THE boss of Sunseeker says the business is exceeding its own expectations after cutting its annual losses and hailing a return to profit.

Chief executive Phil Popham, speaking to the Daily Echo from the Cannes Yachting Festival, said restructuring and investment had paid off.

The Poole-based luxury boat builder lost £41million in 2014, but invested in new models in a bid to return to profitability.

The Chinese-owned firm reduced losses by 67 per cent to £13.6m in 2015 and turned a profit in the second quarter of 2016.

“Q2 audited accounts show us making a profit for the first time in quite a long time,” said Mr Popham.

“Our projections for the full year are to be about 20 per cent up on revenue and to make a profit.”

He added: “Even with the investment that we made supporting all the new products, we managed to cut our losses by two thirds, which is ahead of plan.”

The company had four boats making their debut at Cannes – the 116, 95, 68 Predator and Manhattan 52.

Mr Popham said as well as introducing new models, it had improved its dealer representation around the world.

“We’re building them more efficiently through investment we’ve made in shipyards and taking material costs down through agreements and long term commitment to our suppliers,” he added.

There were 40 apprentices starting at its Dorset sites this month in line with a plan to recruit 225 people this year.

“We’re assessing our needs for 2017 now. It’s likely we will need some more,” he added.

He said of its negotiations with suppliers: “We’re interested in better trading terms but what we’re offering to our suppliers is long-term agreements as well.

“As we’ve introduced longer term planning, not just in developing products but in planning our production facilities, we’re sharing more data with suppliers.

“Those that are willing to invest with us in the long term are the ones that are going to benefit from it.”

Sunseeker, which wanted Britain to stay in the EU, saw a lift after the referendum vote, with the falling pound making its boats more attractive abroad.

“Certainly the devaluation in the pound helped in the short term,” he said.

“We will continue to push and lobby politicians and government to develop an agenda for when we’re going to negotiate the exit so that certainty and confidence can come back,” said Mr Popham.