£19m operating loss

Princess Yachts began production of its new X Class during 2019

Industry Database

Princess Yachts made an operating loss of £19m during 2019.

The figures, released in the boatbuilder’s accounts, show a turnover of £317.3m during 2019, compared to £346.3m in 2018; £19m loss before exceptional costs (2018: £25.4m profit), a gross margin of 1.5% loss and operating profit margin of 6% loss.

The boatbuilder’s business review states 2019 was a year of consolidation in preparation for a stage of sustained growth.

Attention was focused on transforming build systems and quality processes, investments that had a larger impact than expected on the financial performance of the business.

During 2019, four new products were launched – the V55, S62, S66 and Y78 – with £13.7m spent on product development.

New X Class

The company’s South Yard site produced the last M Class boats and production of the new X95 began.

Net assets totalled £90.1m, a decrease of £13.4m on 2018, partly caused by pension scheme liabilities.

In May 2019, Princess concluded a multi-year working capital facility of up to £40m.

Despite a strong start to 2020, the impact of the pandemic meant a working capital cash advance of £12m was needed – provided by shareholders and bankers with scheduled repayments due up to December 2021.

The directors say they believe this finance will be sufficient to continue to operate – subject to the potential impact of further Covid restrictions.

No dividends were paid during 2019.

Content extracted from https://www.boatingbusiness.com/news101/boatbuilding/boatbuilding/19m-operating-loss