United Kingdom

Clyde & Co

<a data-gid="gid://syiq/Company/1653" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="John Brown & Sons (Company)">John Brown &amp; Co.</a> was originally founded by John Brown in 1838 in Sheffield, UK, as a steel-maker. The company was involved in supplying steel components to the rail industry and by 1860 was manufacturing armour-plating for British Royal Navy ships. In 1899 the decision was made to start building complete ships and the company took over <a data-gid="gid://syiq/Company/3577" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Clyde & Co (Company)">Clydebank Engineering &amp; Shipbuilding Co.</a> in Scotland. There the team developed the Brown-Curtis turbine, a propulsion system that encouraged the Royal Navy to commission the yard to build many of its major warships.&nbsp;Here, we take a look at the company resume of the nine very large steam yachts constructed between 1902 and 1954:&nbsp;SHEELAH // 73m // 1902 // 466 GT &nbsp;Built for William A. Donaldson of Duntochter, Dumbartonshire, Scotland, this steam yacht (the second of its name), was sold in 1905 to John K. L. Ross of Montreal, Canada. In 1913, she became the property of Admiral David Beatty (later Earl Beatty) of London, who loaned her to the British Admiralty from 1914 to 1923 for use as a hospital ship. Jugoslavenska Lloyd of Dubrovnik acquired the vessel in 1935, converting her to commercial use as the Tiha. She was reported sunk in 1947. <img src="https://photo-assets.superyachttimes.com/photo/195697/image/large-d97b889f77faf25c8b41b167ca4b684a.png" data-gid="gid://syiq/Photo/195697">DORIS // 85.1m // 1910 // 963 GTDesigned by the legendary <a data-gid="gid://syiq/Company/275" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="G.L. Watson & Co. Ltd (Company)">G. L. Watson</a>, Doris was completed for Glasgow-based Solomon B. Joel in 1910 before being requisitioned by the British Admiralty in 1914 for service as an auxiliary patrol vessel. Renamed Eileen when returned to her owner in 1919, she was sold in 1931 to the commercial owner Soc D’Armement des Croisieres Pierre Dupuy of Le Havre, before being converted for passengers and renamed Girundia II. Operated by several owners until 1954 when the Government of Kuwait acquired and renamed her Al Salimi. No longer seagoing by 1973. &nbsp;<img src="https://photo-assets.superyachttimes.com/photo/195690/image/large-d7dd2290775272c707cc6cd2ad7ca676.png" data-gid="gid://syiq/Photo/195690">JEANNETTE // 75.6m // 1911 // 931 GTAnother <a data-gid="gid://syiq/Company/275" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="G.L. Watson & Co. Ltd (Company)">G.L. Watson</a> design, Jeannette was delivered to Harry Livesey of Glasgow in 1911 before being requisitioned by the Admiralty between 1915 and 1919 and renamed Jeannette II. Sold in 1934 and promptly again in 1936, she was acquired by Col. John Gretton in 1939 and renamed St. Modwen. During WWII she served as an anti-submarine vessel before being purchased by commercial interests and converted to a cargo ship. Finally broken up in 1950 at Haifa, Israel.<img src="https://photo-assets.superyachttimes.com/photo/195693/image/large-79e4dca7de4e76b8cb17aadae23edc2f.png" data-gid="gid://syiq/Photo/195693">SAPPHIRE // 86.9M // 1912 // 1207 GTDelivered to the Duke of Bedford in 1912, Sapphire was requisitioned by the Admiralty in 1915 and used as an auxiliary patrol vessel until 1920 when she was bought by Viscount Furness. Lord Fairhaven acquired her in 1923 and would retain ownership until Admiralty requisition in 1939 when she was renamed HMS Breda. Sunk after collision with a submarine in Scotland 1944.<img src="https://photo-assets.superyachttimes.com/photo/195696/image/large-569a978b097e7dbdff150ee86eadefbf.png" data-gid="gid://syiq/Photo/195696">RESTLESS // 61.9m // 1923 // 736 GT&nbsp;Built for Alexander S. Cochran of Glasgow and delivered in 1923, she was quickly sold to Lord Tredegar in 1924. In 1926 the Duke of Sutherland bought the vessel and renamed it Sans Peur, before selling her to King Faisal of Iraq in 1935 under the name King Faisal I prior to being acquired by the Iraqi government for use as a lighthouse tender. Last reported sighting was in 1974. <img src="https://photo-assets.superyachttimes.com/photo/195695/image/large-88586d637961960d14de18b4b945d1e1.png" data-gid="gid://syiq/Photo/195695">THALASSA // 60m // 1924 // 876 GT&nbsp;The American heir to a leading carpet manufacturing business set up by his father, Eugene Higgins commissioned this steam yacht in the early 1920s. Acquired by the British government in 1944, she was used as an examination vessel in the Mediterranean. In 1945 the owner became W.G. Hetherington of Glasgow who renamed the yacht Suilven. After his death, Thalassa was sold to the Government of Iran in 1947 and converted for use as a pilot vessel. Later history unknown.