REG - Aston Martin Lagonda - Preliminary Results year ended 31 December 2023
28/02/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240228:nRSb6910Ea&default-theme=true
RNS Number : 6910E Aston Martin Lagonda Glob.Hldgs PLC 28 February 2024
Aston Martin Lagonda Global Holdings plc
("Aston Martin", or "AML", or the "Company"; or the "Group")
Preliminary results for the twelve months ended 31 December 2023
Revenue growth of 18%; driven by robust volumes and record ASPs
Gross margin improved 650bps to 39.1%; driven by ongoing portfolio
transformation
Adjusted EBITDA increased 61%; margin improved 490 basis points to 18.7%
Strong Q4 performance delivered record gross margin and adjusted EBITDA in the
quarter
Disciplined strategic delivery supported ongoing deleveraging; net leverage
ratio at 2.7x
Near- and medium-term guidance maintained
£m FY 2023 FY 2022 % change Q4 2023 Q4 2022 % change
Total wholesale volumes(1) 6,620 6,412 3% 2,222 2,352 (6)%
Revenue 1,632.8 1,381.5 18% 593.3 524.3 13%
Gross Profit 639.2 450.7 42% 268.4 164.5 63%
Gross Margin (%) 39.1% 32.6% 650 bps 45.2% 31.4% 1380 bps
Adjusted EBITDA(2) 305.9 190.2 61% 174.8 110.4 58%
Adjusted EBIT(2) (79.7) (117.9) 32% 55.4 10.3 438%
Operating (loss)/profit (111.2) (141.8) 22% 34.1 6.6 417%
(Loss)/profit before tax (239.8) (495.0) 52% 20.0 16.3 23%
Net debt(2) (814.3) (765.5) (6)% (814.3) (765.5) (6)%
(1) Number of vehicles including Specials; (2) For definition of alternative
performance measures please see Appendix
Lawrence Stroll, Aston Martin Executive Chairman commented:
"In 2023, Aston Martin delivered significant strategic milestones and further
financial progress, driven by continued strong demand for our ultra-luxury,
high-performance products. The rich mix of sales, driven by our ongoing
commitment to product innovation, supported growth in average selling prices
to record levels. This, combined with our ongoing portfolio transformation,
resulted in a significantly enhanced gross margin, remaining on track to
achieve our longstanding target of around 40% gross margin in 2024.
"Aligned to our vision of creating the most comprehensive product portfolio in
our segment, we launched the highly acclaimed DB12 in 2023. We have seen a
clear demonstration of DB12 and our other ultra-luxury vehicles addressing the
growing demand for unique personalised products driving increased options
revenue while also attracting new customers to the brand.
"Critical to the long-term success of Aston Martin is the strength of our
iconic global brand and loyal, as well as evolving, customer base. Continued
investment in both the brand and our go-to-market strategy are imperative to
our success. I was extremely proud of our achievements in 2023 which included
our fantastic partnership with the Aston Martin F1® Team, the global
celebration of our historic 110(th) anniversary, and continued implementation
of our renewed corporate identity across our network including the opening of
our first ultra-luxury flagship location, Q New York.
"Looking ahead to 2024, I'm excited by the future development of our product
portfolio with the completion of our line-up of next generation, front-engine
sports cars, including the recently unveiled Vantage, and the continuation of
our Specials programmes. These and other advancements will support the
delivery of the Company's near- and medium-term financial targets, including
positive FCF generation in H2'24, as we unleash the power of our brand and
continue our growth trajectory."
Aston Martin's management team will host a video webcast presentation at 8am
(GMT) today. Details can be found on page 6 of this announcement and online at
www.astonmartinlagonda.com/investors
(http://www.astonmartinlagonda.com/investors)
2023 Full year financial summary
· Delivered robust wholesale volumes during a period of ongoing
product portfolio transformation:
- FY 2023 wholesale volumes increased 3% to 6,620 (FY 2022: 6,412); driven
by 14% Sport/GT growth, reflecting growth in DB12 and DBS 770 Ultimate volumes
in H2'23, despite slight delays to the initial production ramp up of DB12
- As expected, Q4 2023 wholesale volumes increased 54% sequentially compared
with Q3 2023; decreased 6% to 2,222 compared to prior year period (Q4 2022:
2,352) due to elevated Q4 2022 wholesales
· FY 2023 revenue increased 18% to £1,633m reflecting continued
execution of our growth strategy; enhanced positioning of our ultra-luxury
brand and enriched product portfolio driving growth in volumes and record
average selling prices (ASPs):
- Strong pricing dynamics in the core portfolio and favourable mix from DBS
770 Ultimate, DBX707, V12 Vantage Roadster and new DB12:
§ FY 2023 core ASP of £188k, up 6% (FY 2022: £177k)
§ Q4 2023 core ASP of £196k, up 7% (Q4 2022: £184k)
- Higher year-on-year Specials volumes with consistent delivery of Aston
Martin Valkyrie (87 compared to 80 in FY 2022) including deliveries of the
first Aston Martin Valkyrie Spiders, DBR22 and Valour limited edition models:
§ FY 2023 total ASP of £231k, up 15% (FY 2022: £201k)
§ Q4 2023 total ASP of £255k, up 20% (Q4 2022: £213k); reflecting richer
mix
· Significant increase in gross profit and margin progressing
towards longstanding c. 40% target in FY 2024/25; reflecting benefits from the
ongoing portfolio transformation, driving favourable pricing dynamics, product
mix and volumes:
- FY 2023 gross profit increased by 42% to £639m (FY 2022: £451m); gross
margin at 39% (FY 2022: 33%)
- Q4 2023 gross profit increased by 63% to £268m (Q4 2022: £165m); gross
margin at 45% (Q4 2022: 31%)
· FY 2023 adjusted EBITDA increased 61% to £306m (FY 2022: £190m)
translating to an adjusted EBITDA margin increase of 490 basis points to
18.7%; primarily driven by higher gross profit, partially offset by 26%
increase in adjusted operating expenses, including reinvestments into brand
and marketing activities and inflationary impacts on the cost base, while
recognising £11m relating to upward revaluation of investment in AMR GP
Holdings Limited
· FY 2023 operating loss decreased by 22% to £111m (FY 2022:
£142m loss), including £78m year-on-year increase in depreciation and
amortisation; Q4 2023 operating profit increased to £34m (Q4 2022: £7m)
· Net cash inflow from operating activities of £146m (FY 2022:
£127m); Free cash outflow(( 3 (#_ftn1) )) of £360m (FY 2022: £299m
outflow) reflecting:
- Q4 free cash outflow of £63m (Q4 2022: £37m inflow) impacted by timing
of DB12 and Valour deliveries in December 2023 with related receivables
unwinding in January 2024
- Higher year-on-year capital expenditure of £397m (FY 2022: £287m),
primarily related to new models and next generation sports car developments,
as well as development of the Company's electrification programme including
the initial $33m (£27m) payment to Lucid Group, Inc. (Lucid) relating to the
new strategic supply agreement
- Net cash interest payments of £109m (FY 2022: £139m)
- Working capital outflow of £86m (FY 2022: £15m outflow) reflecting
timing of December deliveries and the unwinding of customer deposits on
delivery of Special wholesales, partially offset by a reduction in inventory
and payables
· Year-end cash of £392m (2022: £583m), following the redemption
of 50% of the outstanding second lien notes in November 2023
· Net debt of £814m (2022: £766m), including a positive £61m impact
of non-cash FX revaluation of US dollar-denominated debt as sterling
strengthened against the US dollar during 2023; disciplined strategic delivery
supported ongoing deleveraging with net leverage ratio improving to 2.7x
(2022: 4.0x)
Operational Overview: Accelerating.Forward.
Amedeo Felisa, Aston Martin Chief Executive Officer, commented:
"2023 was a landmark year for Aston Martin's portfolio transformation as we
delivered stunning new products to market including the DBS 770 Ultimate and
DB12, the first of our next generation sports cars, celebrating a new era of
ultra-luxury design and high-performance. The demand for our 110(th)
anniversary special edition Valour also demonstrated our brand's unique
ability to operate at the very pinnacle of the ultra-luxury segment, something
also exemplified by further Specials such as the DBR22 and Aston Martin
Valkyrie. The momentum and experience our teams have amassed in 2023 to
develop and deliver our ambitious plans is carried into 2024, which along with
further investment in people and facilities, and a relentless focus on quality
and continuous improvement, will support successful future model launches and
our growth ambitions."
