26th Nov 2024 21:43
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Tuesday announced plans to raise GBP210 million to support further growth as it cut earnings guidance to reflect delayed delivery of some Valiant models.
The luxury car maker expects full-year adjusted earnings before interest, tax, depreciation and amortisation between GBP270 to GBP280 million. It had previously forecast adjusted Ebitda to be "slightly below" the GBP305.9 million it achieved last year. This guidance was cut in September.
Aston Martin said strategic investors, underpinned by the Yew Tree Consortium, have committed to subscribe for up to GBP73.5 million of an around GBP110 million placing. The GBP35.5 million balance will be offered to institutional investors via an accelerated bookbuild. A separate retail offer was also announced to raise GBP6 million.
In addition, the firm proposed the issue of GBP100 million of additional senior secured notes, making a total fund raise of around GBP210 million.
In a statement, Aston Martin said the financing will provide the firm "with increased financial resilience and strength" as it "maximises the potential of its fully reinvigorated core portfolio of class-leading next generation models and continues to invest in future growth opportunities."
The financing will also provide additional resilience and liquidity should "unexpected headwinds occur during the transformational period, better enabling the group to deliver on its growth ambitions."
Executive Chairman Lawrence Stroll said: "On behalf of the Yew Tree Consortium, and our other strategic investors, we are pleased to support the financing that reinforces Aston Martin's financial strength and liquidity. Adrian Hallmark, as our new chief executive, is already making an important impact at Aston Martin."
Hallmark said: "We are already taking decisive actions to better position the group for the future including a more balanced production and delivery profile in the coming quarters. Coupled with a forensic approach to cost management and quality, these efforts will deliver enhanced operational and financial performance in 2025 and beyond, as we progress towards our mid-term targets. The financing we are undertaking supports our growth and provides the investment to continue with future product innovation."
Aston Martin said the "ultra-exclusive" Special, Valiant, remains on track to commence delivery to customers before the end of 2024.
"However, due to a minor delay in the timing of a small number of deliveries, the group now expects to deliver around half of the 38 Valiant models by the end of the year (previously guided to be the majority). The balance of deliveries will now occur in early 2025."
Aston Martin said it remains focused on achieving its financial 2025 targets, including delivery of free cash flow generation during the financial year, while progressing towards its previously communicated mid-term financial targets for financial 2027/28.
Shares in Aston Martin closed down 3.9% at 108.00 pence each in London on Tuesday.
By Jeremy Cutler, Alliance News reporter
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