REG - Aston Martin Lagonda - Half-year Report
24/07/2024 07:00
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RNS Number : 5439X Aston Martin Lagonda Glob.Hldgs PLC 24 July 2024
Aston Martin Lagonda Global Holdings plc
("Aston Martin", or "AML", or the "Company"; or the "Group")
Interim results for the six months ended 30 June 2024
Q2 performance reflects core portfolio transition in line with guidance and
strong Specials volumes
Reiterating 2024 guidance, including positive Free Cash Flow in H2'24, and
medium-term targets
Significant growth in total ASP and gross margin underpinned by
personalisation and Specials
Order book continues to progress with DB12 sold out into 2025; new models
launched as planned
Successful refinancing completed following rating agency upgrades; new upsized
RCF established
£m H1 2024 H1 2023 % change Q2 2024 Q2 2023 % change
Total wholesale volumes(1) 1,998 2,954 (32%) 1,053 1,685 (38%)
Revenue 603.0 677.4 (11%) 335.3 381.5 (12%)
Gross profit 232.9 236.3 (1%) 133.2 134.4 (1%)
Gross margin (%) 38.6% 34.9% 370 bps 39.7% 35.2% 450 bps
Adjusted EBITDA(2) 62.2 80.6 (23%) 42.3 50.4 (16%)
Adjusted EBIT(2) (99.8) (86.7) 15% (42.7) (38.9) 10%
Operating (loss)/profit (106.1) (93.2) 14% (47.4) (42.3) 12%
(Loss)/profit before tax (216.7) (142.2) 52% (77.9) (68.0) 15%
Net debt(2) (1,193.8) (846.2) 41% (1,193.8) (846.2) 41%
(1) Number of vehicles including Specials; (2) For definition of alternative
performance measures please see Appendix
Lawrence Stroll, Aston Martin Executive Chairman commented:
"As we commence an exciting second half of 2024, Aston Martin is at a pivotal
moment in its journey, with our immense product transformation supporting
volume growth and sustainable positive free cash flow generation later this
year, of which we have full confidence in achieving.
"In line with prior guidance, our execution in the first half of the year
focused on the successful delivery of our new Vantage and upgraded DBX707 and
we remain on track to deliver a strong second half performance. This will be
underpinned by a significant ramp up in wholesale volumes including both the
new V12 flagship Vanquish and ultra-exclusive Valiant Special, which we
recently unveiled at Goodwood with Fernando Alonso.
"Our high performance products and ultra-luxury brand positioning strategies
are creating strong demand amongst a new audience and existing loyal
customers. Vantage's extremely positive media reception and reviews position
it at the very top of the sports car segment, while the upgraded DBX707 with
new interior and state of the art infotainment and the multi-award-winning
DB12 underpin the strength of our next generation models. In tandem, Formula
One® continues to drive considerable excitement and reappraisal of our brand
with new and existing audiences.
"Earlier this year we successfully completed our planned refinancing, securing
improved five-year terms following credit rating agency upgrades, and
enhancing our liquidity through a new increased RCF provided by our existing
lenders. We were also delighted to announce that Adrian Hallmark will become
our new Chief Executive Officer. We have today confirmed his appointment will
take effect on 1 September 2024, bringing unrivalled experience in both the
ultra-luxury and British automotive sectors to further progress delivery of
our strategic goals."
Aston Martin's management team will host a video webcast presentation and live
Q&A at 8am (BST) today. Details can be found on page 4 of this
announcement and online at www.astonmartinlagonda.com/investors
(http://www.astonmartinlagonda.com/investors)
H1 2024 financial summary
· Delivered core wholesale volumes in line with guidance as portfolio
transition continues ahead of significant H2 2024 ramp up in wholesale volumes
driven by timing of four new model launches in 2024:
- H1 2024 wholesale volumes decreased 32% to 1,998 (H1 2023: 2,954)
reflecting, as expected, our planned transition to new Vantage and upgraded
DBX707 models, with both entering production on track at the end of Q2;
Sport/GT volumes largely reflect continued demand for DB12 which is fully sold
out into 2025
- Q2 2024 core wholesale volumes were in line with guidance, supported by
strong delivery of 73 Specials (Q2 2023: 20)
§ Total wholesales decreased 38% to 1,053 (Q2 2023: 1,685), while marginally
ahead of the previous quarter (Q1 2024: 945) reflecting ongoing portfolio
transition ahead of significant ramp up in H2 2024, including launch of the
new V12 flagship Vanquish in September and new ultra-exclusive Special,
Valiant, which are both progressing as planned.
· H1 2024 revenue decreased 11% to £603m (H1 2023: £677m) reflecting
volume impact of planned portfolio transition ahead of significantly improved
financial performance in H2 2024, in addition to foreign exchange headwinds as
sterling strengthened against major currencies compared to H1 2023:
- Increased Specials volumes driving growth in total ASP:
§ H1 2024 total ASP of £274k, up 29% (H1 2023: £212k)
§ Q2 2024 total ASP of £293k, up 38% (Q2 2023: £212k)
- Core ASP marginally lower due to prior year periods including higher
priced limited edition core vehicles including V12 Vantage Roadster in
addition to V12 flagship DBS and DBS 770 Ultimate volumes:
§ H1 2024 core ASP of £180k, down 2% (H1 2023: £184k)
§ Contribution to core revenue from options increased 410 basis points to 18%
§ Q2 2024 core ASP of £183k, down 2% (Q2 2023: £187k); 4% sequential
improvement compared to Q1 2024 (£176k) as transition to new Vantage and
upgraded DBX707 commences
· Gross profit remained broadly flat despite volume impact during
portfolio transition; gross margin improvement driven by Specials volume and
mix in addition to positive momentum in personalisation; progressing towards
c. 40% target in FY 2024:
- H1 2024 gross profit decreased by 1% to £233m (H1 2023: £236m); gross
margin improved by 370 basis points to 39% (H1 2023: 35%)
- Q2 2024 gross profit decreased by 1% to £133m (Q2 2023: £134m); gross
margin at 40% (Q2 2023: 35%)
· H1 2024 adjusted EBITDA(1) was ahead of guidance due to phasing of
Specials at £62m (H1 2023: £81m); 23% decrease in adjusted EBITDA and margin
of 10% (H1 2023: 12%) reflect lower core volumes during portfolio transition
period partially offset by strong delivery of Specials
· H1 2024 operating loss before tax increased by 14% to £106m (H1
2023: £93m loss) reflecting impact on profitability during planned period of
portfolio transition ahead of significant growth in profitability in H2 2024
compared with the prior year period
· H1 2024 net cash outflow from operating activities of £72m (H1 2023:
£18m cash inflow); free cash outflow(( 1 )) of £313m (H1 2023: £218m
outflow) reflecting:
- Q2 free cash outflow of £122m (Q2 2023: £100m outflow), improving
sequentially (Q1 2024: £190m outflow) due to improved working capital outflow
of £45m (Q1 2024: £74m outflow) and exclusion of cash interest paid (Q1
2024: £43m) due to early payment in Q1 2024 following successful refinancing
in March 2024
- H1 2024 net cash interest paid of £41m (H1 2023: £56m)
- As expected, capital expenditure of £200m (H1 2023: £180m) focused on
development of future product pipeline; expect FY 2024 capital expenditure in
line with guidance
- H1 2024 working capital outflow of £119m (H1 2023: £37m outflow),
primarily reflecting the unwinding of customer deposits on delivery of
Specials, a trend expected to continue in H2 2024, and the increase in
inventories ahead of new core model production, partially offset by a decrease
in receivables
· Total liquidity (cash and available facilities) at 30 June 2024 of
£247m (31 March 2024: £395m), reflecting free cash outflow in Q2 ahead of
inflection point of positive free cash flow generation in H2 2024
· Net debt at 30 June 2024 of £1,194m (30 June 2023: £846m) reflects
higher gross debt following refinancing in Q1 2024 and lower cash balance;
adjusted net leverage ratio of 4.2x (30 June 2023: 4.0x); remain committed to
medium-term deleveraging target through disciplined strategic delivery
Outlook remains unchanged as we continue to deliver in line with guidance
ahead of significant H2 ramp up in wholesale volumes
We remain confident in the delivery of our FY 2024 financial targets announced
at our FY 2023 results on 28 February 2024, as we execute another year of
significant strategic and financial progress, completing the product portfolio
transformation that will drive future growth. In FY 2024:
· Enhanced profitability and EBITDA will be driven by high single-digit
percentage wholesale volume growth
· Gross margin further improving to achieve our target of c. 40%
· EBITDA margin expansion continuing into the low 20s%
Having delivered the new Vantage and upgraded DBX707 as planned, we remain
confident in the launch timings of the remaining two new models in 2024 and
the ramp up in wholesale volumes in H2'24:
· Wholesale volumes will be heavily weighted to the second half of the
year, resulting in significant H2'24 growth in gross profit and EBITDA
compared with the prior year period
· Q3'24 volume performance expected to materially improve sequentially
compared with Q2'24. Q4'24 is expected to be the most material quarter of FY
2024 for both volumes and financial performance
· Core V12 flagship Vanquish, launching in September, and Valiant,
ultra-exclusive Special - deliveries remain on track, scheduled to begin in
Q4'24, with the majority delivered by year end
We continue to expect FCF to materially improve in FY 2024 compared with the
prior year. The sequential improvement in free cash outflow is expected to
continue in Q3'24 to support positive FCF generation in H2 2024. FY 2024
capital investment in new product developments to support our growth strategy
remains at c. £350m.
Through disciplined strategic delivery, executing on our portfolio
transformation which will drive volume ramp up in H2'24, we expect to
deleverage towards our net leverage ratio target of c. 1.5x in FY 2024/25.
Following our refinancing in Q1'24, we expect net cash interest of c. £120m
in FY 2024 2 . Depreciation and amortisation forecast remains at c. £400m in
FY 2024.
The Group's medium-term outlook for FY 2027/28, remains unchanged:
· Revenue: c. £2.5 billion
· Gross margin: mid-40s%
· Adjusted EBITDA: c. £800 million
· Adjusted EBITDA margin: c. 30%
· Free cash flow: to be sustainably positive
· Net leverage ratio: below 1.0x
· Expect to invest: c. £2bn over FY 2023-2027 in long-term growth
and transition to electrification
1 For definition of alternative performance measures please see Appendix
2 Assuming current exchange rates prevail for 2024
The financial information contained herein is unaudited.
All metrics and commentary in this announcement exclude adjusting items unless
stated otherwise and certain financial data within this announcement have been
rounded.
Enquiries
Investors and Analysts
James Arnold Head of Investor Relations
+44 (0)
7385 222347
james.arnold@astonmartin.com
Ella South Investor Relations
Analyst
+44 (0) 7776 545420
ella.south@astonmartin.com
Media
Kevin Watters Director of Communications
+44 (0) 7764
386683
kevin.watters@astonmartin.com
Paul Garbett Head of Corporate & Brand
Communications +44 (0) 7501 380799
paul.garbett@astonmartin.com
FGS Global
James Leviton and Jenny Bahr
+44 (0) 20 7251 3801
Results Presentation
· There will be a video presentation and Q&A for today at 08.00am
BST: https://app.webinar.net/w85pDwAmog0
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.google.com%2Furl%3Fq%3Dhttps%253A%252F%252Fapp.webinar.net%252Fw85pDwAmog0%26sa%3DD%26source%3Dcalendar%26usd%3D2%26usg%3DAOvVaw0FIc410rU9a_TquqPx9vEr&data=05%7C02%7Cella.south%40astonmartin.com%7C5b4ffc1918ec4a8cba3e08dc7423af4a%7C63ab48267a7348169bc13934580f4485%7C1%7C0%7C638512943824657799%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=1cmBLdsQawNxVMgNNknRPe8mkNMwwW%2FQG34P1D%2FzdKY%3D&reserved=0)
· The presentation and Q&A can be accessed live via the corporate
website:
https://www.astonmartinlagonda.com/investors/results-and-presentations
(https://www.astonmartinlagonda.com/investors/results-and-presentations)
· A replay facility will be available on the website later in the day
No representations or warranties, express or implied, are made as to, and no
reliance should be placed on, the accuracy, fairness or completeness of the
information presented or contained in this release. This release contains
certain forward-looking statements, which are based on current assumptions and
estimates by the management of Aston Martin Lagonda Global Holdings plc
("Aston Martin Lagonda"). Past performance cannot be relied upon as a guide to
future performance and should not be taken as a representation that trends or
activities underlying past performance will continue in the future. Such
statements are subject to numerous risks and uncertainties that could cause
actual results to differ materially from any expected future results in
forward-looking statements.