Heightened focus on ultra-luxury and high-performance
The success of the Company's ultra-luxury high-performance product portfolio
this year is demonstrated by record total and core ASPs, and strong revenue
and margin growth. In 2023, the Company completed a year-long celebration of
Aston Martin's 110(th) anniversary, with a series of unique global events
bringing its community of customers even closer to the brand, culminating in
the launch of the ultra-exclusive Special, Valour. The Company also completed
first deliveries of its highly acclaimed next generation sports car, DB12. The
model was recently awarded "Car of the Year" for 2024 by Robb Report and
confirmed by Autocar magazine as a true "Super GT", driving reappraisal of
Aston Martin amongst new audiences, whilst engaging loyal customers.
The DBS 770 Ultimate, the most powerful production Aston Martin ever, was
unveiled in January 2023, with all examples sold out before production
commenced in 2023. The world's most powerful ultra-luxury SUV, DBX707,
continued to win awards, named 'Best Exclusive & Luxury Car' at the
prestigious Auto vum Joer awards in Luxembourg, and was announced as the new
Official FIA Medical Car of F1®️ in conjunction with the start of the 2023
World Championship season. The transformational demand for Aston Martin's
high-performance DBX707 since its launch in 2022, underpins the next phase of
the model's evolution, now the sole SUV model marketed.
In June 2023, the Company proudly opened the doors to Q New York, its first
ultra-luxury flagship on 450 Park Avenue. The new location brings the highest
levels of the iconic British brand's bespoke service, Q by Aston Martin, to
North America for the very first time, providing the most sophisticated luxury
specification experience available anywhere in the world.
The Company celebrated the success of the Aston Martin F1® Team with the
release of an exclusive AMR23 Edition DBX707. Named after the brand's 2023
F1® challenger, the AMR23 Edition creates a DBX707 that shares a racing
identity with both the AMR23 F1® car and the Official Medical Car of F1®.
The Aston Martin F1® Team continued to drive brand visibility and heightened
product consideration, with a 7% increase in website traffic versus non-race
weekends in 2023 and 20% uplift in traffic to Aston Martin's award-winning
configurator. Market research indicates that 60% of luxury car buyers strongly
agree they are more likely to buy an Aston Martin because of its association
with F1 ®️.
Further strengthening its high-performance DNA, in October 2023, Aston Martin
announced it is set to enter the 2025 24 Hours of Le Mans Hypercar class with
a racing prototype version of the ultimate Hypercar, the Aston Martin
Valkyrie.
Looking to the year ahead, 2024 sees Aston Martin begin to complete its vision
for a world-class product portfolio, with an incredible line-up of new,
front-engine sports cars, joining the best performance SUV in the luxury
segment. Unveiling the new Vantage in February 2024, the fastest and most
driver focused in the famous nameplate's 74-year history, is testament to
Aston Martin's commitment to delivering a thrilling driving experience and
integrating the very best in motorsport technologies. This was exemplified by
the car's launch on the same day as the 2024 Aston Martin Formula One®
challenger and Vantage GT3 racer. Complementing the portfolio, the Company has
an incredible, mid-engine supercar in Valhalla on the horizon, with prototype
testing already taking place and currently on course to enter production
before the end of this year.
Aligning the organisation for accelerated growth
In 2023, the Company delivered the majority of its vehicles in line with
production plans, including the DBS 770 Ultimate, DBX707 and Special models.
During Q3, despite initial production ramp up delays due to supplier readiness
and EE platform integration issues, deliveries of DB12 commenced. This model
included Aston Martin's first-ever in-house, bespoke infotainment system,
where teams across the Company collaborated with suppliers to deliver this
significant step forward for the product. Aligned with the Company's
commitment to providing customers with the highest quality products and best
user experience possible, these and other continual improvement processes will
be carried forward into 2024 to support the successful launch of further new
models.
In June 2023, the Company moved further forward in its ambition to create the
world's most thrilling and highly desirable electric performance cars, with
the formation of a landmark new supply agreement with world-leading electric
vehicle technologies company, Lucid Group. This long-term relationship will
help propel Aston Martin's high-performance electrification strategy, as the
Company develops alternatives to the Internal Combustion Engine with a blended
drivetrain approach between 2025 and 2030, including PHEV and BEV, with a
clear plan to have a line-up of electric sports cars and SUVs. With Aston
Martin's technical partnerships now in place, the Company's first battery
electric vehicle (BEV) is now targeted for launch in 2026, benefitting from
the very best high-performance technologies available.
In October 2023, a consortium working on the Company's high-performance
electrification strategy was awarded £9 million of government funding through
the Advanced Propulsion Centre UK, further supplementing the research and
development of Aston Martin's innovative modular BEV platform, which will be
propelled by world-leading electric vehicle technologies from Lucid.
Continued investment in people, skills and facilities
At the core of the Group's value is one single guiding tenet: No one builds an
Aston Martin on their own. In line with this and Aston Martin's growth
ambitions, the Company continued to invest in its world-class team, including
the appointment of Chief Industrial Officer, Chief Procurement Officer, and
BEV Chief Engineer. The Company also welcomed a breadth of new talent to
complement its skilled and passionate team, increasing employment at its
Gaydon headquarters to support the launch of its next generation of sports
cars, as well as an enhanced early careers intake and senior appointments,
notably in the area of electrification.
In 2023, Aston Martin launched new company values of Unity, Openness, Trust,
Ownership and Courage through an internal and external campaign; these values
are at the heart of the Company's commitment to make Aston Martin a great
place to work. To solidify its community of people, the Company expanded its
employee engagement programme with new internal initiatives and events,
including a family weekend, which saw more than 10,000 employees and their
friends and family attend. Aligned with the Company's diversity and inclusion
aspirations, progress was made this year towards the target of having women in
25% of leadership positions by 2025 and in 30% of leadership positions by
2030.
The Company also announced further progress in its Racing.Green.
sustainability strategy, using CO₂ emission offsets to establish carbon
neutral status for its Gaydon and St Athan plants. This follows an
acceleration towards the goals established in the strategy announced in 2022,
with targets relating to Carbon Neutral manufacturing facilities, CO₂
emissions and energy consumption, and biodiversity improvement updated in
2023.
Continued financial progress is reflected in our unchanged outlook
We remain on track to substantially achieve our 2024/25 financial targets in
FY 2024. This is driven by continued strong demand for our products
underpinned by the exciting new next generation launches in 2024 of Vantage
and our final front-engine sports car later in the year. While recognising the
ongoing geopolitical and macro economic volatility and associated inflationary
and supply chain uncertainties, our world-class teams continue to collaborate
with our partners, seeking to minimise potential impacts on our operations.
2024 is expected to deliver another year of significant strategic and
financial progress as we continue the ongoing product portfolio
transformation. Enhanced profitability and EBITDA will be driven by high
single-digit percentage wholesale volume growth, gross margin further
improving to achieve our longstanding target of c. 40% and EBITDA margin
expansion continuing into the low 20s%.
Given the launch timings of our exciting two next generation sports cars in
2024, 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.
Continued capital investment in new product developments to support our growth
strategy is expected to total c. £350m in 2024, broadly flat across the first
and second half of the year. FCF is expected to materially improve in 2024
compared with the prior year, achieving our targeted inflection point for
positive FCF generation in H2'24, primarily driven by the timing of wholesale
volumes.
Through disciplined strategic delivery, we expect to continue deleveraging,
towards our net leverage ratio target of c. 1.5x in 2024/25. As previously
announced, we expect to refinance our outstanding debt in the first half of
2024. We are in the advanced stages of preparation and look forward to
launching this process in due course.
Additional 2024 guidance:
· Depreciation and amortisation: c. £400m
· Net cash interest: c. £110m, assuming current exchange rates
prevail for 2024
The Group's medium-term outlook for 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
All metrics and commentary in this announcement exclude adjusting items unless
stated otherwise and certain financial data within this announcement have been
rounded.
Appointment of Corporate Broker
Aston Martin also announces the appointment of Goldman Sachs International
("Goldman Sachs") as its joint Corporate Broker, alongside Barclays Bank PLC
("Barclays"), with immediate effect.
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
Teneo
Harry Cameron
+44 (0) 20 7353
4200
Results Presentation
· There will be a video presentation and Q&A for today at
08.00am GMT: https://app.webinar.net/50XL9z5nrwb
(https://app.webinar.net/50XL9z5nrwb)
· 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 and revenue analysis
Number of vehicles FY 2023 FY 2022 Change Q4 2023 Q4 2022 Change
Total wholesale 6,620 6,412 3% 2,222 2,352 (6%)
Core (excluding Specials) 6,469 6,323 2% 2,139 2,313 (8%)
By region:
UK 1,141 1,110 3% 367 416 (12%)
Americas 2,037 1,980 3% 620 828 (25%)
EMEA ex. UK(3) 1,994 1,508 32% 727 628 16%
APAC(3) 1,448 1,814 (20%) 508 480 6%
By model:
Sport/GT 3,530 3,104 14% 1,440 920 57%
SUV 2,939 3,219 (9%) 699 1,393 (50%)
Specials 151 89 70% 83 39 113%
Note: Sport/GT includes Vantage, DB11, DB12, and DBS; 3 2022 numbers restated
Total wholesales of 6,620 increased by 3% year-on-year (FY 2022: 6,412),
driven by high demand for DBS 770 Ultimate and DB12, despite expected impacts
of the ongoing product portfolio transition. This included 151 Specials in FY
2023 (FY 2022: 89), comprised of a mature cadence of 87 Aston Martin Valkyries
(FY 2022: 80), as well as DBR22 and initial 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 2,222 units in Q4 2023 increased by 54%
compared to Q3 2023, though decreased by 6% year-on-year, due to elevated Q4
2022 SUV wholesales following the resolution of supply chain and logistics
disruptions in Q2 and Q3 2022.
