Jobs at risk at boat firm

South Boats manufactures vessels for the offshore wind power industry.

South Boats manufactures vessels for the offshore wind power industry.

First published in News

ABOUT 120 jobs are at risk after an Isle of Wight boat company went into administration despite having £21m worth of orders.

South Boats Special Projects Ltd manufactures vessels for the offshore wind power industry.

The Cowes firm has called in administrators from corporate recovery specialists Chantrey Vellacott DFK.

David Clements, of Chantrey Vella-cott DFK, said South Boats had an order book of £21m and the possibility of another £35m but cash flow had “become critical”.

He added: “The root of the financial problems the company finds itself in is mainly due to the challenge of rapid growth, significant design investment, new product introduction and expansion of manufacturing footprint.

“The possibility of the company continuing without a further investor is not possible. To protect the company while further investment is sought the directors have filed a notice of intention to appoint administrators.

“South Boats is continuing to trade and fulfil its orders and we are working with the management team to conduct a full review of its business and are assisting in every way we can.”

Comments (6)

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11:48am Sat 13 Oct 12

MGRA says...

How on Earth can this be !? Oh I know, its because the banking industry is derelict and there is no tools available for companies like this to expand without cash-flow risk.
How on Earth can this be !? Oh I know, its because the banking industry is derelict and there is no tools available for companies like this to expand without cash-flow risk. MGRA
  • Score: 0

11:56am Sat 13 Oct 12

Turtlebay says...

Yes, the little 'Banker Boys' prefer to sit on their fortunes rather than using them to help others in need. Do they really think they can take the money with them when they die?

Strange how the word banker rhymes with another word starting with the letter W!
Yes, the little 'Banker Boys' prefer to sit on their fortunes rather than using them to help others in need. Do they really think they can take the money with them when they die? Strange how the word banker rhymes with another word starting with the letter W! Turtlebay
  • Score: 0

12:33pm Sat 13 Oct 12

LeroyJenkins says...

Always the banks fault, there are facilities available to help assist with cash flow like Invoice Finance, if they were experiencing growth releasing funds tied up in Invoices would have allowed them to maintain a steady cash flow, yet a lot of owner managers tend to sit with there head in the sand waiting for banks to give loans/overdrafts which is not going to happen unless you have substantial security.

There are facilities that can help cash flow but I speak to too many businesses who say they do not need any financial assistance and then 2 months later there no longer trading and gone in to liquidation businesses need to act earlier rather than leaving it until the last minute.
Always the banks fault, there are facilities available to help assist with cash flow like Invoice Finance, if they were experiencing growth releasing funds tied up in Invoices would have allowed them to maintain a steady cash flow, yet a lot of owner managers tend to sit with there head in the sand waiting for banks to give loans/overdrafts which is not going to happen unless you have substantial security. There are facilities that can help cash flow but I speak to too many businesses who say they do not need any financial assistance and then 2 months later there no longer trading and gone in to liquidation businesses need to act earlier rather than leaving it until the last minute. LeroyJenkins
  • Score: 0

1:48pm Sat 13 Oct 12

MGRA says...

LeroyJenkins wrote:
Always the banks fault, there are facilities available to help assist with cash flow like Invoice Finance, if they were experiencing growth releasing funds tied up in Invoices would have allowed them to maintain a steady cash flow, yet a lot of owner managers tend to sit with there head in the sand waiting for banks to give loans/overdrafts which is not going to happen unless you have substantial security.

There are facilities that can help cash flow but I speak to too many businesses who say they do not need any financial assistance and then 2 months later there no longer trading and gone in to liquidation businesses need to act earlier rather than leaving it until the last minute.
your not on the same park here, expanding businesses tend to have money locked into fixed assets on an upward curve and its this that causes problems, not invoices. Banks are not interested in supporting businesses with a 3 month plan , let alone a 3 year one. Business advisers ( so called ) at banks are mostly idiots that are interested in only one thing, selling the business banking products that make the most revenue in the short term, rather than looking at a partnership over the medium-to-long term. totally useless.
[quote][p][bold]LeroyJenkins[/bold] wrote: Always the banks fault, there are facilities available to help assist with cash flow like Invoice Finance, if they were experiencing growth releasing funds tied up in Invoices would have allowed them to maintain a steady cash flow, yet a lot of owner managers tend to sit with there head in the sand waiting for banks to give loans/overdrafts which is not going to happen unless you have substantial security. There are facilities that can help cash flow but I speak to too many businesses who say they do not need any financial assistance and then 2 months later there no longer trading and gone in to liquidation businesses need to act earlier rather than leaving it until the last minute.[/p][/quote]your not on the same park here, expanding businesses tend to have money locked into fixed assets on an upward curve and its this that causes problems, not invoices. Banks are not interested in supporting businesses with a 3 month plan , let alone a 3 year one. Business advisers ( so called ) at banks are mostly idiots that are interested in only one thing, selling the business banking products that make the most revenue in the short term, rather than looking at a partnership over the medium-to-long term. totally useless. MGRA
  • Score: 0

3:24pm Sat 13 Oct 12

Fieldbean says...

This is one of the small to medium sized projects Cameron and Johnson hark on about. With such a full order book and much more to come surely there will be a venture capitalist eager to chuck a wad of cash into the project and reap a big pot of money once the company comes good.
This is one of the small to medium sized projects Cameron and Johnson hark on about. With such a full order book and much more to come surely there will be a venture capitalist eager to chuck a wad of cash into the project and reap a big pot of money once the company comes good. Fieldbean
  • Score: 0

5:26pm Sat 13 Oct 12

Georgem says...

Turtlebay wrote:
Yes, the little 'Banker Boys' prefer to sit on their fortunes rather than using them to help others in need. Do they really think they can take the money with them when they die?

Strange how the word banker rhymes with another word starting with the letter W!
You understand how banking works, right? The bank borrows your money, in the form of deposits, and lends it out again to others, in the form of loans. They pay you less interest than they charge on loans, and keep the difference. That's how it works. If they don't lend money, they don't make money. There's no magic involved. All that money they have, that you imagine they're keeping all to themselves? That's called "liabilities". The loans they apparently don't give out any more - they do, but let's pretend they don't, so we can moan about it on the Internet - are called "assets".

Explain to me the sense of a business model that consists entirely of collecting liabilities, and actively avoiding gaining assets.
[quote][p][bold]Turtlebay[/bold] wrote: Yes, the little 'Banker Boys' prefer to sit on their fortunes rather than using them to help others in need. Do they really think they can take the money with them when they die? Strange how the word banker rhymes with another word starting with the letter W![/p][/quote]You understand how banking works, right? The bank borrows your money, in the form of deposits, and lends it out again to others, in the form of loans. They pay you less interest than they charge on loans, and keep the difference. That's how it works. If they don't lend money, they don't make money. There's no magic involved. All that money they have, that you imagine they're keeping all to themselves? That's called "liabilities". The loans they apparently don't give out any more - they do, but let's pretend they don't, so we can moan about it on the Internet - are called "assets". Explain to me the sense of a business model that consists entirely of collecting liabilities, and actively avoiding gaining assets. Georgem
  • Score: 0

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