SuperyachtNews.com - Business - Princess Yachts reports 'disappointing” results

By SuperyachtNews

Princess Yachts reports “disappointing” results

Despite losses incurred due to supply chain issues, the British boatbuilder is optimistic for the 2023 financial year…

Princess Yachts has recorded millions in losses in its recently released results for the fiscal year ending on December 31st, 2022. Despite this, the British shipbuilder is optimistic about its business prospects in 2023, having navigated significant disruptions to its operations and securing investment.

Princess Yachts reported a slight increase in its annual turnover, climbing from £308m in 2021 to £315m in 2022. However, a surge in operating costs during this period led to Princess Yachts experiencing an EBITDA decline, moving from a loss of £200,000 in 2021 to a loss of £25.7m by the end of 2022.

This was mainly due to supply chain challenges, with some partially built boats having to be temporarily taken out of construction. This resulted in increased financial working capital requirements and delays in project completion, all while incurring substantial retrofitting costs.

The most affected components included large items such as engines, generators, electrical panels, and air conditioning equipment, which often arrived months behind schedule.

The financial impact of this has been somewhat mitigated as the company secured additional capital to enhance its production efficiency and expand its capacity. Following its acquisition by KPS Partners earlier this year, there has been a cash injection of £53.7m into the group to support working capital and future growth.

“Looking forward with the transfer of ownership to KPS Capital Partners in March 2023, the Board of Directors look to embrace their manufacturing and transformation expertise along with financial support, to evaluate short-term and strategic opportunities for the company within the marine sector,” says company CEO, Will Green.

Princess Yachts also announced plans to invest £35m in new product development and £5m in expanding its primary South Yard Facility in Plymouth.

In terms of the shipyard’s outlook for the future, Princess Yachts has invested £14.7m in product development and introduced three new models, including the Princess Y95 (pictured). The shipyard further unveiled plans to introduce three new models in 2023, with three more slated for 2024.

These new models have translated into prospective commercial success, resulting in an order book of over £750m as of July 2023, with deliveries scheduled up to 2025. Alongside its expanding capacity, Princess Yachts anticipates that these developments will be the driving factors behind to its long-term growth strategy.

Profile links

Princess Yachts

Join the discussion

Princess Yachts reports “disappointing” results

35325

To post comments please Sign in or Register

When commenting please follow our house rules


Click here to become part of The Superyacht Group community, and join us in our mission to make this industry accessible to all, and prosperous for the long-term. We are offering access to the superyacht industry’s most comprehensive and longstanding archive of business-critical information, as well as a comprehensive, real-time superyacht fleet database, for just £10 per month, because we are One Industry with One Mission. Sign up here.

Related news

Image for Lürssen launches Project Cali

Lürssen launches Project Cali

The elusive new 82m yacht from the German shipyard has left the construction shed for the very first time

Fleet

Image for Marine Group Boat Works invests millions

Marine Group Boat Works invests millions

The US-based shipyard has undertaken a modernisation project in a bid to support its environmental sustainability goals and enhance capacity

Business

Image for Falcon Tenders secures multi-million-pound investment

Falcon Tenders secures multi-million-pound investment

The Southampton-based superyacht tender builder has secured a substantial investment from a British-led consortium

Business

Image for First Benetti Class 44M sold

First Benetti Class 44M sold

The Class line flagship has been sold in collaboration with Northrop & Johnson, with delivery planned for February 2025.

Fleet

Image for Princess Yachts appoints new CEO

Princess Yachts appoints new CEO

Princess Yachts has announced the appointment of Will Green as CEO, succeeding Antony Sheriff in the position

Business

Image for First look: Project 823

First look: Project 823

The 67m Project 823 moved outside of the construction hall at the Kaag yard for final outfitting before sea trials later in 2023

Fleet

Sign up to the SuperyachtNews Bulletin

Receive unrivalled market intelligence, weekly headlines and the most relevant and insightful journalism directly to your inbox.

The SuperyachtNews App

Follow us on