Skipper's blog: It might soon be last drinks on the gin palace

AN eye-raising, thought-provoking paradox of the marine business internationally is that several of the industry’s top names (and by “top”, I mean as in dollar value, market positioning, outright status, snob appeal and unlikely to ever be afforded by me) are now no longer owned and operated by boat building professionals at all, but by either private equity investment groups or as part of wider luxury goods portfolios.

Not so much in these parts, but when one thinks of the “Old World” super-rich or the “Euro trash” enjoying waterborne frolics in sun-drenched havens of halcyon hedonism like Cannes, Monaco or Portofino, they will invariably be found lounging languidly on vessels from the following four manufacturers: Sunseeker, Sealine, Fairline and Princess. These four companies are, in fact, the crème de la crème of the highest echelons of top-shelf boatbuilding in just one nation, the UK. But it’s interesting to note that, latterly, these firms have all but completely deserted their industry roots.

Three of these boat companies are now either wholly owned or majority owned by investor groups: Better Capital at the helm of Fairline (which it bought from 3i, also an investment group); Dublin-based FL Partners (with Macquarie Bank also on board) on the bridge at Sunseeker, and the Oxford Investment Group now piloting Sealine, in which Brunswick relinquished its interest just last month.  Princess, more or less regarded as Fairline’s direct competitor in much the same way Mercedes-Benz is pitched against BMW, is seventy-five per cent owned by L Capital, a division of the LVMH Group (producers of such hedonistic, sybaritic accessories as Moet, Hennessy, Christian Dior and Louis Vuitton).

The history of three of these boatbuilding behemoths (however, I know little of the early days of Marine Projects/Princess) is interesting, and their aims, growth phases and overall chronology have much in common. It’s probably coincidental more than anything else, but all the original founders seemed to be aware from the outset that the only way to build viable, epoch-making, statement-proclaiming companies was to steer away from the mainstream. In those days in the UK (late ‘60s and early ‘70s), if you wanted a compact, towable cabin cruiser (invariably outboard powered), there was really only one choice: Shetland. In fact, the tale of their original model, the Shetland 535 (its metric length), is legendary. It was literally sketched out on a beer mat by a guy called Jack Stokes in a pub on the Cromwell Road one night after the London boat show. Fairline initially started with a 19ft outboard-powered cruiser at around the same time but, in those days, Shetland was to the UK’s outboard cruiser scene what Holden was to the insular, protected Australian vehicle market and anybody else was only scavenging for scraps.

Around that time, a company in the south of England – previously an importer of Scandinavian brands – started to build its own boats and displayed early examples at a show. An Englishman called Henry Taylor, based in the South of France (quite well known, as he was an ex-Ford rally driver), said to the directors of the fledgling boat company that if they could do the 23ft model all in white with a full-width sun-lounger aft, then he’d buy as many as they could make. They made them; he bought and offloaded them, and their pairing went from strength to strength. The fledgling company was called Poole Powerboats but it soon changed its name to Sunseeker. Interesting that in terms of product positioning and target market, Poole Powerboats/Sunseeker ruled out outboard-powered boats right from the start.

Another UK company which seemed to have an early epiphany was Sealine, who did in fact build a sub-20ft outboard cruiser in the mid ‘70s, but changed direction rapidly when the stark realities of the limited, stagnating, unprofitable market became apparent. As a result, their outboard cruisers are now probably as rare as a genuine, unmolested 300SL gullwing-door Mercedes but, unlike the Benz, of negligible monetary value. Digressing briefly on a purely personal, whimsical note, The Skipper always thought that the Sealines of the mid-late ‘90s (strictly pre-Brunswick) were the most comely, shapely, pretty and pert Pommie express cruisers of all, with their trademark generic, gently rounded, dolphin-nosed prow and distinctive, bold swatches of green and red hull striping (much better in the flesh than these words would suggest). 
But enough of this digression and distraction…..The point is that these boatyards have had such seismic shifts in product, philosophy and psyche over the years that they cannot really be viewed – in the eyes of purists, anyway - as true boat companies any longer. They are now, to my mind, bundled with brands like Bugatti, Bentley, Breitling, Bulgari, Louis Vuitton and Prada and are probably better described as luxury goods. And to be honest, I don’t know if this is a good thing or not. Plus, the whole bank or investment group thing leaves me cold – just think of Mustang before Bill Barry-Cotter.

It is testimony to the entrepreneurial verve, nerve, resolve and resourcefulness of the founders or original custodians of these companies – Tom Murrant of Sealine, Robert Braithwaite of Sunseeker, Sam Newington (and later Derek Carter) of Fairline, and Graham Beck of Marine Projects/Princess - that they were able to reach the pinnacle, the absolute apotheosis of the express cruiser segment, and keep their product ranges relevant, viable, aspirational, coveted and profitable. Then, to offload them at the top of their game to cashed-up, non-boating, portfolio-filling entities clamouring and begging to be part of the glitz, glamour and action, was masterful business practice that verged on sheer genius.

Opinionated and divisive I certainly am, but I reckon that these UK boat companies have well and truly had their heady heyday and that it’s all downhill from here. Why, though? Well, because the people who founded, nurtured and shaped them actually knew what they were doing. They were “boat” people who didn’t just strike it lucky – they had plans, focus, direction and initiative. They knew the game; they knew about making, marketing and selling boats; they knew how to establish and maintain relationships with suppliers, dealers and staff, and they were intimately involved with the nuts and bolts of the business, from who was the best resin supplier to who was cheapest for boat haulage any given week.

Think of “boat” guys like Bill Barry-Cotter, Kevin Nichols, John Savage and Alan Steber (with a bit of Kerry Stokes and Clive Palmer thrown in for good measure) all rolled into one – that’s the calibre of individuals we’re talking about here. How could merchant bankers (interpret as rhyming slang if you so desire!) ever have the savvy, nous or intuition to run vast, labour/management-intensive, money-devouring leviathans like this? No, dear reader, take it from me: if the current economic downturn persists, there will be a few premium boat brands that will go the way of Packard, Studebaker and Saab – iconic marques supposedly rescued by deluded dilettantes or meddling, predatory raiders who really should have known better.