Aston Martin losses accelerate but targets are on track

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Losses at Aston Martin accelerated over the past six months, according to trading figures released on Friday. But the sports car manufacturer said it remains on track to meet its targets for the full year.

Pre-tax losses for the Warwickshire-based firm totalled £285.4 million in the six months to 30 June 2022 from a £90.7 million loss in the same period last year.

Foreign exchange valuation and supply chain issues were partly to blame for the losses. Wholesale volumes dropped by eight per cent year-on-year to 2,676 units, while 350 DBX707 SUVs sat on the parking lot awaiting parts before they could be delivered to customers.

But first-half revenues increased nine per cent year-on-year, driven by record core average selling price and strong pricing dynamics.

The firm reported “strong demand” across its range, with G/T Sports sold out into 2023 and DBX orders more than 40 per cent higher year-on-year.

The firm reported an order intake for the DBX707, the world’s most powerful luxury SUV, 40 per cent higher than its year-on-year DBX order intake, and “unprecedented demand” for its new V12 Vantage.

Lawrence Stroll, Executive Chairman, said: “”We have continued to make strong progress in our vision to become the world’s most desirable, ultra-luxury British performance brand.

“The underlying fundamentals of Aston Martin have never been stronger, with robust demand across our product range, sports cars sold out into 2023 and DBX orders up by more than 40 per cent compared to 2021.

“However, the first half of the year was not without its challenges. Isolated but impactful supply chain shortages, particularly in Q2, resulted in lower wholesales and significant working capital headwinds.

“Specifically, we ended June with more than 350 DBX707s that we had planned to deliver in Q2, still awaiting final parts, consuming tens of millions in cash and temporarily limiting our ability to meet the strong demand we have.”