SUV wholesales remained robust in FY 2023, with ASPs benefiting from the
planned change in mix to DBX707 in line with the Company's ultra-luxury
high-performance strategy. The DBX707 is now clearly established as the
benchmark in the ultra-luxury SUV segment and represented 71% of SUV
wholesales in FY 2023 (FY 2022: 52%), with volumes increasing 25% in 2023
compared with the prior year. SUV wholesales decreased both on a FY 2023 and
Q4 2023 year-on-year basis (9% and 50% decreases, respectively), reflecting
portfolio transition and the previously mentioned elevated Q4 2022 wholesales
following disruptions earlier in 2022.
Q4 2023 Sport/GT wholesales of 1,440 units increased by 57% (Q4 2022: 920),
reflecting considerable contribution from DB12. The temporary peak in DB12
wholesales reflected partial delays in Q3 2023 deliveries due to supplier
readiness and EE platform integration issues.
Aston Martin continues to operate a demand-led approach, aligned with its
ultra-luxury high performance strategy. Prior to the initial production ramp
up delays of DB12, retail volumes (retails) were ahead of wholesale volumes
(wholesales) for the year. However, similar to the profile experienced at the
end of 2022, and as a direct result of the timing of DB12 deliveries in
December 2023, wholesales were temporarily ahead of retails at the end of the
year. Following the unwinding of this position, the Company expects to see
retails outpace wholesales in FY 2024 as it continues the transition to its
next generation of sports cars.
Geographically, wholesale volumes remained well balanced across all regions.
The Americas and EMEA excluding UK were the largest regions in FY 2023,
collectively representing 61% of total wholesales, driven by strong demand for
DBX707, DBS 770 Ultimate and DB12. In our home market, the UK, wholesales grew
3% year-on-year, driven by DBS 770 Ultimate and DB12 deliveries. Finally, FY
2023 wholesale volumes in APAC were impacted by lower sales in China, which
decreased by 47% compared to 2022, which more than offset growth in wholesale
volumes including DBX707 and DBS 770 Ultimate outside of China. China
continues to be a market where we see significant opportunity for long-term
growth. Wholesale volumes in APAC excluding China were up 12% year-on-year (FY
2022: 10%).
Revenue by category
£m FY 2023 FY 2022 % Change
Sale of vehicles 1,531.9 1,291.5 19%
Sale of parts 80.0 70.8 13%
Servicing of vehicles 9.8 9.3 5%
Brand and motorsport 11.1 9.9 12%
Total 1,632.8 1,381.5 18%
FY 2023 revenue increased by 18% to £1.6bn (FY 2022: £1.4bn), primarily due
to strong wholesale ASP growth, with both core and total ASP reaching record
levels and, to a lesser extent, due to higher wholesale volumes. Total ASP of
£231k (FY 2022: £201k) increased by 15% year-on-year, reflecting richer mix
including deliveries of the full range of Aston Martin Valkyrie models and the
110(th) anniversary Special, Valour, and DBR22, as well as higher core ASPs.
Core ASP of £188k (FY 2022: £177k) increased by 6% year-on-year driven by
strong pricing and favourable mix dynamics, despite some foreign exchange
headwinds.
Q4 2023 revenue increased by 13% to £593m (Q4 2022: £524m), driven by strong
ASP growth. Total Q4 2023 ASP of £255k (Q4 2022: £213k) increased by 20%,
reflecting 113% increase in Special edition wholesale volumes. Q4 2023 core
ASP of £196k (Q4 2022: £184k) increased by 7%, driven by strong pricing and
favourable mix dynamics from new DB12 and exclusive DBS 770 Ultimate, and
despite foreign exchange headwinds in Q4 2023.
Summary income statement and analysis
£m FY 2023 FY 2022 Q4 2023 Q4 2022
Revenue 1,632.8 1,381.5 593.3 524.3
Cost of sales (993.6) (930.8) (324.9) (359.8)
Gross profit 639.2 450.7 268.4 164.5
Gross margin % 39.1% 32.6% 45.2% 31.4%
Adjusted operating expenses(1) (718.9) (568.6) (213.0) (154.2)
of which depreciation & amortisation 385.6 308.1 119.4 100.1
Adjusted EBIT(2) (79.7) (117.9) 55.4 10.3
Adjusting operating items (31.5) (23.9) (21.3) (3.7)
Operating (loss)/profit (111.2) (141.8) 34.1 6.6
Net financing (expense)/income (128.6) (353.2) (14.1) 9.7
of which adjusting financing (expense)/ income (36.5) (20.1) (8.2) (39.1)
(Loss)/profit before tax (239.8) (495.0) 20.0 16.3
Tax credit/(charge) 13.0 (32.7) 13.2 (26.0)
(Loss)/profit for the period (226.8) (527.7) 33.2 (9.7)
Adjusted EBITDA(1,2) 305.9 190.2 174.8 110.4
Adjusted EBITDA margin 18.7% 13.8% 29.5% 21.1%
Adjusted (loss)/profit before tax(1) (171.8) (451.0) 49.5 59.1
EPS (pence) (30.5) (124.5)
Adjusted EPS (pence) (21.4) (114.1)
1 Excludes adjusting items; 2 Alternative Performance Measures are defined in
Appendix
In FY 2023, gross profit of £639m increased by £189m, or 42% (FY 2022:
£451m). This translated to a gross margin of 39%, expanding by 650 basis
points compared to the prior year (FY 2022: 33%). The gross margin performance
reflected benefits from the ongoing portfolio transformation strategy, driving
favourable pricing dynamics, product mix and volumes, which was particularly
strong in Q4 2023 with a gross margin of 45% (Q4 2022: 31%). Throughout FY
2023 this was partially offset by higher manufacturing, logistics and other
costs, as well as FX headwinds. The Company continues to target over 40% gross
margin from future products, aligned with the Company's ultra-luxury strategy.
Adjusted EBITDA increased by 61% year-on-year to £306m in FY 2023 (FY 2022:
£190m), or by £116m. This translated to an adjusted EBITDA margin of 19% (FY
2022: 14%), a year-on-year expansion of approximately 490 basis points. The
year-on-year increase in adjusted EBITDA was primarily due to higher
year-on-year revenue and gross profit, as described above, partially offset by
26% increase in adjusted operating expenses including reinvestments into brand
and marketing activities and inflationary impacts on the cost base, while
recognising £11m relating to upward revaluation of investment in AMR GP
Holdings Limited.
The operating loss of £111m compared to a £142m loss in the prior year. The
22% decrease year-on-year was primarily driven by:
- Higher year-on-year gross profit as described above
These factors were partially offset by:
- A £78m year-on-year increase in depreciation and amortisation, primarily
related to cadence of Specials delivery, DBS 770 Ultimate and DB12 launch, as
well as full year DBX707 charges
- Increased investment in brand and product launches such as V12
Vantage, DBS 770 Ultimate, DB12, Valhalla and Valour, and marketing activities
at events such as the Goodwood Festival of Speed, Pebble Beach, and Las
Vegas Grand Prix
- Higher general costs, including inflationary pressures
Net financing costs of £129m were down from £353m in 2022, comprising a
positive non-cash FX revaluation impact of £61m, as sterling strengthened
against the US dollar (FY 2022: negative £156m). Adjusting operating items
of £32m (FY 2022: £24m) predominantly related to ERP implementation costs
and one-off legal expenses. The £37m net adjusting finance charge (FY 2022:
£20m) was due to movements in fair value of outstanding warrants, and
financing expenses associated with the partial repayment of the second lien
notes.
The loss before tax was £240m (FY 2022: £495m loss), an improvement of
£255m year-on-year and the loss for the period was £227m (FY 2022: £528m),
an improvement of £301m year-on-year, both impacted by the significant
reduction in net financing costs related to the US dollar-denominated Senior
Secured Notes.
The tax credit on the adjusted loss before tax was £13m, and the total
effective tax rate for the period to 31 December 2023 was 5.4% which is
predominantly due to recognising deferred tax on accelerated capital
allowances and UK tax losses, as well as movements in deferred tax on the
amount of interest the Group can deduct for tax purposes.
