Stock market warned by firm about missed target. First customer Valkyries delivered late to the company
Aston Martin issued a trading update to its stock exchange warning it that it expects to miss its EBITDA (earnings after depreciation and amortization) target of around PS15m by 2021 due delays in preparing the Valkyrie hypercar.
Lawrence Stroll, executive chairman, described the hypercar project “challenging” and noted that it was “inherited” by a consortium that bought into the firm in 2020. He also highlighted the fact that production had already begun and that 10 customer cars had been delivered before the end of the year.
Aston’s trading statement stated that “This was less than originally planned and consequently adjusted EBITDA will be c.PS15m higher than expected. This is a timing issue. All Aston Martin Valkyrie Coupes have been sold and are still allocated to customers who have significant deposits.
In the statement, it was also stated that the Valkyrie Spider’s customer demand is twice that of the allocated cars. The income from the Valkyrie project has been delayed but not lost due to the continued demand for the cars.
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Tobias Moers, CEO of Aston Martin, highlighted positive Aston Martin 2021 steps, including increasing wholesaled cars 82% from 6182 to 3001 DBX SUVs and noting that demand was higher than supply, eliminating the need for discounting and protecting residuals. This was a major failing of the company before Stroll took ownership.
Stroll stated, “I am very pleased that our core business delivered on time with over 6000 core wholesales last year and while driving inventory levels to levels that are suitable for an ultra-luxury company,” Stroll stated that retail sales are outpacing wholesales due to strong pricing and improved residual values. It has been a long time since the core company was in such good health.
“We have accomplished a lot and are on track to transform Aston Martin into one the most luxurious ultra-luxury brands worldwide with new leadership, partners, products and our return from Formula One which has significantly increased brand visibility, perception, and desirability.”
Moers said: “Our core business delivered on its promises while we navigated a difficult external operating environment. We have achieved strong pricing and ended the year with dealer stock at optimal levels that align with our business strategy.
Aston’s fortunes contrast sharply with Bentley’s, which yesterday announced that it sold 14,659 cars last season, an increase of 31% over 2020.