These risks may include, for example, changes in the global economic
situation, and changes affecting individual markets and exchange rates.
Aston Martin Lagonda provides no guarantee that future development and future
results achieved will correspond to the forward-looking statements included
here and accepts no liability if they should fail to do so. Aston Martin
Lagonda undertakes no obligation to update these forward-looking statements
and will not publicly release any revisions that may be made to these
forward-looking statements, which may result from events or circumstances
arising after the date of this release.
This release is for informational purposes only and does not constitute or
form part of any invitation or inducement to engage in investment activity,
nor does it constitute an offer or invitation to buy any securities, in any
jurisdiction including the United States, or a recommendation in respect of
buying, holding or selling any securities.
FINANCIAL REVIEW
Wholesale volume summary
Number of vehicles H1 2024 H1 2023 % change Q2 2024 Q2 2023 % change
Total wholesale 1,998 2,954 (32%) 1,053 1,685 (38%)
Core (excluding Specials) 1,880 2,916 (36%) 980 1,665 (41%)
By region:
UK 295 445 (34%) 141 225 (37%)
Americas 635 1,062 (40%) 332 595 (44%)
EMEA ex. UK 674 834 (19%) 391 491 (20%)
APAC 394 613 (36%) 189 374 (49%)
By model:
Sport/GT 1,373 1,369 0% 723 787 (8%)
SUV 507 1,547 (67%) 257 878 (71%)
Specials 118 38 211% 73 20 265%
Note: Sport/GT includes Vantage, DB11, DB12, and DBS
Aston Martin's product transformation continued to progress on track during H1
2024 as the Company introduces four new models during the year. In line with
guidance, total wholesales of 1,998 decreased by 32% (H1 2023: 2,954), ahead
of the significant ramp up in wholesale volumes in H2 2024:
· Sport/GT wholesales of 1,373 were flat year-on-year (H1 2023: 1,369),
with the majority of units representing DB12 wholesales in addition to the
initial ramp up phase of new Vantage wholesales in Q2 2024.
· SUV wholesales of 507 decreased by 67% (H1 2023: 1,547), reflecting
a strategic transitional ramp down in prior model volumes as we begin the
initial ramp up phase of upgraded DBX707 wholesales in Q2 2024, with all new
interiors and bespoke infotainment.
· Specials wholesales of 118 (H1 2023: 38), comprised of a mature
cadence of 45 Aston Martin Valkyries (H1 2023: 38) and Valour deliveries,
demonstrating the Company's unique ability to operate at the very highest
levels of the luxury automotive segment and attract new customers and
collectors to the brand.
As expected, total wholesales of 1,053 in Q2 2024 decreased by 38% compared to
Q2 2023, though increased sequentially by 11% compared to Q1 2024 (945 units),
due to the ongoing portfolio transition with the new Vantage and upgraded
DBX707 both entering production during the period. Aston Martin continues to
operate a demand-led approach, aligned with its ultra-luxury high performance
strategy. Year to date, retails outpaced wholesales and the Company expects to
see this continue in FY 2024 and beyond as its next generation of vehicles are
launched.
Geographically, as guided, wholesale volumes across all regions were down
compared to H1 2023 due to the product portfolio transition, while remaining
well balanced across all regions. The Americas and EMEA excluding UK were the
largest regions in H1 2024, collectively representing 66% of total wholesales,
primarily driven by strong demand for DB12. UK and APAC wholesales were down,
as expected, broadly in line with the overall decline in volumes, reflecting
the planned portfolio transition. Finally, the trend in China continued, with
volumes decreasing by 72% compared with H1 2023, and now reflecting a very
small percentage of total wholesales. This performance was driven by a
combination of market dynamics and the timing of new model deliveries,
including DB12, which are only due to commence from Q3 2024 onwards. China
continues to be a market where we see significant opportunity for long-term
growth. Wholesale volumes in APAC excluding China were down 13% year-on-year
(H1 2023: down 13%).
Revenue and ASP summary
£m H1 2024 H1 2023 % change Q2 2024 Q2 2023 % change
Sale of vehicles 548.8 627.3 (13%) 309.2 357.2 (13%)
Total ASP (£k) 274 212 29% 293 212 38%
Core ASP (£k) 180 184 (2%) 183 187 (2%)
Sale of parts 42.8 40.3 6% 21.9 20.1 9%
Servicing of vehicles 6.3 4.2 50% 2.7 2.1 29%
Brand and motorsport 5.1 5.6 (9%) 1.5 2.1 (29%)
Total revenue 603.0 677.4 (11%) 335.3 381.5 (12%)
H1 2024 revenue decreased by 11% to £603m (H1 2023: £677m), reflecting the
volume impact of the planned portfolio transition ahead of significant
financial performance in H2 2024 driven by the timing of four new model
launches this year, in addition to foreign exchange headwinds as sterling
strengthened against major currencies compared to the prior year:
· Total ASP increased reflecting the richer mix resulting from
deliveries of Specials including the Aston Martin Valkyrie Spider and Valour
limited edition models.
· Core ASP marginally down reflecting the prior year period mix
benefitting from the contribution of V12 Vantage, DBS, DBS 770 Ultimate and
higher SUV sales:
- Continued strong demand for product personalisation drove an increase in
contribution to core revenue from options, up 410 basis points to 18% compared
to H1 2023, reflecting the launch period of new models.
- Core ASP in Q2 2024 (£183k) increased sequentially by 4% compared with
core ASP in Q1 2024 (£176k), as the transition to new Vantage and upgraded
DBX707 models commenced.
Income statement summary
£m H1 2024 H1 2023 Q2 2024 Q2 2023
Revenue 603.0 677.4 335.3 381.5
Cost of sales (370.1) (441.1) (202.1) (247.1)
Gross profit 232.9 236.3 133.2 134.4
Gross margin % 38.6% 34.9% 39.7% 35.2%
Adjusted operating expenses(1) (332.7) (323.0) (175.9) (173.3)
of which depreciation & amortisation 162.0 167.3 85.0 89.3
Adjusted EBIT(2) (99.8) (86.7) (42.7) (38.9)
Adjusting operating items (6.3) (6.5) (4.7) (3.4)
Operating loss (106.1) (93.2) (47.4) (42.3)
Net financing expense (110.6) (49.0) (30.5) (25.7)
of which adjusting financing (expense)/ income (22.3) (37.9) 4.4 (24.1)
Loss before tax (216.7) (142.2) (77.9) (68.0)
Tax (charge)/credit 9.1 0.2 9.2 (0.2)
Loss for the period (207.6) (142.0) (68.7) (68.2)
Adjusted EBITDA(1,2) 62.2 80.6 42.3 50.4
Adjusted EBITDA margin 10.3% 11.9% 12.6% 13.2%
Adjusted loss before tax(1) (188.1) (97.8) (77.6) (40.5)
EPS (pence) (25.3) (20.3)
Adjusted EPS (pence) (21.8) (13.9)
1 Excludes adjusting items; 2 Alternative Performance Measures are defined in
Appendix
Despite the lower revenue and volumes in H1 2024, gross profit of £233m was
broadly flat, decreasing by £3m, or 1% (H1 2023: £236m), resulting in a
gross margin of 39%, expanding by 370 basis points (H1 2023: 35%). The gross
margin performance reflected benefits from the ongoing portfolio
transformation to next generation models in addition to strong volumes of high
margin Specials. This was partially offset by higher manufacturing, logistics
and other costs ahead of the significant ramp up in production in H2 2024. The
Company continues to target over 40% gross margin from future products,
aligned with the Company's ultra-luxury strategy.
Adjusted EBITDA was ahead of guidance at £62m (H1 2023: £81m) decreasing by
23%, with adjusted EBITDA margin declining to 10% (H1 2023: 12%). This was
primarily due to the lower core volumes during the transition period and a 10%
increase in adjusted operating expenses (excluding D&A), partially offset
by higher Special wholesale volumes. While SG&A costs were only marginally
higher, this was offset by the phasing of non-capitalised engineering spend,
relating mostly to our future electrification strategy.
Adjusted EBIT decreased by 15% in H1 2024 to £(100)m (H1 2023: £(87)m) with
depreciation and amortisation broadly flat at £162m (H1 2023: £167m).
Adjusted net financing costs of £88m (H1 2023: £11m), increased primarily
due to the year-on-year impact of US dollar debt revaluations, and accelerated
amortisation of fees related to prior loan notes as a result of the
refinancing. The £22m net adjusting finance charge (H1 2023: £38m) was
largely due to movements in fair value of outstanding warrants, and the
redemption premiums associated with the refinancing of the senior secured
notes.
The adjusted loss before tax of £188m (H1 2023: £98m loss), reflects the
lower adjusted EBIT and increased adjusted net finance costs.
On a reported basis, the operating loss of £106m increased 14% in H1 2024 (H1
2023: £93m loss) primarily driven by the volume and gross profit impact as
described above. These and the increase in net finance expenses resulted in a
loss before tax of £217m (H1 2023: £142m).
Cash flow and net debt summary
£m H1 2024 H1 2023 Q2 2024 Q2 2023
Cash generated from operating activities (71.9) 17.5 (10.4) 50.5
Cash used in investing activities (excl. interest) (200.1) (180.2) (113.8) (94.9)
Net cash interest paid (40.6) (55.6) 2.0 (55.6)
Free cash outflow (312.6) (218.3) (122.2) (100.0)
Cash inflow from financing activities (excl. interest) 93.8 44.7 65.9 98.9
Decrease in net cash (218.8) (173.6) (56.3) (1.1)
Effect of exchange rates on cash and cash equivalents (0.9) (9.6) (0.6) (6.6)
Cash balance 172.7 400.1 172.7 400.1
Available facilities 74.1 52.1 74.1 52.1
Total cash and available facilities ("liquidity") 246.8 452.2 246.8 452.2
Net cash outflow from operating activities was £72m in H1 2024 (H1 2023:
£18m inflow). The outflow was primarily driven by a £19m decrease in
adjusted EBITDA, as explained above, and a working capital outflow of £119m
(H1 2023: £37m outflow). The largest drivers of working capital outflow were:
· £84m decrease (H1 2023: £17m decrease) in deposits held, due to
the increased volume of Specials delivered compared to the prior period, a
trend expected to continue in H2 2024,
· £39m decrease in payables (H1 2023: £9m) following reduction from
peak production volumes in Q4 2023,
· £51m increase in inventories (H1 2023: £33m increase) ahead of
the ramp up in new Vantage and upgraded DBX707 production,
· which was partially offset by a decrease in receivables of £55m
(H1 2023: £22m decrease) following collections from wholesales in the prior
period from peak sales volumes in Q4 2023.
Capital expenditure of £200m was marginally higher compared to the
comparative period (H1 2023: £180m). Investment is focused on the future
product pipeline, including the next generation of models and development of
the Company's electrification programme.
Free cash outflow of £313m in H1 2024 (H1 2023: £218m outflow), was
primarily due to the increase in cash outflow from operating activities as
detailed above. Sequentially, free cash outflow improved in Q2 2024 to £122m
compared to £190m in Q1 2024, primarily due to the net cash interest payment
brought forward to Q1 from the previous Q2 payment date as part of the
Company's refinancing exercise and improved working capital outflow. In Q3
2024, this improving trend in free cash outflow is expected to continue,
supporting positive FCF generation in H2 2024, in line with guidance.
£m 30 Jun-24 31 Dec-23 30 Jun-23
Loan notes (1,140.5) (980.3) (1,051.9)
Inventory financing (38.9) (39.7) (39.9)
Bank loans and overdrafts (88.1) (89.4) (57.8)
Lease liabilities (IFRS 16) (99.0) (97.3) (96.7)
Gross debt (1,366.5) (1,206.7) (1,246.3)
Cash balance 172.7 392.4 400.1
Cash not available for short term use 0.0 0.0 0.0
Net debt (1,193.8) (814.3) (846.2)
Compared with 31 December 2023, gross debt increased to £1,367m (31 December
2023: £1,207m) as a result of the refinancing where, following upgrades from
leading credit agencies, the Group priced on improved terms senior secured
notes of $960m at 10.000% and £400m at 10.375% due in 2029. In addition,
existing lenders entered into a new super senior revolving credit facility
agreement, increasing their binding commitments by c. £70 million to £170
million. This new facility provides the Company with additional liquidity as
it continues to accelerate its growth strategy.
Total cash and available facilities was £247m on 30 June 2024 which decreased
compared to 31 March 2024 (£395m), reflecting the guided free cash outflow in
Q2 2024. As announced in March 2024, the proceeds from the offering of the
notes, together with cash on the balance sheet, were used to redeem in full
the existing senior secured notes and second lien split coupon notes, to repay
in full the borrowings under the previous revolving credit facility and make
the early interest payment in March that was previously due in April 2024.
