Rodriquez Group restructuring approved...

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Rodriquez Group restructuring approved...

Industry News

Yesterday, April 7, saw the 'Commercial Court' in Cannes dispense with the Gulf Juan-headquartered superyacht operation’s ‘safeguard’ protection. Trading of the publicly quoted company's shares resumed today, April 8; its shares had been suspended since April ’09.

APRIL 2010

There were three main priorities covered in the restructuring plan.
The most important sees the group lower its breakeven point. Cost-cutting measures include marketing (boat shows, advertising etc), expenses relating to stock boats (maintenance, berthing etc), commissions on sales and a reduction in the labour force across the group.
The second key point was acceptance of a new business model aimed at generating cash. The most important issue was not building boats until they are properly sold. And it has been agreed that marketing efforts will now major on moving stock boats, especially the more expensive ones. And trade-ins will only be taken in exceptional circumstances.
On the finance side its bankers have agreed to right off around €54 million of senior debt, which will leave the company with a senior debt burden of €139 million. Repayments take the company to 2020.
For its ’08/09 year the company managed a turnover of just under €110 million. The result was down 64.4 per cent from the almost €308 million the year before.
Not surprisingly new-boat sales at the operation, which still markets the Mangusta range of boats built by Overmarine in Viareggio exclusively, were a little harder hit than the service side, the main bits of which are its SNP and Camper & Nicholson International divisions.

For more, www.rodriguezgroup.com