TIDMAML
RNS Number : 1784H
Aston Martin Lagonda Glob.Hldgs PLC
26 July 2023
26 July 2023
Aston Martin Lagonda Global Holdings plc
Interim results for the six months to 30 June 2023
-- Q2 performance ahead of expectations; FY 2023 guidance maintained
-- H1 revenue growth of 25%, driven by strong DBX volume & ASP growth
-- H1 Total ASP increased by 14% to GBP212k; Core ASP increased by 12% to GBP184k
-- New DB12 Coupe sold out for 2023 following launch at the end of May
-- GT/Sports sold out for 2023 ahead of new launches; DBX order book into Q4
-- On track to substantially achieve 2024/25 financial targets in 2024
GBPm H1 2023 H1 2022 % change Q2 2023 Q2 2022 % change
-------- ---------- -------- ----------
Total wholesale
volumes(1) 2,954 2,676 10% 1,685 1,508 12%
Revenue 677.4 541.7 25% 381.5 309.0 23%
Gross Profit 236.3 188.1 26% 134.4 104.1 29%
Adjusted EBITDA(2) 80.6 58.6 38% 50.4 34.2 47%
Adjusted EBIT(2) (86.7) (72.7) (19%) (38.9) (38.4) (1%)
Operating loss (93.2) (89.9) (4%) (42.3) (42.2) (0%)
Loss before tax (142.2) (285.4) 50% (68.0) (173.8) 61%
Net debt(2) (846.2) (1,266.4) 33% (846.2) (1,266.4) 33%
-------------------- -------- ---------- --------- -------- ---------- ---------
(1) Number of vehicles including Specials; (2) For definition of
alternative performance measures please see Appendix
H1 2023 Financial highlights
-- Retails [3] outpaced wholesales ([4]) as strong demand
continues across the portfolio; current range of GT/Sports cars
sold out for 2023 ahead of upcoming launches and DBX order book
into Q4 2023, with the DBX707 continuing to represent more than 70%
of total DBX orders and establishing itself as the benchmark in the
ultra-luxury SUV segment
-- Wholesale volumes increased by 10% year-on-year to 2,954 (H1
2022: 2,676) driven by 43% year-on-year DBX volume growth,
underpinned by the DBX707. As expected, GT/Sports volumes were
lower due to the ongoing transition of sports car sales ahead of
new launches, starting with the world's first Super Tourer,
DB12
-- Revenue increased by 25% year-on-year to GBP677m primarily driven by:
- higher volumes, strong pricing dynamics in the core portfolio
and favourable mix dynamics from the DBX707 and V12 Vantage
Roadster
-- Core ASP of GBP184k in H1 2023, up 12% vs GBP164k in H1
2022
-- Core ASP of GBP187k in Q2 2023, up 7% vs GBP174k in Q2
2022
- higher year-on-year Aston Martin Valkyrie programme deliveries
(38 vehicles compared to 27 in H1 2022)
-- Total ASP of GBP212k in H1 2023, up 14% vs GBP186k in H1
2022
-- Total ASP of GBP212k in Q2 2023, up 12% vs GBP190k in Q2
2022
-- Gross profit increased by 26% year-on-year to GBP236m (H1
2022: GBP188m) with a gross margin of 35% (H1 2022: 35%). The
increase in gross profit was primarily driven by favourable mix and
pricing dynamics as well as higher volumes, partially offset by
higher manufacturing, logistics and other costs
-- Adjusted EBITDA [5] increased 38% year-on-year to GBP81m
primarily driven by higher revenue and gross profit, partially
offset by higher operating expenses including reinvestments into
brand and marketing activities, as well as inflationary impacts on
general costs. This translated to an adjusted EBITDA margin of 12%,
a year-on-year expansion of approximately 110 basis points
-- Operating loss of GBP93m (H1 2022: GBP90m loss) included a
GBP36m year-on-year increase in depreciation and amortisation
-- Loss before tax of GBP142m (H1 2022: GBP285m loss) included
lower year-on-year net financing charges due to a positive non-cash
FX revaluation impact of US dollar-denominated debt
-- H1 2023 free cash outflow [6] of GBP218m (H1 2022: GBP234m outflow) included:
- Higher year-on-year capital expenditure of GBP181m (H1 2022:
GBP138m), primarily related to new model development, including the
next-generation of sports cars as well as development of the
Company's electrification programme
- Net cash interest payments of GBP56m (H1 2022: GBP63m)
- Working capital outflow of GBP37m (H1 2022: GBP67m outflow)
primarily driven by higher inventories and the net outflow of
customer deposits, partially offset by a reduction in
receivables
-- Cash balance of GBP400m (December 2022: GBP583m) included
GBP95m of proceeds from the subscription shares issued to Geely
International (Hong Kong) Limited, with an additional c. GBP60m of
revolving credit facility available, providing overall liquidity of
c. GBP460m
-- Net debt of GBP846m (December 2022: GBP766m) including a
positive GBP62m non-cash FX revaluation of US dollar-denominated
debt as the GBP strengthened against the US dollar
H1 2023 Operational Highlights: Accelerating.Forward.
