Morgan Motor Company has announced record profits for the third year running, citing investment in research and development as one of the reasons for its success.
Year-end financial results for 2018 saw profit before tax increase by over 95% year-on-year to £3.4m (US$4.4m). The British company also saw positive growth in gross margins, thanks partly due to record prices achieved for the final Aero GT and Plus 8 50th Anniversary Edition models. However, continuing improvements to production efficiency at the famous Malvern factory have ensured the greatest growth in operating profit.
Last year saw Morgan make its biggest investment yet in research and development (over 8% of annual turnover in 2018), taking total R&D investment to just over £6.3m (US$8.16m) in the last three years. This investment includes the development of Morgan’s all-new new bonded aluminum fabricated platform which will be used by the range-topping ‘Wide Body’ sports car, due to launch this year.
“Our focus on a stable, profitable and innovative Morgan Motor Company is clearly represented in the year-end results,” explained Dominic Riley, chairman.
“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.”