Princess Yachts suffered a loss before taxation of just over £20m in 2015, the company has announced
Princess Yachts suffered a loss before taxation of just over £20m in 2015, the company has announced.
But order books have bounced back to pre-recession levels for the Plymouth-based manufacturer thanks to record sales performances at the Southampton, Cannes and Monaco boat shows.
The company statement reads as follows:
“After one of the most challenging years in its history, Princess Yachts International Plc (PYI) today reports a loss before taxation of £20.25m on turnover of £201.23m for the year ending 31 December 2015 (2014: £239.63m).
Although disappointing, exceptional factors have played a significant part. The lingering effects of damage to stock, facilities and production scheduling caused by the hurricane-force storms in 2014, coupled with unfavourable sterling exchange rates and high-margin boat models reaching the end of their life-cycle combined to exert unprecedented pressure on PYI’s operations throughout 2015.
In the meantime, PYI has strengthened its product line – adding six state-of-the-art models to its range in as many months – and appointed an Executive Chairman, Antony Sheriff.
Previously CEO of McLaren Automotive, and holder of a number of senior roles at Fiat, Mr Sheriff has a strong track record in leading profitable businesses with best-in-class luxury products.
Already, PYI is seeing tangible indications of a return to normative performance in 2016 with positive operating profits over the past three months. Orders are at their highest levels since 2007, with record sales at the Cannes Yacht Show in September, and trading conditions are increasingly favourable, as the company is deriving significant market advantage from the recent realignment of sterling-based exchange rates.
Significantly, Princess has embarked on an ambitious product development strategy and a new product renewal cycle as part of its long-term business plan and the company is now recruiting skilled professionals in key areas to realise its ambitions.
The board forecasts renewed buoyancy across the PYI business in 2016 and 2017. Already, £14m has been injected as the first stage of an ambitious three-year £55m investment by PYI which will see further development of the product portfolio, as well as production improvements at the company’s manufacturing facilities in Plymouth, which employ more than 2,000 people.”
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