Costs put the brakes on profits at Aston Martin

Wed 15 May 2019

AML - Aston Martin Lagonda Global Holdings

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LONDON (SHARECAST) - (Sharecast News) - A strong appetite for luxury cars in China and the Americas drove first quarter revenues at posh marque Aston Martin, but higher expansion costs helped it skid to a loss for the period.

Revenue rose 6% to 196m as the company reported an adjusted operating loss of 2.2m, compared with a profit of 22m a year earlier. Pre-tax losses came in at 17.3m from a profit of 2.8m.

The company, floated on the London Stock Exchange last year, said it was aware of the "challenging external environment in certain of our markets" as Brexit-related supply worries hit the car making sector, but maintained full year guidance.

Wholesale vehicle sales in China grew by almost a third, while in the Americas they were up 20%, which offset softer UK and European markets.

"This performance reflects the higher than usual dealer inventory levels at the start of the year, particularly in the UK and Europe given the late December deliveries due to fourth quarter supply chain disruption," the company said.

It added that it expected first half adjusted profit to be lower year-on-year reflecting the non-repetition of 20m of other income, more fixed costs and the delivery of fewer "specials" year-on-year.
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