Aston Martin Makes Rare First Quarter Profit.
Reports Suggest Stock Market Flotation Next Year.
Aston Martin has finally made a profit in the first quarter for the first time in 10 years, while reports in the financial media suggest the company may be considering a stock market flotation.
Aston Martin, owned 37.5 per cent by Italian private equity firm Investindustrial, along with Kuwaiti companies Investment Dar and Adeem Investment and others including Daimler, earned pre-tax profit of £5.9 million in the first quarter compared with a £29.7 million loss in the same period of 2016. Ford sold Aston Martin in 2007.
The company forecast it will earn £170 million in all of 2017 on an EBITDA basis (earnings before interest, taxes, depreciation and amortization), compared with previous guidance of £165 million and last year’s £101 million.
Aston Martin said it benefitted from cost cuts and demand for its new DB11 sports car. The company believes sales in 2017 will jump more than 30 per cent this year from 3,687 cars in 2016. Concept cars include an electric Rapide S. CEO Andy Palmer has said a DBX SUV will be launched in 2020, and the electric Rapide will go into production next year. The company is also planning to use its brand to sell yachts, apartments and handbags.
The financial media reports said Aston Martin may float on the stock market next year. Its value could reach £2.3 billion, the reports said.