Princess Yachts International....

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emibel98

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posted profits of 18 million last year and 21 million this year. Fairline get sold for 20 million and SS got sold for c30 million. Don't know about Sealine, does anyone else? I have seen various threads about these builders and everyone has differing opinions but does this not scream that Princess have it right and the others probably don't (apart from Sealine but with all due respect they are not really in the same maket are they?). Someone said to me the other day Princess have a new sub 40 footer coming soon too as well as the 40 Metre that they have been advertising, large and small'ish so a good spread...nice to see some success in the Brit builders I think....if all is at it seems.
 
You are very much comparing apples and oranges there. Those numbers are not comparable at all. For a start, you are comparing equity values for fairline with refinancing costs ( ie indicative of enterprise value, not equity value) for princess
 
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Agree with jfm. Princess are owned by LVMH, a French conglomerate and the accounting treatment of stuff like R&D, brand goodwill and debt is likely to be very different to Fairline. One thing I've learnt after many years in business is that no company can significantly outperform the rest of the market. I'm sure Princess are very good at what they do but there's no bucking a massive recession like this
 
emibel98 said:
posted profits of 18 million last year and 21 million this year. Fairline get sold for 20 million and SS got sold for c30 million. Don't know about Sealine, does anyone else? I have seen various threads about these builders and everyone has differing opinions but does this not scream that Princess have it right and the others probably don't (apart from Sealine but with all due respect they are not really in the same maket are they?). Someone said to me the other day Princess have a new sub 40 footer coming soon too as well as the 40 Metre that they have been advertising, large and small'ish so a good spread...nice to see some success in the Brit builders I think....if all is at it seems.
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I hope you're not an accountant! lol
 
I think the problem with focussing on the larger high price boats is cash flow, and it is always cash flow that kills. With Sealine's success in the 35-45 ft category, £200k to £500k, they are selling several boats a month, bringing in the cash. The margin is probably higher with the bigger craft, but this brings cost of cash with it, if there is no regular flow in.
 
mjf said:
Yes i understand Princess have a new style 38ft boat in the pipeline
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Far from the best world wide, good among the British builds, but in my opinion Fairline (considering all) does built the best in your island. With Sunseeker and Princess (in this order) being very close behind. All building to a very similar good level of construction.
 
rafiki_ said:
I think the problem with focussing on the larger high price boats is cash flow, and it is always cash flow that kills. With Sealine's success in the 35-45 ft category, £200k to £500k, they are selling several boats a month, bringing in the cash. The margin is probably higher with the bigger craft, but this brings cost of cash with it, if there is no regular flow in.
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I would imagine that the cash flow as part of running the everyday business should not be a problem. The cost of money to run the business between stage payments should not be a problem with the alledgedly better margins in the large boat segment.

I would speculate that the bigger problem are (sort of same thing, really) the gaps between the projects, which can quickly eat away the profits. To speculate further, I'd say the the large amount of value produced in-house works against these manufacturers in that responding to fluctuations in demand becomes challenging.

In many industries companies have given up most of their production, only doing r&d, managing customer relationship and maybe logistics themselves. In boat building it almost seems to be the other way around.

What i'm trying to say is that maybe these companies need to seriously reconsider the way they do their business (esp production) to become competetive again. And i don't believe for one minute that putting together a big boat is so complicated that it has to be done all in-house. There are too many skillset to manage for it to be the most efficient way to operate. If a team can do the joinery for princess, i'm sure they could do it for sunseeker too.

As said, i'm speculating regaring how the production is managed so I'm happy to be put right.
 
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