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Discovery Yachts Group

UK - South
Date Rated:
Valuation (Pre Money):
Industry: Manufacturing
Location: UK - South
Platform: Crowdcube
£750,000 Expansion
Valuation: £7,440,476
Date Rated: 01/02/18



Tax Status: None

Business Summary

Discovery Yacht Group owns a number of yacht manufacturing brands, with expected sales of over £13m this financial year and sufficient demand to keep operating at capacity into 2019. These funds will be used to develop new yacht designs, expand production capacity and to develop new revenue streams in charter and brokerage services.

Financial Overview

Date (y/e) Part YE Aug-17 Aug-18 Aug-19 Aug-20 Aug-21
Sales Part YE Aug-17£1,358,541 Aug-18£12,964,747 Aug-19£23,291,913 Aug-20£28,337,986 Aug-21£33,050,275
Gross Profit Part YE Aug-17£101,580 Aug-18£2,719,641 Aug-19£4,813,719 Aug-20£6,032,159 Aug-21£7,035,239
GP as % sales Part YE Aug-177% Aug-1821% Aug-1921% Aug-2021% Aug-2121%
Overheads Part YE Aug-17£441,936 Aug-18£1,728,874 Aug-19£2,356,635 Aug-20£2,663,830 Aug-21£3,105,776
Operating Profit Part YE Aug-17-£370,679 Aug-18£864,929 Aug-19£2,268,932 Aug-20£3,157,302 Aug-21£3,698,102
OP as % sales Part YE Aug-17-27% Aug-187% Aug-1910% Aug-2011% Aug-2111%
Closing Cash Part YE Aug-17- Aug-18£1,147,130 Aug-19£3,391,001 Aug-20£6,066,845 £9,017,417

Note: This financial information has been sourced from the company on 01/02/2018 or from public sources. Financial data is NOT verified by Wheatfromchaff Ltd.
The management team and crucially also the workforce are skilled and cover all the key roles, though we note that the Group Sales and Marketing Director appears to have left recently.
The team is highly experienced with many years in the trade at a number of established yachting companies. The team do have a few adverse events in their directorial histories though.
The team can be expected to be fully committed to the development of Discovery. The directors are involved in a number of other companies but many are related to Discovery.
The market for yachts is large and continues to grow. Discovery has access to established brands, maintaining their reputation and heritage.
Discovery's yachts receive good reviews in the yachting press, borne out by low depreciation and a full order book. New lines and services will allow them to expand into new market segments.
Discovery is well aware of its competition. Brand strength is crucial as no-one is going to buy a yacht without a good reputation, and Discovery measures up in this regard.
Discovery Yacht Group has prepared a detailed set of financial projections demonstrating a growth plan that is appropriately resourced.
The business plan appears to include ample overhead and while revenue will come from a small number of valuable orders, phased payment terms and long lead times should aid cash management.
The company plans to exit in 2022, by which time revenues should have reached £40m if all goes according to plan. Pre-emption rights come with a high price, but no further rounds are expected.


With a full order book revenue is secure for the medium term. Discovery has provided ample budget for its sales function, but the key to growth will be production capacity: plans are in place for short-term capacity and a move to a larger facility, but if investors are looking past the 2022 horizon constrained supply will, while maintaining product exclusivity, also potentially limit the company valuation.

Without full and comparable historic financials it is difficult to assess how cyclical the yacht production business is, but any major downturn is bound to affect new yacht sales, although the broad range of products and the broking operation, should mitigate this to some extent.

Related Links

Crowdcube Pitch


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