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Aston Martin Lagonda Global Holdings PLC on Wednesday recorded weaker results, for a first-quarter that it labelled a ‘period of transition’. The Gaydon, England-based carmaker said revenue in the first-quarter fell 10% to £267.7 million from £295.9 million a year earlier. The company reported 945 vehicle sales, down 26% from 1,269. Adjusted operating costs increased 4.7% to £156.8 million from £149.7 million. Pretax loss widened 87% to £138.8 million from £74.2 million. Executive Chair Lawrence Stroll said: ‘2024 is a year of immense product transformation at Aston Martin, with the introduction of four new models to the market before the end of the year. Our first quarter performance reflects this expected period of transition, as we ceased production and delivery of our outgoing core models ahead of the ramp up in production of the new Vantage, upgraded DBX707 and our upcoming V12 flagship sports car which we’ve confirmed today. As part of our ongoing programme of ultra-exclusive models, we will deliver a new Special in the fourth quarter of the year.’ Aston Martin expects a second-quarter performance to be ‘broadly similar’ to the first, while wholesale volumes ‘will be heavily weighted towards the second half of the year.’ Further, it anticipates ‘significant’ second half growth in gross profit and on-year earnings before interest, tax, depreciation and amortisation. Stroll added: ‘In March, we were pleased to successfully complete our planned refinancing, securing improved terms on new five-year senior secured notes. This followed upgrades from leading credit agencies, recognising the significant progress made by Aston Martin over recent years and the opportunity for our strategy to continue to deliver improved performance in the years to come. This, along with our existing lenders demonstrating their continued support through a 70% increase in the new [revolving credit facility] to £170 million, marked a significant step in strengthening our balance sheet, aligning Aston Martin for a positive financial future.’ Net debt as of March 31 stood at £1.04 billion, an increase of 20% from £868.1 million a year prior. Aston Martin however highlighted it completed £1.2 billion refinancing on new five-year terms. For 2024, the company expects depreciation & amortisation costs of around £400 million, which would be 3.7% higher than £385.6 million in 2023. Aston Martin shares fell 7.0% to 137.85 pence each on Wednesday morning in London. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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