By Guy Taylor
Aston Martin losses increased more than expected in the first quarter as the supercar maker underwent a “transition” period ahead of the launch of a range of new models later in the year.
Pre-tax losses soared 87 per cent to £139m, significantly more than the £93m analysts had forecast. Operating losses increased 15 per cent to £58.7m, alongside a 10 per cent fall in revenue to £267.7m.
Chairman Lawrence Stroll said: “2024 is a year of immense product transformation at Aston Martin, with the introduction of four new models to the market before the end of the year.
“Our first quarter performance reflects this expected period of transition, as we ceased production and delivery of our outgoing core models ahead of the ramp up in production of the new Vantage, upgraded DBX707 and our upcoming V12 flagship sports car which we’ve confirmed today.
“As part of our ongoing programme of ultra-exclusive models, we will deliver a new Special in the fourth quarter of the year.”
Wholesale volumes fell by over a quarter as production slowed across the quarter, reflecting a “transitional ramp down” ahead of new model launches.
Net debt, which has hampered Aston Martin’s growth since it IPO’d in 2018, increased to £1.04bn from £868m.
However, the firm flagged the successful completion of a £1.2bn refinancing, completed on new five-year terms following rating agency upgrades. It also announced a 70 per cent increase in a new revolving credit facility from existing lenders, to £170m.
It comes after a mixed performance last year.
Shares in Aston Martin performed strongly in the first half of 2023, with the marque top of London’s mid-cap index coming into Autumn. Renewed investment from stakeholder Geely and a £182m tie-up with the US group Lucid to make high performance had investors excited.
In February, full-year revenue came in at £1.6bn, buoyed in part by record average selling prices of £231,000.
Aston Martin said its full-year forecasts were unchanged. It expects earnings before interest, taxation, depreciation and amortization (EBITDA) margins to expand over 20 per cent, driven by “high single digit percentage wholesale volume growth.”
Deliveries of its new models, which include the Vantage and DBX707, the V12 flagship and a new ultra-exclusive Special are all on track.