Net debt of £1,194m at 30 June 2024 increased from £846m as at 30 June 2023
due to the higher gross debt (30 June 2023: £1,246m) and lower cash balance
(30 June 2023: £400m). The net leverage ratio of 4.2x (30 June 2023: 4.0x)
reflects the EBITDA performance during the portfolio transition period in H1
2024 and the increase in net debt with disciplined strategic delivery and
EBITDA growth supporting future deleveraging in line with the Group's
medium-term target.
APPENDICES
Dealerships
30 Jun-24 31 Dec-23 30 Jun-23
UK 20 20 20
Americas 44 44 44
EMEA ex. UK 54 54 52
APAC 41 45 47
Total 159 163 163
Number of countries 53 53 54
Alternative Performance Measure
£m H1 2024 H1 2023
Loss before tax (216.7) (142.2)
Adjusting operating expense 6.3 6.5
Adjusting finance expense 35.7 37.9
Adjusting finance (income) (13.4) 0.0
Adjusted EBT (188.1) (97.8)
Adjusted finance (income) (4.1) (66.8)
Adjusted finance expense 92.4 77.9
Adjusted EBIT (99.8) (86.7)
Reported depreciation 45.4 45.7
Reported amortisation 116.6 121.6
Adjusted EBITDA 62.2 80.6
In the reporting of financial information, the Directors have adopted various
Alternative Performance Measures ("APMs"). APMs should be considered in
addition to IFRS measurements. The Directors believe that these APMs assist in
providing useful information on the underlying performance of the Group,
enhance the comparability of information between reporting periods, and are
used internally by the Directors to measure the Group's performance.
- Adjusted EBT is the loss before tax and adjusting items as shown on the
Consolidated Income Statement
- Adjusted EBIT is loss from operating activities before adjusting items
- Adjusted EBITDA removes depreciation, loss/(profit) on sale of fixed
assets and amortisation from adjusted operating loss
- Adjusted operating margin is adjusted EBIT divided by revenue
- Adjusted EBITDA margin is adjusted EBITDA (as defined above) divided
by revenue
- Adjusted Earnings Per Share is loss after income tax before adjusting
items, divided by the weighted average number of ordinary shares in issue
during the reporting period
- Net Debt is current and non-current borrowings in addition to
inventory financing arrangements, lease liabilities recognised following the
adoption of IFRS 16, less cash and cash equivalents and cash held not
available for short-term use
- Adjusted leverage is represented by the ratio of Net Debt to the
last twelve months ('LTM') Adjusted EBITDA
- Free cashflow is represented by cash (outflow)/inflow from operating
activities plus the cash used in investing activities (excluding interest
received) plus interest paid in the year less interest received.
Principal risks and uncertainties
The principal risks and uncertainties that could substantially affect the
Group's business and results were previously reported on pages 66 to 68 of the
2023 Annual Report and Accounts. The Group's risk environment has been
reassessed as of 30 June 2024 to consider any significant changes to the
Group's previous risk assessment including any new and emerging risks and
opportunities.
There have not been any significant changes to the principal risks previously
disclosed within the 2023 Annual Report and Accounts and the principal risks
and uncertainties that the Group faces for the second half of the year are
consistent with those previously reported as summarised below.
Strategic risks
Macro-economic and political instability: Exposure to multiple political and
economic factors could impact customer demand or affect the markets in which
we operate.
The Group operates in the ultra-luxury segment (ULS) vehicle market and
accordingly its performance is linked to market conditions and consumer demand
in that market. Sales of ULS vehicles are affected by general economic
conditions and can be materially affected by the economic cycle. Demand for
luxury goods, including ULS vehicles, is volatile and depends to a large
extent on the general economic, political, and social conditions in a given
market. Furthermore, economic slowdowns in the past have significantly
affected the automotive and related markets. Periods of deteriorating general
economic conditions may result in a significant reduction in ULS vehicle
sales, which may put downward pressure on the Group's product and service
prices and volumes, and negatively affect profitability. These effects may
have a more pronounced effect on the Group's business, due to the relatively
small scale of its operations and its limited product range.
Political change, such as the recent UK General Election and the subsequent
change of Government, has the potential to directly affect the Group through
the introduction of new laws (including tax and environmental laws) or
regulations or indirectly by altering customer sentiment. Government policy in
areas such as vehicle electrification, trade and the environment also have the
opportunity to impact the business through the introduction of new barriers,
for example in relation to the trade between the United Kingdom and the
European Union or through changes in emissions legislation. Any future changes
in governments in both the United Kingdom and the Group's key markets could
have an impact on the Group due to changes in policy, legislation, or
regulatory interpretation.
Brand / reputational damage: Our brand and reputation are critical in
securing demand for our vehicles and in developing additional revenue streams.
The Group's success depends on the preservation and enhancement of our brand
and reputation with ultra-luxury consumers. Damage caused by any reason
(e.g. poor customer experience, poor design, quality issues, late delivery)
could significantly impact our ability to deliver planned volume growth. We
promote brand awareness and identity through our marketing activity,
leveraging the global reach of the Aston Martin Aramco Formula One(TM) Team.
We continue to pursue our 'build to order' strategy, which combined with the
positive impact of our fixed marketing activity is driving brand exclusivity.
Investment in new technology combined with delivery of our three-pillar
strategy will further enhance the appeal of the brand and increase our
customer base.
Technological advancement: It is essential to maintain pace with
technological development to meet evolving customer expectation, remain
competitive and stay ahead of regulatory requirements.
To remain competitive the Group needs to incorporate the latest technologies
(e.g. electrification, active safety, connected car, autonomous driving) into
its products and keep pace with the transition to electrified and lower
emission powertrains. Strategic agreements with key suppliers, including
Lucid, Geely and Mercedes Benz AG provide access to technology that may
otherwise be too costly to develop internally.
Operational risks
Talent acquisition and retention: We may fail to attract, retain, engage and
develop a productive workforce or develop key talent.
The Group's future success depends substantially on the continued service and
performance of the members of its senior management team for running its daily
operations, as well as planning and executing its strategy. The Group is also
dependent on its ability to retain and replace its design, engineering, and
technical personnel so that the Group is able to continue to produce vehicles
that are competitive in terms of performance, quality, and aesthetics. There
is strong competition worldwide for experienced senior management and
personnel with technical and industry expertise. If the Group loses the
services of its senior management or other key personnel, the Group may have
difficulty and incur additional costs in replacing them. If the Group is
unable to find suitable replacements in a timely manner, its ability to
realise its strategic objectives could be impaired. In addition, the Group's
ability to realise its strategic objectives could also be impaired if the
Group is unable to recruit sufficient numbers of new personnel of the right
calibre and with the required skills and capabilities to support its strategic
objectives.
Programme delivery: Failure to implement major programmes on time, within
budget and to the right technical and quality specification could jeopardise
delivery of our strategy and have significant adverse financial and
reputational consequences.
The Group employ vehicle line Project Management teams to deliver significant
programmes using our 'Mission' programme delivery governance methodology.
Achieving financial and cost-reduction targets: The Group's size and
low-volume demand-led strategy may inhibit its ability to deliver targeted
cost reductions or work within budget constraints while delivering the planned
vehicle programme.
The Group's ability to successfully implement its strategy will depend on, at
least in part, its ability to achieve its financial targets as well as to
maintain capital expenditures without limiting its ability to introduce new
vehicles in line with changes in trends and advances in technology. Market
conditions and trends change over time, with current impacts being seen as a
result of higher rates of inflation, increasing interest rates, rising
commodity prices and the increasing risk of regional or global recession.
These may inhibit the Group's ability to achieve these goals, or to achieve
them only in part or later than expected, resulting in increased costs, damage
to the Aston Martin brand, decreased sales, elevated levels of Group or dealer
stocks and / or liquidity constraints, any of which could have a material
adverse effect on the Group's business, financial condition and results of
operations.
Cyber security and IT resilience: Breach of cyber security could result in a
system outage, impacting core operations and / or result in a major data loss
leading to reputational damage and financial loss.
The increasing threat of cyberattack presents risk to the availability,
confidentiality and integrity of information and IT-supported operating
systems. A robust technology environment is critical to the Group's success
and operational resilience. The Group continues to invest in tools and
resources to enhance the control environment and reduce the risk of core
business operational disruption or major data loss. The implementation of the
new ERP system is ongoing through 2024 and will continue to improve the
operational resilience of our IT environment.
Supply chain disruption: Supply chain disruption could result in production
stoppages, delays, quality issues and increased costs.
The Group's dependence on a limited number of suppliers exposes the Group to
the risk of increased material costs due to suppliers' pricing power, limited
availability of scarce resources / components and disrupted delivery
schedules, including as a result of the effects of ongoing global supply chain
issues, and the risk of the quality of the products produced by that supplier
declining. If one or more of the Group's suppliers becomes unable or unwilling
to fulfil its delivery obligations, or is unable to supply products of the
requisite quality for any reason (including favouring other purchasers due to
better pricing or volume, financial difficulties, damage to production,
transportation difficulties, labour disruption, supply bottlenecks of raw
materials and pre-products, natural disasters, other pandemics, the ongoing
war in Ukraine and other wars, terrorism or political unrest), there is a risk
that the Group's ability to produce the targeted number or quality of vehicles
could be negatively affected, which could adversely affect production and
therefore demand for its vehicles.
Compliance risks
Compliance with laws and regulations: Non-compliance with laws or regulations
could damage our corporate reputation and subject the Group to significant
financial penalties and / or trading sanctions / restrictions. Non-compliance
with product and supply chain due diligence regulations could prevent the
Group from competing in certain markets.
The Group is subject to a broad range of national and regional laws and
regulations, some of which are specific to the automotive industry e.g.
vehicle emissions, fuel consumption, vehicle certification requirements,
connected car regulations; others which are applicable to businesses conduct
more generally e.g. competition law, health and safety, data protection,
corporate governance rules, employment laws, and taxation. Changes to laws and
regulations, or a major compliance breach, could have a material impact on the
business. The Group continues to invest in compliance activities, including
experienced personnel, and the development of its risk management systems.
Failure to keep pace with increasing stakeholder expectations to not just meet
but exceed evolving ESG requirements could result in brand / reputational
damage which could ultimately affect our sales pipeline and planned growth. As
emissions regulations become increasingly stringent the Group continues to
invest in product portfolio expansion to accelerate its transition towards
electrified powertrains and reduced emissions.
Climate Change risks
Climate change: The impact of climate change could significantly impact demand
for our vehicles, our ability to sell within certain markets or have financial
consequences through increased carbon pricing, taxes and other regulatory
restrictions on Internal Combustion Engine vehicles.
The Group faces a number of transition and physical climate related risks.
Transitioning to a lower-carbon economy poses the most significant climate
related risk with the Group being exposed to:
• Policy and legal risk: Capital and operating expenses required
in order to comply with environmental laws and regulations can be significant.
New policy actions and / or legislative changes relating to environmental
matters, such as the implementation of carbon pricing mechanisms to reduce GHG
emissions or the imposition of more stringent vehicle emissions regulations,
could give rise to significant costs.
• Technology risk: New technologies that support the
transition to lower-carbon, energy-efficient economic system, including the
increasing demand for lower emission vehicles and electrified powertrains,
could have a significant impact on the Group. The Group may be unable to
develop lower capacity and fully electric vehicles successfully, or as quickly
as its competitors or at a reasonable cost.
• Market risk: Customer preferences may change more quickly
than anticipated away from traditional ICEs towards alternative non-ICE
powertrains (e.g. plug-in hybrid electric vehicles, battery electric vehicles,
Hydrogen, Synthetic fuels). This could significantly affect demand for the
Group's products. Increasing consumer awareness around sustainability and the
resultant desire to buy products which use sustainable materials may adversely
impact demand for the Group's products.
• Reputation risk: Customers and communities are increasingly
concerned with an organisation's contribution to or detraction from the
transition to a lower-carbon economy. If the Group does not deliver on its
net-zero goals, sustainability targets, the production of hybrid and battery
electric models or does not otherwise demonstrate its commitment to reducing
its impact on climate change, this could have a material adverse effect on the
Group.
Physical risks resulting from climate change can be event driven (such as an
extreme weather event) or longer-term shifts in climate patterns (such as
global warming). Increased frequency and severity of extreme weather events
could lead to damage to assets and / or facilities or lead to production or
supply chain disruption. In each case, this could have a material adverse
effect on the Group's business, financial condition, and results of
operations.
