Riviera’s remarkable 10-year turnaround after toll of Global Financial Crisis

The revived fortunes of southeast Queensland luxury boat builder Riviera counts as one of the greatest corporate turnarounds in Australia.

The revived fortunes of luxury boat builder Riviera counts as one of the greatest corporate turnarounds in Australian history.

A decade ago the Gold Coast company, which numbered Hollywood celebrities among its customers, was teetering on the brink of collapse, weighed down with $320 million of debt in the wake of the Global Financial Crisis.

Last week, Riviera welcomed its 800th employee with an overflowing order book for its luxury craft that sell for up to $5m.

For Gold Coast businessman Rodney Longhurst, who bought the company out of receivership in March 2012, it has been a journey of hard work and determination.

Riviera boss Rodney Longhurst with the company's new $3.2 million 64 Sports Motor Yacht. Picture: Nigel Hallett

Founded in Sydney in 1980, Riviera relocated to the Gold Coast a year later with a modest staff of five and building only eight boats a year. During the 1980s, a dozen new models were designed, built, launched and exported to both the USA and Europe.

By the early 2000s, the company was flying high with hefty orders, including from celebrities such as Tom Cruise. In 2002, Riviera founder Bill Barry-Cotter sold the business to a private equity group for $180 million.

But disaster struck in the late 2000s in the form of the Global Financial Crisis and a factory fire. Mr Longhurst credits the discipline of his staff as well as a focus on customer feedback for the success of the business since he took over. Mr Longhurst is the son of Dreamworld founder John Longhurst and brother of V8 champion Tony Longhurst.

“It is never easy to know exactly what is going to happen, but I was always a huge believer that we could build a better boat,” said Mr Longhurst, a developer and qualified builder by trade. “The boats are getting better and that is due to the great people we have. It is a great culture and we perform like a sporting team racing for the grand final.”

Last year, the company reported profit had surged from $4.6m to $7.7m, according to financial reports lodged with ASIC.

Riviera Australia chairman Rodney Longhurst at the factory in Coomera. Picture: Tertius Pickard

Revenue over the period climbed from $172m to $197m. Mr Longhurst said Riviera was on track to manufacture 120 boats this year, including its popular new 64 Sports Motor Yacht. “We now have more than two boats a week coming out of the factory,” he said. “The boats are getting better, more luxurious and easier to control.”

He said Riviera had just launched its biggest boat to date, a 78ft motor yacht that augments the company’s range of smaller sportier boats. About half of Riviera’s boats are exported overseas to markets including the US, Europe and New Zealand.

Queensland remains central to boat manufacturing in Australia with companies such as Riviera and Norman R Wright accounting for a large slice of the $4.2 billion sector.

Of the almost 2000 shipbuilding and marine repair businesses in Australia, 32 per cent are based in Queensland.

Mr Longhurst said COVID-19 had sparked renewed interest in boating because it involved clean air and outdoor activity. “We have been really fortunate because boating is now attracting people who were not previously aware of its lifestyle benefits,” said Mr Longhurst. “We also have people upgrading their boats.”

Riviera’s boats could better be described as “floating apartments” packed with modern conveniences and navigational aids. “With controlled steering and joy sticks these bigger boats are easier to control and manage even for couples,” Mr Longhurst said.

He said it was important for Australia that manufacturers like Riviera continued to thrive and to create good quality jobs for local people.

He said the 800th team member was Kylie Scott, 39, a mother of five and grandmother of two, who will be working on the boats as a trade assistant. Her new career followed many years of casual and part-time work in other industries.

As Mr Longhurst looks back on Riviera’s near death experience 10 years ago, he said the best was yet to come for the company. “The stars have aligned for us,” he said. “We have been able to build boats as good as anyone in the world and we have shown it can be done. We expect to do better and better. There is a lot of ocean out there and lots of places to go.”