<img src="https://photo-assets.superyachttimes.com/photo/195698/image/large-15db8b5363d66f26731a4b73a3e5c8ec.png" data-gid="gid://syiq/Photo/195698"><a data-gid="gid://syiq/Yacht/2841" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Nahlin91.44m (300'0&quot;)John Brown & Sons1930">NAHLIN</a>&nbsp;// 91.44m // 1930 // 1391 GT&nbsp;Owned by the jute heiress Lady Annie Henrietta Yule, this was the largest yacht built so far by the company. One of G.L. Watson’s finest designs, <a data-gid="gid://syiq/Yacht/2841" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Nahlin91.44m (300'0&quot;)John Brown & Sons1930">Nahlin</a> was acquired by King Carol II of Romania in 1937 and renamed <a data-gid="gid://syiq/Yacht/2841" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Nahlin91.44m (300'0&quot;)John Brown & Sons1930">Luceafaru</a>l. The Romanian Government made her part of the Romanian Navy from 1940 to 1948, then from 1953 she became a cruise ship before being converted into a floating restaurant on the River Danube in the 1970s. <img src="https://photo-assets.superyachttimes.com/photo/195694/image/large-128600e12862bca63ebcde95d3eb6a39.png" data-gid="gid://syiq/Photo/195694">Rescued by British broker Nicholas Edmiston in 1999, on behalf of Sir Anthony Bamford, she was shipped to the UK for restoration by Cammell Laird and then to <a data-gid="gid://syiq/Company/5" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Nobiskrug (Company)">Nobiskrug</a>, Rendsburg, Germany, after the UK builder went into administration. Finally completed by <a data-gid="gid://syiq/Company/3" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Blohm & Voss GmbH (Company)">Blohm &amp; Voss</a> in Hamburg and later acquired by Sir James Dyson. <a data-gid="gid://syiq/Article/52285" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="History: Proteksan and Turquoise Yachts on how they came to be (2021-01-18 16:45:00 +0100)">She is still in service today</a>.<img src="https://photo-assets.superyachttimes.com/photo/4763/image/large-d6b11c735fff1e9300269ef834ec76ba.JPG" data-gid="gid://syiq/Photo/4763">ENCHANTRESS // 86m // 1935 // 1474 GTLaid down as the naval sloop HMS Bittern for use by the Admiralty in 1935, she became an Admiral’s yacht for occasional use by British royalty. Fitted with four steam turbines, Enchantress was converted to a passenger excursion vessel in 1947 based at Ramsgate, UK. Broken up 1952.<img src="https://photo-assets.superyachttimes.com/photo/195692/image/large-3836c10b8c07ccd8965505e5b9c2af57.png" data-gid="gid://syiq/Photo/195692"><a data-gid="gid://syiq/Yacht/11148" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Britannia126.0m (413'5&quot;)John Brown & Sons1954">BRITANNIA</a>&nbsp;// 125.6m // 5769 GT&nbsp;Completed to great acclaim as the new British Royal yacht in 1954, much has been written about HMS Britannia and her world tours over the years. Decommissioned in 1997 after a farewell tour of the British Isles, the yacht is now situated at Leith in Scotland and is one of the UK’s top tourist attractions. Today there are many discussions about whether a new <a data-gid="gid://syiq/Yacht/11148" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Britannia126.0m (413'5&quot;)John Brown & Sons1954">Britannia</a> will be <a data-gid="gid://syiq/Article/52813" href="#managed-by-system" rel="noopener noreferrer" target="_blank" title="Royal Yacht Britannia: A look back in history (2021-04-29 16:00:00 +0200)">built for the service of her country and Royal Family</a>.<img src="https://photo-assets.superyachttimes.com/photo/195689/image/large-be6014e4fdb5b45ade91c2239a542438.png" data-gid="gid://syiq/Photo/195689">This article was originally published in the&nbsp;September/October 2020 issue of The SuperYacht Times newspaper. To receive all future issues straight to your door, <a href="https://shop.superyachttimes.com/" target="_blank">subscribe to the newspaper here</a>.

