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Operating loss of £30m for Princess Yachts

Princess Yachts made an operating loss before exceptional costs of £30m in 2022, with a revenue of £315.2m.

The company’s accounts show a loss before tax of £43.3m and an EBITDA loss of £25.7m.

However, the boatbuilder says there is a solid order book and this, together with new financial and operational support from KPS Capital Partners will provide the opportunity to form a foundation to move forward and expand the Princess brand.

In his strategic report, CEO Will Green points out there was a surge in demand across its range in 2021, tempered by a backdrop of unprecedented supply chain disruptions that led to loss of volume and inefficient build of yachts. The supply chain disruption continued in 2022.

Investment

In November 2022, the directors and shareholders entered into an agreement with KPS to secure investment.

The transaction was concluded in March 2023 with an equity / cash injection of £53.7m, however during this period, manufacturing operations were adversely affected.

Princess Yachts V50
Princess Yachts V50

Despite challenging operational performance, the product strategy has continued with three new boats launched in 2022 and a further three planned for each of 2023 and 2024.

Total product development in 2022 was £14.7m, with the boatbuilder saying continued intensity will help it grow global market share in the 35ft to 100ft category.

Initiatives

As at July 2023, the deposited order book is in excess of £750m, stretching into 2025.

Princess Yachts continues to carry on with its sustainability initiatives, focusing on hull efficiency and space efficiency.

Improvements in hull efficiency have exceeded 20% from one generation to the next.

The boatbuilder is also experimenting with alternative, more sustain materials in the fit out of the boats as well as improvements in the footprint of producing boats.

Other external factors continue to be monitored, including the Russia / Ukraine war and the impact of the UK’s inflation.

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