Financial risks
Liquidity: The Group may not be able to generate sufficient cash to fund its
capital expenditure, service its debt or sustain its operations.
The Group's significant leverage and existing levels of debt may make it
difficult to obtain additional debt financing should the need arise due to
unforeseen economic shocks. Failure to collect planned deposits could place
additional stress on the Group's liquidity. The Group's liquidity requirements
arise primarily from its need to fund capital expenditure for product
development, including the electrification of its product portfolio, and to
service debt. The Group is also subject to foreign exchange risks and
opportunities and manages its exposure in accordance with the Group Hedging
Policy.
Impairment of capitalised development costs: The value of capitalised
development costs continue to grow as we invest in and expand our product
portfolio.
The Group's balance sheet and income statement may be adversely impacted by an
impairment in the carrying value of capitalised development costs. A
significant reduction in vehicle lifecycle profitability could result in the
need to impair the capitalised development intangible asset. Where potential
impairment triggers are identified management perform assessments to evaluate
the recoverability of capitalised development costs.
The risks and opportunities summarised above, linkage to the Group's strategy,
and additional mitigating actions taken in respect of them, are explained and
described in more detail on pages 66 to 68 of the 2023 Annual Report and
Accounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months ended 6 months ended 12 months ended
30 June 2024 30 June 2023 31 December 2023
Notes Adjusted Adjusting items* Total Adjusted Adjusting items* Total Adjusted Adjusting items* Total
£m £m £m £m £m £m £m £m £m
Revenue 3 603.0 - 603.0 677.4 - 677.4 1,632.8 - 1,632.8
Cost of sales (370.1) - (370.1) (441.1) - (441.1) (993.6) - (993.6)
Gross profit 232.9 - 232.9 236.3 - 236.3 639.2 - 639.2
Selling and distribution expenses (66.9) - (66.9) (70.7) - (70.7) (143.8) - (143.8)
Administrative expenses 4 (265.8) (6.3) (272.1) (252.3) (6.5) (258.8) (575.1) (31.5) (606.6)
Operating loss (99.8) (6.3) (106.1) (86.7) (6.5) (93.2) (79.7) (31.5) (111.2)
Finance income 4, 5 4.1 13.4 17.5 66.8 - 66.8 74.3 - 74.3
Finance expense 4, 6 (92.4) (35.7) (128.1) (77.9) (37.9) (115.8) (166.4) (36.5) (202.9)
Loss before tax (188.1) (28.6) (216.7) (97.8) (44.4) (142.2) (171.8) (68.0) (239.8)
Income tax credit 4, 7 9.1 - 9.1 0.2 - 0.2 13.0 - 13.0
Loss for the period (179.0) (28.6) (207.6) (97.6) (44.4) (142.0) (158.8) (68.0) (226.8)
(Loss)/profit for the period attributable to:
Owners of the group (207.8) (142.6) (228.1)
Non-controlling interests 0.2 0.6 1.3
(207.6) (142.0) (226.8)
Other comprehensive income
Items that will never be reclassified to the Income Statement
Remeasurement of defined benefit pension liability (note 15) 0.3 0.3 (0.1)
Change in fair value of investments in equity instruments (note 12) 51.4 - -
Taxation on items that will never be reclassified to the Income Statement (12.9) (0.1) -
Items that are or may be reclassified to the Income Statement
Foreign exchange translation differences (0.3) (4.5) (4.0)
Fair value adjustment on cash flow hedges 3.8 1.5 0.7
Amounts recycled to the Income Statement in respect of cash flow hedges 0.2 (4.4) (5.4)
Taxation on items that may be reclassified to the Income Statement (1.0) 0.7 1.2
Other comprehensive income/(loss) for the period, net of income tax 41.5 (6.5) (7.6)
Total comprehensive loss for the period (166.1) (148.5) (234.4)
Total comprehensive (loss)/income for the period attributable to:
Owners of the group (166.3) (149.1) (235.7)
Non-controlling interests 0.2 0.6 1.3
(166.1) (148.5) (234.4)
Earnings per ordinary share
Basic 8 (25.3)p (20.3p) (30.5p)
Diluted 8 (25.3)p (20.3p) (30.5p)
* Adjusting items are detailed in note 4.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Capital Share Premium Merger Reserve Capital Redemption Capital Reserve Translation Reserve Hedge Reserve Retained Earnings Non-controlling Interest Total Equity
Reserve
£m £m £m £m £m £m £m £m £m £m
At 1 January 2024 82.4 2,094.5 143.9 9.3 6.6 2.5 0.8 (1,437.7) 20.8 923.1
Total comprehensive loss for the period
(Loss)/profit for the period - - - - - - - (207.8) 0.2 (207.6)
Other comprehensive income
Foreign currency translation differences - - - - - (0.3) - - - (0.3)
Fair value movement - cash flow hedges - - - - - - 3.8 - - 3.8
Amounts recycled to the Income Statement - cash flow hedges - - - - - - 0.2 - - 0.2
Remeasurement of defined benefit liability - - - - - - - 0.3 - 0.3
Change in fair value of investments in equity instruments (note 12) - - - - - - - 51.4 - 51.4
Taxation on other comprehensive income - - - - - - (1.0) (12.9) - (13.9)
Total other comprehensive (loss)/income - - - - - (0.3) 3.0 38.8 - 41.5
Total comprehensive (loss)/income for the period - - - - - (0.3) 3.0 (169.0) 0.2 (166.1)
Transactions with owners, recorded directly in equity
Issue of shares to Employee Benefit Trust (notes 8, 16) 0.1 - - - - - - (0.1) - -
Credit for the period under equity settled share-based payments - - - - - - - 4.3 - 4.3
Tax on items credited to equity - - - - - - - (0.2) - (0.2)
Total transactions with owners 0.1 - - - - - - 4.0 - 4.1
At 30 June 2024 82.5 2,094.5 143.9 9.3 6.6 2.2 3.8 (1,602.7) 21.0 761.1
Share Capital Share Premium Merger Reserve Capital Redemption Capital Reserve Translation Reserve Hedge Reserve Retained Earnings Non-controlling Interest Total Equity
Reserve
£m £m £m £m £m £m £m £m £m £m
At 1 January 2023 (restated*) 69.9 1,697.4 143.9 9.3 6.6 6.5 4.3 (1,233.9) 19.5 723.5
Total comprehensive loss for the period
(Loss)/profit for the period - - - - - - - (142.6) 0.6 (142.0)
Other comprehensive income
Foreign currency translation differences - - - - - (4.5) - - - (4.5)
Fair value movement - cash flow hedges - - - - - - 1.5 - - 1.5
Amounts recycled to the Income Statement - cash flow hedges - - - - - - (4.4) - - (4.4)
Remeasurement of defined benefit liability - - - - - - - 0.3 - 0.3
Taxation on other comprehensive income - - - - - - 0.7 (0.1) - 0.6
Total other comprehensive (loss)/income - - - - - (4.5) (2.2) 0.2 - (6.5)
Total comprehensive (loss)/income for the period - - - - - (4.5) (2.2) (142.4) 0.6 (148.5)
Transactions with owners, recorded directly in equity
Issuance of new shares (note 16) 2.8 91.7 - - - - - - - 94.5
Issuance of share to Employee Benefit Trust (notes 8, 16) 0.1 - - - - - - (0.1) - -
Credit for the period under equity settled share-based payments - - - - - - - 2.1 - 2.1
Shares to be issued to warrant holders - - - - - - - 6.2 - 6.2
Total transactions with owners 2.9 91.7 - - - - - 8.2 - 102.8
At 30 June 2023 (restated*) 72.8 1,789.1 143.9 9.3 6.6 2.0 2.1 (1,368.1) 20.1 677.8
* Detail on the restatement is disclosed in note 2.
Group Share Share premium Merger reserve Capital redemption reserve Capital reserve Translation reserve Hedge reserves Retained earnings Non-controlling interest Total
capital £m £m £m £m £m £m £m £m Equity
£m £m
At 1 January 2023 (restated*) 69.9 1,697.4 143.9 9.3 6.6 6.5 4.3 (1,233.9) 19.5 723.5
Total comprehensive loss for the year
(Loss)/profit for the year - - - - - - - (228.1) 1.3 (226.8)
Other comprehensive income
Foreign currency translation differences - - - (4.0) - - - (4.0)
Fair value movement - cash flow hedges - - - - - - 0.7 - - 0.7
Amounts reclassified to the Income Statement - cash flow hedges - - - - - - (5.4) - - (5.4)
Remeasurement of Defined Benefit liability - - - - - - - (0.1) - (0.1)
Tax on other comprehensive loss - - - - - - 1.2 - - 1.2
Total other comprehensive loss - - - - - (4.0) (3.5) (0.1) - (7.6)
Total comprehensive (loss)/income for the year - - - - - (4.0) (3.5) (228.2) 1.3 (234.4)
Transactions with owners, recorded directly in equity - -
Issuance of new shares (note 16) 11.5 383.0 - - - - - 394.5
Issue of shares to Employee Benefit Trust (notes 8, 16) 0.1 - - - - - - (0.1) - -
Warrant options exercised 0.9 14.1 - - - - - 18.6 - 33.6
Credit for the year under equity-settled share-based payments - - - - - - - 5.4 - 5.4
Tax on items credited to equity - - - - - - - 0.5 - 0.5
Total transactions with owners 12.5 397.1 - - - - - 24.4 - 434.0
At 31 December 2023 82.4 2,094.5 143.9 9.3 6.6 2.5 0.8 (1,437.7) 20.8 923.1
* Detail on the restatement is disclosed in note 2.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Notes As at As at As at
30 June 30 June 31 December 2023
2024 2023 (restated*)
£m £m £m
Non-current assets
Intangible assets 1,599.9 1,398.7 1,577.6
Property, plant and equipment 356.8 370.7 353.7
Investments in equity interests 12 69.6 - 18.2
Right-of-use assets 72.8 70.7 70.4
Trade and other receivables 5.4 2.5 5.3
Deferred tax asset 156.7 137.2 156.3
2,261.2 1,979.8 2,181.5
Current assets
Inventories 337.1 320.6 272.7
Trade and other receivables 263.8 222.8 322.2
Income tax receivable 0.5 1.3 0.9
Other financial assets 13 6.6 8.3 3.3
Cash and cash equivalents 10 172.7 400.1 392.4
780.7 953.1 991.5
Total assets 3,041.9 2,932.9 3,173.0
Current liabilities
Borrowings 10 88.1 57.8 89.4
Trade and other payables 756.5 844.4 840.4
Income tax payable 1.9 1.9 2.1
Other financial liabilities 13 12.1 64.3 25.2
Lease liabilities 10 8.2 7.3 8.8
Provisions 14 21.1 18.3 20.2
887.9 994.0 986.1
Non-current liabilities
Borrowings 10 1,140.5 1,051.9 980.3
Trade and other payables 97.3 42.3 122.3
Lease liabilities 10 90.8 89.4 88.5
Provisions 14 22.1 22.0 23.7
Employee benefits 15 42.2 54.8 49.0
Deferred tax liabilities - 0.7 -
1,392.9 1,261.1 1,263.8
Total liabilities 2,280.8 2,255.1 2,249.9
Net assets 761.1 677.8 923.1
Capital and reserves
Share capital 16 82.5 72.8 82.4
Share premium 2,094.5 1,789.1 2,094.5
Merger reserve 143.9 143.9 143.9
Capital redemption reserve 9.3 9.3 9.3
Capital reserve 6.6 6.6 6.6
Translation reserve 2.2 2.0 2.5
Hedge reserve 3.8 2.1 0.8
Retained earnings (1,602.7) (1,368.1) (1,437.7)
Equity attributable to owners of the group 740.1 657.7 902.3
Non-controlling interests 21.0 20.1 20.8
Total shareholders' equity 761.1 677.8 923.1
* Detail on the restatement is disclosed in note 2.
