Aston Martin raises £211 million from investors after profit warning
- Lawrence Stroll’s Yew Tree Consortium subscribed to around £50.5m worth of shares
- Aston Martin said it would end 2024 with expected liquidity of around £500m
Aston Martin Lagonda has raised £211 million in new funding to boost liquidity and fund future growth after the company issued a profit warning on Tuesday.
The struggling luxury car maker revealed it had issued £100m of new debt and secured £111m from investors who bought its shares at 100p each, a 7.3 per cent discount to yesterday’s closing price.
Lawrence Stroll’s Yew Tree Consortium, which rescued the company in early 2020, subscribed for around £50.5m of ordinary shares.
Following the fundraising, the company said it would end 2024 with an expected liquidity position of around £500m.
Aston Martin announced a planned equity and debt placement on Tuesday, while issuing its second profit warning in two months.
Due to what it called a “minor delay” in the delivery of some of its ultra-exclusive Valiant vehicles, the company now forecasts that its adjusted pre-nasties revenue will be £270m to £280m this year.
Support: Aston Martin Lagonda successfully raised £211 million in new funding to strengthen liquidity and fund future growth
The Warwickshire-based group said it would deliver around half of the 38 Valiant models by the end of 2024, with the rest coming early next year.
In September, Aston Martin cut profit expectations due to supply chain challenges and weak demand from China, the world’s largest car market.
The report also states that wholesale volumes will decline rather than grow, while free cash flow is expected to ‘remain negative’.
To turn the tide, the group has launched expensive new models such as the DB12 and Vanquish, and attracted significant investment from Chinese car giant Geely and the Saudi Public Investment Fund.
However, the company has continued to make huge annual losses, including a pre-tax loss of £239.8m in 2023 and a £495m loss the year before, despite its vehicles selling for record average prices.
In September, former Bentley Motors boss Adrian Hallmark became the company’s fourth CEO in four years.
Commenting on the financing package, Hallmark said: “We thank our investors, including our strategic investors who continue to show strong support for the company, for their commitment and confidence in Aston Martin.
“We are now well positioned for growth, supported by the strength of our brand and the world-class product portfolio we have brought to market.”
It plans to invest the money in repaying debt and capital investment linked to its five-year £2 billion ‘transition to electrification’ plan.
The automaker expects to launch its first battery-electric car in 2026, after previously expecting it to go on sale next year.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: ‘Aston Martin may be known for its association with James Bond, but there isn’t a secret agent in sight to dig it out of its latest trouble.’
Aston Martin Lagonda shares were 4.8 percent lower at 102.7 pence on Wednesday morning, more than 90 percent lower than the IPO price of £19.
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