Ocean Sailing Expeditions is not in liquidation

Ocean Sailing Expeditions is operated by Ocean Sailing Expeditions Group Pty Limited. Ocean Sailing Expeditions (OSE) is Oceania’s favourite sailing adventure company and has been operating since 2020. We have taken more than 1,500 customers safely across 1.7m + nautical miles of ocean between them. Ocean Sailing Expeditions is not in liquidation and never has been.

Due to changes in the business and market in the first 6 months of 2025, Ocean Sailing Expeditions set out to restructure its business, to ensure it could evolve and grow profitably, through the economic challenges it was facing. Despite rumours of our demise for the past 5 years now, we have continued to evolve, reinvent and grow, and we are definitely not in liquidation.

For 5 straight years our sales have grown, despite COVID19 lock-downs, adverse weather, economic downturns and vessel challenges. In the last 12 months we have faced our toughest set of challenges ever, but they have caused us to double down, think differently and take the bold and innovative steps, to reset the foundation required for profitable and sustainable growth.

The challenges we have faced in 2024/25;

• The 30-70% rise in the hourly rates since COVI19, charged by contractors for repairing our vessels.

• A continued economic downturn in New Zealand, impacting demand for sailing and motor events. We have suffered the second straight year of sales decline, despite growth in Australia and the Pacific Islands.

• The rising cost of servicing debt, used to fund the growth of our fleet, from one to four vessels over the past five years.

• The new booking platform rolled out in March 2025 after 4 months of development and testing, had significant performance issues for users on 3G or 4G broadband. This impacted Mar-May bookings and forced us to make the difficult decision to abandon the project, start again and work around the clock to roll out We Travel as a replacement platform 4 weeks later (and 3 months sooner than estimated by We Travel).

• The $230k cost over-runs getting Awen and Te Kaihōpara into survey with the MCA for the first time.

• The initial low demand for Sea Breeze III events due to high pricing and lack of configuration for couples, combined with low New Zealand demand.

• The termination of two underperforming licensed (not owned) vessels from the OSE and underperforming crew, who have formed two new, competing sailing companies between them. They have failed to get traction, despite under handed, unethical and allegedly unlawful actions taken, by a handful of people, determined to damage the OSE business for their own commercial gain. One of the companies has already changed it name and ceased all operations in 2025-2027.

• $110k in excessive and abnormal damage to sailing yachts, through miss-management of the vessels by negligent and/or inexperienced crew.

• The rising cost of the OSE membership program, after it was launched initially in 2020, to help fund the acquisition of Silver Fern and released again in 2023 to help fund the acquisition of Te Kaihōpara. To date members have received more than $2.5m in benefits by way of sailing credit, discounts and dividends. The cost and value delivered to members exceeded all expectations and is no longer sustainable.

• Global issues have impacted tourism and the economies of New Zealand and Australia this year and had a flow on effect on our business.

• We were also been the target of $90k marketing fraud by external contractors in early-mid 2025.

The future is here

OSE has now implemented the majority of strategic initiatives, identified in a review of its business operations in early 2025, with the 3 months of financial results from Sep - Nov 2025, it’s highest sales quarter on record.

The successful restructure of OSE in mid-2025 has included;

• The launch of Ocean Sailing Expeditions Group Pty Limited, who purchased the trading assets and 90% of liabilities from OSE QLD Pty Limited early in 2025.

• The roll out of the We Travel itinerary and booking management system to streamline the booking process and reduce customer administration by 150+ hours per month.

• The voluntary liquidation of the non-trading company, OSE QLD Pty Limited by its Director: David Hows, after the actions of a predatory competitor and former licensee, forced the action. It was initiated with a view to negotiating settlement and payment agreements with all outstanding OSE QLD Pty Limited creditors. The actioned was deemed necessary to protect and ensure the survival and growth of the restructured Ocean Sailing Expeditions business, which continues to thrive and grow.

• The sale of 3 sailing yachts to owner-operators, who will operate them under license to OSE, enabling OSE to eliminate all long term debt completely (still in progress), while retaining use of the yachts. This will maximise vessel quality management, ensure crew continuity and reduce vessel operating costs.

• The cancellation of New Zealand summer events for 2025/26 for Sea Breeze III and Te Kaihōpara.

• The addition of licensed owner-skippers, with vessels such as Cruczar and Kiss, joining our fleet in New Zealand to offer events with smaller berth numbers (6-8) and at lower price points (from NZD $2,950) to cater to market demand. We have plans to add a number of new licensees over the next 5 years in 12 key locations around Oceania.

• The termination of our marketing contractor in July, after an audit uncovered 75% of our marketing spend with Facebook and Google, being spent on traffic from South Korea, India and the UK, which generate less than 3% of bookings. This cost us $90k and led to a substantial downturn in bookings from March to August 2025.

• Marketing spend is now managed in-house with record sales growth achieved from Sep-Nov 2025 and November on track to set a new monthly record.

• The planned conversion of Sea Breeze III from 9 to 12 berths and increase from 3 to 5 couples cabins to increase revenue (still in progress). This has led to 30% lower pricing, with 2026 already 55% booked out and sales already 310% up on 2025.

• The reflagging of Sea Breeze III under Fiji, with the vessel now permanently based in Fiji operating surf, kayak and cruising charters from April to December each year (still in progress).

Summary

Businesses face difficult challenges at times. Thats part of building a successful business. Some businesses overcome their challenges and thrive, while others fail to adapt and eventually cease to operate. I am personally doing everything I can to take care of our customers, crew, vessels and suppliers.

Written by David Hows
Founder and Managing Director of Ocean Sailing Expeditions
david@oceansailingexpeditions.com.au