Long road ahead as losses deepen at Aston Martin
Aston Martin’s losses have widened as the luxury car manufacturer prepares to launch four new models.
Pre-tax losses grew from £142.2m to £216.7m in the first half of the year as car sales dropped 32% on the same period last year.
Almost 2,000 cars have been sold in the first half of 2024, causing revenues to decrease by 11% to £603m. Adjusted underlying profits fell by 23% to £62.2m.
It comes at a “pivotal moment” for Aston Martin, as it embarks on a portfolio transition as well as a move to electrification.
It expects to invest £2bn by 2027 in its long-term growth strategy and electric vehicle portfolio.
The new models will be introduced by the end of the year and are expected to drive significant growth in H2 and beyond. Its third CEO in four years will also be appointed this year, with former Bentley boss Adrian Hallmark taking the helm of the manufacturer from September 1.
He takes over from former Ferrari boss Amedeo Felisa, who has been CEO since May 2022 after the departure of Tobias Moers, who had also been in post for just under two years.
Aston Martin executive chairman Lawrence Stroll, who is its biggest shareholder, said: “As we commence an exciting second half of 2024, Aston Martin is at a pivotal moment in its journey, with our immense product transformation supporting volume growth and sustainable positive free cash flow generation later this year, of which we have full confidence in achieving.
“In line with prior guidance, our execution in the first half of the year focused on the successful delivery of our new Vantage and upgraded DBX707 and we remain on track to deliver a strong second half performance.”
