But while sales growth was strong, £68m pre-tax losses announced today have hit its share price hard

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 car maker 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 6441 units in 2018, up from 5098 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% and 38% respectively. UK sales grew by 17%.

Revenue rose by 25% to £1.096bn year on year and earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 20% to £247.3m.

However, it also revealed pre-tax losses of £68m, largely down to £136m 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%, dropping by £500m in early trading, continuing a downward trend since it floated. The firm went public with a £4.3bn valuation but is now worth around £2.6bn.

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.

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“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.”

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7

28 February 2019

It's worth remembering that the Aston Martin share price was launched at £ 19 per share.   That valued the company at £ 4.3bn.

 

Mostly Aston Martin has been trading around £ 12-13 per share, valuing the company about the £ 2.8bn area.   Today, as of now, it's £ 11.30 per share.   Valuing the company at £ 2.58bn.

 

In five months Aston Martin has lost £ 1.72bn in value.

 

But, sales are up.   And the DB-X hopefully is a good design.   Although I personally feel they need a new designer as I don't think he's got the right pitch for Aston.   I think they could do better.   I think the new V8 Vantage sales aren't as good as they hoped, and the new DBS I would be surprised if it has been anything near the hit they need.   I think they need to go and search for the next Ian Callum.

28 February 2019
Symanski wrote:

It's worth remembering that the Aston Martin share price was launched at £ 19 per share.   That valued the company at £ 4.3bn.

 

Mostly Aston Martin has been trading around £ 12-13 per share, valuing the company about the £ 2.8bn area.   Today, as of now, it's £ 11.30 per share.   Valuing the company at £ 2.58bn.

 

In five months Aston Martin has lost £ 1.72bn in value.

 

But, sales are up.   And the DB-X hopefully is a good design.   Although I personally feel they need a new designer as I don't think he's got the right pitch for Aston.   I think they could do better.   I think the new V8 Vantage sales aren't as good as they hoped, and the new DBS I would be surprised if it has been anything near the hit they need.   I think they need to go and search for the next Ian Callum.

Last gen models were stunning, this generation no longer look classically beautiful, but they do catch the eye.
Was Fisker not also involved in those earlier designs along with Callum ?

28 February 2019
Sundym wrote:

Last gen models were stunning, this generation no longer look classically beautiful, but they do catch the eye. Was Fisker not also involved in those earlier designs along with Callum ?

 

My understanding is that Callum designed the DB9 and penned the V8 Vantage, but it was Fisker who did the production design work for the DB9.   Fisker had more input on the V8 Vantage design given it came later.

 

Callum takes credit for the DB9, but not the V8 Vantage.   Generally, however, he's accredited for doing the original sketches on the V8 Vantage.

28 February 2019
Sundym wrote:

Last gen models were stunning, this generation no longer look classically beautiful, but they do catch the eye. Was Fisker not also involved in those earlier designs along with Callum ?

 

Just for completeness, Ian Callum did the DB7 as you know, and the original Vanquish.

 

I still think the Vanquish is probably the most beautiful modern cars.   Update the centre console and it could still pass today.

 

28 February 2019

The share price is not an indication of a a businesses "true worth" more like the investment community's valuation of a business. It can be tanked by speculators, government policies and sharp practises.  Sales up, gross profit up.. good news for UK PLC

28 February 2019

They should level at some point. Glad to see a great company getting great sales. Only wish the same could be said for many other British marques.

JMax

4 March 2019

They urgently need to drop the AMG 53 hybrid straight 6 drivetrain into the Vantage to have a true 911 competitor again like they did with the last gen car. The previous version sold so well (at least in part ) because at £85k/420bhp it was a viable Carrera S rival, but the new one is pitched straight at the 911 Turbo which is a much smaller market. When the initial rush subsides I suspect they’ll be in trouble at £121k. 

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