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Aston Martin posts first profit in eight years as it eyes IPO
[LONDON] British luxury carmaker Aston Martin Holdings Ltd. reported its first annual profit in eight years amid strong sales of its latest sportscar models, paving the way for a potential initial public offering.
The manufacturer famous for making film spy James Bond's favorite car said Monday pretax profit swung to 87 million pounds (S$159.4 million) last year from a loss of 163 million pounds in 2016. The profit was the first since 2010, according to a spokesman.
The results will help cement Chief Executive Officer Andy Palmer's turnaround of the iconic brand, while sales of its newest DB11 supercar will give the company a boost ahead of any sale of shares. Bloomberg reported last month that the carmaker is eyeing a valuation of as much as 5 billion pounds in an IPO.
"We continue to consider a range of strategic options for the future of the group, including the potential for an IPO," Chief Financial Officer Mark Wilson said in a statement on the company's website.
Aston Martin is expecting earnings to improve again this year, which could raise its projected valuation, as it moves toward the introduction of a new model in the lucrative sport utility vehicle segment starting in 2019.
Sales in 2017 surged nearly 50 per cent with deliveries rising above 5,000 for the first time since 2008. Adjusted earnings before interest, taxes, depreciation and amortization came in 15 per cent ahead of the company's own forecast at 207 million pounds.