31st Jul 2019 09:20
(Alliance News) - Shares in Aston Martin Lagonda Global Holdings PLC slumped further in London on Wednesday, after the company swung to a significant interim loss.
The luxury carmaker was 21% lower in morning trade, at 449.90 pence a share. Shares also had slipped earlier in July following a profit warning, with the stock down 55% over the past 30 days.
Since the company's initial public offering in October of last year, priced at 1,900p, shares have dived 76%.
Aston Martin on Wednesday posted a pretax loss for the six months to June of GBP78.8 million, after a pretax profit of GBP20.8 million the same period a year prior.
Revenue has fallen 4%, to GBP407.1 million, with total wholesale volumes increased by 6% to 2,442 units. Retail sales rose 26%, but revenue was hit by lower sales in Specials.
A week ago, Aston Martin cut unit sales guidance for 2019, and also reduced guidance for margins, in a "disappointing" update.
Chief Executive Andy Palmer said Wednesday: "As described in our trading statement on July 24, both our retail and wholesale volumes have increased year-on-year. However, we are disappointed our projections for wholesales have fallen short or our original targets impacted by weakness in two of our key markets as well as continued macro-economic uncertainty."
"Accordingly, we have taken action to reduce wholesale guidance for 2019. We are also improving efficiency across the business, whilst protecting the brand," Palmer continued.
"We remain focused on execution of the Second Century Plan, financial discipline, long-term sustainable growth and ensuring we have the right funding structure in place. The strength of our brand underpins our confidence in the long-term opportunities ahead."
Related Shares:
Aston Martin Lagonda