Luxury car maker Jaguar Land Rover has posted its third consecutive full-year loss after it was hit by charges related to its new electric vehicle strategy amid warnings over possible supply chain issues.
Announcing its annual results for the year to March 31, 2021, the manufacturer said it had made a pre-tax loss of £861 million.
This follows a £422 million loss in 2019/20 and a £3.6 billion loss the year before that.
This year’s figures were hit by the announcement of its Reimagine strategy in February which will see all of its vehicles be available as pure electrics by the end of the decade.
This has incurred a £1.5 billion exceptional charge, including £534 million for “restructuring” to be paid during its current financial year, which has sent it tumbling to the loss.
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Revenue for 2020/21 was £19.7 billion, down from £23 billion in 2019/20, while retail sales also dropped by 13.6 per cent to 439,588 cars.
It has also announced its fourth quarter results which saw JLR post a pre-tax loss of £952 million, up from a loss of £501 million a year ago.
Fourth quarter revenue was £6.5 billion, a rise on the £5.4 billion in 2019/20, while car sales were up 12.4 per cent to 123,483 vehicles.
The company said it had enjoyed strong sales in China and of the new Land Rover Defender globally, with 16,963 units sold in the final quarter and 45,244 over the full year.
JLR is headquartered in Coventry and has operations across the West Midlands and in Halewood, Merseyside.
The manufacturer welcomed the “encouraging” rates of covid vaccinations in terms of its support for the recovery of the global economy but said cases were still high in many markets.
Supply chain issues, in particular for semiconductors, had become more difficult to mitigate against, its annual report added, and were now impacting production plans for the current quarter.
“The company is working closely with affected suppliers to resolve the issues and minimise the effect on customers,” JLR added.
Last month, the company announced it was temporarily shutting down production at its plants in Halewood and Castle Bromwich, Birmingham, because of a shortage of computer chips.
Chief executive Thierry Bolloré said: “In my first set of full-year results as chief executive, I have been encouraged by the company’s resilience and strong recovery during a uniquely challenging year.
“Despite the pandemic, this year has also seen significant positive change culminating in February with the launch of our Reimagine strategy focused on reimagining our iconic British brands for a future of modern luxury by design.
“Our strategy is ambitious and it will make us more agile, efficient and sustainable. Although it is still early days, we have made significant progress in implementing it.
“This has reaffirmed my confidence that we have the right strategy, the right people and the right product-plans to deliver against our targets.
“Jaguar Land Rover is well placed to emerge from the pandemic as a stronger and more resilient company that is able to navigate and capitalise on the opportunities ahead.”