New DB11 powers Aston Martin sales
Profits at luxury sports car company Aston Martin were down in the first three months of the year as the company spent on new models and its new factory at St Athan.
The West Midlands based company saw earnings rise on an EBITDA level, up 3% to £43.7m in in the first quarter, on revenues on £185.4m. But pre-tax profits halved to £2.8m from £5.5m a year ago.
Chief executive Andy Palmer said: “Aston Martin delivered another quarter of positive pre-tax profit, achieved in a period of significant planned investment in new products and manufacturing facilities.
"This is a good set of results during a quarter of planned model changeovers, during which orders have continued to grow for our exciting new models. We have continued to execute against the Second Century Plan, and we were delighted by the exceptional reaction to the new Vantage and the launch of our Lagonda ‘Vision Concept’, representing a significant advance in our portfolio expansion.”
The average selling price of its cars rose 11% to £160,000, with 963 vehicles sold in the quarter – down on the 1,203 sold a year ago – amid strong demand for the new V8-powered DB11 Volante. Aston says its order book is outpacing its production capacity.
The DB11 Volante is now rolling off the production line at Gaydon, in Warwickshire, while the Vantage is in the pre-production phase.
Mark Wilson, executive vice president and chief financial officer, added: “We have continued to invest with discipline and focus to prepare for a sustainable long-term future. The strength of our underlying profitability, our order book and our balance sheet give us confidence that we can deliver further growth this year and beyond.”