addition, we will focus on production and operational efficiency, improving technology and continued development of KPI’s and KCI’s to enable the company to meet its short and medium-term goals.”
The unaudited results to date for 2024 show further impact of global supply chain uncertainties but are showing an improvement on 2023 as the business implements its change strategy.
And the financial statements also state the forecast for 2024 shows an improvement in both turnover and profitability.
There is also a good forward order sales book.
During 2024, the company received equity funding of £8.8 million and additional loans from the ultimate shareholder in 2024 to cover its working capital needs.
The company has also received a letter of support from the ultimate shareholder confirming the continuation of the current funding facilities and the provisions of further funding required by the company within the next 12 months.
