Currently reading: Aston Martin losses rise to £285.4m due to supply shortages
The Q1 loss, which is up £90.7m year on year, came even though revenues rose to £541.7m, up 9% year on year

Aston Martin’s losses ballooned in the first half of this year, hitting £285.4 million, as a result of supply shortages, foreign-exchange movements and high interest payments on its debts.

The loss - up from £90.7m in the same period last year - came despite revenues rising to £541.7m, up 9% year on year.

Almost half of the loss - £134m - came as a result of currency fluctuations on the firm’s debt, while it also had to pay £63m in interest charges.

Last month, Aston Martin announced that it would raise £653m later in 2022, half of which would be used to pay down its near £1.3bn of debt.

It also highlighted that supply-chain difficulties - believed to be focused on semiconductor issues - meant that nearly 350 DBX 707 SUVs were largely built but unfinished and undeliverable to customers. As a result it insisted that its targetted volume of 6600 cars for this year was still on track, despite it only delivering 2676 vehicles in the first half of the year.

Explaining the disappointing first-half results, executive chairman Lawrence Stroll said: “Isolated but impactful supply-chain shortages resulted in lower wholesales and significant working-capital headwinds.

“Specifically, we ended June with more than 350 Aston Martin DBX 707s that we had planned to deliver in Q2 still awaiting final parts, consuming tens of millions in cash and temporarily limiting our ability to meet the strong demand we have.

"We've now started to deliver these vehicles in July and expect further improvements in the supply chain, supporting the delivery of our full-year targets.”

In more positive news, the average selling price of an Aston Martin was up 15% year on year, at £174,000, and the company's results figures highlighted again that its sports cars are sold out into 2023.

Amedeo Felisa, brought in as CEO in place of Tobias Moers earlier this year, said: “With the supply-chain challenges that impacted our first-half performance expected to ease, we're now focused on accelerating deliveries of the DBX7 07, continuing to ramp up Aston Martin Valkyrie production and transitioning to our next generation of sports cars.

“I see great potential to optimise our operational capabilities [and] reduce complexities and cost, which will drive sustained improvements in profitability and cashflow generation.

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"I'm pleased with the initial progress we have made so far.”

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