Aston Martin reports record revenues but floatation costs pull it into the red

Aston Martin

Aston Martin Lagonda, which has its headquarters at Gaydon in Warwickshire, has reported record revenue of £1.1 billion, up 25 per cent, and total volumes of 6,441 up 26 per cent.

However, the company’s floatation on the London Stock Exchange in October 2018 (which marked a key milestone in the company’s history), incurred £136 million of associated costs, according to the company’s statement, led to a reported loss before tax of £68 million (2017: profit £85 million) and an adjusted profit before tax of £68 million before one-off IPO costs (2017: £73 million).

The company said that increase in total volumes of 26 per cent was ahead of guidance, with core care volumes up 30 per cent and special editions continue to be in high demand.

Aston Martin will commence trials on its DBX, the company’s first sports utility vehicle, which is being at St Athan in South Wales, in the second quarter of this year.

Dr Andy Palmer, Aston Martin Lagonda President and Group CEO, said:”2018 was an outstanding year for Aston Martin Lagonda, delivering strong growth, with improving revenues, unit sales and adjusted profits.

“As the UK’s only listed luxury automotive group, we have demonstrated our legitimacy in the global luxury market. Our well-defined expansion plans, that combine outstanding high-performance cars with iconic brand-status, are on track as we manage through the uncertainties and disruption impacting the wider auto industry.

 

“Given our progress on the Second Century plan – including completion of our new manufacturing plant at St Athan and our preparations for the DBX, we are confident that Aston Martin Lagonda will deliver another year of growth. Whilst we are mindful of the uncertain and more challenging external environment, particularly in the UK and Europe, we remain disciplined in our execution and maintain our guidance for financial year 2019, whilst also reconfirming our medium-term objectives.”