Today, the shares in Aston Martin Lagonda came crashing down by 19 percent. It comes after the famous British car manufacturer reported that it lost approximately £68 million ($90.5 million) last year and was setting aside a cash stash amounting to £30 million to deal with a disorderly Brexit.
The shares in the company have dropped by approximately 40 percent since they were listed on the London Stock Exchange last October. That has wiped out around £1.6 billion from the market value of the firm.
A financial analyst at the spread-betting firm Spreadex, Connor Campbell, noted: “Investors pressed the ejector seat following Aston Martin’s latest update.”
Last year, carmaker reported record-setting sales amounting to £1.1 billion, an increase of 25 percent as compared to 2017. However, it turned to a loss for the year since it had to pay a total of £136 million to list the firm on the London Stock Exchange. If you remove those costs and taxes, it would have made a profit of £68 million, however, that’s still below the £73 million that it made in 2017.
During a press conference that was held earlier today, Andy Palmer, the boss of Aston Martin, emphasised that the results were in line with his own expectations He also said that the firm had delivered on its promises for the past year.
Previously, some analysts had predicted that Aston Martin could suffer less as compared to other auto manufacturers in the event of a disorderly Brexit and the imposition of new 10 percent car tariffs between the European Union and the United Kingdom.
The wealthy international customers of the company were expected to continue buying its pricey, exclusive cars regardless of tariff-induced price increases or even the threat of an economic slowdown.
However, Aston Martin is still making some preparations for the worst with its £30 million Brexit fund.
In its annual results, the firm disclosed: “Plans are in place to mitigate the impact on the business from potential supply chain disruption should the UK withdraw from the European Union without an agreement or in an unstructured manner.”