The Plymouth-based luxury boatbuilder聽Princess聽Yachts聽has announced record profits of 拢30million, as its remarkable turnaround continues.
The company, which found itself in the red in 2015 and only three years ago announced it would cut 350 jobs, showed a 拢30million operating profit in 2018 on turnover of 拢340million.
The Stonehouse headquartered company has set new records for聽yacht聽sales and employment and is celebrating its most successful year in its 54 year history with forward orders worth 拢700million and stretching through 2020
Financial聽results聽for the 12聽months to December 31, 2018, show record turnover of 拢340.3million, up 拢65.9million, that's 24% on 2017. There was also a record operating profit before exceptionals of 拢29.8million, up 拢10.9million, or 173%. EBITDA (earnings before interest, tax, depreciation and amortization) for 2018 was 拢32.8m up from 拢14.9millio in聽2017.
In 2018聽Princess聽hit a record high for employment of 3,200. Recruitment has taken place across the business from engineering to exterior design, manufacturing to management, making聽Princess聽one of the 海角视频鈥檚 largest specialist manufacturers.聽Princess聽also increased investment in its successful apprenticeship programme with 40 new apprentices brought into the business; apprentices now make up 4% of the workforce with a 100% retention rate following qualification.
In 2016聽Princess聽Yachts聽brought in Antony Sheriff, former managing director of supercar manufacturer McLaren Automotive, as executive chairman, and pumped in a 拢100million investment. The company鈥檚 five boatyards in and around Plymouth are working at capacity.
鈥淏ritish industry is known for its craftsmanship,鈥 Mr Sheriff said. 鈥淏ut there鈥檚 nothing like what we do here at聽Princess聽Yachts. We have craftspeople that make every part of the聽boat, apart from the electronics and engines.
鈥淭his gives us unique control over quality. We make our boats for boaters 鈥 they鈥檙e not just floating gin palaces.鈥 He said they were now 鈥渢he preeminent in 海角视频 luxury聽yacht聽brand, and possibly the world鈥.
Princess聽makes聽yachts聽in the 35ft to 130ft range. Over the past three years the company has聽 launched 16 new models, with more on the slipway.
聽鈥淭he yachting industry isn鈥檛 known for innovation,鈥 Mr Sheriff said. 鈥淚 have come from a background of supercars, where the concept of having no innovation was foreign.鈥
The newest innovation is the R35, a 50-knot speedster built of carbon fibre, with a 鈥渁ctive foiling鈥 technology more familiar from racing聽yachts.
They work with Italian designers Pininfarina, Isle of Wight naval architects Olesinski and a 100-strong in-house team.
More about Princess Yachts
Mr Sheriff said they had drawn up contingency plans for Brexit, but in the meantime a week pound was helping exports. Half of the boats built in Plymouth are sold in Europe, including the 海角视频, a quarter go to the Americas, and a quarter to the rest of the world. Some foreign customers were holding off because of uncertainty about future tariffs, he said.
But international sales continue to provide strong growth.. Prices range from 拢300,000 to 拢17million. The company is now eyeing the Chinese market.
Princess聽Yachts鈥 exceptional figures were based on a combination of strong sales at the industry鈥檚 three biggest global聽boat聽shows 鈥 Cannes, Fort Lauderdale and D眉sseldorf 鈥 and new levels of interest in the brand driven by increased investment in design and technology, progressive new global retail partners, and innovative marketing activity. 2019 began in equally buoyant form with strong orders secured at the 2019 D眉sseldorf聽Boat聽Show in January.
The focus on luxury slots neatly into the portfolio of the majority shareholder, the French businessman Bernard Arnault, whose LVMH group owns brands including Louis Vuitton, Christian Dior and Veuve Clicquot.
Princess聽has continued to invest in a sustainable strategy to ensure that the business continues to drive forward product innovation and its manufacturing capabilities. As a聽result聽拢14.7million (2017: 拢8.9millioon) was invested back into product development in 2018. With more than 75% of each聽yacht聽manufactured in Plymouth,聽Princess聽continues to invest in its 海角视频 sites, adding capital expenditure of 拢9.0million to the additions in 2017 of 拢3.7million.
To help drive this plan HSBC 海角视频 Bank plc聽and聽National Westminster Bank plc have refinanced Princess聽Yachts, backed by聽L Catterton聽(a partnership between Catterton, LVMH and Groupe Arnault), as part of the growth of the business, having constructed a multi-year funding facility as of May 16, 2019.
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To contact William Telford: william.telford@reachplc.com
