Aston Martin profit shaken… Bond cars are driving to a loss
Iconic British sports car maker Aston Martin is set to report a fall in annual revenues and bigger losses this week as chief executive Andy Palmer looks to draw a line under a dreadful first year as a listed company.
It follows a £500million rescue deal last month led by Canadian billionaire Lawrence Stroll, who helped to bail out the troubled firm just 14 months after a disastrous stock market float.
Stroll, a part owner of Formula One team Racing Point, has taken over as executive chairman.
Prince Charles, Prince of Wales walks away from his Aston Martin DB6 during his visit to the new Aston Martin Lagonda factory earlier this month
Aston Martin, famed as James Bond’s favourite car, is to reveal on Thursday that revenues fell last year to below £1billion from £1.1billion in 2018.
Its annual pre-tax loss is expected to grow to £86million from £68million the year before, according to brokers Peel Hunt.
The 2018 loss would have been a profit had it not been for costs related to its stock market listing.
Aston Martin floated at £19 a share in October 2018 but its price quickly dropped as the firm suffered a drop in sales and now stands at just £4.
Under-pressure Palmer is pinning his hopes on the launch of Aston Martin’s first SUV last year, the DBX, which hopes to attract more female buyers.
It is being built at a new factory in St Athan, Wales, which Prince Charles visited on Friday.
Peel Hunt analyst Dominic Convey said the rescue deal ‘will provide a £500million shot in the arm for the balance sheet, resolving immediate liquidity issues’, but he added: ‘Concerns will linger as to whether it will be enough to see the DBX through to cash breakeven and fund the product range extension.’