25th Feb 2021 09:02
(Alliance News) -Â Shares in Aston Martin Lagonda Global Holdings PLC sped ahead on Thursday despite the luxury car maker posting a sharply widened loss, as it hailed the successful launch of its first SUV, the DBX.
Shares in the FTSE 250 constituent were up 9.2% at 2,184.36 pence in London on Thursday, placing it amongst the top performers in London's mid-cap index in morning trade.
Revenue for 2020 fell 38% to GBP611.8 million. Total retail sales, being dealers sales to customers, were down 32% to 4,150 units, and total wholesales, being company sales to dealers, down 42% to 3,394 from 5,862.
Aston Martin's pretax loss deepened to GBP466.0 million from GBP119.6 million in 2019.
The firm said it successfully launched its first SUV, the DBX, which began deliveries at the end of July. After a "quality led" ramp-up, 1,171 DBXs were wholesaled from the new St Athan facility in the fourth quarter - with the full-year total 1,516 - ensuring all dealers had received their demonstrator and showroom vehicles by the end of the year.
Aston Martin described customer response to the DBX as "very positive", with strong demand and the orderbook in line with expectations. The first new variant is planned for the third quarter of this year.
"On joining Aston Martin, my first priority was successfully launching our first SUV, the DBX. Demand is strong and we have wholesaled 1,516 units with all dealers now having their demonstrator and floorplan models. Actions were already underway on rebalancing supply to demand for GT and Sports cars, where we have made tremendous progress and are ahead of plan with encouraging signs for demand. Finally, Specials are integral to our plan. The era defining Aston Martin Valkyrie is a priority this year and we are on track for deliveries to start in the second half," said Executive Chair Lawrence Stroll.
Looking to the year ahead, the company expects a sharp ramp-up in wholesales to around 6,000, which would be above 2019's figure, while the adjusted earnings before interest, tax, depreciation and amortisation margin is seen in the mid-teens versus negative 11.5% for 2020.
"The uncertainty surrounding the duration and impact of the pandemic on the global economy continues, with the pace of emergence from lockdown and recovery in consumer demand varying significantly across geographies. While Q1 was planned to be the smallest quarter of the year, trading to date has been in-line with our expectations and our outlook for the full year is unchanged," Aston Martin said.
By Lucy Heming;Â [email protected]
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