"As the manufacturer of an international luxury product, we are committed to building close relationships with our own dealerships and their end customers alike, " said Fairline CEO Derek Carter. "We have a wealth of experience with single-step distribution in other core territories and recognise the long-term benefits this distribution channel delivers to both manufacturer and dealer."

Later that afternoon, Peters plc issued the following statement: "We acknowledge Fairline's statement of today as fact, and at this time can only add that we have a very strong working relationship with Fairline. We are still in negotiations with them regarding a new agreement for Peters, and we are working toward a successful outcome for both companies."

Carter went on to say: "This recent move will further strengthen our business partnerships in these key areas and we look forward to business as usual at the forthcoming shows as we launch exciting new 2006 models, including the all new Squadron 66."

As we went to press BB checked the situation with both companies.

Fairline said there was nothing more to add, while a spokesman for Peters told us "negotiations are continuing", but would make no further comment.

Brian Peters was on holiday in Mallorca at the time the Fairline statement was released and was not expected back in the office until the first week in September.