Aston Martin shares dive by 18% on losses

Marco Green
February 28, 2019

Aston Martin fell to a £70m loss in 2018 as it counted the cost of floating on the stock market, it revealed today, capping a year in which its disappointing debut saw shares lose a third of their value.

The luxury auto firm also said it would set aside up to £30m as part of its contingency planning for a no-deal Brexit.

It had also recruited a chief purchasing and supply chain officer "in anticipation of Brexit". MPs could potentially vote on whether to delay Brexit on 14 March, a fortnight before the scheduled departure date of 29 March.

Aston Martin CEO Andy Palmer believes delaying Brexit would prolong uncertainty for automakers and would be a "further annoyance" after Prime Minister Theresa May promised to give lawmakers a vote on extending the date Britain leaves the European Union. Palmer added: "You're holding that contingency stock for longer, which means that your working capital is tied up for longer. More importantly, what you're doing is you're creating continued uncertainty".

Revenue rose by 25% to £1.096bn year on year and earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 20% to £247.3m.

The luxury vehicle manufacturer fell to a £68.2m loss before tax a year ago, down from an £84.5m profit in 2017, as it took a £136m hit from the costs of its October initial public offering. Excluding the costs associated with the floatation, Aston Martin made an adjusted profit before tax of £68m. Asia Pacific and the Americas led the way, with volume growth of 44% and 38% respectively, while the United Kingdom was up 17% and Europe, Middle East and Africa rose 13%.

It sold 6441 units in 2018, up from 5098 the previous year, aided by the introduction of the new Vantage, DBS Superleggera and special editions of the Vanquish Zagato Shooting Brake, Vanquish Zagato Speedster and DB4 GT Continuation.

"We are confident that Aston Martin Lagonda will deliver another year of growth".

"I would categorize it as a further annoyance", said Palmer.

Other reports by Click Lancashire

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