Loss-making Aston Martin plans to launch new model every 9 months
ASTON Martin has revealed it is planning to launch a new model every nine months until 2020 as the company continues to battle huge losses.
The Warwickshire car maker outlined the ambitious product offensive in its 2016 results, which it said demonstrated its ‘Second Century’ plan was firmly on track – despite posting a £162 million loss.
The Gaydon-based firm’s fullyear results for 2016 revealed a rise in revenues to £593.5 million, up from £510.2 million in 2015.
It said demand for its newest model, the DB11, was strong.
Although Aston Martin posted an operating profit of £16 million, it is still coping with legacy problems which meant it recorded a full-year loss of £162.8 million.
However, the overall picture remains positive and the firm said it had enjoyed a record-breaking fourth quarter.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose 90 per cent to £69 million in the three months to December 31, on revenue ahead 54 per cent to £285 million, reflecting strong sales of the DB11.
Andy Palmer, president and chief executive of the 104-year business, said: “These results demonstrate the benefits of our Second Century plan in which we have stabilised the company, strengthened the balance sheet and transformed our profitability.
“We have seen extremely strong demand for the DB11 in the fourth quarter and, together with our continued financial discipline and growth plans, this has enabled us to increase our 2017 forecasts meaningfully.”
The car maker said it expected revenues to rise to between £785 million and £815 million in 2017.
In the last three months of the year, sales rose 48 per cent to 1,668 units as the DB11 went on sale.
The car maker boosted its product investment to £192 million last year, up from £161 million, and also strengthened its cash reserves, with £102 million in the bank to support its continued growth.