CONSOLIDATED STATEMENT OF CASH FLOWS
Notes 6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Operating activities
Loss for the period (207.6) (142.0) (226.8)
Adjustments to reconcile loss for the period to net cash inflow from operating
activities
Tax credit 7 (9.1) (0.2) (13.0)
Net finance costs 110.6 49.0 128.6
Depreciation of property, plant and equipment 40.6 41.0 90.3
Depreciation of right-of-use assets 4.8 4.7 9.3
Amortisation of intangible assets 116.6 121.6 283.4
Loss on sale/scrap of property, plant and equipment - - 2.6
Difference between pension contributions paid and amounts recognised in (7.5) (7.5) (15.0)
operating profit
(Increase)/Decrease in inventories (51.0) (32.7) 11.9
Decrease/(increase) in trade and other receivables 54.9 21.5 (82.3)
(Decrease)/increase in trade and other payables (39.4) (8.7) 50.9
Decrease in advances and customer deposits (83.7) (17.2) (66.0)
Movement in provisions (0.8) (0.2) 3.4
Other non-cash movements including foreign exchange differences 4.7 (1.3) (0.3)
Other non-cash movements - Movements in hedging position and foreign exchange 0.2 (2.5) (7.2)
derivatives
Increase in other derivative contracts - (0.8) (11.2)
Movements in RDEC credit (4.2) (2.9) (7.4)
Cash (outflow)/inflow from operations (70.9) 21.8 151.2
Decrease in cash held not available for short-term use - 0.3 0.3
Income taxes paid (1.0) (4.6) (5.6)
Net cash (outflow)/inflow from operating activities (71.9) 17.5 145.9
Cash flows from investing activities
Interest received 4.0 5.2 13.5
Repayment of loan assets - 0.5 0.5
Payments to acquire property, plant and equipment (48.8) (43.8) (91.1)
Cash outflow on development expenditure (151.3) (136.9) (306.3)
Net cash used in investing activities (196.1) (175.0) (383.4)
Cash flows from financing activities
Interest paid (44.6) (60.8) (122.5)
Proceeds from equity share issue - 94.8 310.9
Proceeds received in advance of the exercise of warrants - 6.2 15.0
Proceeds from financial instrument utilised during refinancing transactions 4 0.7 - -
Principal element of lease payments 11 (4.8) (4.0) (7.9)
Repayment of existing borrowings 11 (1,084.9) (49.5) (129.7)
Premium paid upon redemption of borrowings (35.7) - (8.0)
Proceeds from inventory repurchase arrangement 11 37.7 - 38.0
Repayment of inventory repurchase arrangement 11 (40.0) - (40.0)
Proceeds from new borrowings 11 1,243.1 - 11.5
Transaction fees on issuance of shares from prior year (1.7) (2.8) (7.6)
Transaction fees on financing activities 11 (20.6) - -
Net cash inflow/(outflow) from financing activities 49.2 (16.1) 59.7
Net decrease in cash and cash equivalents (218.8) (173.6) (177.8)
Cash and cash equivalents at the beginning of the period 392.4 583.3 583.3
Effect of exchange rates on cash and cash equivalents (0.9) (9.6) (13.1)
Cash and cash equivalents at the end of the period 172.7 400.1 392.4
Notes to the Interim Condensed Financial Statements
1. Basis of preparation
The results for the 6 month period ended 30 June 2024 have been reviewed by
Ernst & Young LLP, the Group's auditor, and a copy of their review report
appears at the end of this interim report. The financial information for the
year ended 31 December 2023 does not constitute statutory accounts as defined
in section 435 of the Companies Act 2006. The auditor's report on the
statutory accounts for the year ended 31 December 2023 was not qualified and
did not draw attention to any matters by way of emphasis and did not contain a
statement under section 498(2) or (3) of the Companies Act 2006. A copy of the
statutory accounts for the year ended 31 December 2023 prepared in accordance
with UK adopted international accounting standards have been delivered to the
Registrar of Companies. The annual report for the year ended 31 December 2024
will be prepared in accordance with UK adopted international accounting
standards.
Aston Martin Lagonda Global Holdings plc (the "Company") is a company
incorporated and domiciled in the UK. The Consolidated Interim Condensed
Financial Statements of the Company as at the end of the period ended 30 June
2024 comprise the Company and its subsidiaries (together referred to as the
'Group').
Going Concern
The Group meets its day-to-day working capital requirements and medium-term
funding requirements through a mixture of $960.0m SSNs at 10.0% and £400.0m
of SSNs at 10.375% both of which mature in March 2029, a Revolving Credit
Facility (RCF) (£170.0m) which matures on 31 December 2028, facilities to
finance inventory, a bilateral RCF and a wholesale vehicle financing facility.
Under the RCF, the Group is required to comply with a leverage covenant tested
quarterly. Leverage is calculated as the ratio of adjusted EBITDA to net debt,
after certain accounting adjustments are made. Of these adjustments, the most
significant is to account for lease liabilities under "frozen GAAP", i.e.
under IAS17 rather than IFRS 16. The Group expects to comply with its covenant
requirements for the going concern period.
The directors have developed trading and cash flow forecasts for the period
from the date of approval of these Interim Condensed Financial Statements
through 30 September 2025 (the "going concern review period"). These forecasts
show that the Group has sufficient financial resources to meet its obligations
as they fall due and to comply with covenants for the going concern review
period.
The forecasts reflect the Group's ultra-luxury performance-oriented strategy,
balancing supply and demand and the actions taken to improve cost efficiency
and gross margin. The forecasts include the costs of the Group's
environmental, social and governance ("ESG") commitments and make assumptions
in respect of future market conditions and, in particular, wholesale volumes,
average selling price, the launch of new models, and future operating costs.
The nature of the Group's business is such that there can be variation in the
timing of cash flows around the development and launch of new models. In
addition, the availability of funds provided through the vehicle wholesale
finance facility changes as the availability of credit insurance and sales
volumes vary, in total and seasonally. The forecasts take into account these
factors to the extent which the Group directors consider them to represent
their best estimate of the future based on the information that is available
to them at the time of approval of these Interim Condensed Financial
Statements.
The Group directors have considered a severe but plausible downside scenario
that includes considering the impact of a 15% reduction in DBX volumes and a
10% reduction in sports volumes from forecast levels, operating costs higher
than the base plan incremental working capital requirements such as reduced
deposit inflows or increased deposit outflows and the impact of the
strengthening of the sterling-dollar exchange rate.
The Group plans to make continued investment for growth in the period and,
accordingly, funds generated through operations are expected to be reinvested
in the business mainly through new model development and other capital
expenditure. To a certain extent such expenditure is discretionary and, in the
event of risks occurring which could have a particularly severe effect on the
Group, as identified in the severe but plausible downside scenario, actions
such as constraining capital spending, working capital improvements, reduction
in marketing expenditure and the continuation of strict and immediate expense
control would be taken to safeguard the Group's financial position.
In addition, the Group also considered the circumstances which would be needed
to exhaust the Group's liquidity over the assessment period, a reverse stress
test. This would indicate that total core vehicle sales (DBX and GT/Sports)
would need to reduce by more than 30% from forecast levels without any of the
above mitigations to result in having no liquidity and/or breach of covenants.
The likelihood of management not taking substantial mitigating actions over
such a long period (such as reducing capital spending to preserve liquidity
and ensure covenant compliance) together with these circumstances occurring is
considered remote both in terms of the magnitude of the reduction and
occurrence over such a long period.
Accordingly, after considering the forecasts, appropriate sensitivities,
current trading and available facilities, the directors have a reasonable
expectation that the Group has adequate resources to continue in operational
existence for the foreseeable future and to comply with its financial
covenants and, therefore, the directors continue to adopt the going concern
basis in preparing the Interim Condensed Financial Statements.
Statement of compliance
These Interim Condensed Financial Statements have been prepared in accordance
with UK adopted International Accounting Standard 34, "Interim Financial
Reporting". They do not include all the information required for full annual
financial statements and should be read in conjunction with the Consolidated
Financial Statements of the Group for the year ended 31 December 2023.
Material accounting policies
These Interim Condensed Financial Statements have been prepared applying the
accounting policies and presentation that were applied in the preparation of
the Group's published Consolidated Financial Statements for the year ended 31
December 2023. A number of new or amended standards became applicable for the
current reporting period and the Group did not have to change its accounting
policies or make retrospective adjustments as a result of adopting these
standards. The Group has not early adopted any standard, interpretation or
amendment that has been issued but is not yet effective. The significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied
to the consolidated financial statements for the year ended 31 December 2023.
2. Prior year restatement
Consistent with the restatements disclosed in the Consolidated Financial
Statements of the Group for the year ended 31 December 2023, the Consolidated
Statement of Financial Position as at 30 June 2023 has been restated to
reflect a prior period adjustment in respect of the deferral of tax relief
income received under the Research and Development Expenditure Credit ('RDEC')
regime. The Group previously recognised the income within Administrative and
other operating expenses in the Consolidated Income Statement, in the period
in which the qualifying expenditure giving rise to the RDEC claim was
incurred. The Group has reassessed the treatment under IAS 20 in respect of
income from RDEC claims where the qualifying expenditure has been capitalised.
For these capitalised expenses, the RDEC income earned has been deferred to
the Consolidated Statement of Financial Position and will be released to the
Consolidated Income Statement over the same period as the amortisation of the
costs capitalised to which the RDEC income relates. Where the qualifying
expenditure is not capitalised, the RDEC income will continue to be recognised
in the Consolidated Income Statement in the year the expenditure is incurred,
as has previously been the approach.
The impact of this adjustment is that as at 31 December 2022 and 30 June 2023,
£49.0m of deferred income has been recognised on the balance sheet split
between current £14.9m and non-current £34.1m Trade and Other Payables with
a corresponding adjustment to retained earnings. There is no adjustment to the
Consolidated Income Statement for the year ended 31 December 2022 or period
ended 30 June 2023 as the impact of the adjustment is not material to the
individual reporting period. There is no change to the Consolidated Statement
of Cash Flows as, whilst the accounting impact of the claim is deferred, there
is no change to the timing of the cash receipt. No change in the corporation
tax position is recognised for the year ended 31 December 2022 or period ended
30 June 2023 in either the Consolidated Income Statement or Consolidated
Statement of Financial Position, as the recoverability assessment of the
Group's deferred tax position has not been materially changed by this
restatement. As there is no adjustment to the Consolidated Income Statement
and no change in the corporation tax position, there is no impact on earnings
per share.
The following table details the impact on the Consolidated Statement of
Financial Position as at 31 December 2022 and 30 June 2023.
Liabilities As previously reported 30 June 2023 Adjustment Restated balance
£m 30 June 2023
£m £m
Non-current liabilities
Trade and other payables 8.2 34.1 42.3
Current liabilities
Trade and other payables 829.5 14.9 844.4
Capital and reserves
Retained Earnings (1,319.1) (49.0) (1,368.1)
Liabilities As previously reported 1 January 2023 Adjustment Restated balance
£m 1 January 2023
£m £m
Non-current liabilities
Trade and other payables 9.1 34.1 43.2
Current liabilities
Trade and other payables 876.3 14.9 891.2
Capital and reserves
Retained Earnings (1,184.9) (49.0) (1,233.9)
3. Segmental information
Operating segments are defined as components of the Group about which separate
financial information is available and is evaluated regularly by the chief
operating decision-maker in assessing performance. The Group has only one
operating segment, the automotive segment, and therefore no separate segmental
report is disclosed. The automotive segment includes all activities relating
to design, development, manufacture and marketing of vehicles including
consulting services; as well as the sale of parts, servicing and automotive
brand activities from which the Group derives its revenues.
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
Revenue £m £m £m
Analysis by category
Sale of vehicles 548.8 627.3 1,531.9
Sale of parts 42.8 40.3 80.0
Servicing of vehicles 6.3 4.2 9.8
Brands and motorsport 5.1 5.6 11.1
603.0 677.4 1,632.8
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
Revenue £m £m £m
Analysis by geographic location
United Kingdom 103.6 134.3 309.9
The Americas 196.1 214.5 452.8
Rest of Europe, Middle East & Africa 202.9 199.2 547.0
Asia Pacific 100.4 129.4 323.1
603.0 677.4 1,632.8
4. Adjusting items
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
£m £m £m
ERP implementation costs(1) (4.5) (6.1) (14.5)
Defined Benefit pension scheme closure costs(2) - (0.4) (1.0)
Legal settlement income(3) 2.4 - -
Legal costs(3) (4.2) - (16.0)
(6.3) (6.5) (31.5)
Adjusting finance income:
Gain on financial instruments recognised at fair value through Income 12.7 - -
Statement(4)
Gain on financial instrument utilised during refinance transactions(5) 0.7 - -
13.4 - -
Adjusting finance expenses:
Loss on financial instruments recognised at fair value through Income - (37.9) (19.0)
Statement(4)
Premium paid on the early redemption of Senior Secured Notes(5, 6) (35.7) - (8.0)
Write-off of capitalised borrowing fees upon early settlement of Senior - - (9.5)
Secured Notes(6)
Adjusting items before tax (28.6) (44.4) (68.0)
Tax charge on adjusting items(7) - - -
Adjusting items after tax (28.6) (44.4) (68.0)
Summary of adjusting items
1. In the 6 months ended 30 June 2024 the Group incurred further
implementation costs for a cloud-based Enterprise Resource Planning (ERP)
system for which the Group will not own any Intellectual Property. During the
period £4.5m (6 months ended 30 June 2023: £6.1m, 12 months ended 31
December 2023: £14.5m) of costs have been incurred and expensed to the Income
Statement. The project remains ongoing for remaining functions of the Group
following the migration of the purchasing workstream during the first half of
the year. Due to the infrequent recurrence of such costs and the expected
quantum during the implementation phase, these have been separately presented
as adjusting. The cash impact of this item is a working capital outflow at the
time of invoice payment.
