Aston Martin losses widen amid turnaround plan

Losses widened at Aston Martin in 2015, the luxury carmaker reported on Monday, with post-tax losses of £107m up from £64.8m a year earlier.

The privately-held manufacturer said that, inclusive of investment in new facilities and cars - increasing product development spending by 40% to £161m - the company was dragged down by £30.2m impairments and finance costs linked to the issuance of new shares.

Underlying profits still rose to £71.4m from £66.3m, and total revenue was 8.9% higher than 2014 at £510.2m, as a result of a price increase during the year.

The results come at a time of turnaround for Aston Martin, which announced almost 300 job losses last October and recently turned the key on its new £200m plant in Wales.

Located at St Athan, the plant will employ 750 new staff and will increase overall headcount by 50% to 1,470.

The company is also developing a hybrid petrol-electric “hypercar” in association with Red Bull Advanced Technologies, and is expanding its partnership with Red Bull Racing.

“The improved sales and profitability demonstrates the potential for the Aston Martin transformation.,” said chief executive Andy Palmer.

“While we are making significant investments, we are taking the necessary actions to re-engineer the business and implement a leaner operating structure.”