Despite building fewer cars
Morgan Motor Company has turned a record profit for the third year in a row as it continues its long-term strategic plan.
The turnaround plan, being led by Chairman Dominic Riley, Managing Director Steve Morris and family shareholders, brought a 95 percent increase in pre-tax profit at the end of 2018 – up to £3.4m from £1.73m in 2017. The increase was helped by record prices achieved for the final Aero GT and Plus 8 50th Anniversary Edition models, as well as a more efficient production process. Exports for Morgan increased by five percent, helped with a large number of sales in the final quarter.
The results make sense on the face of it – sell cars at higher prices, and spend less money making them. However, with Morgan ceasing production of its V8-engined models in the last year, it actually produced less cars, making the company's financial results all the more remarkable.
"Morgan Motor Company’s continuing success can be attributed to three essential ingredients: our skilled workforce, our strategic vision and our heritage," said Steve Morris, Morgan's managing director. "Our results in 2018 have been extremely impressive and give us the solid foundation to move forwards into an important year for the business."
"We have waved a fond farewell to our iconic V8 models and are looking forward to entering the most exciting chapter yet, as we celebrate our 110th anniversary, with a new 'Wide Body' sports car due this year."
Morgan is now gearing up for the future with a huge £6.3 million invested over the last three years in research and development, which includes the development of an all-new new bonded aluminium fabricated platform which will be used by a new 'Wide Body' sports car (rendered bove), which will launch later this year. Last year alone Morgan reinvested eight percent of its annual turnover in R&D, it's biggest such development to-date.
"Our focus on a stable, profitable and innovative Morgan Motor Company is clearly represented in the year-end results," said Morgan chairman Dominic Riley. "Ever-improving efficiency and rising gross margins are fantastic to see and have come about thanks to our shared strategic vision and the hard work by everyone at Malvern. Investment in R&D has never been higher and it is only fitting that this investment will benefit our customers for years to come."