Aston Martin’s losses for the first quarter of the year widened as the carmaker halted production of its key models in anticipation of the launch of a new range of cars later this year.

Adjusted pre-tax losses almost doubled to £110.5m from £57.3m the previous year. Analysts, according to Reuters, had predicted losses of 93 million pounds.

Revenue fell 10% to £267.7m, with net lending up 20% to £1.04bn. The high level of debt in the car industry has worried investors for years and is estimated to have contributed to the large decline recorded by the stock since the company entered the stock exchange in 2018.

Today, the stock was down 12% at the open on the London Stock Exchange, with losses then pared to -6.3%.

The company’s management said, however, that the delivery of four new models within the year will lead to “significant growth” from the second half of the year onwards.

“The company’s performance in the first quarter reflects the expected transition period as we halted production and delivery of key models, ahead of the production of the new Vantage, the upgraded DBX707 and the V12 sports car,” said company president Lawrence Stroll.

Stroll also noted that Aston Martin took a major step towards strengthening its balance sheet, as it completed a refinancing program on improved terms.

By region, Aston Martin saw sales volumes fall by 35% in the Americas, by 30% in Great Britain, and by 17% in Europe, the Middle East and Africa. In the Asia-Pacific market the decline reached 14%.

For the full year, however, Aston Martin’s management maintained its forecasts for a high single-digit increase in sales volume, and for an improvement in the gross profit margin towards the 40% target it has set.

Also, the automaker is expected to welcome its new CEO, Adrian Hallmark, (currently at Bentley) in the fall. Hallmark is the third CEO to take over since 2020.