-- On 15 January 2023 the Company commenced a year-long global
celebration of Aston Martin's 110(th) anniversary, culminating in
the launch of Valour, a spectacular, ultra-exclusive V12-engined,
manual transmission special edition, limited to 110 units, sold out
with a growing waiting list
- The anniversary has also taken centre stage at this year's
British Grand Prix at Silverstone with a celebration lap featuring
110 Aston Martins and at the Goodwood Festival of Speed, including
a historic first-ever appearance of all three Aston Martin Valkyrie
models together
- The 110(th) anniversary has also been celebrated through an
official royal visit to Gaydon and Parliamentary Reception, hosted
by the Commons Speaker in the State Rooms of Speaker's House.
Further major events are taking place across Aston Martin's key
regions, as part of a global marketing campaign entitled Intensity:
110 Years in the Making
-- In January 2023, the Company announced plans to increase
employment at its Gaydon headquarters with the creation of more
than 100 jobs in its manufacturing facility to support the launch
of its next generation of sports cars
-- The DBS 770 Ultimate, the most powerful production Aston
Martin ever, was unveiled in January 2023, with all 499 examples
sold out . Deliveries are scheduled to begin in Q3 2023
-- In April 2023, the Company announced further progress in its
Racing.Green. sustainability strategy, using CO(2) 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 updated targets now
including:
- Carbon Neutral manufacturing facilities, with 100% use of
renewable electricity
- A new goal to achieve a 2.5% year-on-year reduction in CO(2)
emissions from its manufacturing facilities [7]
- A new goal to reduce CO(2) emissions intensity and energy
consumption per car by 2.5% year on year [8]
- A new target to improve biodiversity at its manufacturing
facilities
-- During the first half of 2023, the Company continued to
invest in its world-class team including the appointment of
- Chief Industrial Officer, Vincenzo Regazzoni
- Chief Procurement Officer, Giorgio Lasagni
- BEV Chief Engineer, Paul Thomas
-- The Aston Martin DB12, the world's first Super Tourer, was
launched on 24 May 2023 to significant global attention during the
Cannes International Film Festival, heralding a new era as the
first of the Company's next generation sports cars. Customer
deliveries are commencing in Q3, and are sold out for the rest of
the year
-- The sale of the very first Aston Martin DB12 raised $1.6
million for charity, taking centre stage of the star-studded
auction at the amfAR Gala Cannes
-- The Company celebrated the success of the Aston Martin Aramco
Cognizant Formula One(R) Team with the release of an exclusive
AMR23 Edition of the world's most powerful ultra-luxury SUV: the
DBX707. Named after the brand's Formula 1(R) challenger, the AMR23
Edition creates a DBX707 that shares a racing identity with both
the AMR23 F1(R) car and the Official Medical Car of Formula
1(R)
-- The excellent start to the Formula 1(R) season by the Aston
Martin Aramco Cognizant Formula One(R) Team has driven significant
brand visibility and heightened product consideration, with a 29%
increase in website traffic versus non-race weekends, 20% uplift in
configurator traffic on 2022 and 345% uplift in brand visibility in
the first five races of the season, compared with 2022
-- The world-conquering Aston Martin Vantage claimed another
podium finish in the 24 Hours of Le Mans, with partner team ORT by
TF Sport claiming second in the centenary running of the world's
most famous motor race, in the LMGTE Am class
-- In June 2023, the Company proudly opened the doors to Q New
York, its first ultra-luxury flagship on 450 Park Avenue, in New
York City. 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
-- On 26 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, which will help propel Aston Martin's
high-performance electrification strategy, with the first BEV
targeted for launch in 2025
- The proposed agreement would see Lucid, a world-leader in the