The weighted average share count at 31 December 2023 was 748 million,
following the placing of new ordinary shares to Lucid Group, Inc. in November
and to Geely International (Hong Kong) Limited in May. 66 million shares in
relation to the warrants remain outstanding and are exercisable until 2027,
giving an adjusted EPS of (21.4)p (2022: (114.1)p).
Cash flow and net debt
£m FY 2023 FY 2022 Q4 2023 Q4 2022
Cash generated from operating activities 145.9 127.1 114.5 184.0
Cash used in investing activities (excl. interest) (396.9) (286.9) (121.9) (73.5)
Net cash interest paid (109.0) (139.0) (55.8) (73.7)
Free cash (outflow)/inflow (360.0) (298.8) (63.2) 36.8
Cash inflow/(outflow) from financing activities (excl. interest) 182.2 456.2 (80.6) (210.5)
(Decrease)/increase in net cash (177.8) 157.4 (143.8) (173.7)
Effect of exchange rates on cash and cash equivalents (13.1) 7.0 (7.6) (14.8)
Cash balance 392.4 583.3 392.4 583.3
Net cash inflow from operating activities was £146m (FY 2022: £127m). The
year-on-year change in cash flow from operating activities was primarily
driven by a £116m increase in adjusted EBITDA, as explained above, and mostly
offset by a working capital outflow of £86m (FY 2022: £15m outflow). The
largest driver was an £82m increase in receivables (FY 2022: nil movement),
driven by timing on the delivery of DB12 and Specials, as well as higher
volumes in December 2023. This was partially offset by a decrease in
inventories of £12m (FY 2022: £78m increase) due to reduced work-in-progress
and finished goods, and a £51m increase in payables (FY 2022: £82m) due to
higher production in December 2023. Due to the high volume of Specials
delivered in Q4 2023, there was a £66m decrease (FY 2022: £18m decrease) in
deposits held, as balances on accounts unwound in the quarter, partially
offset by ongoing Valour deposit collections.
Capital expenditure was £397m in 2023, an increase of £111m year-on-year,
with investment focused on the future product pipeline, particularly the next
generation of sports cars, as well as development of the Company's
electrification programme including a $33m (£27m) payment to Lucid in Q4 2023
relating to the new strategic supply agreement.
Free cash outflow of £360m in 2023 compared to a £299m outflow in 2022, is
due to an increase in capital expenditure as detailed above, partially offset
by the improvement in cash flow from operating activities.
£m 31-Dec-23 31-Dec-22
Loan notes (980.3) (1,104.0)
Inventory financing (39.7) (38.2)
Bank loans and overdrafts (89.4) (107.1)
Lease liabilities (IFRS 16) (97.3) (99.8)
Gross debt (1,206.7) (1,349.1)
Cash balance 392.4 583.3
Cash not available for short term use - 0.3
Net debt (814.3) (765.5)
Cash as at 31 December 2023 includes the remaining £106m of proceeds from
August's share placing, following the redemption of a portion of the
outstanding second lien notes in November, and £95m proceeds from the new
shares issued to Geely International (Hong Kong) Limited in May.
Net debt of £814m (2022: £766m), including a positive £61m impact of
non-cash FX revaluation of US dollar-denominated debt as the sterling
strengthened against the US dollar during the year. Disciplined strategic
delivery and EBITDA growth supported ongoing deleveraging with net leverage
ratio improving to 2.7x (2022: 4.0x).
APPENDICES
Dealerships
31 Dec-23 31 Dec-22
UK 20 21
Americas 44 44
EMEA ex. UK 54 52
APAC 45 48
Total 163 165
Number of countries 53 54
Alternative Performance Measure
£m FY 2023 FY 2022
Loss before tax (239.8) (495.0)
Adjusting operating expense (31.5) 23.9
Adjusting finance expense (36.5) (12.5)
Adjusting finance (income) - 32.6
Adjusted EBT (171.8) (451.0)
Adjusted finance (income) 74.3 (3.0)
Adjusted finance expense (166.4) 336.1
Adjusted EBIT (79.7) (117.9)
Reported depreciation 102.2 88.8
Reported amortisation 283.4 219.3
Adjusted EBITDA 305.9 190.2
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 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
- 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.
Consolidated Statement of Comprehensive Income for the year ended 31 December
2023
2023 2022
Notes Adjusted Adjusting Total Adjusted Adjusting Total
£m items* £m £m items* £m
£m £m
Revenue 3 1,632.8 - 1,632.8 1,381.5 - 1,381.5
Cost of sales (993.6) - (993.6) (930.8) - (930.8)
Gross profit 639.2 - 639.2 450.7 - 450.7
Selling and distribution expenses (143.8) - (143.8) (113.0) - (113.0)
Administrative and other operating expenses (575.1) (31.5) (606.6) (455.6) (23.9) (479.5)
Operating loss 4 (79.7) (31.5) (111.2) (117.9) (23.9) (141.8)
Finance income 6 74.3 - 74.3 3.0 12.5 15.5
Finance expense 7 (166.4) (36.5) (202.9) (336.1) (32.6) (368.7)
Loss before tax (171.8) (68.0) (239.8) (451.0) (44.0) (495.0)
Income tax credit/(charge) 8 13.0 - 13.0 (32.7) - (32.7)
Loss for the year (158.8) (68.0) (226.8) (483.7) (44.0) (527.7)
(Loss)/profit attributable to:
Owners of the Group (228.1) (528.6)
Non-controlling interests 1.3 0.9
(226.8) (527.7)
Other comprehensive income
Items that will never be reclassified to the Income Statement
Remeasurement of Defined Benefit liability (0.1) 6.8
Taxation on items that will never be reclassified to the Income Statement 8 - (1.7)
Items that are or may be reclassified to the Income Statement
Foreign currency translation differences (4.0) 3.8
Fair value adjustment - cash flow hedges 0.7 (6.1)
Amounts reclassified to the Income Statement - cash flow hedges (5.4) 2.9
Taxation on items that may be reclassified to the Income Statement 8 1.2 0.8
Other comprehensive (loss)/income for the year, net of income tax (7.6) 6.5
Total comprehensive loss for the year (234.4) (521.2)
Total comprehensive (loss)/income for the year attributable to:
Owners of the Group (235.7) (522.1)
Non-controlling interests 1.3 0.9
(234.4) (521.2)
Earnings per ordinary share
Basic loss per share 9 (30.5p) (124.5p)
Diluted loss per share 9 (30.5p) (124.5p)
All operations of the Group are continuing.
* Adjusting items are defined in note 2 with further detail shown in
note 5.
Consolidated Statement of Changes in Equity as at 31 December 2023
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 (restated*) £m Equity
£m £m (restated*)
£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 (note 8) - - - - - - 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 11) 11.5 383.0 - - - - - - - 394.5
Issue of shares to Share Incentive Plan (note 11) 0.1 - - - - - - (0.1) - -
Warrant options exercised (note 11) 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 (note 8) - - - - - - - 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.
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 (restated*) £m Equity
£m £m (restated*)
£m
At 1 January 2022 (restated*) 11.6 1,123.4 143.9 9.3 6.6 2.7 6.7 (711.4) 18.6 611.4
Total comprehensive loss for the year
(Loss)/profit for the year - - - - - - - (528.6) 0.9 (527.7)
Other comprehensive income
Foreign currency translation differences - - - - - 3.8 - - - 3.8
Fair value movement - cash flow hedges - - - - - - (6.1) - - (6.1)
Amounts reclassified to the Income Statement - cash flow hedges - - - - - - 2.9 - - 2.9
Remeasurement of Defined Benefit liability - - - - - - - 6.8 - 6.8
Tax on other comprehensive income (note 8) - - - - - - 0.8 (1.7) - (0.9)
Total other comprehensive income/(loss) - - - - - 3.8 (2.4) 5.1 - 6.5
Total comprehensive income/(loss) for the year - - - - - 3.8 (2.4) (523.5) 0.9 (521.2)
Transactions with owners, recorded directly in equity
Issuance of new shares (note 11) 58.3 574.0 - - - - - - - 632.3
Credit for the year under equity-settled share-based payments - - - - - - - 1.0 - 1.0
Total transactions with owners 58.3 574.0 - - - - - 1.0 - 633.3
At 31 December 2022 (restated*) 69.9 1,697.4 143.9 9.3 6.6 6.5 4.3 (1,233.9) 19.5 723.5
* Detail on the restatement is disclosed in note 2.
