Aston Martin investors ‘press the ejector seat’ as luxury car firm stumps up £30million for Brexit fallout fund and skids to a loss
- Newly listed car maker said full-year pre-tax profits slumped 7 per cent
- Aston Martin has set aside £30million to deal with Brexit disruption
- It sparked an investor sell off with shares tumbling 15 per cent in early trading
Shares in Aston Martin Lagonda veered off-road in early trading today as the luxury car maker’s debut results as a listed company left a bad taste in investors’ mouths.
‘Investors pressed the ejector seat,’ said SpreadEx analyst Connor Campbell, commenting on a 15 per cent plunge in the firm’s shares to £11.68.
The sell-off came as the firm as came clean on hefty full-year losses and lifted the lid on contingency plans for Brexit.
Aston Martin shares are deep in the red today after the firm unveiled full-year results
The firm has set aside £30million to deal with any Brexit disruption, with its boss Andy Palmer warning that a Brexit delay would only cause ‘further annoyance’.
It said it was taking action to ‘mitigate the impact on the business from potential supply chain disruption should the UK withdraw from the European Union without an agreement or in an unstructured manner’.
The James Bond favourite put a £68million annual loss – compared with profits of £85million in 2017 – down to one-off costs relating to its IPO last October.
It added that earnings in the first half of this year were set to be lower.
Aston said: ‘Since our third quarter trading update in November 2018, geopolitical and economic uncertainties have increased.
Aston sold 26 per cent more cars last year – 6,441, and revenues grew 25 per cent to £1.1billion
‘In response, we have put contingency plans in place to protect production and customer deliveries should the UK leave the European Union without an agreement or in an unstructured manner.’
As for the top line, Aston sold 26 per cent more cars last year – 6,441, and revenues grew 25 per cent to £1.1billion.
It hopes to sell between 7,100 and 7,300 cars this year.
Shares in Aston Martin sunk 15 per cent in early trading on Thursday after the results
‘2018 was an outstanding year for Aston Martin Lagonda, delivering strong growth, with improving revenues, unit sales and adjusted profits,’ thundered Palmer.
Commenting on the results, AJ Bell investment director Russ Mould said: ‘Aston Martin did post record revenue with volumes ahead of guidance, but today’s negative market reaction suggests it has a lot more to do to win over the sceptics.’
The group has lost more than a third of its market value since joining the UK market in October.