design and manufacture of advanced electric powertrains and battery
systems, supply Aston Martin with industry-leading electric vehicle
technologies. Access to Lucid's current and future powertrain and
battery technology will be at the centre of Aston Martin's all-new
in-house Battery Electric Vehicle (BEV) platform
Lawrence Stroll, Executive Chairman commented:
"Although we may only be halfway through the year, 2023 has
already proven to be a remarkable year in which Aston Martin has
shone brighter than ever. In May we launched DB12, marking the
start of our new generation of front engine sports cars that will
further reposition Aston Martin as an ultra-luxury,
high-performance brand, with timeless design combining with the
latest technology and the most thrilling driving experience .
"Billed as the world's first Super Tourer, DB12 is a unique
model that elevates itself beyond the GT segment, creating a new
category of one. Our excitement for this model has been shared by
customers, dealers and leading journalists, and with incredible
early demand, rave reviews from the first media drives, we are sold
out for the rest of year with orders already building into
2024.
"We are also continuing to invest in our brand and go-to-market
strategy, as well as building on the transformational partnership
with Aston Martin Aramco Cognizant Formula One(R) Team. During the
second quarter we opened "Q New York", our first ultra-luxury
flagship in the heart of New York City, which will provide an
unrivalled customer experience, as well as the most advanced and
sophisticated luxury specification experience available anywhere in
the world.
"At the end of June, we also provided a significant update on
our electrification strategy and plans to create a singular, Aston
Martin BEV platform, with w orld-class suppliers complementing our
extraordinary in-house engineering and design teams. Our
electrification journey will start with Valhalla, our first PHEV
supercar, and we plan to expand our PHEV range into our core
vehicles which will bridge the customer journey from ICE to full
BEV.
"In addition, we are now driving new levels of operational
excellence to support our growth and deliver on our targets which
focus on increasing value for each car we sell, aligned with the
characteristics of a true ultra-luxury company."
Amedeo Felisa, CEO, commented:
"Whilst celebrating our 110(th) anniversary, the first half of
2023 has seen us continue to deliver on our targets, while reaching
landmark agreements with world-class partners to support our
longer-term growth and electrified future.
"We delivered strong ASP and revenue growth with healthy EBITDA
margin expansion in H1, supported by the DBX707 and V12 Vantage
Roadster.
"Following its successful launch and strong early appeal, DB12
deliveries are commencing this quarter, providing excited customers
with their first opportunity to experience our new line-up of
thrilling sports cars. Importantly, all of these new models
continue to target a minimum 40% gross margin, aligned with our
financial goals. The expansion and transformation of our portfolio
across both core and specials will continue throughout the second
half of the year, including the arrival of the recently unveiled
ultra-exclusive special, Valour. We have seen unprecedented demand,
and within two weeks all 110 units have been sold, with a growing
waiting list.
"At our recent Capital Markets Day, we confirmed that we are on
track to substantially achieve our 2024/25 financial targets in
2024 and, with continued strong momentum, are likely to exceed them
in 2025."
Outlook
We remain well on track to achieve our medium-term financial
targets of c.GBP2bn revenue and c.GBP500m adjusted EBITDA by
2024/25. The Company expects to substantially achieve these
financial targets in 2024 and, with continued strong momentum, is
likely to exceed them in 2025.
Consistent with our target to become free cash flow positive
from 2024, the Company also expects to further deleverage its
balance sheet, targeting a net leverage ratio of c.1.5x in
2024/25.
