Aston Martin Lagonda has pledged to turn a profit by 2025 – at least before paying interest on its ballooning debt – with Adrian Hallmark, its new chief executive, promising a fresh era of operational discipline and financial accountability after a period of mounting losses and leadership upheaval.
Hallmark, 62, who joined the Gaydon-based manufacturer last September following a stint at Bentley Motors in Crewe, said his focus would be on fixing production glitches, cutting costs, and ensuring the company’s new model launches are not hampered by supply chain woes.
“We are determined to deliver operational excellence,” Hallmark said. “We expect to see a material improvement in financial performance.”
The push for lower costs includes a 5 per cent reduction in its 3,400-strong workforce, cutting 170 roles at an average annual salary of nearly £150,000, yielding around £25 million in savings. Investors had shown renewed optimism in recent weeks, driving the share price up by about a fifth. However, jitters returned on Wednesday, with the stock losing all those gains and shedding more than 10 per cent in morning trade—valuing the marque at roughly £930 million, far below its 2018 flotation figure of £4.3 billion.
Hallmark’s first full-year results reveal a company still blighted by deep losses. Fourth-quarter sales of 2,391 sports cars were 8 per cent higher, but a focus on selling more lower-priced models—plus discounts—meant revenue slipped 1 per cent to £589 million, shrinking the gross profit margin from 45 per cent to 35 per cent.
Operating profits of £33 million were obliterated by £93 million in interest payments on Aston Martin’s £1.16 billion debt, up from £814 million. That led to a fourth-quarter pre-tax loss of £60 million, compared with a £20 million profit in the same period the previous year. Full-year pre-tax losses rose 21 per cent to £289 million, with the business slipping into the red at the operating level by £99 million.
Under previous executive chairman Lawrence Stroll, Aston Martin once aimed to produce 10,000 vehicles a year by 2025. That aspiration has since been scrapped, although the company still holds out for an eventual target of £2.5 billion in annual revenue—now postponed to 2027-28—with hopes of generating £400 million in profit before interest and tax.
Hallmark acknowledged the business has suffered from poor quality control and logistical snarls, with cars often rolling off the line just 65 per cent “right first time” when he took over. That figure has improved to 90 per cent, and Hallmark aims to reach an industry-standard 95 per cent later this year. “Our ambition relied on everything being perfect,” he noted. “It wasn’t.”
Since Stroll’s rescue in 2020, Aston Martin has been forced into multiple emergency cash calls, raising or restructuring around £4 billion in capital while racking up cumulative losses exceeding £1.6 billion. Hallmark, however, insists that 2025 will herald a fundamental turning point, with profits returning at the operating level and positive cashflow in the second half of the year.
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Aston Martin’s new chief vows to reverse fortunes as luxury carmaker targets 2025 profit