28th Feb 2019 08:34
LONDON (Alliance News) - Shares in Aston Martin Lagonda Global Holdings PLC fell Thursday as it swung to a loss in its first annual results since joining the London Stock Exchange.
The stock was down 9.1% at 1,250 pence a share early Thursday. This is down 34% from its October initial public offering price of 1,900p.
Luxury car maker Aston Martin posted a pretax loss of GBP73.1 million in 2018, compared to a GBP84.5 million profit in 2017.
On an adjusted basis, Aston Martin's pretax profit was GBP68 million, from GBP73 million year-on-year.
The company booked adjusting items of GBP136 million, compared to a GBP11.4 million gain a year prior.
The costs include staff incentives and fees related to its initial public offering, and a negative past service pension benefit.
Aston Martin registered revenue of GBP1.10 billion in 2018, up 26% on the year, with wholesale volumes increasing 26% to 6,441.
Regionally, UK volumes rose 17%, the Americas rose 38% to 1,761, Europe, the Middle East, & Asia up by 13%, and Asia-Pacific by 44%. All four regions contribute roughly equal volumes.
"2018 was an outstanding year for Aston Martin Lagonda, delivering strong growth, with improving revenues, unit sales and adjusted profits. As the UK's only listed luxury automotive group, we have demonstrated our legitimacy in the global luxury market," said Chief Executive Andy Palmer.
"Our well-defined expansion plans, that combine outstanding high-performance cars with iconic brand-status, are on track as we manage through the uncertainties and disruption impacting the wider auto industry."
Looking ahead, Aston Martin expects 2019 volumes to be between 7,100 and 7,300, affirming prior guidance. In the medium-term, it wants volumes of around 14,000.
Aston Martin guided for an adjusted earnings before interest, tax, depreciation, and amortisation margin of 24% in 2019, from 22.6% in 2018.
The firm does expect adjusted earnings in the first half of 2019 to be lower year-on-year due to the non-repeat of an intellectual property sale.
Capital expenditure is guided between GBP320 million and GBP340 million for 2019, including research & development costs.
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Aston Martin Lagonda