John Brown and Co. Yachts: A history of the yacht builder

SYT in-house yacht historian investigates John Brown & Co. yachts and the builder's brilliant history.

A history of steel-maker turned yacht builder John Brown & Co 

A trending topic over the past few months following the announcement of Britain’s impending exit from the European Union is the questionable fate that the U.K. yachting industry might face should a total departure from mainland europe’s economic influence indeed be the outcome. The effects of the recent Brexit vote, according to some industry players, have already begun to affect the affairs of those with connections to Britain. Here we attempt to establish the facts as we get insights from various market segment players and their thoughts on this major upsetting or reviving development.

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Kiran Haslam

Marketing Director - Princess Yachts

 

How has the initial drop in the pound’s value affected your business?

The immediate drop in the value of the pound in relation to euro and U.S. dollar has obviously positively impacted our order book in the short term, however, as we are a European builder, building entirely in the United Kingdom with specific ISO quality certification resulting in EU TR and PEFC requirements, our cost to build has increased proportionately by the very same exchange rates, so there is little to no long term advantage for this outcome.

 

Were you prepared in any way for such an outcome following the Brexit referendum?

Not exactly, as I think that the outcome was a surprise to most. However, we pride ourselves on our organic approach to growth and that has resulted in a truly global footprint with over 64 dealers spread all across the world that creates a very stable base for us to build sales upon each and every year.

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Jamie Edmiston

CEO - Edmiston

 

How do you feel the British yachting community should be dealing with the Brexit outcome?

Now that the decision has been taken to leave, I will encourage everyone I know to galvanise behind the country and our future success as a nation, working together with European countries and also, importantly, the rest of the world. Britain is the world’s fifth biggest economy; we are a country of enterprise, creativity and innovation - the shock that many of us felt at the time has already begun to ebb, and I hope it will give way to an opportunity for the future.

 

Is there something to look forward to?

As far as the yacht business goes, despite the shock, I have heard many encouraging comments in the weeks since the result came in, including opportunities for shipyards and other service providers who may well benefit from being outside the EU and a more competitive sterling rate. I see no reason why Britain should not retain its leading position in the yacht business - be that design, management, brokerage or legal services. Many of the world’s leading yacht designers and naval architects are based in the U.K., all of the leading brokerage houses have offices in the U.K., and many of the leading maritime lawyers are in the U.K. Yachting is, and will, remain part of the U.K. economy.

 

Simon Goldsworthy

Broker – Camper &amp; Nicholsons

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Will Brexit’s consequences affect British owners’ buying power?

Undoubtedly. The fall in sterling has effectively made the British buyer’s budget 20% smaller. We have already experienced British buyers who a few months ago would have been able to buy the yacht they wanted now having to set their sights on smaller or older yachts instead. Conversely, sellers of sterling priced vessels are feeling the benefits, with a number of yachts quickly going under offer to euro or dollar buyers at good prices. 
	 

Did you experience certain clients standing by for Brexit to take place before going ahead or cancelling on a deal?

I think it’s fair to say that the result took everyone by surprise. I didn’t really have anyone delaying because of Brexit, mainly because no one believed it would happen. However immediately afterwards I had two clients pull out of new build deals, at least for the time being. I think like all of us they want to let the dust settle and then judge what this means for the economy and their future prospects.

 

Nicholas Warren

CEO - Burgess Marine

 

How has Brexit affected the British refit business in its initial stages?

The reality is that we’re better than good when it comes to superyacht refits. With the pound devalued we’ve become fantastic value for money, too. Fuel’s cheap and the expertise is very much available and South Coast centric; yacht management companies, captains, engineers and owners would be mad not to price up a U.K. refit. With prices from only £35 an hour we can genuinely better our Mediterranean competitors in terms of both price point and the quality of workmanship.

