PRINCESS Yachts has announced positive results that show it increased turnover in the year that it made more than 300 workers redundant.

In the year to December 31, 2009, the Plymouth company increased turnover to £213.8million, up 3 per cent from 2008.

The company cut back on more than 300 workers in June last year — including 261 compulsory job losses. But it has since started to re-employ some of its former staff and has plans for a £45million new factory.

Princess Yachts puts its performance down to "continued investment in new product development and the establishment of new markets."

Profit before tax, although down on the previous year, also remained strong at £18.4million.

The company says it is delighted that the results, which together with a strong balance sheet, provide "a robust platform from which the business will continue to weather the current economic uncertainties and invest in the future strength of the business".

Princess Yachts plans to develop of some of the largest yachts in the company's history at new manufacturing facilities at the vast Devonport South Yard site.

Earlier this year, Princess Yachts submitted plans for a £45million factory that will create hundreds of jobs.

The luxury boatbuilder said its plans for a five-storey high, 300,000sq ft production hanger would create 200 jobs initially, with possibly more to follow, and secure the futures of 1,885 staff already employed in the city.

It wants to build the enormous structure in three phases, starting with a £15million segment under way this year, so it can build gigantic £10million boats for the lucrative superyacht market.

The plans also include the covering and development of the existing 'shallow dock', minor structural changes to the existing number three slipway and many associated external works around the site.

Chris Gates, managing director of Princess, said: "We are delighted with this strong set of financial results but we must remain cautious about the market outlook.

"At the same time, we will continue to invest to secure employment and underpin future growth along with supporting our dealers to maintain a strong distribution network.

"We recognise that the greatest concern to customers currently is security of purchase, especially when building larger boats with longer lead times, so we are very happy that these accounts will give both our customers and our distributors added comfort that the Princess name is encompassed within a strong and resilient company."