Smaller Superyacht Market is Healthy with Princess Yachts Topping $1 Billion in Orders: For the first time in history, Princess Yachts exceeded $1 billion in order during 2017. The British shipyard had its best year ever in its 53-yard history, also showing a robust return to profitability. Princess showed a record turnover of £274.4 million, a 26.6% increase over 2016.
Additionally, Princess realized an operating profit of £7.9 million and representing a turnaround of £15 million on its 2016 results to continue strong year-on-year growth. To this end, the shipyard has also increased its workforce by over 500 members in the past year.
According to Antony Sheriff, Princess Yachts executive chairman, the shipyard believes it is the market leader in small yachts in the 30- to 50-foot and 70- to 95-foot size ranges. Sheriff also noted that the company’s data shows its customers will eventually upgrade to larger boats, which is borne out by a lot of its mid-sized and large boat customers looking to enter the superyacht market. The company’s superyacht sales have also been bolstered by some of its recent product launches.
Sheriff also noted that Princess has implemented an enormously successful strategy for its smaller vessels in that it does not build stock boats and will only build for a buyer. The one drawback to the yard’s robust order book is that delivery times have increased, with some orders running into 2020.
The robust order book has also creased a healthy resale market for Princess customers who are trading up. The residual value of the yard’s pre-owned vessels is continuing to increase.
Although Princess has the ability to build a 50-meter superyacht, doing so is not in the company’s current product plan. The brand’s current focus is to stick to specializing in the smaller size categories.
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