<img alt="" src="https://syt-store-production.s3.eu-west-1.amazonaws.com/photo/162460/image/large-d17b1f8997264104eddcf67b0e547682.jpg" data-gid="gid://syiq/Photo/162460">

Benjamin Maltby

Yachts &amp; Superyachts division at Ince &amp; Co

 

Will the effects of Brexit be felt mainly in Britain or across the entire industry?

The effects of Brexit will be felt across the entire industry. We have already seen a weakened pound make U.K. superyacht goods and services less expensive, potentially boosting U.K.-based yards, equipment manufacturers, yacht managers, banks and professional advisers. On the other hand, U.K. boat manufacturers purchasing raw materials in more expensive dollars or euros will be adversely affected and will suffer tighter margins unless they are able to raise their prices.

 

Yacht owners are often involved in dealing with difficult times within their own companies. Do you feel this uncertainty will cause them much concern?

Brexit may be good news for U.K. yacht owners (making up 6% of the global superyacht feel - SuperYacht iQ). Depending on the final settlement reached, U.K. nationals may no longer be 'established' in the EU for VAT purposes, thereby becoming entitled to use their Red Ensign yachts privately in the Mediterranean, under Temporary Admission.

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What questions should we be asking?

Partner at Clyde &amp; Co, John Leonida, feels that amidst all the speculation and apprehensive predictions, just some of the real questions we should be asking ourselves are these:

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-Will U.K. yachts or U.K. crew based in the EU still be bound by the EU employment law?

-What future will the Isle of Man have, where historically it has been part of the fabric of the superyacht space?

-Will the Red Ensign be a clear foreign flag with no right to operate commercially in EU waters?

-What will happen to the EU based professionals from the U.K.; the lawyers, the bankers, the crew, the tax advisers and yacht brokers? Will they be allowed to stay and will they be allowed to continue to work in their chosen field?

-Will EU refit yards seek a tax free haven in the U.K. for export orientated refits?

-Will U.K. based professionals become cheaper if their services are exports to the EU? 
	 
	 

What are your thoughts on the potential effects on the superyacht industry following the Brexit vote? Let us know at <a href="mailto:info@superyachttimes.com" target="_blank">info@superyachttimes.com</a>.

This article was published in the latest edition of the SuperYacht Times newspaper. <a href="http://www.superyachtcompany.com/newspaper/the-superyacht-times-subscription" target="_blank">Subscribe now</a> and never miss another issue.

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Insight: The Brexit Breakdown

By Frances and Michael Howorth

Here, Frances and Michael Howorth assess the sometimes complex nature of the relationship between superyacht brokers and shipyards. This feature appeared in the very first issue of the SuperYacht Times newspaper published back in 2014.

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The relationship between sales brokers and the shipyards that build superyachts is both important and, by its very nature, complex. There exists between the two, a love-hate relationship that either works or does not. To some shipyards, the idea of having to deal with a prospective owner through the middleman is viewed as interference, whilst to others, that same person is the grease on the cog that keeps the essential wheels in motion from start of negotiations to delivery of a finished vessel.

 

In much the same way, brokers prefer working with shipyards that understand their work philosophy and value their input. Jan Jaap Minnema - a hugely accomplished broker with Fraser Worldwide - says, “Some shipyards have more experience of working with brokers and their clients and are better able to identify the needs of the broker who is representing the buyer. Shipyards need to accommodate the brokers by supplying information they need, such as GA’s, planning, delivery schedule, technical questions.”

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The relationship between the two needs to be flexible and understanding to the point that either side can be contacted after business hours for updates, and to talk through change of plans made by clients. If the yard knows that you are a knowledgeable, broker and have questions that can add value, they are mostly all happy to work with you.

 

Patrick Coote of Blohm + Voss told us, “Enquiries for new projects can come directly from clients, indirectly through a broker or indeed via a multitude of weird and wonderful routes. Ultimately, the most important thing is simply that the enquiry reaches the shipyard. Far from being parasitic or even symbiotic, the relationship between shipyards and brokers is unquestionably mutualistic. Our priority is simply to ensure they know that our response to their enquiries will always be fast, accurate, comprehensive and honest.”

