Boating Business August 2021

Page 1

boatingbusiness.com

AUGUST 2021

Person Behind the Face 6 | Business Matters 10 | Marketing 18 | People 27 | Profile 28

£25.5m NET LOSS FOR SUNSEEKER

NEWS

Factory fire Production increase New boat show pages 1-9

BOATBUILDING

Sunseeker International's turnover dropped more than 50% during 2020 - significantly impacted by the Covid-19 pandemic. The company's annual report and financial statements for the year ended 31 December 2020 show that the UK production facilities were substantially shut down for three months from the end of March to end of June 2020 with only minimal production work taking place completing boats that were close to dispatch when the lockdown began. The boatbuilder was able to resume operations in July, building production levels back up to pre-pandemic levels. £17.9m was claimed from the Government's Coronavirus Job Retention Scheme (furlough scheme) to mitigate wages and salary costs incurred over the year. During the latter part of 2020, sales levels picked up, with revenue in Q4 2020 close to 80% of the 2019 level. Gross margins over the year declined from 13.2% to 6.6% on the back of a 54% decline in revenue from £302.4m in 2019 to £140.6m in 2020 and the company moved to a net loss of £25.5m in 2020 down from a retained profit of £10.5m in 2019. EBITA declined by £30.9m from £24.5m in 2019 to a loss of £6.4m in 2020, excluding exceptional items.

8 Sales levels picked up during the latter part of 2020

The boatbuilder made use of the UK's lockdown to restructure its finance facilities. An additional company loan facility of up to £35m was agreed - £25m of which was drawn down during 2020. This has enabled the company to commit to investment in new models, with five new models launched so far in 2021 and further launches planned for 2022, to take the product range to 20 models. The company's major shareholder, Dalian Wanda Commercial Management Group Co, has committed to providing further funding if required. Operations have also been restructured with headcount being reduced in order to match predicted post-pandemic demand and changes have also been made to the senior management team with a new executive committee put in place in June 2020. With the lack of boat shows throughout the year, the boatbuilder has created a show case of its boats in Poole, where customers can view and experience the models.

Brunswick boat sales up 80% Brunswick Corporation has experienced a record second quarter with net sales up 57% compared to with the same period last year. Sales totalled US$1,554.8 million, with each segment benefitting from strong global demand for marine products, increased production, and favourable changes in foreign currency exchange rates. "We delivered record results in the second quarter as a result of the continuing constructive demand environment, and our very strong operational performance and success in mitigating supply chain challenges and labour market tightness," said Brunswick chief executive, David Foulkes. The Boat segment reported an 80% increase in sales as a result of strong retail customer demand, driven in

part by the Covid-19 pandemic making outdoor pursuits attractive. Freedom Boat Club contributed approximately 3% of sales to the segment in the quarter. The Propulsion segment reported a 64% increase in sales and the Parts and Accessories segment reported a 42% increase in sales, with sales growth across all businesses in all geographic regions. "2021 is shaping up to be another year of robust earnings and shareholder returns, with pronounced margin increases and substantial free cash flow generation resulting from our outstanding operating performance in a healthy marine market," added the chief executive. "We are excited about our ability to further harness the positive momentum we have generated to propel our growth and industry leadership."

Recycled PET Complexity reduced New tooling pages 12-16

WATER SYSTEMS

Air locks eliminated Unique installation New watermaker pages 17-22

NEW PRODUCTS

Eco deck panels New light Toilet control switch pages 24-25


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Boating Business August 2021 by Mercator Media - Issuu