Aston Martin Lagonda Global Holdings PLC (LSE:AML) shares revved 18% higher as results for 2022 were boosted by a strong fourth quarter.
However, results from the luxury British carmaker did not really blow the doors off but were only in line with market expectations.
Revenues grew 26% to £1.38bn and underlying profits up 38% to £190.2mln on an EBITDA basis, with pre-tax losses growing to £495mln from £214mln last time.
Revenue was boosted by inflation, as the company achieved a record average selling price of more than £200,000 per vehicle, while wholesale volumes increased just 4% year-on-year to 6,412.
Fourth-quarter revenue of £524.3mln was higher than the £493.3mln expected, with wholesale volumes increased by 22%.
Executive chairman Lawrence Stroll said the company ended the year “with significantly improved growth, margin enhancement and positive free cash flow in Q4, exiting 2022 with the strongest order book in many years”.
For 2023 he expects to deliver “significant growth in profitability”, primarily driven by an increase in volumes and higher gross margin, with positive free cash flow in the second half of the year.
The first half cash flow will only be “broadly similar” to a year ago though, as it ramps up volumes of its DBX sports-utility vehicle, preparing for new sports cars launches later in the year, investments in future growth and bond payments.
“In addition to the ramp up of the already sold-out DBS 770 Ultimate, we expect deliveries of the first of our next generation of sports cars to commence in Q3.”
First deliveries will be made in the second half of the year of the already-sold-out Aston Martin Valkyrie Spider and the ultra-luxury DBR22, while the company’s 110th anniversary will see a “new, strictly limited, exclusive Aston Martin model” in the fourth quarter.
The shares topped 240p in early trading, their highest since last June.
*** UPDATE: Adds share price ***