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There are also those in the superyacht industry who believe when it comes to signing a new build that the role of broker is of vital importance. Mark Cavendish, Sales and Marketing Director for Heesen Yachts, believes in cultivating their attention and putting their sales activities to the forefront when it comes to selling their fast displacement yachts. “Ordinarily, outside brokers account for 50% of our sales year-on-year,” he says.

 

The company is well known within brokerage circles for hosting its annual brokers ski trip when about 20 or so Heesen staff invite up to 30 brokers from around the world to join them for a three day stay in the Italian Dolomites for a promotional, fun event. Cavendish explains, “It's rather like when Rolls Royce or Bentley gather their top salesmen from independent car showrooms and introduce them to a new and upcoming model. We do that by taking over the small 5 Star, Rosa Alpina Hotel in San Cassiano each year and introduce a yacht that we are building on spec in the hope that they may have a better understanding of what it will offer to their client.”

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The relationship twixt broker and client should never be underestimated. Often it has been built on years of mutual understanding and many owners would never dream of entering into a relationship directly with a shipyard without their trusted broker by their side. For many years the serial yacht owner, John Staluppi, has relied on the advice of Peter Thompson, a superyacht Captain turned broker.

 

Thompson has worked in the industry for over 30 years and is now a partner with Worth Avenue Yachts in Monaco. His own experience representing owners in dealings with shipyards suggests things are changing, “What I find problematic,” he says, “Is that shipyards are now trying to take ‘ownership’ of clients soon after you have introduced them. It’s an unpleasant situation to encounter. Brokers like me have only got two commodities when it comes to selling our services: our integrity and our contacts. We handle both with the respect that each deserves but there are shipyards out there that simply do not respect that... In this business there should be more respect and integrity between the team players.”

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Luuk V. van Zanten, Founder and Marketing Director at Curvelle, believes that as a yacht builder the relationship he has with a new-build competent sales broker who has been hired by the client to represent him, is a vital link in the yacht selling process. He comments, “As with any small shipyard it is difficult cover all the marketing and sales aspects over several sales channels and thus especially for new custom constructions, we very much welcome to work with competent brokers that are representing a specific client.”

 

In fact, Van Zanten would like to strengthen the current system between brokers and shipyards. He adds, “In most cases the broker gets paid a commission by the shipyard for introducing a customer and then goes on to represent both the client and the shipyard in contract negotiations to make the construction contract a reality. As an alternative arrangement we think that it will be more beneficial to all parties that the yard and the client each pay 50% of the broker’s fee. Since both client and shipyard make use of the broker’s skills and knowledge, it will be easier for the broker to act as a true middleman required by and paid for by both parties for the duration of the construction.”

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Equally, there are those in the superyacht industry who believe that when it comes to new build yachts the role of broker has been greatly diminished. John Leonida is a partner with the law firm Clyde &amp; Co in London. In his opinion, “Today more deals are getting done with no brokerage involvement at all, especially by experienced yacht owners... I am not certain that shipyards are as centrally focused on brokers the way they used to be. It was the case that in the past, shipyards perceived that deals were in the gift of the brokers. Pre-2000 when our knowledge of what could be built was limited, it was the specialist knowledge of very good brokers, that made shipyards crave their attention and offer commission.”

Insight: Superyacht brokers and shipyards

Hoek Brokerage have announced the in-house sale of the 32.8 metre sailing yacht Jazz Jr. built by Turquoise Yachts in 2009. At the time of the sale the yacht was on offer at an asking price of EUR 3.800.000.

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Jazz Jr. will be privately used by her new owner and Hoek Brokerage has been appointed as the agent for future charter operations of the yacht. “The purchase and sale procedure was conducted professionally by Hoek Brokerage, and the closing procedure was orchestrated under the highly efficient responsibility of Clyde &amp; Co,” commented Pieter van der Weide, Managing Director at Hoek Brokerage.

Hoek Brokerage sells 32.8m sailing yacht Jazz Jr.

On the second day of the fifth edition of the Singapore Yacht Show, we interview John Leonida of Clyde &amp; Co. <iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/nvwfa5e0z1E" width="560"></iframe>