Strong demand helps Aston Martin to record nine-month revenues
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Strong demand for its luxury sports car has seen Aston Martin post record nine-month results and buck an otherwise sluggish UK car market.
Revenues at the Gaydon manufacturer were up by 84% to £567m for the period ending September 30.
Continued strong demand for the DB11 helped drive a near fourfold increase in EBITDA to £121m, while the company generated pre-tax profits of £22m, reversing prior-year losses of £124m.
Dr Andy Palmer, Aston Martin President and CEO, said: “Our strong financial performance and continued profitability reflects the growing appeal of our high-performance sports cars, with the new DB11 Volante and a new Vantage expected to stimulate further demand in the coming year.
“Our ‘Second Century’ transformation program continues to gain momentum, paving the way for an expanded global presence.”
For the first nine months of the year, wholesale unit sales jumped 65% to 3,330, while average selling price rose to £150,000 reflecting an improved mix and higher uptake of options. The company also sold out its limited-edition Vanquish Zagato model.
For the three-month period to September 30, Aston Martin generated an operating profit of £8.6m, compared with an operating loss of £8.5m in the corresponding period last year. Q3 revenues increased to £156.4m from £96.6m.
The company generated cash from operating activities of £150.3m through the first nine months of 2017 and ended the period with £72m of cash.
Alongside its ongoing product renewal programme, Aston Martin has continued with the construction of its new St Athan manufacturing facility in Wales, where production of a new luxury sports utility vehicle is expected to begin in 2019.
Mark Wilson, Executive Vice President and Chief Financial Officer, said: “I am pleased to report that our performance has exceeded budget for 11 successive quarters and that revenue for the latest 12 months period continues to grow to record levels. Successful execution means the business is on track to outperform previous 2017 revenue and EBITDA guidance.”
Aston Martin has revised its guidance for the full-year, reflecting the strong performance in the first nine-month period. The company now anticipates delivering EBITDA of at least £180m on revenues of more than £840m. This compares with previous guidance of £175m and £830m respectively.