TIDMAML
RNS Number : 6979X
Aston Martin Lagonda Global Hld PLC
06 May 2021
6 May 2021
Aston Martin Lagonda Global Holdings plc
First quarter results for the three months to 31 March 2021
- Q1 trading in line with expectations
- Successfully completed supply to demand rebalance for
GT/Sport
- Excellent progress with Project Horizon transformation
plan
GBPm Q1 2021 Q1 2020(3) % change
-------- -----------
Total wholesale volumes(1) 1,353 578 134%
Revenue 224.4 88.8 153%
Adjusted EBITDA(2) 20.7 (38.1) n.m.
Adjusted operating loss(2) (15.3) (67.0) n.m.
Operating loss (15.3) (67.9) n.m.
Loss before tax (42.2) (110.1) n.m.
Net debt(2) (722.9) (956.1)
---------------------------- -------- ----------- ---------
(1) Number of vehicles including specials; (2) For definition of
alternative performance measures please see Appendix; (3) Relevant
2020 comparatives have been restated throughout this document for
the correction of an error as reported in the 2020 Interim
Financial Statements (29 July 2020)
Financial highlights
-- Wholesales([1]) more than doubled as delivered to meet
demand, DBX represented 55% of units
-- Revenue increased 153% to GBP224m principally due to
wholesale growth and stronger pricing dynamics as dealer GT/Sport
stock reduced as planned
-- Adjusted EBITDA of GBP21m with 9% margin reflecting improved
trading and some initial cost efficiency benefits; Operating loss
includes D&A increase year-on-year, as guided, reflecting
expanded core range
-- Positive free cashflow([2]) of GBP24m includes a working
capital inflow of GBP49m, capital expenditure of GBP48m as invest
in future product pipeline and reflects timing of interest
payments
-- Improved cash position of GBP575m (December 2020: GBP489m)
included GBP77m gross proceeds from new notes issued in March; Net
debt of GBP723m (December 2020: GBP727m)
Project Horizon transformation well underway
-- Successfully achieved rebalance of GT/Sport supply to demand,
earlier than originally planned
-- Vantage F1(R) edition well received by customers, first of
more than 10 new vehicles to be launched by 2023; DBX derivative on
track for Q3
-- Initial manufacturing efficiencies actioned improving
performance at both Gaydon and St Athan, benefits to build through
2021
-- Aston Martin Valkyrie and V12 Speedster assembly relocated to
Gaydon, consolidating all sports manufacturing in one location;
Aston Martin Valkyrie on track for first deliveries in H2
-- Strengthened European dealer network including key new appointment in Germany
-- Leadership team enhanced further with experienced hires in
both commercial and technical functions
-- Aston Martin Cognizant Formula One(TM) Team driving brand
awareness; digital reach of c.135m in first week for AMR21 launch
and increased website traffic
Lawrence Stroll, Executive Chairman commented:
"I am delighted with the great progress we are making as
demonstrated by the results we are reporting today which mark the
first steps towards achieving our medium-term targets. Our new team
is assembled and focused on executing our exciting plans. My
co-investors and I are very confident in the future success and
potential for Aston Martin as we transform the Company to be one of
the greatest luxury car brands in the world."
Tobias Moers, Chief Executive Officer commented:
"I am pleased with our performance in the first three months of
the year, delivering results in-line with our expectations of good
growth and progress on the path to improved profitability and cash
generation. Dealer inventory for GT/Sport is now at our ideal
levels, earlier than originally planned and supporting stronger
pricing dynamics. We are encouraged by the growth in orders for
both GT/Sport and DBX, providing good visibility.
Project Horizon, our plans driving growth, agility and
efficiency throughout every aspect of the Company, continues apace.
In addition, our technical teams are focused on creating the future
for our compelling products and the path to our first battery
electric vehicle mid-decade as we develop our innovative product
pipeline for front and mid-engine programmes and SUVs with a clear
focus on electrification.
Today's results signal our progress to date, underpinning our
confidence in delivering our transformational growth plans to
create a world-class, self-sustaining luxury automaker."
Outlook
The significant progress we are making to transform Aston Martin
underpins our confidence in delivering our medium-term plans and
targets. By 2024/25:
- c.10,000 wholesales, c.GBP2bn revenue and c.GBP500m adjusted
EBITDA
- Annual capex and R&D GBP250m-GBP300m
This year, the first full year of the plan, is expected to
deliver the first steps towards improved profitability.
