This, says group chairman Rhoddy Swire, represents a small financial improvement over the results for the previous year, but was achieved in the face of very difficult conditions.

Among those difficult conditions is the weakness of the US dollar. Lewmar says the rapidly deteriorating USD obscured a very good performance in the US where sales increased in local currency by 18.3% but, due to the exchange rates, translated into only 6.9% growth in GBP and led to a reduction in the margin on such sales by £.7m.

"You could say if it wasn't for the dollar we'd have made a profit, " Arthur MacMillan, Lewmar Group CEO, told BB.

In addition to the weakness of the dollar, the accounts refer to "the increasing consolidation and purchasing power of major boatbuilders" having changed the balance of the market.

Along with other major suppliers, Lewmar was em-broiled in intense price negotiations with Beneteau last year, resulting in the loss of its winch supply business to Harken.

Lewmar, however, fought back and promptly ousted Harken from its position as winch supplier at Bavaria.

MacMillan refused to be drawn on the costs of the Beneteau/Bavaria/Harken spat, allowing only that: "There's no hiding the fact that losing the Beneteau winch business was not something we enjoyed."

"The main story is strong price competition cannot be underestimated, along with the dollar problem - those are two things we are actively seeking to redress with investment in equipment, " concluded MacMillan.