Consolidated Statement of Financial Position at 31 December 2023
Notes 31 December 2023 31 December 1 January
2022 (restated*)
2022 (restated*)
£m
£m £m
Non-current assets
Intangible assets 1,577.6 1,394.6 1,384.1
Property, plant and equipment 353.7 369.9 355.5
Investments in equity interests 18.2 - -
Right-of-use lease assets 70.4 74.4 76.0
Trade and other receivables 5.3 6.3 2.1
Other financial assets - - 0.5
Deferred tax asset 156.3 133.7 156.4
2,181.5 1,978.9 1,974.6
Current assets
Inventories 272.7 286.2 196.8
Trade and other receivables 322.2 245.7 243.4
Income tax receivable 0.9 1.4 1.5
Other financial assets 3.3 8.8 7.3
Cash and cash equivalents 392.4 583.3 418.9
991.5 1,125.4 867.9
Total assets 3,173.0 3,104.3 2,842.5
Current liabilities
Borrowings 89.4 107.1 114.3
Trade and other payables 840.4 891.2 735.9
Income tax payable 2.1 6.3 5.5
Other financial liabilities 25.2 26.2 34.8
Lease liabilities 8.8 7.4 9.7
Provisions 20.2 18.6 19.9
986.1 1,056.8 920.1
Non-current liabilities
Borrowings 980.3 1,104.0 1,074.9
Trade and other payables 122.3 43.2 43.9
Lease liabilities 88.5 92.4 93.7
Provisions 23.7 22.5 19.0
Employee benefits 49.0 61.2 78.7
Deferred tax liabilities - 0.7 0.8
1,263.8 1,324.0 1,311.0
Total liabilities 2,249.9 2,380.8 2,231.1
Net assets 923.1 723.5 611.4
Capital and reserves
Share capital 11 82.4 69.9 11.6
Share premium 11 2,094.5 1,697.4 1,123.4
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 2.5 6.5 2.7
Hedge reserves 0.8 4.3 6.7
Retained earnings (1,437.7) (1,233.9) (711.4)
Equity attributable to owners of the Group 902.3 704.0 592.8
Non-controlling interests 20.8 19.5 18.6
Total shareholders' equity 923.1 723.5 611.4
* Detail on the restatement is disclosed in note 2.
The Financial Statements were approved by the Board of Directors on 27
February 2024 and were signed on its behalf by
Amedeo
Felisa
Doug Lafferty
Chief Executive
Officer
Chief Financial Officer
Company Number: 11488166
Consolidated Statement of Cash Flows for the year ended 31 December 2023
Notes 2023 2022
£m £m
Operating activities
Loss for the year (226.8) (527.7)
Adjustments to reconcile loss for the year to net cash inflow from operating
activities
Tax (credit)/charge on operations 8 (13.0) 32.7
Net finance costs 128.6 353.2
Depreciation of property, plant and equipment 4 90.3 77.8
Depreciation of right-of-use lease assets 4 9.3 11.0
Amortisation of intangible assets 4 283.4 219.3
Loss on sale/scrap of property, plant and equipment 2.6 -
Difference between pension contributions paid and amounts recognised in Income (15.0) (12.1)
Statement
Decrease/(increase) in inventories 11.9 (78.4)
(Increase)/decrease in trade and other receivables (82.3) 0.1
Increase in trade and other payables 50.9 81.5
Decrease in advances and customer deposits (66.0) (17.9)
Movement in provisions 3.4 0.7
Other non-cash movements (0.3) 1.2
Other non-cash movements - Movements in hedging position and foreign exchange (7.2) (3.2)
derivative
Other non-cash movements - Increase in other derivative contracts (11.2) (2.3)
Other non-cash movements - Movements in deferred tax relating to RDEC credit (7.4) (3.5)
Cash generated from operations 151.2 132.4
Decrease in cash held not available for short-term use 0.3 1.5
Income taxes paid 8 (5.6) (6.8)
Net cash inflow from operating activities 145.9 127.1
Cash flows from investing activities
Interest received 13.5 2.2
Repayment of loan assets 0.5 -
Payments to acquire property, plant and equipment (91.1) (58.6)
Cash outflow on technology and development expenditure (306.3) (228.3)
Net cash used in investing activities (383.4) (284.7)
Cash flows from financing activities
Interest paid (122.5) (141.2)
Proceeds from equity share issue 11 310.9 653.9
Proceeds from issue of warrants 11 15.0 -
Proceeds from financial instrument utilised during refinancing transactions - 4.1
Principal element of lease payments (7.9) (10.0)
Repayment of existing borrowings (129.7) (172.7)
Premium paid upon redemption of borrowings (8.0) (14.3)
Proceeds from inventory repurchase arrangement 38.0 75.7
Repayment of inventory repurchase arrangement (40.0) (60.0)
Proceeds from new borrowings 11.5 -
Transaction fees paid on issuance of shares (7.6) (18.6)
Transaction fees paid on financing activities - (1.9)
Net cash inflow from financing activities 59.7 315.0
Net (decrease)/increase in cash and cash equivalents (177.8) 157.4
Cash and cash equivalents at the beginning of the year 583.3 418.9
Effect of exchange rates on cash and cash equivalents (13.1) 7.0
Cash and cash equivalents at the end of the year 392.4 583.3
1 Basis of accounting
Aston Martin Lagonda Global Holdings plc (the "Company") is a company
incorporated in England and Wales and domiciled in the UK. The Group
Financial Statements consolidate those of the Company and its subsidiaries
(together referred to as the "Group").
The Group Financial Statements have been prepared and approved by the
Directors in accordance with UK adopted international accounting standards.
The Group Financial Statements have been prepared under the historical cost
convention except where the measurement of balances at fair value is required
as explained below. The Financial Statements are prepared in millions to one
decimal place, and in sterling, which is the Company's functional currency.
The financial information set out does not constitute the Company's financial
statements for the years ended 31 December 2023 or 2022 but is derived from
those financial statements. Financial statements for 2022 have been delivered
to the registrar of companies, and those for 2023 will be delivered in due
course. The auditors have reported on those accounts. Their reports for both
years ended 31 December 2023 and 31 December 2022 were not qualified. Their
reports did not contain a statement under Section 498(2) or (3) of the
Companies Act 2006.
Climate change
In preparing the Consolidated Financial Statements, management have considered
the impact of climate change, particularly in the context of the disclosures
included in the Strategic Report this year and the sustainability goals,
including the stated net-zero targets. Climate change is not expected to have
a significant impact on the Group's going concern assessment to 30 June 2025
nor the viability of the Group over the next five years following
consideration of the below points.
- The Group has modelled various scenarios to take account of the risks
and opportunities identified with the impact of climate change to assess the
financial impact on its business plan and viability.
- The Group has a Strategic Cooperation Agreement with Mercedes-Benz AG.
The agreement provides the Company with access to a wide range of world-class
technologies for the next generation of luxury vehicles which are planned to
be launched through to 2027.
- The Group is developing alternatives to the Internal Combustion Engine
('ICE') with a blended drivetrain approach between 2025 and 2030, including
Plug-in Hybrid Electric Vehicle ('PHEV') and Battery Electric Vehicle ('BEV'),
with a clear plan to have a line-up of electric sports cars and SUVs. This is
supported by significant planned capital investment of around £2bn in
advanced technologies over the 5 year period from 2024 to 2028, with
investment shifting from ICE to BEV technology.
- The Group has formed a landmark new supply agreement with world-leading
electric vehicle technologies company, Lucid Group, inc, which will help drive
the Group's high-performance electrification strategy and its long-term
growth. The agreement will see Lucid, a world-leader in the design and
manufacture of advanced electric powertrains and battery systems, supply
industry-leading electric vehicle technologies. Access to Lucid's current and
future powertrain and battery technology will support the creation of a
bespoke, singular BEV platform, suitable for all product types from hypercar
to SUV.
- The Group is leading a six-partner collaborative research and
development project, Project ELEVATION, that was awarded £9.0m of government
funding through the Advanced Propulsion Centre, further supplementing the
research and development of its innovative modular BEV platform.
The Group's first hybrid supercar, Valhalla, is on course to enter production
in 2024, with its first BEV targeted for launch in 2026.
Consistent with the above, management have further considered the impact of
climate change on a number of key estimates within the Financial Statements
and has not found climate change to have a material impact on the conclusions
reached.
Climate change considerations have been factored into the Directors'
impairment assessments of the carrying value of non-current assets (such as
capitalised development cost intangible assets) through usage of a pre-tax
discount rate which reflects the individual nature and specific risks relating
to the business and the market in which the Group operates.
In addition the forecast cash flows used in both the impairment assessments of
the carrying value of non-current assets and the assessment of the
recoverability of deferred tax assets reflect the current energy cost
headwinds and future costs to achieve net-zero manufacturing facilities by
2030 as well as the forecast volumes for both existing and future car lines
given current order books and the assessment of changing customer preferences.