The uncertainty surrounding the duration and impact of the
pandemic on the global economy continues, with the pace of
emergence from lockdown and recovery in consumer demand varying
significantly across geographies. However, with Q1 trading in-line
with our expectations and good forward visibility for both GT/Sport
and DBX, our expectations and guidance for 2021, remain
unchanged.
-- 2021 guidance unchanged([3])
- Wholesales c. 6,000
- Adjusted EBITDA margin mid-teens %
-- Adjusted EBITDA is expected to be heavily weighted to the
second half and particularly Q4 given the timing of Specials
- CAPEX and R&D c. GBP250m-GBP275m
- Depreciation and amortisation c. GBP240m-GBP250m
- Interest costs(3,[4]) c. GBP145m (P&L) / c. GBP120m (cash)
The financial information contained herein is unaudited.
All metrics and commentary in this announcement exclude
adjusting items unless stated otherwise and certain financial data
within this announcement have been rounded.
Enquiries
Investors and Analysts
Charlotte Cowley Director of Investor Relations +44 (0)7771
976764
charlotte.cowley@astonmartin.com
Brandon Henderson Senior Manager, Investor Relations +44 (0)7585
326704
brandon.henderson@astonmartin.com
Media
Kevin Watters Director of Communications +44 (0)7764 386683
kevin.watters@astonmartin.com
Grace Barnie Corporate Communications Manager +44 (0)7880
903490
grace.barnie@astonmartin.com
Tulchan Communications
Harry Cameron and Simon Pilkington + 44 (0)20 7353 4200
-- There will be a call for investors and analysts today at 08:30am
-- The conference call can be accessed live via the corporate website https://www.astonmartinlagonda.com/investors/calendar
-- A replay facility will be available on the website later in the day
-- Interim Results for the six months to 30 June 2021 will be announced on 28 July 2021
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.
Q1 FINANCIAL REVIEW
Income statement
First quarter revenues more than doubled, increasing 153% to
GBP224m (Q1 2020: GBP89m), driven mainly by increased wholesales
along with improved price dynamics.
Total wholesales also more than doubled, increasing 134% to
1,353 units, and included one Special compared with no Specials in
Q1 2020, DBX represented 55% of the mix. Geographically, China and
the Americas were the strongest markets. The UK lockdown
significantly disrupted dealer operations, but the market still
delivered 19% growth year-on-year.
Wholesale average selling price (ASP) improved significantly
with positive geographic mix, given China strength, and a lower
impact from customer and retail financing support, as the GT/Sports
de-stocking process completed. Total ASP was GBP151k and core was
GBP149k (Q1 2020 total/core: GBP113k).
Adjusted EBITDA was GBP21m with a margin of 9% (Q1 2020:
GBP(38)m). The operating loss of GBP15m (Q1 2020: GBP68m) included
higher depreciation and amortisation charges (up GBP7m
year-on-year) principally due to start of DBX production in H2
2020; a benefit from reduced customer and retail financing support
offsetting a mix headwind; some initial benefits of cost efficiency
actions with lower headcount year-on-year and an FX benefit of
GBP6m.
Net financing costs of GBP27m were down from GBP42m in the prior
year. The charge reflected interest on the GBP1.1bn equivalent
notes issued in October 2020 as part of the re-financing and the
new GBP70m equivalent notes issued in March 2021. The net charge
also included an FX benefit of GBP5m (Q1 2020 included a GBP17m FX
headwind) given the US dollar denomination of the notes and a GBP5m
adjusting finance credit due to fair value movements of outstanding
warrants. The loss before tax was GBP42m (Q1 2020: GBP110m).
The effective tax rate for the quarter was 1%, lower than the
prior year principally due to a corporate interest rate restriction
(relating to the tax treatment of interest costs) (Q1 2020:
15%).
Cash flow and net debt
Net cash inflow from operating activities was GBP72m (Q1 2020:
GBP4m outflow), driven primarily by a working capital inflow of
GBP49m. The largest driver was a GBP31m receivables inflow as the
build to order strategy normalised delivery cadence through the
quarter and an GBP11m increase in the deposit balance.
Capital expenditure was GBP48m with investment expected to
increase through the year focused on DBX derivatives and
development of the future product pipeline including full refreshes
of front-engine products and the mid-engine programmes.
Positive free cashflow of GBP24m; (Q1 2020: GBP(93)m), reflected
improved trading performance, working capital inflow and planned
capital expenditure phasing. Cash at 31 March 2021 was GBP86m
higher at GBP575m (31 December 2020: GBP489m) including GBP77m
gross proceeds from the new $98.5m note issuance completed in
March. Interest on all outstanding notes is paid in Q2 and Q4.
Net debt of GBP723m was down from GBP727m at 31 December
2020.