At our recent Capital Markets Day, we also provided new mid-term
financial targets for 2027/28, consisting of:
-- Revenue of c. GBP2.5 billion
-- Gross margin in the mid 40s%
-- Adjusted EBITDA of c. GBP800 million
-- Adjusted EBITDA margin of c. 30%
-- Free cash flow to be sustainably positive
-- Net leverage ratio of c. 1.0x
Aligned with this framework, we expect to invest c. GBP2 billion
over the next five years (2023-2027) as we invest in our long-term
growth and the transition to electrification. This is comprised of
c. GBP1.8 billion of capital expenditure and now includes c. GBP200
million in new technology access fees to our strategic suppliers
and partners over the next five years, including the payments
related to the proposed strategic supply agreement with Lucid
Group, Inc. ("Lucid").
For FY2023 our expectations are unchanged since our FY 2022
results announcement on 1 March;
-- Within the second half of 2023, we expect to achieve a
similar level of adjusted EBITDA in Q3 2023 as Q2 2023, with a
significant increase in adjusted EBITDA in Q4 2023, primarily due
to the timing and related contribution of new product launches
-- We expect to deliver significant growth in profitability
compared to 2022, primarily driven by an increase in volumes and
higher gross margin in both Core and Special vehicles. We expect
significant year-on-year growth and target positive free cash flow
in the second half of the year, excluding the initial $33m (GBP26m)
cash payment to Lucid Group, Inc. ("Lucid") in relation to the
strategic supply agreement announced on 26 June 2023, which is
expected to be paid in the second half of 2023
-- The second half of 2023, and especially Q4 2023, is expected
to see the delivery of a number of new products across the Core and
Specials ranges, all with improved profitability. In addition to
the ramp up of the already sold-out DBS 770 Ultimate, we expect
deliveries of the first of our next generation of sports cars - the
DB12 Super Tourer - to commence in Q3
-- Within Specials, we plan to commence deliveries of the
sold-out Aston Martin Valkyrie Spider and the ultra-luxury DBR22 in
the second half of the year. Finally, and in conjunction with our
historic 110(th) anniversary, we plan to commence deliveries of the
ultra-exclusive Valour in Q4
-- We expect to increase investment in brand and new product
launch activities during the year. This will also allow us to
continue to elevate our ultra-luxury performance brand positioning
and to support the acceleration of our longer-term growth
-- Although the operating environment remains volatile,
including ongoing inflationary pressures and pockets of supply
chain disruptions, our teams continue to work in partnership with
our suppliers to mitigate and minimise any impact on our
performance in 2023
2023 guidance (unchanged) :
-- Wholesales : year-on-year growth to c. 7,000 units
-- Adjusted EBITDA margin : year-on-year expansion, up to c. 20% adjusted EBITDA margin
-- Capex and R&D : c. GBP370m
-- Depreciation and amortisation : c. GBP350m-GBP370m
-- Interest costs : c. GBP120m (cash), assuming current exchange rates prevail for 2023
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
Sherief Bakr Director of Investor Relations
+44 (0) 7789 177547
sherief.bakr@astonmartin.com
Holly Grainger Deputy Head of Investor Relations
+44 (0)7442 989551
holly.grainger@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
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
-- Presentations from Amedeo Felisa, CEO and Doug Lafferty, CFO
are available on the corporate website from 07.00am BST and there
will be a call for investors and analysts today at 08:30am BST
-- 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 nine months to 30 September 2023 will
be announced on 1 November 2023
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
Sales and revenue analysis
Number of vehicles H1 2023 H1 2022 Change Q2 2023 Q2 2022 Change
-------- -------- -------- --------
Total wholesale 2,954 2,676 10% 1,685 1,508 12%
Core (excluding Specials) 2,916 2,644 10% 1,665 1,495 11%
By region:
UK 445 488 (9%) 225 224 0%
Americas 1,062 720 48% 595 359 66%
EMEA ex. UK 834 614 36% 491 343 43%
APAC 613 854 (28%) 374 582 (36%)
By model:
GT/Sport 1,369 1,561 (12%) 787 833 (6%)
SUV 1,547 1,083 43% 878 662 33%
Specials 38 32 19% 20 13 54%
--------------------------- -------- -------- ------- -------- -------- -------
Note: GT/Sport includes Vantage, DB11 and DBS
Total wholesales of 2,954 increased by 10% year-on-year (H1
2022: 2,676) driven by significantly higher DBX volumes. As
expected, GT/Sports volumes were lower than the comparative period
due to the ongoing transition of sports car sales ahead of new
launches later in the year. Total wholesales included 38 Specials
(H1 2022: 32), all of which were Aston Martin Valkyries (H1 2022:
27 Aston Martin Valkyries). DBX volumes increased by 43%
year-on-year, driven by the DBX707, the world's most powerful
luxury SUV. The DBX707 is now clearly established as the benchmark
in the ultra-luxury SUV segment with strong volume growth in the
majority of our key markets. The second quarter of 2023 showed a
significant improvement in overall wholesales over the prior
quarter, with 33% sequential volume growth.