Going concern
The Group meets its day-to-day working capital requirements and medium term
funding requirements through a mixture of $1,143.7m First Lien notes at 10.5%
which mature in November 2025, $121.7m of Second Lien split coupon notes at
15% per annum (8.89 % cash and 6.11% Payment in Kind) which mature in November
2026, a Revolving Credit Facility (£99.6m) which matures August 2025,
facilities to finance inventory, a bilateral RCF facility and a wholesale
vehicle financing facility. As previously announced, the Group expects to
refinance the outstanding debt during the first half of 2024, however, the
going concern assessment is not dependent on this occurring. 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 has complied with its covenant
requirements for the year ended 31 December 2023 and expects to do so for the
Going Concern period.
The Directors have developed trading and cash flow forecasts for the period
from the date of approval of these Financial Statements through 30 June 2025
(the going concern review period). These forecasts show that the Group has
sufficient financial resources to meet its obligations as they fall due,
including repayment of the current RCF were it needing to be repaid on 30 June
2025 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 that the 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 Financial Statements.
The 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 covering although not
exclusively, instances of reduced volume due to delayed product
launches, operating costs higher than the base plan, incremental working
capital requirements such as a 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, we 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 vehicle sales would need to reduce by more
than 15% from forecast levels without any of the above mitigations to result
in having no liquidity. The likelihood of these circumstances occurring is
considered remote both in terms of the magnitude of the reduction and that
over such a long period, management could take substantial mitigating actions,
such as reducing capital spending to preserve liquidity.
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, therefore, the Directors continue to adopt the going concern basis
in preparing the Financial Statements.
2 Accounting policies
Adjusting items
An adjusting item is disclosed separately in the Consolidated Statement of
Comprehensive Income where the quantum, nature or volatility of such items
would otherwise distort the underlying trading performance of the Group,
including where they are not expected to repeat in future periods. The tax
effect is also included.
Details in respect of adjusting items recognised in the current and prior year
are set out in note 5.
Prior year restatement
The Consolidated Statement of Financial Position as at 1 January 2022 and 31
December 2022 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 1 January 2022 and 31 December
2022, £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 as
the impact of the adjustment is not material to that individual year. 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 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 income tax position, there
is no impact on earnings per share.
Where the notes included in these Consolidated Financial Statements provide
additional analysis in respect of amounts impacted by the above restatement,
the comparative values presented have been re-analysed on a consistent basis.
The following tables detail the impact on the Consolidated Statement of
Financial Position as at 31 December 2022 and 2021, respectively.
Liabilities As previously reported 31 December 2022 Adjustment Restated balance
£m 31 December 2022
£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)
Liabilities As previously reported 1 January 2022 Adjustment Restated balance
£m 1 January 2022
£m £m
Non-current liabilities
Trade and other payables 9.8 34.1 43.9
Current liabilities
Trade and other payables 721.0 14.9 735.9
Capital and reserves
Retained Earnings (662.4) (49.0) (711.4)
3 Segmental reporting
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.
Revenue 2023 2022
£m £m
Analysis by category
Sale of vehicles 1,531.9 1,291.5
Sale of parts 80.0 70.8
Servicing of vehicles 9.8 9.3
Brands and motorsport 11.1 9.9
1,632.8 1,381.5
Revenue 2023 2022
£m £m
Analysis by geographical location
United Kingdom 309.9 366.0
The Americas 452.8 401.8
Rest of Europe, Middle East and Africa 547.0 260.2
Asia Pacific 323.1 353.5
1,632.8 1,381.5
4 Operating loss
The Group's operating loss is stated after charging/(crediting):
2023 2022
£m £m
Depreciation of property, plant and equipment 91.2 80.7
Depreciation absorbed into inventory under standard costing (0.9) (2.9)
Loss on sale/scrap of property, plant and equipment 2.6 -
Depreciation of right-of-use lease assets 9.3 11.0
Amortisation of intangible assets 280.4 227.4
Amortisation released from/(absorbed into) inventory under standard costing 3.0 (8.1)
Depreciation, amortisation and impairment charges included in administrative 385.6 308.1
and other operating expenses
(Decrease)/increase in trade receivable loss allowance - administrative and (1.3) 0.6
other operating expenses
Research and development expenditure tax credit (23.8) (18.4)
Net foreign currency differences 0.3 8.7
Cost of inventories recognised as an expense 844.0 798.0
Write-down of inventories to net realisable value 24.2 8.9
Increase in fair value of other derivative contracts (11.2) (2.3)
Lease payments (gross of sub-lease receipts)
Plant, machinery and IT equipment* 0.3 0.7
Sub-lease receipts Land and buildings (0.4) (0.6)
Auditor's remuneration:
Audit of these Financial Statements 0.3 0.3
Audit of Financial Statements of subsidiaries pursuant to legislation 0.5 0.4
Audit-related assurance 0.1 0.1
Services related to corporate finance transactions - 0.2
Research and development expenditure recognised as an expense 30.7 14.1
* Election taken by the Group to not recognise right-of-use lease
assets and equivalent lease liabilities for short-term and low-value leases.
2023 2022
£m £m
Total research and development expenditure 299.2 246.1
Capitalised research and development expenditure (268.5) (232.0)
Research and development expenditure recognised as an expense 30.7 14.1
5 Adjusting items
2023 2022
£m £m
Adjusting operating expenses:
ERP implementation costs(1) (14.5) (6.9)
Defined Benefit pension scheme closure costs(2) (1.0) (13.5)
Director settlement and incentive arrangements(7) - (3.5)
Legal settlement and costs(3) (16.0) -
(31.5) (23.9)
Adjusting finance income:
Foreign exchange gain on financial instrument utilised during refinance - 4.1
transactions(4)
Gain on financial instruments recognised at fair value through Income - 8.4
Statement(5)
Adjusting finance expenses:
Premium paid on the early redemption of Senior Secured Notes(4) (8.0) (14.3)
Write-off of capitalised borrowing fees and discount upon early settlement of (9.5) (16.4)
Senior Secured Notes(4)
Professional fees incurred on refinancing expensed directly to the Income - (1.9)
Statement(4)
Loss on financial instruments recognised at fair value through Income (19.0) -
Statement(5)
(36.5) (20.1)
Total adjusting items before tax (68.0) (44.0)
Tax charge on adjusting items(6) - -
Adjusting items after tax (68.0) (44.0)
Summary of 2023 adjusting items
1. In the year ended 31 December 2023, 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. £14.5m
(2022: £6.9m) of costs have been incurred in the period under the service
contract and expensed to the Consolidated Income Statement during the business
readiness phase of the project. The project continued to undergo a phased
rollout during 2023, which included HR, ordering and dealer management, and
limited aspects of purchasing, following the previous migration of finance in
2022. 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 31 January 2022, the Group closed its Defined Benefit Pension
Scheme to future accrual incurring a past service cost of £2.8m. Under the
terms of the closure agreement, employees were granted cash payments both in
the current year and the following two financial years totalling £8.7m. These
costs have been fully accrued. In addition, the affected employees were each
granted 185 shares incurring a share-based payment charge of £1.0m during
2022. The terms of the agreement provide the employees with a minimum
guaranteed value for these shares subject to their ongoing employment with the
Group. The Group will pay the employees a further cash sum as the share price
at 1 February 2024 did not meet this value. The charge associated with this
portion was £1.0m in the year ended 31 December 2022 and is being accounted
for in accordance with IFRS2 as a cash settled share-based payment scheme. A
cost of £1.0m in the year ended 31 December 2023 relates to the ongoing
minimum guaranteed value which will crystallise in early 2024.
3. During the year ended 31 December 2023, the Group was involved in two
High Court cases against entities ultimately owned by a former significant
shareholder of the Group. The first involved AMMENA, Aston Martin's
distributor in the Middle East, North Africa and Turkey region. 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 is 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 must pay opposition
costs of £1.7m. The cash impact of these costs is a cash outflow in February
2024 as well as working capital movements during the year ended 31 December
2023 for costs already incurred. The second case involves 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. The final judgement has been handed down
(and is in AML's favour on all material issues), but the consequences of that
judgement (including quantification of the final judgment sum, interest, and
costs) has not yet been determined or ordered by the Court. The Group has
incurred costs of £2.7m in the year which in conjunction with the other costs
above are considered non-recurring in nature as these are related to historic
disputes with former shareholders and not related to the ongoing business of
the Group. Whilst disputes and legal proceedings pending are often in the
normal course of the Group's business, in both 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.
4. 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 £10.1m was
recognised which is a non-cash item.
In the year ended 31 December 2022, the Group paid down $40.3m of First Lien
SSNs and $143.8m of Second Lien SSNs. The early settlement of these notes
incurred a redemption premium of £14.3m and transaction fees of £1.9m and
resulted in the acceleration of capitalised borrowing costs of £16.4m. The
cash impact of the fees and premium are incurred within the year ended 31
December 2022. The acceleration of the borrowing costs is a non-cash item.
