ASTON MARTIN REPORTS FULL YEAR 2015 RESULTS
Gaydon, UK, (June 29, 2016).– Aston Martin Holdings (UK) Ltd., the producer of luxury hand-crafted sports cars, reported full year 2015 financial results that demonstrated an improved revenue performance and solid increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) as the company accelerated its ‘Second Century’ product transformation program.
Revenues increased to £510.2m in 2015, up 8.9% year-over-year. Full-year adjusted EBITDA rose to £71.4m from £66.3m in the 12 months ended December 31, 2015.
The company, which has embarked on the largest expansion program in its history, lifted product development spending by 40% to £161m for the year, compared with £115m in 2014, as it prepares for the launch of a new generation of sports cars led by the new DB11.
Unveiled at the 86th International Geneva Motor Show, the DB11 is the first model launched under the marque’s ‘Second Century’ plan, representing the latest iteration of the company’s luxury craftsmanship and engineering innovation. The DB11 is powered by a new Aston Martin-designed 5.2-litre twin-turbocharged V12 engine, making it the most powerful production DB model ever. DB11 production will start in August, 2016.
Aston Martin has seen significant demand for the DB11, with customer orders already exceeding 2000 cars, underlining the coveted appeal of this breakthrough model. Earlier this month, the DB11 won the prestigious Car Design Award 2016 – Production Car of the Year – for its exquisite blend of elegance and power.
Building on the DB11 launch, the company plans to bring to market one new model every nine months, on average, over the next five years.
Dr Andy Palmer, Aston Martin President and Chief Executive Officer, said: “The improved sales and profitability in 2015 demonstrates the potential for the Aston Martin transformation. While we make the significant investments required to deliver the Second Century plan, we are taking the necessary actions to reengineer the business and implement a leaner operating structure. Our results provide us confidence that Aston Martin is on the right track to sustainable growth and profitability.”
As part of the ‘Second Century’ plan, the company is adding to its UK manufacturing presence with a new plant at St Athan in Wales. The plant is expected to create up to 750 new jobs to build Aston Martin’s first ever crossover vehicle, planned for 2019. In order to complete this project Aston Martin has issued £200 million of preferred equity. Recently, the company also entered into a partnership with Red Bull Advanced Technologies to create a ground-breaking hyper-car, whilst also expanding its global brand presence through an innovation-partnership with F1 team Red Bull Racing.
Growth in revenues and underlying earnings was achieved on unit sales of 3,615 vehicles in 2015, in-line with prior-year volumes and with an 8% increase in average pricing underpinning the company’s exclusive positioning. This was creditable result given that 2015 was the last year before Aston Martin embarked on a five-year period transformation of its model line-up.
Growth in UK wholesale deliveries in 2015 was offset by modest declines in Europe, China and the Americas commensurate with the forthcoming launch of the DB11. The company also benefited from cost-saving actions and positive exchange rate movements during the year. Cash generated from operation activities rose to £75.2m from £57.9m in the same period of 2014.
The 2015 operating loss of £58.3m was in line with prior year (£18.4m) after taking account heavy investment spending, non-recurring impairment charges of £30.2m and increased finance expenses of £10.1m linked to the issuance of new preference shares*.
The after-tax loss of £107m, compared with a £64.8m deficit in the prior year, was in line with expectations.
Mark Wilson, Executive Vice President and Chief Financial Officer, said: “We managed our balance sheet prudently at a time of major investments. Whilst the investment spend and costs of reorganisation led to an operating loss in 2015, Aston Martin is performing ahead of budget.”
“We are executing our plan on schedule, and we have significant resources and cash on hand to deliver the Aston Martin transformation,” said Dr Palmer. “Boosted by strong demand for the new DB11 as well as our special-series products such as Vantage GT8, we have begun 2016 solidly and we maintain our forecast for the full year in-line with prior guidance.”
Text and photograph by: Aston Martin
