Aston Martin accelerates to profit
By Punchline reporter | 1st March 2023
Despite componentry shortages and supply chain stutters, Aston Martin Lagonda has announced its first profit since it joined the London Stock Exchange nearly five years ago.
As the sole automaker listed on the market, the 110-year-old company turned a £16m profit in the final trading quarter of 2022 – a turnaround from four years' cumulative losses that had amounted to £1.3bn. In 2022, it suffered a £495m loss while splashing out on new-model development.
The Warwickshire-based brand, represented on Rutherford Way as Aston Martin Cheltenham, is hoping for a smoother road ahead, offering a less queasy ride for long-suffering investors. Shares were suffering an all-time dip last autumn, but are now rising and the stock price has more than doubled in the last four-month period. Early trading today increased them by 38.5p.
Laurence Stroll, executive chairman, said: "I knew it would take multiple years to build Aston Martin into the world's most desirable ultra-luxury British performance brand. With the heavy lifting behind us, we are now poised to see the results of this transformation, starting in 2023."
Stroll's strategy has been to move Aston Martin further upmarket. Sales for this year are predicted to reach 7,000 cars, but the company warns "operating environment remains volatile, including ongoing inflationary pressures and pockets of supply chain disruptions".
2023 will also be its final year of "significant expenditure associated with [its] internal combustion engine portfolio".
This year's catwalk cars will include the £314,000 DBS 770 Ultimate, plus hypercar special editions cars including more of the Valkyrie Spider - at £2.5m a pop - and a new £1.5m DBR22. Buoyed by these, Stroll believes profits will zoom to 20 per cent.
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