In order to facilitate the repayment in of the SSNs in 2022, the Group placed
a forward currency contract to purchase US dollars. Due to favourable
movements in the exchange rates, a gain of £4.1m was realised in the
Consolidated Income Statement at the transaction date. The repayment made in
2023 was not hedged.
5. The Group issued Second Lien SSNs during the year ended 31 December 2020
which included detachable warrants classified as a derivative option liability
initially valued at £34.6m. The movement in fair value of the liability in
the year ended 31 December 2023 resulted in a net loss, including warrant
exercises, of £19.0m (2022: gain of £8.4m) being recognised in the
Consolidated Income Statement. There is no cash impact of this adjustment.
6. In 2023, nil tax has been recognised as an adjusting item (2022: nil
tax) which is not in line with the standard rate of income tax for the Group
of 23.5% (2022: 19%). This is on the basis that the adjusting items generate
net deferred tax assets (specifically unused tax losses and interest amounts
disallowed under the corporate interest restriction legislation). These have
not been recognised to the extent that sufficient taxable profits are not
forecast (under the defined planning cycle applied for the recognition of
deferred tax assets) against which the unused tax losses and interest amounts
disallowed under the corporate interest restriction legislation would be
utilised.
Summary of 2022 adjusting items
7. On 14 January 2022, it was announced that Doug Lafferty would be
joining the Group as Chief Financial Officer replacing Ken Gregor who stepped
down from the Board on 1 May 2022. On 4 May, it was announced that Tobias
Moers would be stepping down as Chief Executive Officer and Chief Technical
Officer. Amedeo Felisa was appointed as Chief Executive Officer and Roberto
Fedeli was appointed as Chief Technical Officer on the same day. The total
cost associated with these changes was £3.5m, of which £1.8m represents
joining incentives, £0.7m represents severance, and £1.0m comprises social
security and other costs. Due to the quantum of such costs incurred in the
period, they have been separately presented. The cash outflows associated
with this expense are expected to be incurred within a period of 12 months
from the appointment of each individual.
6 Finance income
2023 2022
£m £m
Bank deposit and other interest income 13.5 3.0
Foreign exchange gain on borrowings not designated as part of a hedging 60.8 -
relationship
Finance income before adjusting items 74.3 3.0
Adjusting finance income items:
Foreign exchange gain on financial instrument utilised during refinance - 4.1
transactions
Gain on financial instruments recognised at fair value through Income - 8.4
Statement
Total adjusting finance income - 12.5
Total finance income 74.3 15.5
7 Finance expense
2023 2022
£m £m
Bank loans, overdrafts and senior secured notes 151.3 166.0
Foreign exchange loss on borrowings not designated as part of a hedging - 156.2
relationship
Interest on lease liabilities 4.1 4.5
Net interest expense on the net Defined Benefit liability 2.7 1.4
Interest on contract liabilities held 7.7 8.0
Effect of discounting on long-term liabilities 0.6 -
Finance expense before adjusting items 166.4 336.1
Adjusting finance expense items:
Loss on financial instruments recognised at fair value through Income 19.0 -
Statement
Premium paid on the early redemption of Senior Secured Notes 8.0 14.3
Write-off of capitalised borrowing fees upon early settlement of Senior 9.5 16.4
Secured Notes
Professional fees incurred on refinancing expensed directly to the Income - 1.9
Statement
Total adjusting finance expense 36.5 32.6
Total finance expense 202.9 368.7
8 Taxation
2023 2022
£m £m
UK corporation tax on result 0.3 0.2
Overseas tax 1.7 7.4
Prior period movement (0.1) -
Total current income tax charge 1.9 7.6
Deferred tax credit
Origination and reversal of temporary differences (15.1) 29.4
Prior period movement 0.2 (4.3)
Total deferred tax (credit)/charge (14.9) 25.1
Total income tax (credit)/charge in the Income Statement (13.0) 32.7
Tax relating to items (charged)/credited to other comprehensive income
Deferred tax
Actuarial movement on Defined Benefit plan - 1.7
Fair value adjustment on cash flow hedges (1.2) (0.8)
(1.2) 0.9
Tax relating to items charged in equity - deferred tax
Effect of equity settled share based payment charge (0.5) -
(a) Reconciliation of the total income tax (credit)/charge
The tax credit (2022: charge) in the Consolidated Statement of Comprehensive
Income for the year is lower (2022: higher) than the standard rate of
corporation tax in the UK of 23.5% (2022: 19%). The differences are reconciled
below:
2023 2022
£m £m
Loss from operations before taxation (239.8) (495.0)
Loss from operations before taxation multiplied by standard rate (56.3) (94.0)
of corporation tax in the UK of 23.5% (2022: 19.0%)
Difference to total income tax (credit)/charge due to effects of:
Expenses not deductible for tax purposes 1.2 2.0
Movement in unprovided deferred tax 43.4 100.3
Derecognition of deferred tax assets - 25.6
Irrecoverable overseas withholding taxes - 0.8
Adjustments in respect of prior periods 0.1 (4.3)
Difference in UK tax rates (0.7) 1.1
Difference in overseas tax rates 0.2 1.2
Other (0.9) -
Total income tax (credit)/charge (13.0) 32.7
(b) Tax paid
Total net tax paid during the year was £5.6m (2022: £6.8m).
(c) Factors affecting future tax charges
The UK's main rate of corporation tax increased from 19% to 25%, effective
from 1 April 2023.
Pillar Two legislation has been enacted or substantively enacted in certain
jurisdictions in which the Group operates. The legislation will 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.
9 Earnings per ordinary share
Basic earnings per ordinary share is calculated by dividing the loss for the
year available for equity holders by the weighted average number of ordinary
shares in issue during the year. 1,017,505 ordinary shares were issued under
the Group's share investment plan. As these shares are held in trust on behalf
of the Group's employees and the Group controls the trust they have been
excluded from the calculation of the weighted average number of shares.
Continuing and total operations 2023 2022
Basic earnings per ordinary share
Loss available for equity holders (£m) (228.1) (528.6)
Basic weighted average number of ordinary shares (million) 748.2 424.7
Basic loss per ordinary share (pence) (30.5p) (124.5p)
Diluted earnings per ordinary share is calculated by adjusting basic earnings
per ordinary share to reflect the notional exercise of the weighted average
number of dilutive ordinary share awards outstanding during the year,
including the future technology shares and warrants detailed above. The
weighted average number of dilutive ordinary share awards outstanding during
the year are excluded when including them would be anti-dilutive to the
earnings per share value.
Continuing and total operations 2023 2022
Diluted earnings per ordinary share
Loss available for equity holders (£m) (228.1) (528.6)
Basic weighted average number of ordinary shares (million) 748.2 424.7
Basic loss per ordinary share (pence) (30.5p) (124.5p)
2023 2022
Number Number
Diluted weighted average number of ordinary shares is calculated as:
Basic weighted average number of ordinary shares (million) 748.2 424.7
Adjustments for calculation of diluted earnings per share:(1)
Long-term incentive plans - -
Issue of unexercised ordinary share warrants - -
Issue of tranche 2 shares - -
Weighted average number of diluted ordinary shares (million) 748.2 424.7
1. The number of ordinary shares issued as part of the long-term
incentive plans 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 to
diluted earnings per share.
As part of the Strategic Cooperation Agreement entered into in December 2020
with MBAG, shares were issued for access to tranche 1 technology.
The Agreement includes an obligation to issue further shares for access to
further technology in a future period. During the year ended 31 December
2023, the agreement was amended and the Group is no longer required to issue
further shares to MBAG.
Warrants to acquire shares in the Company were issued alongside the Second
Lien SSNs in December 2020 which can be exercised from 1 July 2021 through
to 7 December 2027. As a consequence of the rights issue during the period
ended 31 December 2022 the number of ordinary shares issuable via the options
was increased by a multiple of 6 to ensure the warrant holders' interests
were not diluted. As at 31 December 2023, 66,159,325 options, each entitled
to 0.3 ordinary shares, remain unexercised. The future issuance of warrants
may have a dilutive effect in future periods if the Group generates a profit.
Adjusted earnings per share is disclosed in note 14 to show performance
undistorted by adjusting items to assist in providing useful information on
the underlying performance of the Group and enhance the comparability of
information between reporting periods.
10 Net debt
The Group defines net debt as current and non-current borrowings in addition
to inventory repurchase arrangements and lease liabilities, less cash and cash
equivalents including cash held not available for short-term use.