Geographically, the Americas was the strongest and largest
region, representing 36% of wholesales in the first half of the
year, primarily driven by strong year-on-year DBX and V12 Vantage
growth. EMEA also saw strong growth in H1, primarily driven by
higher DBX volumes and overall GT/Sports growth - most notably V12
Vantage Roadster volumes.
Our home market, the UK, saw lower year-on-year volumes driven
by the ongoing transition of sports cars sales ahead of new
launches later in the year, which more than offset higher
year-on-year DBX volumes. Finally, APAC volumes declined
year-on-year following strong growth in Q2 2022 as well as ongoing
transitions in both sports cars and DBX volumes. APAC continues to
be a region where we see significant opportunity for long-term
growth.
Revenue by Category
GBPm H1 2023 H1 2022 Change
-------- --------
Sale of vehicles 627.3 499.6 26%
Sale of parts 40.3 32.9 22%
Servicing of vehicles 4.2 5.0 (16%)
Brand and motorsport 5.6 4.2 33%
Total 677.4 541.7 25%
-------- --------
First half revenues increased by 25% year-on-year to GBP677m (H1
2022: GBP542m), primarily driven by higher volumes, strong pricing
dynamics in the core portfolio and favourable mix, as well as
higher Aston Martin Valkyrie programme deliveries.
The strong year-on-year mix and pricing dynamics enjoyed in the
first half of 2023 translated into a core average selling price
(ASP) of GBP184k (H1 2022 Core ASP: GBP164k), an increase of 12%.
Total ASP of GBP212k in H1 included 38 Specials in the half
compared with 32 in the prior year period (H1 2022 Total ASP:
GBP186k).
Summary income statement and analysis
GBPm H1 2023 H1 2022 Q2 2023 Q2 2022
-------- --------
Revenue 677.4 541.7 381.5 309.0
Cost of sales (441.1) (353.6) (247.1) (204.9)
-------- -------- -------- --------
Gross profit 236.3 188.1 134.4 104.1
Gross margin % 34.9% 34.7% 35.2% 33.7%
Operating expenses(1) (323.0) (260.8) (173.3) (142.5)
of which depreciation & amortisation 167.3 131.3 89.3 72.6
-------- -------- -------- --------
Adjusted EBIT (2) (86.7) (72.7) (38.9) (38.4)
Adjusting operating items (6.5) (17.2) (3.4) (3.8)
-------- -------- -------- --------
Operating loss (93.2) (89.9) (42.3) (42.2)
Net financing expense (49.0) (195.5) (25.7) (131.6)
of which adjusting financing
(expense)/ income (37.9) 24.4 (24.1) 13.6
-------- -------- -------- --------
Loss before tax (142.2) (285.4) (68.0) (173.8)
Taxation 0.2 (4.4) (0.2) (4.0)
-------- -------- -------- --------
Loss for the period (142.0) (289.8) (68.2) (177.8)
Adjusted EBITDA (1,2) 80.6 58.6 50.4 34.2
Adjusted EBITDA margin 11.9% 10.8% 13.2% 11.1%
Adjusted loss before tax (1) (97.8) (292.6) (40.5) (183.6)
(88.4)
EPS (pence) (20.3) (3)
(90.0)
Adjusted EPS (pence) (2) (13.9) (3)
-------------------------------------- -------- -------- -------- --------
1 Excludes adjusting items; 2 Alternative Performance Measures
are defined in Appendix; 3 2022 is restated for the impact of the
bonus element of the Rights Issue undertaken in Q3 2022
In the first half of 2023, gross profit of GBP236m increased by
GBP48m, or 26% year-on-year. This translated to a gross margin of
35%, a year-on-year expansion of approximately 20 basis points. The
gross margin performance was primarily driven by higher
year-on-year gross margin within the core range of vehicles,
partially offset by higher manufacturing, logistics and other
costs, as well as FX headwinds.
