Luxury yacht builder Pendennis has said that sales and profits dipped last year as it invested millions of pounds in refurbishing and expanding its shipyard in Falmouth, Cornwall.
The 27-year-old company, which designs, builds and renovates superyachts for private clients, reported pre-tax profits of £2.2m in 2014 – down 12 per cent on the previous year.
Group turnover, of which 90 per cent came from exports, fell to £36.9m from £37.2m in 2013, Companies House filings show.
Pendennis has been overhauling its shipyard in Falmouth since 2013 amid growing competition from rival boat manufacturers. It invested £9.5m last year to build new offices and production halls spanning 50 and 90 metres for building and repairing yachts.
In May, with financial backing from the European Union, the group completed a new wet basin able to accommodate yachts over 60 metres.
The privately-owned group, which counts Sir Timothy Sainsbury among its owners, employs around 360 staff across its Falmouth base and two outposts in Auckland, New Zealand, and Palma, Majorca.
To date, the company has undertaken more than 200 refit projects and created 30 custom-built yachts.