But while sales growth was strong, £68m pre-tax losses announced today have hit its share price hard.
28 Feb 2019 | 4270 Views | By Rachel Burgess, Autocar UK
Aston Martin sales rose by a quarter in 2018, despite challenging market conditions affecting the wider car market.
As a luxury car brand, the Gaydon-based carmaker is at least, in part, protected by its high-end position in the market with similar brands such as McLaren and Ferrari also seeing growth in 2018. Aston Martin ...
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Aston Martin sales rose by a quarter in 2018, despite challenging market conditions affecting the wider car market.
As a luxury car brand, the Gaydon-based carmaker is at least, in part, protected by its high-end position in the market with similar brands such as McLaren and Ferrari also seeing growth in 2018. Aston Martin also launched a plethora of new products last year, helping it to combat broader car sales trends.
It sold 6,441 units in 2018, up from 5,098 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.
Growth was led by China and the Americas, up by 31 percent and 38 percent respectively. UK sales grew by 17 percent.
Revenue rose by 25 percent to £1.096bn (Rs 10,325,704 crore) year on year and earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 20 percent to £247.3m (Rs 2,329 crore).
However, it also revealed pre-tax losses of £68m (Rs 640 crore), largely down to £136m (Rs 1,281 crore) in costs for its stock market flotation in October. Investment in its new manufacturing facility in St Athan, Wales plus development costs for new models also thwarted profits.
As a result, its share prices fell more than 15 percent, dropping by £500m (Rs 4,710 crore) in early trading, continuing a downward trend since it floated. The firm went public with a £4.3bn (Rs 40,516 crore) valuation but is now worth around £2.6bn (Rs 24,498 crore).
Aston Martin boss Andy Palmer 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.”
Palmer added that it was confident of “another year of growth”.
He said: “Whilst we are mindful of the uncertain and more challenging external environment, particularly in the UK and Europe, we remain disciplined in our execution… whilst also reconfirming our medium-term objectives.”