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Aston Martin posted a higher loss in the third quarter than last year due to high borrowing costs, although the luxury automaker’s sales more than doubled due to demand for its DBX sport utility vehicle.

The company took out $ 1.1 billion in high-yield debt in a refinance last October.

By paying the interest on the debt, the borrowing cost rose to £ 133 million between August and October this year, much higher than the £ 79 million Aston spent in the same period last year.

As a result, the pre-tax loss for the quarter was £ 97.9m compared to a loss of £ 80.5m for the same period last year, despite improved conditions in the underlying business.

“The cost of this is higher than we would have liked,” said CFO Ken Gregor of the Financial Times. He said the business is likely to be burdened with substantial interest payments until “probably 2023” if the company hopes to refinance the debt again.

“It is on hold until we are able to refinance,” he said, adding that it will take longer for the company to be profitable on balance, something the new management team will accomplish this year wanted to.

After financing costs, Aston’s operating loss was £ 30.2 million compared to £ 69.8 million in the same quarter of 2020.

1,349 cars were sold in the quarter compared to 660 a year earlier, increasing revenue from £ 124 million to £ 237.6 million.

https://www.ft.com/content/39bfd3c8-bd74-40a9-a678-cc4ff4efc33c