The billion dollar order book for SW yacht firm

THE UK’s largest luxury boat builder Princess Yachts has revealed an order book worth a billion US dollars – and said production is struggling to keep up with demand.

The Plymouth manufacturer’s financial update has revealed a “record-setting commercial performance” with sales rate surpassing production rate, driving record low distributor stock levels.

It said almost all production through to the end of 2022 and more than 60% of 2023 production is already covered by orders.

This year it has already sold 20 of its flagship Superfly X95 and has 57 orders for the new Y72 model which launched this summer.

The company is now poised for further growth with the new Y95, X80,and V50 already in production, as well as five further new model launches by the end of 2022.

And, despite being in a Covid-19 recovery phase, intensive recruitment continues with increased investment in skills training and award-winning apprenticeship programmes.

The firm, which employs about 3,200 people in Plymouth, said it has faced challenges from the Covid-19 pandemic and the ongoing supply chain issues affecting the UK. Turnover and profits dipped in 2020 as the company was affected by a temporary Covidrelated closure.

But it has bounced back strongly and despite ongoing challenges retail sales have grown to the highest levels in the history of the company, with an order book exceeding US$1bn.

With record low distributor stock levels globally – equivalent to one to two weeks of stock – and production almost completely covered by orders into the second half of 2023, the company said it is in a unique commercial position.

Antony Sheriff, Princess Yachts executive chairman and chief executive, said profits understandably dropped during the pandemic, when staff were furloughed. He added: “We continue to move forwards with an ambitious new product launch plan and innovative new ways to engage with our customers.”