Princess Yachts Confident in Return to Profitability Following Challenging Period

British boatbuilder Princess Yachts has expressed confidence in its ability to return to profitability after reporting a £45.6m operating loss in its latest accounts. The Plymouth-based company, which recently laid off 250 staff amid ‘market challenges’, has outlined a new vision for the firm’s business and growth plans extending to 2030, supported by strong sales performance this year.

The firm, which currently employs about 2,700 people, has suffered a challenging financial period, also reporting a £69m pre-tax loss in 2022. The recent redundancies came after a smaller round of layoffs earlier this year, which affected around 40 office-based roles.

According to its recently published annual report and accounts for the year ended 31 December 2023, Princess Yachts Ltd saw its revenue rise by £20m in 2023, reaching £310.5m. Continued supply chain disruptions saw the firm file an EBITDA of £24.5m, up from £13.3m in 2022.

Investments from private equity firm KPS Capital Partners, which acquired the business in March 2023, have supported its operations and underpin future growth plans. KPS injected around £54m into the company, enabling investments in its South Yard production facility and other areas.

The company has since restructured, introducing a vision centred on continuous improvement and an “ambitious turnaround” strategy.

Princess Yachts reports that by the final quarter of 2023, “significant progress” had been made in its turnaround efforts. The company projects a “remarkable” £27m improvement in EBITDA for 2024 and anticipates a return to profitability. In 2023, Princess invested £12.6m in new product development, launching three new boats, a strategy that continues to drive strong commercial results.

The firm has committed to a five-year rolling product development plan, introducing at least two new models annually. With an order book exceeding £700m extending into 2026, Princess Yachts believes it is well-positioned to deliver continued growth and improved profitability. The company also reported that 90 per cent of its 2025 production capacity has already been sold, with some models ordered into mid-2026.

In a statement, the firm describes 2023 as a “critical year” for Princess Yachts.

“Commercially, we remained strong with a healthy order book, but major supply chain disruptions continued to seriously impact our operational efficiencies and production output,” CEO Will Green says.

“The acquisition by KPS Capital Partners not only brought a substantial cash injection but the subsequent operational expertise brought by them inspired and invigorated an ambitious turnaround plan that has focused on productivity, quality, waste elimination and the reduction of fixed costs. Excellent progress has been made on this plan throughout 2024, resulting in a significant swing in profitability from negative EBITDA in 2023 to positive EBITDA in 2024, putting us on plan for increasing cash generation through 2025 and positive, profitable growth in the years ahead.”