2. On the 31 January 2022, the Group closed its defined benefit pension
scheme to future accrual. Costs associated with the closure included a past
service cost of £2.8m, cash payments to the affected employees taking place
in the first quarter of 2022, 2023 and 2024 totaling £8.7m, the issuance of
185 shares in the first half of 2022 to each employee at a cost of £1.0m, and
a guaranteed value associated with those shares which is being accounted for
as a share based payment until the guarantee crystalised during January 2024.
These charges were all recognised in the 6 months to 30 June 2022, totaling
£13.0m, with subsequent charges being recognised in relation to the
guaranteed value associated with shares being recognised in subsequent
reporting periods to 31 December 2023 (6 months ended 30 June 2023: £0.4m, 12
months ended 31 December 2023: £1.0m). The Group presented these costs in
adjusting items due to their volatile nature and connection with the closure
of the pension scheme which is considered a non-recurring event. No further
costs have been recognised in the 6 months to June 2024 following the final
payments to affected employees in January 2024.
3. During the six months ended 30 June 2024, the Group incurred legal
costs in relation to a number of disputes and claims with entities ultimately
owned by a former significant shareholder of the Group. The Group has incurred
legal costs of £4.2m associated with its defence of such claims and pursuit
of its counterclaims. AMMENA, Aston Martin's distributor in the Middle East,
North Africa and Turkey region has brought various claims, which the Group
denies. Certain aspects of these claims, and Aston Martin's counterclaims, are
due to be heard in a confidential arbitration in September 2024. On 1 March
2024 a court order was issued quantifying the amounts payable to the Group
from the judgment of a case involving claims against a retail dealership,
which is ultimately owned by entities that are shareholders in one of the
Group's subsidiary entities, including for unpaid debts relating to two
agreements from 2015 and 2016. All remaining amounts due in relation to this
dispute have now been resolved. As part of the final settlement the Group was
awarded £2.4m in respect of incurred legal costs and indemnity costs under
CPR 36.17(4)(d). The counter party has paid the Group the amounts ordered on 1
March 2024. In 2023 the Group had incurred costs of £2.7m in the year which
were considered non-recurring in nature as these were related to historic
disputes with former shareholders and not related to the ongoing business of
the Group. In line with the associated costs relating to the legal matter,
which have been considered as non-recurring in nature above, the associated
judgment income has been deemed as non-recurring in nature.
During the year ended 31 December 2023, the Group was involved in one other
High Court case against entities ultimately owned by a former significant
shareholder of the Group. AMMENA brought a number of claims against the Group,
including claims for debts arising between 2019-2021 when Aston Martin was
acting as AMMENA's agent and several claims that the Group had acted in bad
faith when AMMENA resumed its obligations as distributor. The Group
successfully defended all the bad faith claims and AMMENA's 2021 debt claim
was dismissed. Aston Martin, however, was unsuccessful in its claim to set off
its own counter-claim that AMMENA (as the region's distributor) should
indemnify the Group in relation to costs incurred in the termination of a
retail dealer, so was required to pay AMMENA's debt claims for 2019 and 2020
(totalling £5.3m plus interest of £0.6m). The Group incurred costs of £5.7m
in defending AMMENA's claims and paid opposition costs of £1.7m. The cash
impact of these costs was a cash outflow in February 2024 as well as working
capital movements during the year ended 31 December 2023 for costs already
incurred.
Whilst disputes and legal proceedings pending are often in the normal course
of the Group's business, in all these cases the opposing party has links to
companies that were former significant shareholders of the Group. On that
basis the Group has classified these costs as non-recurring in nature. The
Group has disclosed a contingent liability in respect of ongoing claims with
former significant shareholders of the Group at the period ended 30 June 2024
(note 18).
4. During 2020 the Group issued second lien Senior Secured Notes which
included detachable warrants classified as a derivative option liability. The
movement in fair value of the warrants between 31 December 2023 and 30 June
2024 resulted in a gain of £12.7m being recognised in the Income Statement (6
months ended 30 June 2023: loss of £37.9m; 12 months ended 31 December 2023:
loss of £19.0m). This item has no cash impact.
5. During the 6 months ending 30 June 2024 the Group undertook a
refinancing exercise whereby new Senior Secured Notes of $960.0m at 10.0% and
£400.0m at 10.375% repayable 31 March 2029 were issued, and all outstanding
First Lien and Second Lien Senior Secured Notes issued by the Group were
repaid. To facilitate the repayment of the outstanding Secured Notes, the
Group placed a forward currency contract to purchase US dollars. Due to
favourable movements in the exchange rates, a gain of £0.7m was recognised in
the Consolidated Income Statement at the transaction date. There is no cash
impact of this adjustment. Additionally, in repaying the notes prior to their
redemption date, a redemption premium of £35.7m was incurred, of which the
cash impact was incurred in the period ended 30 June 2024.
6. During the year ended 31 December 2023, the Group repaid $121.7m of
Second Lien Senior Secured Notes ("SSNs"). In repaying the notes prior to
their redemption date, a redemption premium of £8.0m was incurred, of which
the cash impact was incurred in the year ended 31 December 2023. Accelerated
amortisation of capitalised borrowing costs and discount of £9.5m was
recognised which is a non-cash item. The repayment made in 2023 was not
hedged.
7. In the period to 30 June 2024, a Nil tax charge has been recognised
on Adjusting items (6 months ended 30 June 2023: Nil tax charge; 12 months
ended 31 December 2023: Nil tax charge). This is on the basis that the
adjusting items generate net deferred tax assets, specifically interest
amounts disallowed under the corporate interest restriction regime, which have
not been recognised to the extent that sufficient taxable profits are not
forecast in the foreseeable future to which the disallowed interest amounts
would be utilised.
5. Finance income
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Bank deposit and other interest income 4.1 5.1 13.5
Foreign exchange gain on borrowings not designated as part of a hedging - 61.7 60.8
relationship
Finance income before adjusting items 4.1 66.8 74.3
Adjusting finance income items:
Gain on financial instruments recognised at fair value through Income 12.7 - -
Statement (note 4)
Gain on financial instrument utilised during refinance transactions 0.7 - -
(note 4)
17.5 66.8 74.3
6. Finance expense
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Interest on bank loans, overdrafts and secured notes 79.1 70.6 151.3
Net interest expense on the net defined benefit liability (note 15) 1.0 1.4 2.7
Foreign exchange loss on borrowings not designated as part of a hedging 6.3 - -
relationship
Interest on contract liabilities held 2.2 3.9 7.7
Interest on lease liabilities 2.1 2.0 4.1
Effect of discounting on long term liabilities 1.7 - 0.6
Finance expense before adjusting items 92.4 77.9 166.4
Adjusting finance expense items:
Loss on financial instruments recognised at fair value through Income - 37.9 19.0
Statement (note 4)
Premium paid on the early redemption of Senior Secured Notes (note 4) 35.7 - 8.0
Write-off of capitalised borrowing fees upon early settlement of Senior - - 9.5
Secured Notes (note 4)
Total adjusting finance expense 35.7 37.9 36.5
Total finance expense 128.1 115.8 202.9
7. Income tax credit
The Group's total income tax credit for the period to 30 June 2024 is £9.1m
(period ended 30 June 2023: £0.2m tax credit) which represents an effective
tax rate of 4.2% (period ended 30 June 2023: 0.1%). The difference between the
total effective tax rate of 4.2% and the UK statutory rate of 25% for the full
year is predominantly due to deferred tax balances not being recognised on
losses generated in the period to 30 June 2024. £121.3m of the net £156.7m
deferred tax asset relates to unused tax losses. Deferred tax assets on unused
tax losses have been recognised to the extent that it is probable that
sufficient taxable profits will be generated to utilise these losses based
upon the current business plan. Tax on other comprehensive income of £12.9m
is related to the deferred tax liability on the fair value movement of
investments recognised at fair value through other comprehensive income. All
other assumptions and methodologies used in determining deferred tax balances
are consistent with those used at 31 December 2023.
Pillar Two legislation has been enacted or substantively enacted in certain
jurisdictions in which the Group operates. The legislation is to be effective
for the Group's financial year beginning 1 January 2024. The Group has
performed an assessment of the Group's potential exposure to Pillar Two income
taxes. The assessment of the potential exposure to Pillar Two income taxes is
based on the most recent tax filings, country-by-country reporting and
financial statements for the constituent entities in the Group. Based on the
assessment, the Pillar Two Transitional Safe Harbour provisions are expected
to apply in each jurisdiction the Group operates in, and management is not
aware of any circumstance under which this might change. Therefore, the Group
does not expect a potential exposure to Pillar Two top-up taxes. The Group has
applied the exception in IAS 12 'Income Taxes' to recognising and disclosing
information about deferred tax assets and liabilities related to Pillar Two
income taxes.
8. Earnings per ordinary share
In calculating the basic weighted average number of ordinary shares for the 6
months ended 30 June 2024, a total of 2,301,201 ordinary shares issued to the
Employee Benefit Trust are excluded owing to the control the Group has over
the Trust.
Continuing and total operations 6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
Basic earnings per ordinary share
Loss available for equity holders (£m) (207.8) (142.6) (228.1)
Basic weighted average number of ordinary shares (million) 822.6 704.2 748.2
Basic earnings per ordinary share (pence) (25.3)p (20.3p) (30.5p)
Diluted earnings per ordinary share
Loss available for equity holders (£m) (207.8) (142.6) (228.1)
Diluted weighted average number of ordinary shares (million) 822.6 704.2 748.2
Diluted earnings per ordinary share (pence) (25.3)p (20.3p) (30.5p)
The impact of ordinary shares issued as part of the Long-term incentive plans
("LTIP") and the potential number of ordinary shares issued as part of the
2020 issue of share warrants have been excluded from the weighted average
number of diluted ordinary shares as including them is anti-dilutive in
arriving at diluted earnings per share.
9. Research and Development expenditure
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Total research and development expenditure 158.4 124.7 299.2
Capitalised research and development expenditure (146.5) (121.0) (268.5)
Research and development expenditure recognised as an expense during the 11.9 3.7 30.7
period
10. Net debt
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Cash and cash equivalents 172.7 400.1 392.4
Bank loans and overdrafts(1) (88.1) (57.8) (89.4)
Inventory repurchase arrangements(2) (38.9) (39.9) (39.7)
Senior Secured Notes (1,140.5) (1,051.9) (980.3)
Lease liabilities (99.0) (96.7) (97.3)
(1,193.8) (846.2) (814.3)
1. At 30 June 2024 £90.0m of the £170.0m revolving credit facility was
drawn down in cash (30 June 2023: £29.0m of £90.6m facility, 31 December
2023: £90.0m of £99.6m facility). £5.9m of the revolving credit facility
has been reserved for the issuance of letters of credit and guarantees (30
June 2023: £5.5m of the revolving credit facility was reserved; 31 December
2023: £4.4m was reserved). The loan is presented net of amortised transaction
fees of £1.9m (30 June 2023: £1.2m; 31 December 2023: £0.6m).
At 30 June 2023, the Group held a bilateral revolving credit facility with
HSBC Bank plc ("HSBC"), whereby Chinese renminbi with an initial value of
£31.9m were deposited in a restricted account with HSBC in China in exchange
for a £30.0m sterling overdraft facility with HSBC in the United Kingdom.
Cash deposits in China could not be withdrawn whilst the loan remained in
place. The restricted cash was revalued at 30 June 2023 to £30.1m and is
shown in the comparative period cash and cash equivalents value above. During
the period ended 31 December 2023, the loan was repaid and the restricted cash
was released. The facility remains undrawn in the period ended 30 June 2024.
2. At 30 June 2024 a repurchase liability of £38.9m including accrued
interest of £1.5m (December 2023: £39.7m including accrued interest of
£1.7m) was included within accruals and other payables and Net Debt relating
to parts for resale, service parts and production stock which were sold in
2024 and subsequently repurchased. Under the repurchase agreement, which has a
repayment date of August 2024, the Group will repay £40.0m gross of indirect
tax. As part of this arrangement legal title to the parts was surrendered,
however control remained with the Group. This repurchase arrangement will be
fully settled in 2024. As at 30 June 2023 a similar arrangement existed and
had a carrying value of £39.9m which included accrued interest of £1.9m.
