Princess Yachts Navigates Through Financial Storms To Calmer Waters

Plymouth’s prestigious boat builder, Princess Yachts, has emerged from challenging financial waters with renewed optimism under fresh ownership. The British superyacht manufacturer, specialising in luxury vessels priced up to £12 million, is charting a course towards profitability after weathering significant losses in 2022.

The company, operating from its historic base near Stonehouse Creek, produces approximately 200 handcrafted vessels annually. These boats, whilst destined for Mediterranean and Caribbean waters, are rigorously tested in the demanding conditions of the English Channel, reinforcing their reputation for maritime excellence.

Recent years have proved turbulent for the yacht builder. Despite initial benefits from wealthy clients seeking private sanctuaries during the pandemic, supply chain disruptions led to substantial losses of £61 million on £315 million revenue in 2022. The situation prompted intervention from KPS Capital Partners, which acquired control from L Catterton, injecting £53.7 million in fresh capital.

The manufacturer’s operations are impressive in scale, employing 2,700 staff across five facilities spanning 1 million square feet. Unlike automotive production lines, Princess Yachts maintains a distinctly artisanal approach, with most components manufactured in-house. The company’s vertical integration strategy stems from the UK’s limited marine supply network and Plymouth’s geographical position.

Sales patterns reveal interesting market dynamics, with Mediterranean countries accounting for 50% of purchases, followed by the US at 35%, while domestic UK sales represent merely 5%. The company’s bestseller, an 80-foot triple-deck model, commands a base price of £6 million, with customisation potentially adding 10-15% to the final cost.

Under new leadership, the outlook appears promising. Chief Executive Will Green projects break-even results this year, following strategic workforce adjustments, with expectations of “very sensible” profit levels by 2025. The company’s commitment to Plymouth remains strong, evidenced by recent recruitment of 20 apprentices from 600 applications, maintaining its position as one of the city’s largest private sector employers.

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