Aston Martin has reported a widening operating loss of GBP159.3m for the first half of the year (compares with GBP38.9m loss in H1 2019) as it contended with the impact of the COVID-19 pandemic on top of launch costs for the DBX SUV.
Aston Martin expects the DBX model to have a positive impact during the second half of the year.
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Aston Martin has struggled recently as it has had to bear huge costs opening a new plant in Wales and expanding its product portfolio to the DBX. This year sales were hit by the COVID-19 pandemic. Canadian billionaire Lawrence Stroll purchased a big stake for nearly GBP200m early this year as Aston Martin sought cash. The company's share price has plunged since its flotation in 2018 and in May, Aston Martin announced the departure of CEO Andy Palmer, to be replaced in that position by Tobias Moers.
Aston Martin reported that total first half retail sales (1,770 cars) were down 41%, with Q2 down 48%, weaker than Q1 (down 34%) due to full quarter impact of COVID-19.
It says there are early positive signs from China, where all dealerships were re-opened in June and retails are up 11% year-on-year in the month.
However, the operating loss increased year-on-year principally due to the revenue decline and included a GBP17m currency effects headwind.
Lawrence Stroll, Aston Martin Lagonda Executive Chairman, admitted the first half had been a "very intense and challenging six months".
"In January, I and my co-investors in the Yew Tree Consortium, committed to make a significant investment in Aston Martin and I took on the role of Executive Chairman from April to give clear leadership to the business, our partners and our dealers. Since then we have been fully engaged in executing the initial reset in order to achieve our ambition to build Aston Martin into one of the great global luxury car brands," he said.
He said, however, that Aston Martin has been able to reduce dealers' sports car inventory by 869 units and that it has taken action to "right-size the cost base in alignment with our plans and raised £688m of new equity from my consortium and other investors, to strengthen the balance sheet and improve liquidity".
"From next year, we will have the great benefit of a highly competitive Aston Martin branded Formula One team giving us a significant global marketing platform to further strengthen our Brand and engage with our customers and partners across the world," he said.
