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Aston Martin posts strong Q1 profit

By Chris Thompson, 25 May 2017 News

Aston Martin DB11 2

DB11 sales pave way for more than double revenue from £92.6 million to £188.3 million

High demand for DB11s and a refinancing operation have helped put Aston Martin in the black for the first quarter of 2017.

Revenue has more than doubled from £92.6m to £188.3m in Q1, making it the first time the company has turned a first-quarter profit in over a decade.

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This has been helped by generally strong retail performance and market share gains, particularly in the UK and China.

Aston Martin dealership Swan st Melbourne
Aston Martin CEO Andy Palmer says the company’s ‘seven models in seven years’ product plan is coming to fruition.

“The group has made a strong start to the year. We are delivering on our ‘Second Century’ transformation program and building sustainable profitability.

“Forthcoming models including the new Vantage and Vanquish will expand on our recent growth, underpinned by the financial resources and operational discipline of a true British success story in luxury car production.”

The plan started in 2016 with the now in-demand DB11, with this year’s new Vantage next up and a Vanquish successor in 2018.

Company CFO Mark Wilson says Aston can continue to grow and develop new cars thanks to forecasted savings, despite the company only having been profitable in two years of its 104-year history.

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“The refinancing is expected to result in annual income statement interest savings of more than £10 million and strengthens our capital structure,” Wilson says.

“As our operational performance improves, we now have a solid financial platform on which to continue to grow.”

Confidence in the brand also seems to be a factor, as CEO Palmer continues the ‘second century plan’ by taking measures such as inspecting the first 1000 DB11s produced.

Speaking to MOTOR earlier this year, Palmer said: “I don’t give a shit whether we go bankrupt in the process, we’re not sending crap cars out to the customers.”

That attitude would appear to be part of the reason for Aston’s profit jump.