British luxury automaker Aston Martin reported a sharp increase in losses on Friday, failing to make a profit for the 6th year running, however stated the launch of the DB11, its first brand-new model since restructuring, caused sales to rise at the end of 2016.
The automaker stated the 27 percent boost in pre-tax losses to 162.8 million pounds ($ 200 million) in 2016 was mainly due to the effect of the lower pound on financing expenses and a reduction on old tooling and IT equipment.
However the 104-year old firm, made popular by imaginary secret agent James Bond’s 1960s DB5 cars, stated sales increased almost 50 percent in the last quarter as its new DB11 model hit significant markets.
Aston Martin, which revealed a 1.9 percent increase in full-year sales to 3,687 cars, has lagged behind competitors such as Ferrari and McLaren in the last few years and is now upgrading its range of luxury sports cars to expand its appeal.
The company, owned primarily by Kuwaiti and Italian private equity firms, is likewise developing a new plant in Wales as part of a 200 million-pound ($250 million) financial investment to increase its collection with a new crossover SUV model, the DBX.
CEO Andy Palmer informed Reuters that with the boost in demand anticipated the introduction of the DB11 and other brand-new models the company anticipates to go back to profitability by next year.
“I think it’s relatively easy to see the transformational impact the DB11 has on the brand. Clearly that’s going to be repeated many times over now with Vantage and Vanquish replacements,” he stated.
“When I discuss 2018, that was essentially the end of the renewal of the core products and we will be profitable if not before.”
The automaker stated the approximately 15 percent fall in the pound against the euro and the dollar since Brexit had totally been “overwhelmingly positive” for the business.