New baby Oysters
To create profitability where there was previously none, Oyster’s yacht building process will have to be streamlined, but Hadida says that of the nearly 400 employees who faced redundancy when the yard closed most returned, and they are still recruiting for more.
Changes will be made to the Oyster range, which had become quite top-heavy with all but one model in the
60ft plus range. “Our 565, which is our entry level yacht, is £1.5 million. And so that rules out probably the vast majority of people in their 30s and 40s and it’s probably going to be someone in their 50s who is exiting a business, who is an entrepreneur or banker that is downsizing their house. Or retiring.
“We do know that 40% of Oysters are bought by Oyster owners. They trade up traditionally – therefore, the sooner you can get them into the Oyster family the better.”
Rob Humphreys and team have been tasked with producing two “baby Oysters”, which Hadida says are coming along nicely. The aim is for the 45-footer to market at around £500,000 and a 50-footer and under £1 million.
Hadida plans to ramp up Oyster’s marketing, including a shop front premises in central London, and increase the number of events like the Oyster Regattas, also making them more family friendly.
Unsurprisingly, he is excited by the ever-increasing amount of computer-powered systems on yachts, and wants Oyster to become more high-tech and innovative. “Apparently there is something like 20,000 more man hours in these boats than 20 years ago because there is so much tech in these boats now.
“I like to think I get tech – and so whatever we can do with that technology to enhance the ability of people to crew the boats safely and securely and quickly, then we will embrace that.”
He also wants to reduce the company’s environmental impact, and not for purely egalitarian reasons. “For every 20 boats sold, only one has a sail and the other 19 are all power, and I just believe for lots of different reasons that it’s becoming more socially unacceptable to turn up in a massive boat with two 2,500 horsepower engines.”
This isn’t just about increasing market share, but about increasing sailing yacht ownership. “Yes,” he enthuses. “If it’s one in 20 people, let’s make it two in 20. It’s double the market, simple. Well, it’s not simple – but that’s where I’m going start from!”
So how long will it take for Oyster to turn a profit? His CFO, Becky Bridgen (who was brought across from the PWC administration team), predicts three years. “So, year one is enormous cost. Year two is less loss cost and year three and beyond is profit.”
It will not be an easy road, some suppliers report that they lost out through the administration period. Hadida says he personally has “spent millions and millions in putting this company back together again,” and will spend millions more if needed to upgrade tooling or systems. But he is confident that building Oyster Yachts can be profitable once again, and – so far – has no regrets.
“It’s been a whirlwind, it’s just so overtaken my life. But at no point have I ever looked back and thought ‘What have I done?’ I am still amazed, when I walk around this yard and see these boats. I just have a real feeling of pride.”