DIFFICULT MARKER CONDITIONS FOR YACHT BROKERS
Difficult market conditions caused a – 24% drop in turnover to £16.63 million for the UK yacht brokerage firm
In its fiscal year to December 31, 2019, the financial performance of Nigel Burgess Ltd, the lead UK-registered company of the Burgess Yachts brand and a subsidiary of Nigel Burgess SAM, reports a 24% drop in turnover to £16.63 million and move from a profit after tax in 2018 of £1.77 million to a loss of £976,000.
The principal activities of the Burgess group are yacht brokerage, yacht charters, crew and operational management, and technical supervision of new yacht construction. Burgess also continues to have a branch in Palma, Mallorca.
In its annual return to Companies House, the UK’s business register, the company’s strategic report said, “Difficult market conditions across the industry have resulted in a decrease in turnover in 2019 and this has had an expected impact of profit before tax resulting in a loss. Capital expenditure and operating costs have continued to be tightly controlled.”
It added: “The directors believe the group remains well-positioned to perform strongly in 2020 and 2021 across all departments.” In the context of Covid-19, they also stated confidence in being able to continue “without significant adverse operational or financial impact” although they acknowledged some potential impacts from the final terms of Brexit, which had not been finalized at the time of the filing. The statement was dated December 14, 2020.
A dividend of £1.023 million was made by Nigel Burgess Ltd to the immediate parent company, Nigel Burgess SAM during 2019 which compared to a dividend payment of £1.52 million made to the latter in fiscal 2018.
In 2018 Jonathan Beckett, the chief executive of Nigel Burgess Ltd owned 63% of Nigel Burgess SAM but on April 23, 2019, this holding was increased to 71%.
In 2019 the average number of employees at Burgess was 104 compared with 107 in 2018. Total staff costs including wages and salaries; social security costs and other pension costs amounted to £9.56m compared with £10.95m in 2018.