Carmaker’s plans for no deal or disorderly exit from EU include £2m for revised supply routes
Aston Martin Lagonda has set aside £30m in preparation for any Brexit-related disruption as the luxury carmaker reported strong revenues in its first set of annual results since its stock market debut.
The company said it was setting aside the cash in readiness for no deal or a disorderly Brexit, including £2m for revised supply chain routes. It has hired a new supply chain chief and has made plans to fly in components or bring them in through naval ports.
Andy Palmer, the chief executive, said a delay to Brexit would be a “further annoyance”. MPs could potentially vote on whether to delay Brexit on 14 March, a fortnight before the scheduled departure date of 29 March. Palmer added: “You’re holding that contingency stock for longer, which means that your working capital is tied up for longer. More importantly, what you’re doing is you’re creating continued uncertainty.”
Revenues at the 106-year-old company, James Bond’s favourite car marque, rose 25% to £1.096bn in 2018. The firm’s disappointing stock market debut in October cost it £136m, which pushed it into an annual pre-tax loss of £68.2m, compared with a profit of £84.5m the year before. Excluding the costs associated with the floatation, Aston Martin made an adjusted profit before tax of £68m,
It sold 6,441 cars last year, up 26%, which was better than expected, and it said its special editions were in high demand. Asia Pacific and the Americas led the way, with volume growth of 44% and 38% respectively, while the UK was up 17% and Europe, Middle East and Africa rose 13%.