Aston Martin has warned it will miss its annual profit target of around £ 15million after failing to deliver as many of its limited-edition Valkyrie hypercar models to customers as expected.
The UK luxury car maker said it delivered 10 of the £ 2.5million vehicles in the fourth quarter, down from expected.
“The impact is only the moment, all Aston Martin Valkyrie coupes are sold and remain allocated to customers with large deposits,” the company said in a full year update.
Lawrence Stroll, executive chairman of Aston Martin Lagonda, said the Valkyrie project has proven difficult since he inherited it when leading a consortium to buy the company in 2020.
“We inherited an ambitious project with Valkyrie, but we are now producing these fabulous hypercars,” he said.
The company said profits from the delayed shipment of vehicles, which had encountered electrical issues, would be reflected in its profits over the next two years.
The company said sales of its DBX sport utility vehicle, which targets affluent female customers, have been strong. It sold 3,001 of the vehicles, on which the company is basing its takeover, last year, taking an estimated 20% share of the luxury SUV market.
Overall, Aston Martin said wholesale sales rose 82% to 6,182 last year, as the company changed its strategy to limit the number of cars on sale in order to increase its status. of prestige.
“The proof is there that our strategy is working, as retail sales are way ahead of wholesale sales supported by high prices and improving residuals,” Stroll said. “It had been a long time since the core business was not as healthy as it is today. “
Stroll said the return to Formula 1, as part of his £ 500million bailout deal, had “dramatically increased the exposure, perception and desirability of our brand.”
He added that the completion of a first full year of sales of DBX and new products, such as a “new generation of front-engine sports cars” coming in 2023, meant the company was on the right track. track to meet its goal of £ 2bn in revenue and £ 500m in adjusted profits by 2024-2025.
Tobias Moers, managing director of Aston Martin, said there was “huge demand” for its limited edition cars, with the Aston Martin Valkyrie Spider twice oversubscribed by buyers since its launch in August.
“Our core business performed as expected while navigating a tough external operating environment,” he said. “We have taken strong action to improve the efficiency and profitability of the business. The brand’s desirability is strong, with new customers drawn to Aston Martin as we follow our demand-driven ultra-luxury business model. “
The company said its cash balance at the end of the year was £ 420million better than expected.
Aston Martin reported a pre-tax loss of £ 98million in the three months to the end of September, as revenue fell from £ 124million to £ 238million year-on-year for the quarter.
Shares rose 2.5% on Friday morning.