- Underlying cash profit margins of 18.7%, lower than 20% expected
- Operating expenses rise 26%, but improved pricing and volumes helped underlying operating losses improve to £79.7mn from £117.9mn
- Revenue up 18% reflecting record average selling prices
Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown:
“Aston Martin is pumping reams of cash into marketing in a bid to help position itself at the ultra-luxury end of the spectrum. This pivot was never going to come cheap, and that’s led to some disappointing momentum on margins, even though there has been significant improvements. Repositioning the brand is ultimately a good idea, as super-luxury is a more resilient corner of the market than where Aston Martin is currently parked. So-called Specials volumes are moving in the right direction, with these personalised, more lucrative vehicles a good indicator of demand for more expensive vehicles. Customers sign up and pay a deposit for these rare models before they’re built, allowing for tighter working capital control. The cars have also become cheaper to make thanks to efficiency improvements.
Longer term, it’s the effectiveness of the group’s hybrid models that will drive sentiment. For all Aston Martin’s heritage brand strength, electric is the direction of travel and the roadmap for this part of the strategy remains a little unclear.”
