Aston Martin has adjusted its forecasts for 2022 after mounting financial losses in Q3 but says it remains on track with its ambitious growth plans.
The sports car firm's latest results come in the wake of a £654 million fundraising round that included substantial cash contributions from the Saudi Public Investment Fund (PIF), existing shareholder Mercedes-Benz and – more recently – Chinese automotive giant Geely Holdings.
Over the three months to the end of September, Aston sold 1384 cars – up 3% on the same quarter last year – and generated £316m in revenue, a 33% increase. But initial plans were to sell 6600 cars this year and the firm now says a figure between 6200 and 6600 units is likely so has downgraded its margin forecast.
The firm's pre-tax losses this year stand at £511m, more than double the £189m figure at this time last year.
Contributors to the losses in Q3 included ongoing logistical and supply obstacles (which have left more than 400 unfinished cars – worth £106 million – awaiting parts in factories) and the weakening of the pound, which has increased the value of some of its debt, measured in US dollars. It also paid out £65m in interest on its debts, which currently stand at £833.4m, up from £808.6m this time last year.
Aston also invested £213m into the development of new models during Q3, including the heavily updated Vantage, DB11 (pictured below) and DBS, which are due next year.
Wholesales are down 4% for the year to date, but revenues are up 16%, which Aston attributes to an average cost per sale of £173,000 (up 15% on 2021). This rose to £189,000 in the third quarter, in part due to the 17 Valkyrie hypercars that the firm delivered to customers in the quarter.
Aston's margins for Q3 stand at 33%, "reflecting improved pricing and core mix" but hampered by "higher logistics and manufacturing costs". Important contributors to the margins include the limited-run Aston Martin V12 Vantage and £1.75m DBR22 Speedster, both sold out, and the Valkyrie hypercar, the average selling price of which is thought to be around £2.5m.
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Such a boring car maker. Seriously. And that whole 007 thing is just tacky. Sorry, if you dont agree with me and I dont mean to offend. They are dull. I'm glad Lotus are on a turnaround for the better these days.
Such a boring car maker. Seriously. And that whole 007 thing is just tacky. Sorry, if you dont agree with me and I dont mean to offend. They are dull. I'm glad Lotus are on a turnaround for the better these days.