2023 2022
£m £m
Cash and cash equivalents 392.4 583.3
Cash held not available for short-term use - 0.3
Inventory repurchase arrangement (39.7) (38.2)
Lease liabilities - current (8.8) (7.4)
Lease liabilities - non-current (88.5) (92.4)
Loans and other borrowings - current (89.4) (107.1)
Loans and other borrowings - non-current (980.3) (1,104.0)
Net debt (814.3) (765.5)
Movement in net debt
Net (decrease)/increase in cash and cash equivalents (190.9) 164.4
Add back cash flows in respect of other components of net debt:
New borrowings (11.5) -
Proceeds from inventory repurchase arrangement (38.0) (75.7)
Repayment of existing borrowings 129.7 172.7
Repayment of inventory repurchase arrangement 40.0 60.0
Lease liability payments 7.9 10.0
Movement in cash held not available for short-term use (0.3) (1.5)
(Increase)/decrease in net debt arising from cash flows (63.1) 329.9
Non-cash movements:
Foreign exchange gain/(loss) on secured loan 60.8 (156.2)
Interest added to debt (14.2) (15.7)
Borrowing fee amortisation (26.9) (25.4)
Lease liability interest charge (4.1) (4.5)
Lease modifications (0.6) (3.5)
New leases (5.8) (2.2)
Foreign exchange gain and other movements 5.1 3.7
(Increase)/decrease in net debt (48.8) 126.1
Net debt at beginning of the year (765.5) (891.6)
Net debt at the end of the year (814.3) (765.5)
11 Share capital and other reserves
Allotted, called up and fully paid Number of Nominal Share Share Merger Capital redemption reserve
shares
value
capital
premium
reserve
£m
£
£m
£m
£m
Opening balance at 1 January 2022 116,459,513 11.6 1,123.4 143.9 9.3
Private placing(1) 23,291,902 0.1 2.4 75.7 - -
Rights issue(2) 559,005,660 0.1 55.9 498.3 - -
Balance as at 31 December 2022 and 1 January 2023 698,757,075 69.9 1,697.4 143.9 9.3
Private placing(3) 28,300,000 0.1 2.8 91.7 - -
Issuance of shares to SIP(4) 1,017,505 0.1 0.1 - - -
Exercise of warrant options(5) 8,990,975 0.1 0.9 14.1 - -
Placing(6) 58,245,957 0.1 5.9 206.9 - -
Consideration shares(7) 28,352,273 0.1 2.8 84.4 - -
Closing balance at 31 December 2023 823,663,785 82.4 2,094.5 143.9 9.3
1. On 9 September 2022 the Company issued 23,291,902 ordinary shares by way
of a private placing. The shares were issued at 335p raising gross proceeds of
£78.1m, with £2.4m recognised as share capital and the remaining £75.7m
recognised as share premium.
2. On 28 September 2022 the Company issued 559,005,660 ordinary shares by
way of a rights issue. The shares were issued at 103p raising gross proceeds
of £575.8m, with £55.9m recognised as share capital and the remaining
£519.9m recognised as share premium. Share premium is reduced by £21.6m
reflecting transaction fees paid of which £2.9m are accrued as at 31 December
2022. Due to the shares being issued at substantially below market price, a
bonus issue is deemed to have taken place. A total of 211.6m shares issued
were considered bonus shares. The weighted average shares used to calculate
earnings per share (see note 11) has been adjusted accordingly.
3. 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.
4. 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.
5. 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.
6. On 1 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.
7. 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.
12 Related party transactions
Transactions between Group undertakings, which are related parties, have been
eliminated on consolidation and accordingly are not disclosed.
Transactions with Directors and related undertakings
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 Michael Kors (USA), Inc.'s 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.
Transactions during 2022
During the year ended 31 December 2022, a net marketing expense amounting to
£20.2m 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. In addition, the Group
incurred costs of £2.0m associated with engineering design on an upcoming
vehicle programme from Aston Martin Performance Technologies Limited ("AMPT")
of which £2.0m is outstanding to AMPT at 31 December 2022. AMPT is an
associated entity of AMR GP. In addition, AMR GP acquired a vehicle from the
Group at a total cost of £0.7m. Less than £0.1m remains due from AMR GP at
31 December 2022 relating to these transactions. 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 purchased two vehicles from a Group
company for £0.4m. £nil is outstanding at 31 December 2022. During the year
ended 31 December 2022, Classic Automobiles Inc. placed a deposit of £0.5m
with a Group company for the future purchase of a Group vehicle. Classic
Automobiles Inc. is controlled by a member of the Group's KMP.
During the year ended 31 December 2022, a separate member of the Group's KMP
and Non-Executive Director placed a deposit of £1.5m with a Group company for
the future purchase of a vehicle.
During the year ended 31 December 2022, a further separate member of the
Group's KMP and Non-Executive Director transacted with a Group company
to undertake service work on a vehicle for a total cost of less than £0.1m.
£nil was outstanding at 31 December 2022.
During the year ended 31 December 2022, the Group incurred costs of £1.3m 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.
During the year ended 31 December 2022, the Group incurred a rental expense of
£0.7m 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 Michael Kors (USA), Inc.'s KMP.
Terms and conditions of transactions with related parties
Sales and purchases between related parties were made at normal market prices
unless otherwise stated. Outstanding balances with entities other
than subsidiaries are unsecured and 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
inter-company accounts. The Group has not provided or benefited from any
guarantees for any related party receivables or payables.
13 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 matter.
14 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 profit/(loss) before tax and adjusting items
as shown in the Consolidated Income Statement.
ii) Adjusted EBIT is operating profit/(loss) before adjusting items.
iii) Adjusted EBITDA removes depreciation, profit/(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 12 months (LTM) Adjusted EBITDA.
ix) Free cash flow is represented by cash inflow/(outflow) from
operating activities less the cash used in investing activities (excluding
interest received) plus interest paid in the year less interest received.
Consolidated Income Statement
2023 2022
£m £m
Loss before tax (239.8) (495.0)
Adjusting operating expenses (note 5) 31.5 23.9
Adjusting finance income (notes 5, 6) - (12.5)
Adjusting finance expense (notes 5, 7) 36.5 32.6
Adjusted loss before tax (EBT) (171.8) (451.0)
Adjusted finance income (note 6) (74.3) (3.0)
Adjusted finance expense (note 7) 166.4 336.1
Adjusted operating loss (EBIT) (79.7) (117.9)
Adjusted operating margin (4.9%) (8.5%)
Reported depreciation 102.2 88.8
Reported amortisation 283.4 219.3
Adjusted EBITDA 305.9 190.2
Adjusted EBITDA margin 18.7% 13.8%
Earnings per share
2023 2022
£m £m
Adjusted earnings per ordinary share
Loss available for equity holders (£m) (228.1) (528.6)
Adjusting items (note 5)
Adjusting items before tax (£m) 68.0 44.0
Tax on adjusting items (£m) - -
Adjusted loss (£m) (160.1) (484.6)
Basic weighted average number of ordinary shares (million) 748.2 424.7
Adjusted loss per ordinary share (pence) (21.4p) (114.1p)
Adjusted diluted earnings per ordinary share
Adjusted loss (£m) (160.1) (484.6)
Diluted weighted average number of ordinary shares (million) 748.2 424.7
Adjusted diluted loss per ordinary share (pence) (21.4p) (114.1p)
Net debt
2023 2022
£m £m
Opening cash and cash equivalents 583.3 418.9
Cash inflow from operating activities 145.9 127.1
Cash outflow from investing activities (383.4) (284.7)
Cash inflow from financing activities 59.7 315.0
Effect of exchange rates on cash and cash equivalents (13.1) 7.0
Cash and cash equivalents at 31 December 392.4 583.3
Cash held not available for short-term use - 0.3
Borrowings (1,069.7) (1,211.1)
Lease liabilities (97.3) (99.8)
Inventory repurchase arrangement (39.7) (38.2)
Net debt (814.3) (765.5)
Adjusted EBITDA 305.9 190.2
Adjusted leverage 2.7x 4.0x
Free cash flow
2023 2022
£m £m
Net cash inflow from operating activities 145.9 127.1
Cash used in investing activities (excluding interest received) (396.9) (286.9)
Interest paid less interest received (109.0) (139.0)
Free cash flow (360.0) (298.8)
3 (#_ftnref1) For definition of alternative performance measures please see
Appendix
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR DZGZZLNZGDZMRecent news on Aston Martin Lagonda Global Holdings
See all newsREG - Aston Martin Lagonda - Annual Report 2023 and Notice of AGM
AnnouncementREG - Aston Martin Lagonda - Director Declaration
AnnouncementREG - Aston Martin Lagonda - Appointment of New Chief Executive Officer
AnnouncementREG - Aston Martin Lagonda - Successful pricing of £1.15 billion refinancing
AnnouncementREG - Aston Martin Lagonda - Holding(s) in Company
Announcement