Archive for » September 27th, 2016«

Sunseeker sales expected to reach £95m following Cannes and Southampton Shows

Sunseeker International reported it is starting its boat show season with £70m of confirmed retail orders (exc. tax), and an expected £25m of additional orders to be agreed shortly.

At this year’s Cannes Yachting Festival, Sunseeker launched four new models – the 95 Yacht, 116 Yacht, 68 MK II and Manhattan 52. The Cannes show – which is the first of the autumn season – was extremely busy for Sunseeker, according to the company, with very high levels of visitors to the stand and pre-booked meetings with clients and prospects at a record high.

Sunseeker continued to see high levels of visitors at the Southampton Boat Show, the U.K.’s largest in-water boat show, and held a record number of pre-booked meetings with existing and new customers. Interest in the new Manhattan 52 has been particularly high. This new yacht is Sunseeker’s smallest flybridge model in over a decade. The Manhattan 52 is designed to maximize entertainment options, light and living space throughout the boat and it sets the design direction for a new wave of Manhattan models that will be introduced over the coming years.

“This year’s Cannes and Southampton Shows have been truly excellent – we’ve enjoyed really positive events with substantial confirmed retail orders, on sales of 25 luxury motoryachts across the range, with an additional £25m of orders to be agreed shortly,” said Sean Robertson, sales director at Sunseeker International. “We were particularly proud to host the world premier’s and U.K. debuts of our new models, the Manhattan 52, the Predator 68 MKII, the 95 Yacht and the 116 Yacht, all of which have been eagerly awaited by existing customers and those new to our brand. It’s also been a real pleasure to welcome so many visitors and special guests to the stands, which included our graduate apprentices and the Minister of Transport the Rt Hon John Hayes MP at the Southampton Boat Show.”

The business also revealed at Cannes Yachting Festival that it moved back into profit in the second quarter of 2016 with a forecasted overall return to profit for the full year. The next five years will see a massive £50 million of investment spent across new products, improved shipyard facilities and the continued recruitment of people.

Multiple model launches are set to continue as part of a long-term product plan that will see new model introductions across the size range over the next five years including additions to the Manhattan range.


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Brunswick Hits The Wake, Has 23% Upside According To Imperial Capital

Imperial Capital’s George Kelly noted that PA and the Fitness businesses were driving stable, high margin growth for Brunswick Corporation (NYSE: BC), in a “benign” boating environment.

Kelly initiated coverage of the company with an Outperform rating and price target of $60.

The analyst believes the stock could have 23 percent upside potential.

Compelling Stock

Kelly mentioned that Brunswick Corp “presents a compelling opportunity due to its improved operating model and financial profile, attractive valuation and option value should new boat sales accelerate.”

Related Link: Redfin Names The 10 Best Cities For Boaters

Given the outperformance of the stock during Q4 and Q1, the analyst believes the time is right to acquire Brunswick shares.

Recovery Underway

Kelly also pointed out that the recovery in the boating segment was only in its mid-stages, with macro-economic and marine data seeming “relatively benign” and supporting continued growth.

However, the analyst also noted that new boat sales “remain well below pre-recession levels despite growth in boating participation and stable boat registrations.”

On the other hand, the company’s improved operating model and financial profile were expected to drive more consistent growth, given that the recent financial and operating changes lay greater emphasis on less-cyclical, growing segment, while de-risking the balance sheet.

Kelly expects Brunswick Corp to see meaningful upside if boating “picks up steam,” saying that even in a stable end market, “we see potential for margin improvement.”

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House panel looks at sales tax breaks for Texas luxury boats – Corpus Christi Caller

JOHN MORITZ/CALLER-TIMES Greg Allison (left) of the Intercoastal Financial Group and Simon Urbanic of the Bay Area Houston Economic Partnership prepare to testify before the House Ways and Means Committee on Monday at the Texas Capitol.

By John C. Moritz, USA Today Austin Bureau

AUSTIN — Texas is losing business to Florida and other states on the eastern seaboard because of the high sales tax levied on luxury boats, representatives of the marine industry told a legislative panel Monday.

Greg Allison, a regional manager for Intercoastal Financial Group, told the tax-writing House Ways and Means Committee that Texas should join the growing list of coastal states that have slashed tax rates for pleasure crafts that extend more than 35 feet and carry price tags starting around $300,000.

“It’s easy to say this is just another tax break for the rich,” said Allison, whose company finances high-end boat sales. “But the truth is, the rich already got their tax break from Florida.”

He said the Texas industry took a huge hit when Florida capped its tax in 2010. Others states, including New York, New Jersey and Maryland have followed suit and have seen their big-boat industries flourish, Allison said.

Allison said Texans with the means to buy large vessels that they can take through the Gulf of Mexico and even to the Atlantic are purchasing the crafts in states with lower taxes. And they keep the boats housed, stocked and maintained at out-of-state marinas, he said.

He and others want the Texas tax capped at $18,000.

A similar measure that was billed as a way to protect the boat industry on the Texas Coast and even on the inland lakes was shot down by a large margin two years ago. Two years ago representatives from the City of Corpus Christi were strong supporters, as were House members who represent the Coast. Backers of the measure are expected to file the bill when the 2017 legislative session beings in January. They said the big-boat industry in Texas pumps about $6 billion annually and

Allison and Simon Urbanic of the Bay Area Houston Economic Partnership said that if Texas was more competitive, any revenue lost on the front end would be made up down the line because the big boats would stay in Texas where they’d be maintained and outfitted. The money spent on those goods and services would generate Texas taxes, they said.

They said the big-boat industry in Texas pumps about $6 billion annually and adds about 31,000 jobs to the Texas economy. And that is not just limited to the coastal communities, they said. No one spoke against the proposal.

Just about every region in Texas with a thriving lake community depends on recreation and tourism to sustain its economy, Allison said.

“All around those lakes are people with high net worth,” he said. “And they like to boat.”

Twitter: JohnnieMo

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