Riviera is slowly working its way out of receivership and is on track for a stellar year ahead.
Despite a number of domestic and international parties targeting its receivers and mangers, a strong yearly performance has seen the business officially withdrawn from sale as it breaks down debt.
Debt levels are now at $250 million with the ANZ and the Bank of Scotland the remaining creditors owed $150 million.
Riviera CEO John Anderson says sales are still ticking over.
“Part of the process of re-building the business is creating a business platform that will allow us to take Riviera out receivership. We are tracking ahead of our business plan and sales are certainly above all of our expectations,” he says.
“In the last 11 months, over 100 new Rivieras have been sold by our global dealer network giving a weekly sales rate of two-and-a-half new boats per week. In total retail value, this represents over (AUD) $102 million in sales.
“For the first quarter of this calendar year, we have achieved a 35 per cent growth in sales over the same period last year. We have also signed several new international dealers this calendar year in both the US and Europe which is a very encouraging sign for us.
“Our focus is now firmly to build the business and make it even stronger. The value that has been created in the business over the last eleven months has clearly given our backers the confidence that as the market continues to return, so too will our sales and profitability.”
Riviera was sunk last year following a 12 month slashing of its workforce from 1200 to 400.
Workers declined an offer of a five-year wage freeze months later and employees were paid full entitlements totalling $3.5 million – starting Riviera’s unlikely comeback.
“Right now we have 350 people on site building boats at our Coomera, Gold Coast facility and we are actively recruiting new staff as we slowly ramp-up production to meet the growing global demand,” says Anderson.
“Our new model development plan has a five year vision with multiple new model releases planned for each year.”
The Sanctuary Cove International Boat Show will play a key part in Riviera’s 2010 model releases with the 56, 51 and 43 Open Flybridge models unveiled in a 2364sqm display alongside the smaller 5800 Sport Yacht.
“With real increases in sales volume, new model releases underway, a growing workforce and expanding international dealer network, the future for Riviera looks very exciting indeed,” says Anderson.
“The new 43 Open Flybridge will have its world release at the Sanctuary Cove International Boat Show in May but we have already achieved sight unseen sales of this exciting new model off the plan both internationally and domestically.”
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