The Italian Sea Group (TISG), the maker of luxury yachts such as Admiral models, on Monday said its recent cash needs reflected extra-budget costs it bore after some of its staff set up a system to bypass spending controls on contracts.
The precise number and identity of the people involved, as well as the exact size of the budget overruns, will be determined as part of an internal audit TISG is carrying out with support from consultancy KPMG - with a first report due within six weeks.
The initial analysis has highlighted the involvement of senior figures within the company, TISG said, adding the board had issued disciplinary warnings to some employees, in some cases suspending them from their duties.
TISG said the out-of-budget costs sustained so far had drained its cash, forcing it to delay wage payments by eight days until it secured a 25-million-euro ($29 million) emergency loan from its majority shareholder and CEO Giovanni Costantino.
TISG, whose brands include also Perini Navi which built the 56-metre yacht Bayesian that sank off Sicily in August 2024, said it was talking to banks to address its cash issues with a meeting scheduled in the coming days.
The CEO has also engaged with the owners of the yachts currently under construction in an attempt to recover the extra contract costs, it said in a statement.
Shares in TISG fell five per cent by 12:56 GMT.
The shares have halved in value since February 18, when it said it was resorting to an emergency loan to address cash needs following budget overruns on the majority of its contracts.
TISG reported a 10 per cent drop in revenue in the first nine months of 2025, to 262 million euros, with a 15 per cent decline in core profit.
(Reporting by Elisa Anzolin; Editing by Valentina Za)
