LONDON: Luxury British carmaker Aston Martin is trying to boost its market share in the United States and Japan to mitigate against any risks from Brexit which could add costs and delays to sales to the European Union.
Around 20 percent of the firm’s top-end cars are currently exported to the United States whilst 15 percent are sold to the European Union, with whom unfettered tariff-free trade is at risk depending on the outcome of Brexit talks.
But Chief Executive Andy Palmer said the firm has plowed resources into boosting demand in the world’s biggest economy since the June 23 Brexit vote last year.
“We decided to invest money in marketing in the US,” he told Reuters during a telephone interview on Friday.
“We are trying to give a push in the US to increase our market share there, increase our volumes there (and) therefore decrease our reliance on Europe,” he told Reuters. “To some extent, that would be true also of Japan.”
Aston Martin reported its first half-yearly profit in almost a decade on Friday as sales of the new DB11 model put the luxury British carmaker on the road to recovery.
The 104-year old firm posted a record pre-tax profit of £21.1 million in the first six months of the year, compared with a £82.3 million loss last year. It is the first time it has been in profit at this stage of the year since 2008.
Aston, famed for making the sports car driven by fictional secret agent James Bond, has benefited in recent months from surging sales with volumes rising 67 percent to 2,439 vehicles, spurred on by the new DB11 model.
“It’s the big uptick in volume — plus we’re getting much higher specifications on these cars,” said Chief Financial Officer Mark Wilson.
Wilson told Reuters it is “increasingly possible” that the firm will post a full-year pre-tax profit this year, which would be its first since 2010.
The automaker, owned mainly by Kuwaiti and Italian investors, is implementing a turnaround plan which could propel it toward a stock market flotation by the end of the decade.
Demand was strong in Britain, mainland Europe, the Americas and China. The average selling price per model, excluding special editions, rose 25 percent to £149,000 – mainly powered by the DB11.
Aston’s sales were at a low last year as the firm was still selling its range of older models ahead of the release of several new cars designed to boost volumes and its appeal.
The firm suffered a setback earlier this year as it had to recall 1,658 Vantage sports cars and 2,244 DB11 coupe models.
Some Vantage cars are affected by a transmission issue whereby the gears can change outside of the driver’s control, whilst the tire pressure mounting system is incorrectly set in the DB11, according to the Driver and Vehicle Standards Agency.
Wilson said the cost of the Vantage recall is in the “low hundreds of thousands” and changes to the DB11 will be less expensive.
Aston Martin trying to mitigate Brexit risk with US sales drive
Aston Martin trying to mitigate Brexit risk with US sales drive
Closing Bell: Saudi benchmark index closes lower at 10,540
RIYADH: Saudi equities ended Wednesday’s session lower, with the Tadawul All Share Index falling 55.13 points, or 0.52 percent, to close at 10,540.72.
The sell-off was mirrored across other indices, with the MSCI Tadawul 30 Index retreating 5.79 points, or 0.41 percent, to close at 1,393.32, while the parallel market Nomu slipped 74.56 points, or 0.32 percent, to 23,193.21.
Market breadth remained firmly negative, as decliners outpaced advancers, with 207 stocks ending the session lower against just 51 gainers on the main market.
Trading activity moderated compared to recent sessions, with volumes reaching 123.5 million shares, while total traded value stood at SR2.72 billion ($725.2 million).
On the sectoral and stock level, Al Moammar Information Systems Co. led the gainers after surging 9.96 percent to close at SR172.30, extending its rally following a series of contract announcements tied to data center and IT infrastructure projects.
Al Masar Al Shamil Education Co. climbed 4.89 percent to SR27.48, while Naqi Water Co. advanced 3.36 percent to SR58.50. Al Yamamah Steel Industries Co. and Al-Jouf Agricultural Development Co. also posted solid gains, rising 3 percent and 2.86 percent, respectively.
Losses, however, were concentrated in industrial names. Saudi Kayan Petrochemical Co. fell 3.67 percent to SR4.73, while Makkah Construction and Development Co. slid 3.44 percent to SR80.
Saudi Tadawul Group Holding Co. retreated 3.28 percent to SR147.50, weighed down by broader market weakness, and Saudi Cable Co. declined 3.18 percent to SR143.
Alkhaleej Training and Education Co. rounded out the top losers, shedding just over 3 percent.
On the announcement front, BinDawood Holding announced the signing of a share purchase agreement to acquire 51 percent of Wonder Bakery LLC in the UAE for 96.9 million dirhams, marking a strategic expansion of its food manufacturing footprint beyond Saudi Arabia.
The acquisition, which remains subject to regulatory approvals, is expected to support the group’s regional growth ambitions and strengthen supply chain integration.
BinDawood shares closed at SR4.68, up 0.43 percent, reflecting a positive market reaction to the overseas expansion move.
Meanwhile, Al Moammar Information Systems disclosed the contract sign-off for the renewal of IT systems support licenses with the Saudi Central Bank, valued at SR114.4 million, inclusive of VAT.
The 36-month contract is expected to have a positive financial impact starting from fourth quarter of 2025, reinforcing MIS’s position as a key technology partner for critical government institutions. The stock surged to the session’s limit making it the top gainer.
In a separate disclosure, Maharah Human Resources confirmed the completion of the sale of its entire stake in Care Shield Holding Co. through its subsidiary, Growth Avenue Investments, for a total consideration of SR434.3 million.
The transaction involved the transfer of 41.36 percent of Care Shield’s share capital to Dallah Healthcare, with Maharah receiving the full cash proceeds.
Despite the strategic divestment, Maharah shares closed lower, ending the session at SR6.12, down 1.29 percent.
