Info Aqualung Financial Troubles

[Divin'Papaw]

Another interesting development. Force-E, which is a large LDS in South Florida with 5 locations across Palm Beach and Broward counties and has always been a huge Aqua Lung dealer, is now a ScubaPro dealer as well. I don't think that ever would have come about if they didn't have significant concerns about the health and long-term viability of Aqua Lung.

 

[cerich]

Another interesting development. Force-E, which is a large LDS in South Florida with 5 locations across Palm Beach and Broward counties and has always been a huge Aqua Lung dealer, is now a ScubaPro dealer as well. I don't think that ever would have come about if they didn't have significant concerns about the health and long-term viability of Aqua Lung.

well, the former SP sales rep in the area for decades is also no longer with SP. That also may play into

 

[LandonL]

Updated financials now available. (edit: For Apeks, to be specific)

Revenue of £11,087,418 (Prior Year £14,360,722, so -22.79%)
Current Losses of £5,362,930 (prior year loss £1,480,585, +362%)

 

[ChrisMBC]

Aged like fine milk:

Buoyed by expectations of a full pre-COVID revenue and profitability recovery this year, Aqualung Group is well positioned for double-digit growth in 2023 over 2022. The group already forecasts a growth of +30% for 2023 compared to the year 2020, which was marked by the COVID crisis. The group foresees a 7.5% growth in its core business (dive equipment segment) during the first half of 2023 as compared to the corresponding period in 2022.

Therefore, despite remaining tight supply in certain categories like neoprene suits and buoyancies, the Group remains poised for sustained expansion.

 

[Umuntu]

Updated financials now available.

Revenue of £11,087,418 (Prior Year £14,360,722, so -22.79%)
Current Losses of £5,362,930 (prior year loss £1,480,585, +362%)

That’s only Apeks Marine Equipment Ltd. Not the Aqualung group. But yeah …

Digging into the kelp forest …

UK sales went up approx 50%
Global sales went down approx 50%

They wrote off £2.5million of trade debt in 2023,
In 2022 it was only £600k.
Take as much of the pain in one year …

They will need to focus on improving global sales. Part of the issue is that their regulators are now widely copied and their pricing outside UK is not competitive.

 

[tbone1004]

That’s only Apeks Marine Equipment Ltd. Not the Aqualung group. But yeah …

Digging into the kelp forest …

UK sales went up approx 50%
Global sales went down approx 50%

They wrote off £2.5million of trade debt in 2023,
In 2022 it was only £600k.
Take as much of the pain in one year …

They will need to focus on improving global sales. Part of the issue is that their regulators are now widely copied and their pricing outside UK is not competitive.

You say that last sentence like it is a new thing when it has been a major issue for 15+ years, it's not like their patent expired 3 years ago and all of a sudden the market is flooded. Global sales down 50% is probably tied into the fact that the dealers haven't been able to get any inventory for a couple of years, can't sell what you don't have....

 

[VsubT]

Different sport, similar story:

KTM Votes on “Complete Closure of Entire Company” - BMW Buys?

 

[BeerNye]

So it sounds like everything is still up in the air with Apeks? Those financials don’t look particularly promising.

I really like my DST/XTX50 setup. Would be a real pain in the butt if I had to replace it due to lack of support.

Would probably move to a Deep 6 or Dive Rite setup in that instance (most of the folks I dive with have one or the other.)

 

[Badger7]

So it sounds like everything is still up in the air with Apeks? Those financials don’t look particularly promising.

I really like my DST/XTX50 setup. Would be a real pain in the butt if I had to replace it due to lack of support.

Would probably move to a Deep 6 or Dive Rite setup in that instance (most of the folks I dive with have one or the other.)

Agreed, I really like my DSTs as well. You've already made the investment, and they are fantastic regs, if you're truly concerned for long term support, just buy a couple first and second stage service kits and squirrel them away. There are hundreds of Aqualung/Apeks techs that arent going to forget how to replace o-rings and tune those regs if Apeks' creditors liquidate them.

My gut says that if that happens, someone will buy the brand rights cheap and happily assemble and sell service kits. The markup on a bag of inexpensive parts is pretty compelling, and legally slapping an Apeks logo on the label would easily command another $10 per kit over anything aftermarket.

 

[Divin'Papaw]

Would probably move to a Deep 6 or Dive Rite setup in that instance (most of the folks I dive with have one or the other.)

I went with one of each!