In 2023, Princess Yachts faced a challenging financial year, reporting an operating loss of £45 million. Despite this setback, the company generated a turnover of £310.5 million. The operating loss, excluding exceptional costs, amounted to £45.6 million for the period.

The company's financial statements for the year ending December 31, 2023, revealed an EBITDA loss of £48.3 million, a significant increase from the £23.1 million loss reported in 2022. The pre-tax loss also widened to £65.3 million compared to £43.5 million in the previous year. The gross margin stood at -14.3%, a decline from -9% in 2022, while the year-end cash balance was £15 million.

One of the notable events of 2023 for Princess Yachts was the transition to majority ownership by KPS Capital Partners. This change in ownership followed a period of challenging trading conditions characterized by a surge in demand in 2021 and 2022, coupled with cost inflation and supply chain disruptions that impacted production efficiency and volume.

Financial Support and Restructuring

KPS's investment injected £53.7 million in equity and cash into Princess Yachts to address transaction costs, working capital needs, and operational challenges. This financial support aimed to rectify supplier issues, enhance productivity, and mitigate the effects on customer commitments and the company's financial performance in 2023.

Following the investment, Princess Yachts underwent a restructuring phase that involved changes to the leadership team. A new CEO was appointed, along with four additional directors. In response to the challenging environment, the company implemented staff reductions in support functions in 2024, with further cuts planned for production roles.

The strategic report acknowledged the disappointing but anticipated financial results of 2023, attributing them to the complex operating environment inherited from the acquisition. Despite the setbacks, Princess Yachts continued its commitment to product development, launching three new boat models in 2023 and maintaining a five-year plan to introduce three new models annually.

Investments in product development totaled £12.6 million in 2023, slightly lower than the £14.7 million spent in the previous year. The company's order book exceeded £750 million, extending into 2026 for certain product lines. Princess Yachts expressed confidence in its operational turnaround and profit growth potential, citing a strong foundation and global market positioning.

The company's focus on innovation and customer service, combined with the strategic initiatives post-acquisition, positioned Princess Yachts for a positive trajectory in the coming years.