Shares in Aston Martin surged 6% this morning on the news that the British sports car firm comfortably surpassed investor expectations in the first half of 2023.
The company's latest financial report reveals that it boosted revenues by 25% year-on-year in the first half of 2023, accompanied by a 38% hike in pre-tax earnings.
The firm also slashed its net debt from more than £1 billion to £846 million, but pre-tax losses climbed slightly to £142m - which the firm attributes to increased Valkyrie production, new product launches and inflationary pressures.
The uptick comes following a turbulent few years for the Gaydon-based company, and has been announced a year after Aston announced plans to raise £653m to safeguard its future - since achieved with new funding from Saudi Arabia's Public Investment Fund, chairman Lawrence Stroll's Yew Tree consortium, Mercedes-Benz and Chinese auto giant Geely.
Aston generated some £677m in revenue in the first six months of the year, attributing the 25% increase to "higher volumes, strong pricing dynamics in the core portfolio and favourable mix dynamics". The top-rung Aston Martin DBX 707 and Aston Martin Vantage V12 models are highlighted as significant contributors (the former accounting for 70% of all DBX sales).
Aston has sold 2954 cars since January, a 10% increase on 2022's figures, and plans to finish the year on around 7000 units.
The average selling price of an Aston Martin from January-June was £184,000 - up £20,000 year-on-year. In the past three months, that has climbed to £187,000.
The firm also notes that more customers took delivery of the flagship Aston Martin Valkyrie hypercar in H1 2023: 38 compared to 27 in the same period last year.
Aston Martin aims to generate £2bn in revenue, with pre-tax profits of £500m, by the 2024/2025 financial year. It says, based on these latest figures, that it expects to "substantially achieve" these targets in 2024, and "is likely to exceed them in 2025".
Over the next five years, the company will invest around £2bn on a wide-reaching electrification strategy, beginning with the Valhalla plug-in hybrid supercar in 2024 and an all-new electric GT car in 2025, using Lucid motors and a bespoke platform.
Commenting on the latest figures, company chairman Lawrence Stroll said: “Although we may only be halfway through the year, 2023 has already proven to be a remarkable year in which Aston Martin has shone brighter than ever."
He added that the arrival of the new Aston Martin DB12 grand tourer will help to "further reposition Aston Martin as an ultra-luxury, high-performance brand" and revealed that the car is sold out into 2024.
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