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Tide turning for Aston Martin on back of DB11 success

Pre-tax profit back in the black as 'Second Century' transformation programme show signs of working

Luxury car manufacturer Aston Martin has enjoyed a positive start to the year on the back of the new DB11 with revenue more than doubling and pre-tax profit returning to the black.

The Warwickshire-based firm said turnover for the first quarter of 2017 had climbed to £188.3 million from £92.6 million while pre-tax profit hit £5.9 million, reversing a loss of £29.7 million for the same period in 2016.

The number of cars sold increased by 75 per cent to 1,203 units year-on-year.

In February, Aston Martin announced it had posted a £162.8 million loss in its full-year results for 2016 but remained bullish over its future prospects.

The news comes as the company completes a £550 million refinancing to enhance liquidity, reduce borrowing costs and increase financial reserves while the UK and China continue to be strong markets, the firm says in a statement.

Chief executive Andy Palmer said: "The group has made a strong start to the year.

"We are delivering on our 'Second Century' transformation program and building sustainable profitability.

Aston Martin DB11 has boosted sales
Aston Martin DB11 has boosted sales

"Forthcoming models, including the new Vantage and Vanquish, will expand on our recent growth, underpinned by the financial resources and operational discipline of a true British success story in luxury car production."

Aston Martin has now improved its full-year forecast to reflect the expectation that revenues will rise to more than £800 million in 2017.

During the first quarter, Aston Martin launched the AMR line of high performance vehicles and special limited edition models including the Red Bull Vantage S Racing Edition.

Chief financial officer Mark Wilson said: "The refinancing is expected to result in annual income statement interest savings of more than £10 million and strengthens our capital structure.

"As our operational performance improves, we now have a solid financial platform on which to continue to grow."

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