APPICES
Wholesale number of vehicles
Q1 2021 Q1 2020 Change
-------- --------
Total 1,353 578 134%
Core (excluding Specials) 1,352 578 134%
By region:
UK 272 229 19%
Americas 431 107 303%
EMEA ex. UK 284 148 92%
APAC 366 94 289%
By model:
Sport 312 188 66%
GT 289 382 (24%)
SUV 746 - n.m.
Other 5 8 (38%)
Specials 1 - 100%
--------------------------- -------- -------- -------
Note: Sport includes Vantage, GT includes DB11 and DBS
Superleggera, SUV includes DBX and Other includes prior generation
models
Summary Income Statement
GBPm Q1 2021 Q1 2020 (4)
--------
Revenue 224.4 88.8
Cost of sales (161.1) (74.5)
Gross profit 63.3 14.3
Gross margin % 28.2% 16.1%
Operating expenses(1) (78.6) (81.3)
of which depreciation & amortisation 36.0 28.9
Adjusted operating (loss) (2) (15.3) (67.0)
Adjusting operating items - (0.9)
Operating (loss) (15.3) (67.9)
Net financing expense (26.9) (42.2)
of which adjusting financing income 5.4 -
Loss before tax (42.2) (110.1)
Taxation 0.4 16.3
Loss for the period (41.8) (93.8)
Adjusted EBITDA (1,2) 20.7 (38.1)
Adjusted EBITDA margin 9.2% n.m.
Adjusted (loss) before tax (1) (47.6) (109.2)
EPS (pence) (3) (54.8) (215.3)
Adjusted EPS (pence) (2,3) (60.5) (213.3)
------------------------------------------------ -------- ------------
1 Excludes adjusting items; 2 Alternative Performance Measures
are defined in the Appendix; 3 EPS has been restated in the
comparative period to reflect the 20:1 share consolidation in
December 2020; 4 Relevant 2020 comparatives have been restated
throughout this document for the correction of an error as reported
in the 2020 Interim Financial Statements (29 July 2020)
Summary Cash Flow
GBPm Q1 2021 Q1 2020
--------
Cash generated from/(used in) operating
activities 72.2 (4.1)
Capital expenditure (47.6) (85.1)
Net cash interest paid (0.4) (3.3)
--------
Free cash inflow/(outflow) 24.2 (92.5)
Cash inflow from financing activities
(excl. interest) 64.4 160.6
Increase in net cash 88.6 68.1
--------
Effect of exchange rates on cash
and cash equivalents (2.6) (4.3)
----------------------------------------- -------- --------
Cash balance 575.4 171.7
----------------------------------------- -------- --------
Net Debt Overview
GBPm 31-Mar-21 31-Dec-20 31-Mar-20
---------- ----------
Loan notes (1,040.5) (965.0) (871.2)
Inventory financing (39.0) (38.2) (39.7)
Bank loans and overdrafts (118.6) (119.8) (116.5)
Lease liabilities (IFRS 16) (101.7) (103.0) (109.4)
Gross debt (1,299.8) (1,226.0) (1,136.8)
---------- ----------
Cash balance 575.4 489.4 171.7
Cash not available for short term
use 1.5 9.9 9.0
----------------------------------- ---------- ---------- ----------
Net debt (722.9) (726.7) (956.1)
----------------------------------- ---------- ---------- ----------
Summary Balance Sheet
GBPm 31-Mar-21 31-Dec-20 31-Mar-20
(1)
---------- ----------
Non-current assets 1,919.9 1,905.3 1,782.1
Current assets 947.5 889.5 602.8
Total assets 2,867.4 2,794.8 2,384.9
Current liabilities 855.7 808.3 953.2
Non-current liabilities 1,248.2 1,182.4 1,052.5
Total liabilities 2,103.9 1,990.7 2,005.7
Total equity 763.5 804.1 379.2
---------- ----------
1 Relevant 2020 comparatives have been restated throughout this
document for the correction of an error as reported in the 2020
Interim Financial Statements (29 July 2020)
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.
-- Adjusted operating loss 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 operating (loss)/profit 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,
cash held not available for short-term
-- 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.
[1] Company sales to dealers (some Specials are direct to
customer)
[2] Operating cashflow less capital investment and net cash
interest; note cash interest payments are in Q2 and Q4
[3] Updated to reflect additional $98.5m bond issue in February
2021 and current exchange rates (originally c. GBP155m (P&L)/
c.GBP120m (cash)). Note: interest payments are made in Q2 and
Q4
[4] Assuming current exchange rates prevail for FY 2021
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