The end of 2010 saw Fairline’s turnover down by over 25% from the previous year to £81.8m (2009: £112.7m), with the company selling 157 boats versus 205 in 2009. However, the inability of Fairline to match that with a proportional drop in the cost of sales, despite the shedding of around 100 staff, meant gross profit for the year was effectively zero, versus £10.2m in 2009.
Distribution costs and administration expenses also remained at 2009 levels, resulting in an operating loss for 2010 of £10.1m.
In the balance sheet despite having banked £18.9m of advance customer payments, most of that was tied up in stock, including £5.6m of finished boats, and at 31 December Fairline had just £157,000 of cash in the bank.
With bank borrowings unchanged over the year at £25.75m it seems additional lending from the bank had not been an option throughout 2010.