The Luxury British car manufacturer maker Aston Martin is in the process of making continuous investments in the development and manufacturing of new models and a second manufacturing unit as a part of its turnaround strategy and this drove down the adjusted pre-tax profits for the company in 2018. The company reported a year on year drop of 7 per cent in adjusted pre-tax profit for the period at 68 million pounds or $90 million.
The company last year floated itself on the London Stock Exchange as a public company and the company said that the process of implementing an initial public offering cost the company a onetime expense of 136 million pounds which resulted in the company reporting a pre-tax loss of 68 million pounds.
After booking a number of costs, primarily in relation to its IPO launch last year, the company however supported its full-year sales targets for 2019.
The British car maker is closely and famously associated with the cinema spy James Bond who used its cars for more than one occasion, had reported a pre tax profit of 4.5 million pounds a year earlier. The company however reported a significantly high increase in revenues – 25 per cent year on year, reaching.1 billion pounds.
The company prefers to use the adjusted earnings before interest, taxes, depreciation and amortization numbers because it eliminates exceptional and other one-off items, was 247.3 million pounds in 2018 compared to 206.5 million pounds achieved by it a year earlier, the company said.
“Given our progress on the Second Century plan–including completion of our new manufacturing plant at St. Athan and our preparations for the DBX, we are confident that Aston Martin Lagonda will deliver another year of growth,” President and Chief Executive Andy Palmer said.
In the entire period of 2018, the company had managed to sell 6,441 units or vehicles which was slightly above the expectations forecast earlier by the company. When the company was launching is IPO at the LSE last year, the company had predicted that it would be able to sell anything between 6,200 and 6,400 cars. Then again in November last year, the company reiterated that its sales of cars would be towards the higher end of the sale spectrum that it has forecast.
For the entire year of 2019, Aston Martin expects that it would be able to achieve sales of vehicles of anything between 7,100 and 7,300 units. During this period the company would also be opening up new manufacturing facilities and launching a new sport-utility vehicle. For 2020, the company has set a target of selling anything between 9,600 and 9,800 cars.
No dividend was announced by the board of the company.
The share price of the company has fallen significantly since it issued the YPU from 1,900 pence to 1,374.40 pence as of close of trade on Wednesday.
(Adapted from MarketWatch.com)