Aston Martin Lagonda Global Holdings plc, the maker of the car driven by James Bond 007, saw its modest profit for 2018 wiped out by rising costs, some of which were linked to Brexit.
It reported an annual loss of $90 million (£68 million) after turning a profit of $112 million (£84.5 million) in 2017. Aston Martin said the loss was entirely due to the costs of $181 million (£136 million) related to its controversial and some say, overpriced, October IPO.
News of the loss caused Aston Martin shares to plummet nearly 20% percent at the London Stock Exchange after Aston Martin admitted that higher than expected costs had eliminated its profits for 2018.
The IPO, however, has been a key cause of Aston Martin's current misfortunes. Shares fell 5 percent on their first day of trading 2018. Aston Martin's stock has now plunged 42 percent since its stock market debut last October.
It lost a massive $2.4 billion (£1.8 billion) in value since October. Under intense pressure, the company's shares fell a further 21.4% on Thursday to £10.80 after it revealed the $90 million loss for 2018.
Aston Martin warned it faces trouble if the United Kingdom leaves the European Union without a Brexit deal that protects trade, which today remains the likeliest scenario given March 29 is less than a month away.
Aston Martin said production might be disrupted by a No-Deal Brexit. To hedge against this disaster, the company has set aside $40 million (£30 million) to deal with the disruptive impact of a disorderly exit.
As another preventive measure, Aston Martin said it's hired a chief purchasing and supply chain officer to prepare for Brexit. This executive will also emplace contingency plans to use different routes and ports to deliver parts.
Aston Martin sold 6,441 cars in 2018. CEO Andy Palmer expects this total to increase once the company completes a new factory in Wales and begins selling its DBX SUV. Aston Martin expects to begin trial production of the DBX in the second quarter of this year. Full production will begin in the first half of 2020.
