British lawmakers will be taking a vote on delaying Brexit on March 14 – just two weeks ahead of its scheduled departure.
Following British Prime Minister Theresa May promise to lawmakers that she would provide them an opportunity to extend the date on which Britain is schedule to leave the EU, the CEO os luxury carmaker Aston Martin stated, a delay to Brexit would be a “further annoyance”.
Many firms have triggered contingency plans on the assumption that Britain will be leaving the European Union on March 29, 2019. A delay could impact those preparations.
Aston Martin, which has authorized up to 30 million pounds ($40 million) worth of contingencies, has been boosting the level of components it holds.
On March 14, with just two weeks to go before Britain’s scheduled departure, British lawmakers are scheduled to vote on delaying Brexit.
“I would categorize it as a further annoyance,” said Andy Palmer, Aston Martin’s Chief Executive. “You’re holding that contingency stock for longer which means that your working capital is tied up for longer.”
He went to add, “More importantly, what you’re doing is you’re creating continued uncertainty”.
Aston Martin, which floated on the London Stock Exchange last year and is boosting its volumes and building its first sport utility vehicle at a new factory, posted on Thursday a 26 percent rise in 2018 volumes and a 25 percent increase in revenues.
Its adjusted pre-tax profits fell by 7% to $90 million (68 million pounds) before one-off costs related to its IPO.
Aston Martin said, if some one-time pension-related credits were removed from its 2017’s figures, its adjusted pre-tax profit would have risen last year.
Britain’s once soaring car industry is seeing falling investments, production and sales.
Earlier this month Honda announced it would be closing its British factory.