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  • Writer's pictureMark Watson-Mitchell

Aston Martin Lagonda – better than expected interims, charging ahead to very strong fourth quarter

Lawrence Stroll’s Aston Martin Lagonda Global Holdings (LON:AML) has today announced better than expected half-time results.

The £2.5bn capitalised luxury car maker reported that in the six months to end June its total wholesale volumes were up 10% at £2.95bn (£2.67m), while its revenues were 25% increased at £677.4m (£541.7m), with its pre-tax loss halved at £142.2m (£285.4m).

The first half improvement was driven by the much higher volumes and stronger pricing, together with its DBX707 and V12 Vantage Roadster showing impressively.

The group, which is enjoying its 110th anniversary this year, ended the period with a cash balance of £400m, boosted by the Geely £95m subscription, together with a £60m revolving credit facility, giving it an overall liquidity of £460m. Net debt was £846m (£766m).

In Q3 deliveries are scheduled to begin for its 499 DBS 770 Ultimate, which was a total sell-out of the January 2023 launched model.

The Aston Martin DB12, the new generation front-engine sports car classed as the world’s first Super Tourer, was launched in late May and which is sold out for the rest of the year will see customer deliveries starting in Q3.

Executive Chairman Lawrence Stroll stated that:

"Although we may only be halfway through the year, 2023 has already proven to be a remarkable year in which Aston Martin has shone brighter than ever.

We are now driving new levels of operational excellence to support our growth and deliver on our targets which focus on increasing value for each car we sell, aligned with the characteristics of a true ultra-luxury company."

The group remains well on track to achieve its medium-term financial targets of c.£2bn revenue and c.£500m adjusted EBITDA by 2024/25.

The company has stated that it expects to substantially achieve these financial targets in 2024 and, with continued strong momentum, is likely to exceed them in 2025.

Consistent with its target to become free cash flow positive from 2024, the company also expects to further deleverage its balance sheet, targeting a net leverage ratio of c.1.5x in 2024/25.

For the second half of this current year, the group expects to achieve a similar level of adjusted EBITDA in Q3 2023 as Q2 2023, with a significant increase in adjusted EBITDA in Q4 2023, primarily due to the timing and related contribution of new product launches.

It also expects to deliver significant growth in profitability.

The shares opened up 3% at 360.80p.


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