A changing industry: the Princess Yachts business context
Princess Yachts' financial difficulties come against a backdrop of global industrial challenges. In 2022, the company posted a pre-tax loss of £69 million, followed by an operating loss of £45.6 million in 2023. Supply chain disruptions and fluctuating demand exacerbated the situation. These issues highlight the pressures faced by the marine industry in the face of an unstable global economy.
KPS Capital Partners: financial and strategic support
In March 2023, Princess Yachts received a key investment from KPS Capital Partners. This private equity fund injected £54 million, enabling the company to initiate major transformations. These funds were allocated to modernizing the South Yard factory and accelerating product innovation, notably with the launch of three new models in 2024.
A strategy focused on innovation and production
The company is banking on the development of new products to diversify and consolidate its offering. With an investment of £12.6 million in design and engineering, Princess Yachts plans to launch at least two models a year until 2026. To date, 90% of production capacity for 2025 has already been sold, a sign of strong anticipation of demand.
Social issues and restructuring: managing human priorities
One of the critical aspects of this turnaround remains workforce management. Following redundancies affecting 250 employees in 2023, Princess Yachts must balance its competitive imperatives with its social responsibilities. This challenge reflects the tensions often encountered during restructuring in the yachting industry.
