Shares in Aston Martin Lagonda Global Holdings PLC (LSE:AML) revved up 11% as it reiterated full-year guidance after reporting lower sales and larger losses for the first half.
The supercar manufacturer said its second-quarter performance reflects its "core portfolio transition in line with guidance" and strong sales volumes of its special edition vehicles, with 45 Aston Martin Valkyries (pictured) delivered.
Total wholesale volumes came to 1,998, a decrease of 32% as roughly guided, as it introduces new models and aims for a "significant ramp up" in the second half.
Revenue decreased 11% to £603 million and loss before tax rose 52% to £216.7 million, with a £77.9 million loss in the second quarter versus £68 million in the first.
Net debt rose to £1.19 billion at 30 June, up from £846 million a year earlier, following the refinancing in the first quarter and a £72 million net cash outflow.
Guidance for positive free cash flow in the second half of the year was reiterated, along with medium-term targets, with profitability improving due to anticipated high single-digit percentage wholesale volume growth and margins improving.
The group's product transformation made progress, with four new models to be introduced during the year, including a new Vantage and upgraded DBX707 in the first half.
Executive chairman Lawrence Stroll said: "Aston Martin is at a pivotal moment in its journey, with our immense product transformation supporting volume growth and sustainable positive free cash flow generation later this year, of which we have full confidence in achieving."
He said the first half was in line with prior guidance, with a focus on the delivery of the new Vantage and upgraded DBX707 models "and we remain on track to deliver a strong second-half performance.
"This will be underpinned by a significant ramp up in wholesale volumes including both the new V12 flagship Vanquish and ultra-exclusive Valiant Special, which we recently unveiled at Goodwood with Fernando Alonso."
Stroll confirmed that Adrian Hallmark will start as new chief executive officer on 1 September, poached from Bentley.