► Near-double revenue year-on-year
► Deliveries rise 67% first half 2017
► Aided by new DB11 and weak pound
Aston Martin has announced pre-tax profits of £21.1m in its 2017 first-half report – a huge turnaround from pre-tax losses of £82.3m 12 months earlier. This has helped the company’s revenue to rise to £410.4m, compared to £211.8m a year ago.
Sales boosted by new DB11
In previous years, Aston Martin sales have struggled. With few new models being released, the manufacturer made consecutive losses from 2011 to 2016.
However, in the first half of 2017 Aston has sold 2439 vehicles, a jump of 67%. The release of the brand new DB11 (pictured) has no doubt boosted these sales; having something new to sell will always give the numbers a nudge. Redesigns across both the Vanquish S and Vantage S have also successfully increased sales, according to the report.
Weak pound contributes to profit
Aston Martin CEO Andy Palmer has attributed the post-Brexit fall in the value of the pound to a rise in relative car selling prices. Aston reports the average selling price of its cars has risen to £149,000. That’s a fairly substantial 25% increase, although potentially skewed partially by the launch of models such as the special-edition Vanquish Zagato Coupe.
Nevertheless, it seems that we all have more money to spend, as the amount of optional extras specified on all models sold has also increased.
Aston Martin Executive Vice President and Chief Financial Officer Mark Wilson said this report ‘proves that our strategy is on track.’ That strategy points to the development of the first all-electric Aston, the RapidE, set to enter production in 2019, and the company’s first SUV, the DBX. Work is underway on a new manufacturing plant for the latter in St Athan, South Wales.
This cashflow momentum will help that venture’s prospects of success; reports suggest the company is also looking at a stock market listing within the next two years.