This arrangement was fully settled during 2023.
11. Movement in net debt
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Movement in net debt
Net decrease in cash and cash equivalents (219.7) (183.2) (190.9)
Add back cash flows in respect of other components of net debt:
New borrowings (1,243.1) - (11.5)
Proceeds from inventory repurchase arrangement (37.7) - (38.0)
Movement in cash held not available for short-term use - (0.3) (0.3)
Repayment of existing borrowings 1,084.9 49.5 129.7
Repayment of inventory repurchase arrangement 40.0 - 40.0
Lease liability payments 4.8 4.0 7.9
Transaction fees 20.6 - -
Increase in net debt arising from cash flows (350.2) (130.0) (63.1)
Non-cash movements:
Foreign exchange (loss)/gain on secured loan notes (6.3) 61.7 60.8
Interest added to debt (1.5) (7.4) (14.2)
Unpaid transaction fees 1.2 - -
Borrowing fee amortisation (16.1) (4.2) (26.9)
Lease liability interest charge (2.1) (2.0) (4.1)
Lease modifications (1.5) (0.6) (0.6)
New leases (5.3) (1.4) (5.8)
Exchange and other adjustments 2.3 3.2 5.1
Increase in net debt (379.5) (80.7) (48.8)
Net debt at beginning of the period/year (814.3) (765.5) (765.5)
Net debt at the end of the period/year (1,193.8) (846.2) (814.3)
12. Investments in equity interests
On 15 November 2023, the Group subscribed for shares in AMR GP Holdings
Limited by exercising its primary warrant option and subscribing for reward
shares it was entitled to under the initial sponsorship term. The primary
warrant became exercisable following the Group entering an agreement with AMR
GP for a second sponsorship term running from 2026 to 2030.
In 2023 the fair value of the warrant equity option and reward shares was
established by applying the proportion of equity represented by the
derivatives to an assessment of the equity value of AMR GP Limited, which was
then adjusted to reflect marketability and control commensurate with the size
of the investment. As at 30 June 2024 the Group has measured the fair value
of its holding in line with the equity value implied by investments into AMR
GP by a number of third parties.
The Group made the election to carry the investment at fair value through
other comprehensive income and will continue to fair value the investment in
line with the requirements of IFRS 9 at future balance sheet dates. This
election was made to reduce volatility due to movements in fair value within
the Consolidated Income Statement.
Investments 30 June 2024 30 June 2023 31 December 2023
Opening 18.2 - -
Additions - - 18.2
Fair value change 51.4 - -
Closing 69.6 - 18.2
13. Financial Instruments
The following tables provide an analysis of financial instruments grouped into
Levels 1 to 3 based on the degree to which the value is observable.
30 June 2024 30 June 2023 31 December 2023
Nominal Value Book Value Fair Value Nominal Value Book Value Fair Value Nominal Value Book Value Fair Value
Included in assets £m £m £m £m £m £m £m £m £m
Level 2
Forward foreign exchange contracts - 6.6 6.6 - 1.9 1.9 - 3.3 3.3
Investments - 69.6 69.6 - - - - - -
Level 3
Investments - - - - - - - 18.2 18.2
Other derivative contracts - - - - 6.4 6.4 - - -
- 76.2 76.2 - 8.3 8.3 - 21.5 21.5
30 June 2024 30 June 2023 31 December 2023
Nominal Value Book Value Fair Value Nominal Value Book Value Fair Value Nominal Value Book Value Fair Value
Included in liabilities £m £m £m £m £m £m £m £m £m
Level 1
$960.0m 10.0% US Dollar Senior Secured Notes 759.4 747.0 746.5 - - - - - -
£400.0m 10.375% GBP Senior Secured Notes 400.0 393.5 398.5 - - - - - -
$1,143.7m (June 2023: $1,143.7m; December 2023: $1,143.7m) 10.5% US Dollar - - - 899.6 885.7 909.4 897.2 890.0 906.7
1(st) Lien Notes*
$121.7m (June 2023: $236.1m; December 2023: $121.7) 15.0% US Dollar 2(nd) Lien - - - 185.7 166.2 201.6 95.4 90.3 103.6
Split Coupon Notes*
Level 2
Forward foreign exchange contracts - 1.7 1.7 - 0.8 0.8 - 2.1 2.1
Derivative option over own shares 33.1 10.4 10.4 48.1 60.6 60.6 33.1 23.1 23.1
1,192.5 1,152.6 1,157.1 1,133.4 1,113.3 1,172.4 1,025.7 1,005.5 1,035.5
* The First and Second Lien SSNs were repaid as part of the Group refinancing
exercise in March 2024. The nominal value, book value and fair value of the
Second Lien SSNs included $9.8m, $10.5m, $10.8m, $6.8m, $7.0m and $7.2m of PIK
notes issued in April 2021, November 2021, April 2022, November 2022, April
2023 and November 2023 respectively. The total number of Second Lien SSNs in
issuance was reduced by repayments of $143.8m and $121.7m in 2022 and 2023
respectively. The historic book value included accrued PIK notes not issued at
each reporting date.
Under IFRS 7, such assets and liabilities are classified by the way in which
their fair value is calculated. The interest bearing loans and borrowings are
considered to be level 1 liabilities. Forward foreign exchange contracts are
considered to be level 2 assets and liabilities. Derivative options are
considered to be level 2 liabilities.
IFRS 13 defines each level as follows:
· level 1 assets and liabilities have inputs observable through
quoted prices;
· level 2 assets and liabilities have inputs observable, other
than quoted prices, either directly (i.e. as prices) or indirectly (i.e.
derived from prices); or
· level 3 assets and liabilities as those with inputs not based
on observable market data.
The forward currency contracts are carried at fair value based on pricing
models and discounted cash flow techniques derived from assumptions provided
by third party banks.
The other derivative contracts related to one option and one issuable
derivative for the Group to acquire a minority shareholding in AMR GP Holdings
Limited. Two derivatives were exercised in the second half of 2023 resulting
in the Group recognising an investment in equity interest. The fair value of
the investment in 2023 was established by applying the proportion of equity
represented by the shareholding to an assessment of the enterprise value of
AMR GP Holdings Limited, which was then adjusted to reflect marketability and
control commensurate with the size of the investment, and as such was a level
3 asset. As at 30 June 2024, the Group has measured the fair value of its
holding in line with the equity value implied by investments into AMR GP by a
number of third parties, of which one is in close proximity to the period end
(note 20). The implied equity value from the transactions, alongside a
continued absence of quoted prices, have led to the investment, being
reassessed as a level 2 asset as at 30 June 2024.
The Senior Secured Notes are all valued at amortised cost retranslated at the
year-end foreign exchange rate where applicable. The fair value of these Notes
at the current and comparative period ends are determined by reference to the
quoted price on The International Stock Exchange Authority in St. Peter Port,
Guernsey. The fair value and nominal value exclude the impact of transaction
costs. The previous First and Second Lien Senior Secured Notes were valued
using the same methodology.
The derivative option over own shares reflects the detachable warrants issued
alongside the 2020 second lien Senior Secured Notes enabling the warrant
holders to subscribe for a number of Ordinary Shares in the Company. The fair
value is calculated using a binomial model and updated at each period end
reflecting the latest market conditions. The inputs used in the valuation
model include the quoted share price, market volatility, exercise ratio, and
risk-free rate. The fair value movement in the option for the period ended 30
June 2024 was a gain of £12.7m (30 June 2023: loss of £37.9m; 31 December
2023: loss of £19.0m) and is recognised within the Income Statement in
interest income as an adjusting item.
14. Provisions
30 June 30 June 31 December
2024 2023 2023
£m £m £m
Warranty provision 43.2 40.3 43.9
Current 21.1 18.3 20.2
Non-current 22.1 22.0 23.7
43.2 40.3 43.9
15. Pension Scheme
The net liability for defined benefit obligations of £49.0m at 31 December
2023 has decreased to a net liability of £42.2m at 30 June 2024. The movement
of £6.8m comprises an underlying charge to the Income Statement of £1.0m
offset by an actuarial gain of £0.3m in addition to contributions of £7.5m.
Following the High Court ruling in the case of Virgin Media Limited v NTL
Pension Trustees II Limited and others in June 2023, it was held that section
37 of the Pension Schemes Act 1993 operates to make void any amendment to the
rules of a contracted out pension scheme without written actuarial
confirmation under Regulation 42(2) of the Occupational Pension Schemes
(Contracting Out) Regulations 1996, in so far that the amendment relates to
members' section 9(2B) rights. An appeal is due to be heard on 26 June 2024
which, it is hoped, will provide further clarity on the issue. The Trustees of
the Scheme and the Plan (collectively the "Pension Schemes") have confirmed
that; - The Pension Schemes were contracted out of the additional state
pension between 1997 and 2016; and - It was possible that amendments were made
to the Pension Schemes that may have impacted on the members' section 9(2B)
rights. The Trustees of the Pension Schemes and the Directors work closely
together and take appropriate legal and professional advice when making
amendments to the Pension Schemes. However, at 31 December 2023, it is not
currently possible to determine whether any amendments to section 9(2B) rights
were made to the Pension Schemes that were not in accordance with section 37
of the Pension Schemes Act 1993 requirements. Further, it is not currently
possible to reliably estimate the possible impact to the defined benefit
obligations of the Pension Schemes if these amendments were not in accordance
with section 37 of the Pension Schemes Act 1993 requirements.
16. Share capital
30 June 30 June 31 December
2024 2023 2023
Number £m Number £m Number £m
Ordinary shares 825,025,531 82.5 728,074,580 72.8 823,663,785 82.4
Movement in Ordinary shares:
On 26 May 2023, the Company issued 28,300,000 ordinary shares by way of a
private placing. The shares were issued at 335p raising gross proceeds of
£94.8m with £2.8m recognised as share capital and the remaining £92.0m
recognised as share premium. Transaction fees of £0.3m were deducted from
share premium.
On 30 May 2023, the Company issued 1,017,505 ordinary shares under the
Company's Share Incentive Plan at nominal value. A transfer from retained
earnings of £0.1m took place, with £0.1m recognised in share capital.
On 4 July 2023, 3,686,017 ordinary shares were issued to satisfy the
redemption of certain warrant options. Further issuances of 3,980,921 ordinary
shares on 12 July 2023 and 1,324,037 ordinary shares on 31 July 2023 took
place. These transactions resulted in the recognition of £0.9m of share
capital with the balance of £14.1m being recognised in share premium.
On 3 August 2023, the Company issued a total of 58,245,957 ordinary shares
comprising 56,750,000 placing shares, 1,078,168 retail offer shares and
417,789 Director subscription shares. The shares were issued at 371p raising
gross proceeds of £216.1m, with £5.9m recognised as share capital, the
remaining £210.2m as share premium, offset by £3.3m of fees.
On 6 November 2023, the Company issued consideration shares to Lucid Group,
Inc. in part payment for access to technology. The fair value of technology
was evaluated which determined the issue price of the shares. £2.8m was
recognised in share capital with an initial £85.8m in share premium. £1.4m
of transaction fees were then deducted from share premium.
On 6 March 2024, the Company issued 78,050 ordinary shares to satisfy the
vesting of the Company's 2021 Long Term Incentive Plan and a buy-out award.
On 13 May 2024, the Company issued 1,283,696 ordinary shares under the
Company's Share Incentive Plan at nominal value. A transfer from retained
earnings of £0.1m took place, with £0.1m recognised in share capital.
17. Related party transactions
Transactions during 2024
During the six months ended 30 June 2024, a net marketing expense amounting to
£9.7m of sponsorship has been incurred in the normal course of business with
AMR GP Limited ("AMR GP"), an entity indirectly controlled by a member of the
Group's Key Management Personnel ("KMP"). AMR GP and its legal structure is
separate to that of the Group and the Group does not have control or
significant influence over AMR GP or its affiliates. £0.3m remains due from
AMR GP at 30 June 2024 relating to these transactions. Under the terms of the
sponsorship agreement the Group is required to provide one fleet vehicle to
each of the two AMR GP racing drivers free of charge. This arrangement is
expected to continue for the life of the contract and is not expected to
materially affect the financial position and performance of the Group. One of
the racing drivers is an immediate family member of one of the Group's KMP.
In addition, the Group incurred costs of £2.7m associated with engineering
design on two upcoming vehicle programmes from Aston Martin Performance
Technologies Limited ("AMPT") of which £1.7m is outstanding to AMPT at 30
June 2024. AMPT is an associated entity of AMR GP.
