Aston Martin losses slim as new boss cheers bumper DB12 gross sales

Aston Martin Lagonda’s losses plummeted by 90 per cent in the third quarter as the luxury carmaker enjoyed strong demand for its DB12 vehicles.

The group reported pre-tax losses of £12.2million for the three months ending September, compared to £117.6million over the same period last year.

While the average sale price of its cars shrank by 5 per cent to about £222,000, its total revenue still expanded by 8 per cent to £391.6million.

Wholesale volumes rose by almost 200 to 1,641, with UK sales experiencing a 12 per lift and purchases across the Americas increasing by over a third to 477.

Aston Martin said this growth reflected orders for its established DB12 model and the roll-out of its new Vantage and DBX707 cars.

Launched in May 2023 to replace the DB11, the DB12 sports car was plagued by software issues and production delays, which contributed to Aston Martin suffering major financial losses.

While the company’s losses have improved, it warned last month that supply chain issues, together with lower Chinese sales, had impacted its volume outlook for the rest of 2024.

It now expects wholesale volumes to decline by a ‘high single-digit percentage’ figure rather than grow and for free cash flow to ‘remain negative’ this year.

Aston Martin said on Wednesday that it was on track to achieve its revised guidance, helped by production of its new models.

Adrian Hallmark, chief executive of Aston Martin, said: ‘I can already clearly see growth opportunities for the company as we bring incredible products to market.’

The Warwickshire-based business recently launched the V12 flagship Vanquish and the limited edition supercar Valiant.

He added: ‘We will drive profitability through a forensic approach to cost management and unrelenting focus on quality with a more balanced delivery profile in the future for our full range of new core models.’

Hallmark, 62, became the firm’s fourth CEO in four years when he took over from Italian-born Amedeo Felisa in September.

He previously ran fellow upmarket car brand Bentley for six years, during which time its sales and profits hit record levels thanks to the popularity of its Bentayga SUV vehicle and personalised features among customers.

When Hallmark joined Aston Martin, the group’s share price had plunged by more than 90 per cent since its listing, partly due to the Covid-19 pandemic and subdued economic growth in China.

Affluent Chinese consumers have scaled back their spending on luxury brands in recent years amid a depressed real estate market and stringent travel restrictions.

Aston Martin Lagonda shares were 5.2 per cent up at 111p on Wednesday morning, making them the FTSE 250 Index’s biggest riser.