A fall in demand for luxury models led to Aston Martin losing more than £200m during the first half of 2023, it has been revealed.
The Warwickshire-headquartered company has reported a pre-tax loss of £216.7m for the six months to June 30, 2024, compared to the loss of £142.2m it reported during the same period in 2023.
New results filed with the London Stock Exchange also show its revenue declined from £677.4m to £603m.
The marque delivered just 1,998 vehicles over the six months, nearly a third fewer year-on-year.
In a statement, executive chairman Lawrence Stroll said the company was at a “pivotal moment” in its journey.
It is launching a range of new models later this year in what Stroll described as an “immense product transformation,” that would support volume growth.
“In line with prior guidance, our execution in the first half of the year focused on the successful delivery of our new Vantage and upgraded DBX707 and we remain on track to deliver a strong second half performance,” the Canadian billionaire added.
“This will be underpinned by a significant ramp up in wholesale volumes including both the new V12 flagship Vanquish and ultra-exclusive Valiant Special, which we recently unveiled at Goodwood with Fernando Alonso.”
Stroll is leading a major turnaround at the iconic luxury automaker, which is famous for its association with the James Bond franchise. It has struggled with a burgeoning debt pile since a 2018 IPO and has often sought help from its shareholders.
Despite rising losses, Aston Martin kept its medium-term outlook, for full-year 2027/28, unchanged. It is anticipated revenue of £2.5bn and adjusted EBITDA of £800m.
“Earlier this year we successfully completed our planned refinancing, securing improved five-year terms following credit rating agency upgrades, and enhancing our liquidity through a new increased RCF provided by our existing lenders,” Stroll said.
But the scale of the challenges at Aston will be firmly on the mind of Adrian Hallmark, the former chief executive of Bentley who takes up the top job in September.
Firmly in the crosshairs will be the firm’s electrification push, a key part of its strategy in the coming years.
Today, the carmaker said it had earmarked £2bn over the next three years for its transition to greener fleets.
It follows a string of major announcements last year, including a £182m tie-up with US-based EV manufacturer Lucid last year.
Orwa Mohamad, an analyst at Third Bridge, said: “2024 is shaping up to be a challenging year for Aston Martin in terms of sales volume, due to the low demand for the SUV DBX and the lack of new product launches.”
“Focusing on profitability recovery should be the top priority, followed by investing in new product line-ups and implementing cost-cutting measures. Halo products like the Valkyrie and the Valhalla are crucial to Aston Martin’s long-term success. Although only a small volume is sold, these vehicles command very high prices.”