During the six months ended 30 June 2024, Classic Automobiles Inc. purchased a
vehicle for £3.3m of which £nil was outstanding at 30 June 2024. Classic
Automobiles Inc. is controlled by a member of the Group's KMP.
During the six months ended 30 June 2024, the Group incurred a rental expense
of £0.6m from Michael Kors (USA), Inc., a Company which is owned by Capri
Holdings Limited. A member of the Group's KMP and Non-Executive Director is
also a member of Capri Holdings Limited KMP.
During the six months ended 30 June 2024, the Group incurred expense of £2.9m
from Lucid, Inc relating to the implementation work for the technology
purchased in 2023. £nil was outstanding as at 30 June 2024. An outstanding
cash liability of £71.7m relating to the technology supply arrangement
entered in 2023 remains as at 30 June 2024, all of which is due in 2025 or
later. PIF are a substantial shareholder of the Group, and two members of the
Group's KMP & Non-Executive Directors are members of PIF's KMP.
During the six months ended 30 June 2024, the Group incurred costs of £0.3m
for safety testing services from companies within the Geely Automobile Group
of companies. A member of the Group's KMP and Non-Executive Director is also a
member of Geely Automobile Holdings Co., Limited KMP. £nil is outstanding as
at 30 June 2024.
Transactions during 2023
During the year ended 31 December 2023, a net marketing expense amounting to
£19.4m of sponsorship has been incurred in the normal course of business with
AMR GP Limited ("AMR GP"), an entity indirectly controlled by a member of the
Group's Key Management Personnel ("KMP"). AMR GP and its legal structure is
separate to that of the Group and the Group does not have control or
significant influence over AMR GP or its affiliates. £0.7m remains due from
AMR GP at 31 December 2023 relating to these transactions.
During the year ended 31 December 2023 the Group extended its sponsorship
arrangements with AMR GP for a further period of five years commencing in
2026. Amounts under this arrangement are due within each financial year from
2026. The Group also exercised its primary warrant option and subscribed for
reward shares under the terms of the original sponsorship arrangement giving
the Group a minority stake in AMR GP Holdings Limited, the immediate parent
company of AMR GP limited. The Group paid nominal value for the shares of
which £nil was outstanding at year end. Under the terms of the sponsorship
agreement the Group is required to provide one fleet vehicle to the two AMR GP
racing drivers free of charge. This arrangement is expected to continue for
the life of the contract and is not expected to materially affect the
financial position and performance of the Group. One of the racing drivers is
an immediate family member of one of the Group's KMP. A separate immediate
family member of one of the Group's KMP incurred costs of less than £0.1m
relating to the export and transport of a vehicle. The services were provided
by a Group company. £nil was outstanding at 31 December 2023.
In addition, the Group incurred costs of £8.5m associated with engineering
design on two upcoming vehicle programmes from Aston Martin Performance
Technologies Limited ("AMPT") of which £2.8m is outstanding to AMPT at 31
December 2023. AMPT is an associated entity of AMR GP.
During the year ended 31 December 2023, Classic Automobiles Inc. purchased a
vehicle for £1.8m of which £nil was outstanding at 31 December 2023. Classic
Automobiles Inc. is controlled by a member of the Group's KMP.
During the year ended 31 December 2023, a separate member of the Group's KMP
and Non-Executive Director purchased a vehicle for £1.8m, having paid a
deposit to the Group in the first half of the year. £nil was outstanding at
31 December 2023.
On 26 June 2023, the Group announced a strategic supply arrangement with Lucid
Group, Inc. ("Lucid") for future access to powertrain components for future
BEV models. The arrangement is considered a Related Party Transaction owing to
the substantial ownership of Lucid by the Public Investment Fund ("PIF"). PIF
are also a substantial shareholder of the Group and two members of the Group's
KMP & Non-Executive Directors are members of PIF's KMP. The Group
recognised an asset of £188.5m in relation to the supply agreement. The
agreement is part-settled in equity, which was issued to Lucid in November
2023. An outstanding cash liability of £71.7m relating to the supply
arrangement remains at 31 December 2023, all of which is due in more than one
year. The supply arrangements, commit to an effective future minimum spend
with Lucid on powertrain components of £177.0m.
During the year ended 31 December 2023, the Group incurred costs of £2.0m for
design and engineering work from Pininfarina S.p.A. A member of the Group's
KMP and Non-Executive Director is also a member of Pininfarina S.p.A's KMP. As
of 19 May 2023 the individual ceased to be a member of the Group's KMP and
therefore any future spend under the contract will not be disclosed as a
related party transaction. £nil is outstanding as at 31 December 2023.
During the year ended 31 December 2023, the Group incurred a rental expense of
£1.2m from Michael Kors (USA), Inc., a Company which is owned by Capri
Holdings Limited. A member of the Group's KMP and Non-Executive Director is
also a member of Capri Holdings Limited KMP.
During the year ended 31 December 2023, the Group incurred consultancy costs
of £0.2m from a member of the Group's KMP and Non-Executive Director in
relation to the oversight of two significant legal claims which the Group has
been party to. £0.1m was outstanding as at 31 December 2023. Owing to the
unique experience of the individual involved and the specifics of the legal
claims, no detailed market price assessment was performed when engaging this
service.
During the year ended 31 December 2023, an immediate family member of the
Group's KMP & Non-Executive Director provided event services at the
opening of Q New York totalling less than £0.1m of expense. £nil was
outstanding at 31 December 2023. No detailed market price assessment was
performed when engaging this service.
Terms and conditions of transactions with related parties
Sales and purchases between related parties are made at normal market prices
unless otherwise stated. Outstanding balances with entities other than
subsidiaries are unsecured, interest free and cash settlement is expected
within 60 days of invoice. Terms and conditions for transactions with
subsidiaries are the same, with the exception that balances are placed on
intercompany accounts. The Group has not provided or benefited from any
guarantees for any related party receivables or payables.
18. Contingent liabilities
In the normal course of the Group's business, claims, disputes, and legal
proceedings involving customers, dealers, suppliers, employees or others are
pending or may be brought against Group entities arising out of current or
past operations. There is presently a dispute between the Group and the other
shareholders of one of its subsidiary entities, which is ongoing and from
which a future obligation may arise. The Group denies the claims made and is
working to resolve the matters raised.
Confidential arbitration proceedings commenced by Nebula Project AG against
the Group have concluded, with the Tribunal determining that the arrangements
with Nebula Project AG were validly terminated and making an award of costs in
favour of the Group. The Group is taking steps to enforce the costs award
although full recovery is uncertain and, consequently, the Group has not
recognised an asset.
19. Alternative performance measures
In the reporting of financial information, the directors have adopted various
Alternative Performance Measures ("APMs"). APMs should be considered in
addition to IFRS measurements. The directors believe that these APMs assist in
providing useful information on the underlying performance of the Group,
enhance the comparability of information between reporting periods, and are
used internally by the directors to measure the Group's performance.
The key APMs that the Group focuses on are as follows:
i) Adjusted EBT is the loss before tax and adjusting items as shown in
the Consolidated Income Statement.
ii) Adjusted EBIT is operating (loss)/profit before adjusting items.
iii) Adjusted EBITDA removes depreciation, loss on sale of fixed assets and
amortisation from adjusted EBIT.
iv) Adjusted operating margin is adjusted EBIT divided by revenue.
v) Adjusted EBITDA margin is adjusted EBITDA (as defined above) divided
by revenue.
vi) Adjusted Earnings Per Share is loss after tax before adjusting items as
shown in the Consolidated Income Statement, divided by the weighted average
number of ordinary shares in issue during the reporting period.
vii) Net Debt is current and non-current borrowings in addition to inventory
repurchase arrangements and lease liabilities, less cash and cash equivalents
and cash held not available for short-term use as shown in the Consolidated
Statement of Financial Position.
viii) Adjusted leverage is represented by the ratio of Net Debt to the last
twelve months ('LTM') Adjusted EBITDA.
ix) Free cashflow is represented by cash (outflow)/inflow from operating
activities plus the cash used in investing activities (excluding interest
received) plus interest paid in the year less interest received.
Income Statement
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Loss before tax (216.7) (142.2) (239.8)
Adjusting operating expenses 6.3 6.5 31.5
Adjusting finance income (13.4) - -
Adjusting finance expense 35.7 37.9 36.5
Adjusted loss before tax (EBT) (188.1) (97.8) (171.8)
Adjusted finance income (4.1) (66.8) (74.3)
Adjusted finance expense 92.4 77.9 166.4
Adjusted operating loss (EBIT) (99.8) (86.7) (79.7)
Reported depreciation 45.4 45.7 102.2
Reported amortisation 116.6 121.6 283.4
Adjusted EBITDA 62.2 80.6 305.9
Earnings per share
6 months ended 6 months ended 12 months ended
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Adjusted earnings per ordinary share
Loss available for equity holders (£m) (207.8) (142.6) (228.1)
Adjusting items
Adjusting items before tax (£m) 28.6 44.4 68.0
Tax on adjusting items (£m) - - -
Adjusted loss (£m) (179.2) (98.2) (160.1)
Basic weighted average number of ordinary shares (million) 822.6 704.2 748.2
Adjusted loss per ordinary share (pence) (21.8)p (13.9p) (21.4p)
Adjusted diluted earnings per ordinary share
Adjusted loss (£m) (179.2) (98.2) (160.1)
Diluted weighted average number of ordinary shares (million) 822.6 704.2 748.2
Adjusted diluted loss per ordinary share (pence) (21.8)p (13.9p) (21.4p)
Net debt
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Opening cash and cash equivalents 392.4 583.3 583.3
Cash (outflow)/inflow from operating activities (71.9) 17.5 145.9
Cash outflow from investing activities (196.1) (175.0) (383.4)
Cash inflow/(outflow) from financing activities 49.2 (16.1) 59.7
Effect of exchange rates on cash and cash equivalents (0.9) (9.6) (13.1)
Cash and cash equivalents at the end of the period 172.7 400.1 392.4
Inventory repurchase arrangement (38.9) (39.9) (39.7)
Lease liabilities (99.0) (96.7) (97.3)
Borrowings (1,228.6) (1,109.7) (1,069.7)
Net Debt (1,193.8) (846.2) (814.3)
Adjusted LTM EBITDA 287.5 212.2 305.9
Adjusted leverage (LTM) 4.2x 4.0x 2.7x
Free Cashflow
30 June 30 June 31 December 2023
2024 2023
£m £m £m
Net cash (outflow)/inflow from operating activities (71.9) 17.5 145.9
Net cash used in investing activities less interest received (200.1) (180.2) (396.9)
Interest paid less interest received (40.6) (55.6) (109.0)
Free cashflow (312.6) (218.3) (360.0)
20. Subsequent events
The Group operates a defined benefit pension scheme. As part of the actuarial
valuation as at 6 April 2023, the Trustee and the Group reviewed the deficit
reduction contributions being paid into the Scheme in the Recovery Plan. On 5
July 2024 the Group agreed to reduce the Recovery Plan contributions from
£15.0m per annum to £8.0m per annum effective from 1 July 2024, given the
reduction in the deficit, and amend the end of the Recovery Plan period. If
the updated Recovery Plan had been approved on or before 30 June 2024, the
deficit would have been £32.7m, instead of £42.2m.
On 9 July 2024 the Group sold a portion of its shareholding in AMR GP Holdings
Limited for gross proceeds of £15.7m.
RESPONSIBILITY STATEMENT
The Interim consolidated financial information has been prepared in accordance
UK adopted International Accounting Standard 34, "Interim Financial
Reporting". We confirm that to the best of our knowledge that the Interim
Management Report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the financial statements; and a
description of the principal risks and uncertainties for the remaining six
months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related
party transactions that have taken place in the first six months of the
current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
By order of the Board
Amedeo Felisa
Doug Lafferty
Chief Executive Officer
Chief Financial Officer
23 July 2024
23 July 2024
Independent review report to Aston Martin Lagonda Global Holdings plc
Conclusion
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
June 2024 which comprises the Consolidated Statement of Comprehensive Income,
the Consolidated Statement of Changes in Equity, the Consolidated Statement of
Financial Position, the Consolidated Statement of Cash Flows and notes 1 to
20. We have read the other information contained in the half yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of
financial statements.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 June 2024 is not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard on Review
Engagements 2410 (UK) "Review of Interim Financial Information Performed by
the Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information consists of
making enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or that
management have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
this ISRE, however future events or conditions may cause the entity to cease
to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's Responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statements in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK) "Review of
Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other
than the company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
Birmingham
23 July 2024
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