Oyster Yachts experienced a £18.9 million operating loss including exceptional items for the financial year 2023.
Excluding exceptional items, the operating loss was £16.8m, however, since April 2023, the company has turned a profit.
The results compare with an operating loss for the same period in 2022 or £9.7 million. There was a gross loss of £1m (FY22: gross profit £3.6m).
In the boatbuilder’s report and financial statements for the year ended 31 March 2023, CEO Ashleigh Highfield points out the company’s profitability is expected to continue.
And he said that since April 2023, the boatbuilder has seen continued revenue growth in sales of new yachts with improved margins.
There has also been investment into customer services, a global service network, refit operation, after-sales support, crew, and charter services.
The loss has been put down to supply chain issues, labour shortages and increase costs among other factors.
“The company started the year with a continuation of post-Covid global supply chain issues which impacted the efficiency of production,” he stated in the report. “These challenges were exacerbated by inflationary pressures which ramped up during the period, caused by exogenous global events.”
And Ashley continued: “The operational environment did present production and support challenges.
Labour shortages
“Supply chain issues were exacerbated by continuing skilled labour shortages in the UK, leading to longer yacht production times, and thus delayed revenue recognition.”
In addition, the boatbuilder had increased costs, attributed partly to the investments in production facilities and technology and systems to improve customer support which were reflected in the lower gross margin achieved.
There were also administration costs and exceptional items to improve the operational efficiency of the business.
The company is currently focused on several initiatives which have led to an increase in turnover to £51m, up 20% on £39.4m in 2022.
These latest results reflect the fifth year of the turnaround of the business since Richard Hadida acquired the company.
In the FY 2022-23, he invested an additional £14.5m and has also publicly stated his commitment to the long-term future of the company.
“We will continue investing in our yachts, with a relentless drive to ensure that they offer the very best experience on the water that a yacht can provide,” continued Ashley in his report.