The Company continues to target a 40%+ contribution margin from
its future products.
In the first half of 2023, adjusted EBITDA of GBP81m increased
by GBP22m, or 38% year-on-year. This translated to an adjusted
EBITDA margin of 12%, a year-on-year expansion of approximately 110
basis points. The year-on-year increase in adjusted EBITDA was
primarily due to higher year-on-year gross profit, as described
above, partially offset by increased investments in brand and
marketing initiatives to support our future growth, as well as
higher general costs.
Operating loss of GBP93m in the first half of 2023 compared to
GBP90m loss in the prior year period. The GBP3m year-on-year change
was primarily driven by:
- a GBP36m increase in depreciation and amortisation charges,
principally related to higher Aston Martin Valkyrie production and
deliveries, as well as the launch of new products such as DBX707,
V12 Vantage and DBS770 Ultimate
- increased brand and product launch investments such as the
DB12 and Valhalla, as well as marketing initiatives to support our
future growth
- higher general costs, including inflationary pressures
These factors were partially offset by:
- higher year-on-year gross profit as described above
Adjusting operating items of GBP7m in the first half of 2023 (H1
2022: GBP17m) predominantly related to ERP implementation
costs.
Net financing costs of GBP49m in the first half of 2023
decreased significantly from GBP196m in the prior year period
comprising of interest on Senior Secured Notes and a non-cash FX
benefit of GBP62m (H1 2022: GBP134m charge). The GBP38m adjusting
finance charge was due to movements in fair value of outstanding
warrants (H1 2022: GBP24m credit).
The loss before tax was GBP142m, an improvement of GBP143m
year-on-year (H1 2022: GBP285m loss) and the loss for the period
was GBP142m, an improvement of GBP148m year-on-year (H1 2022:
GBP290m), both impacted by the significant reduction in net
financing costs related to the US dollar-denominated Senior Secured
Notes.
The total effective tax rate for the period to 30 June 2023 was
0.1% which is predominantly due to current period deferred tax
asset movements not being recognised (such that the tax credit
related to the financial performance of the overseas subsidiaries
during the six month period) (H1 2022: -1.5%).
The weighted average share count at 30 June 2023 was 704
million, giving an adjusted EPS of (13.9)p (H1 restated 2022:
(90.0)p).
Cash flow and net debt
GBPm H1 2023 H1 2022 Q2 2023 Q2 2022
-------- --------
Cash generated from/(used in) operating
activities 17.5 (33.1) 50.5 (76.3)
Cash used in investing activities
(excl. interest) (180.2) (138.2) (94.9) (71.5)
Net cash interest paid (55.6) (62.5) (55.6) (60.6)
-------- -------- --------
Free cash outflow (218.3) (233.8) (100.0) (208.4)
Cash inflow/(outflow) from financing
activities (excl. interest) 44.7 (41.0) 98.9 (46.9)
Decrease in net cash (173.6) (274.8) (1.1) (255.3)
-------- --------
Effect of exchange rates on cash
and cash equivalents (9.6) 12.1 (6.6) 7.7
----------------------------------------- -------- -------- -------- --------
Cash balance 400.1 156.2 400.1 156.2
----------------------------------------- -------- -------- -------- --------
Cash flow from operating activities was an inflow of GBP18m in
the first half of 2023 (H1 2022: GBP33m outflow), with a
significant improvement in Q2. The year-on-year change in cash flow
from operating activities in H1 2023 was primarily driven by a
working capital outflow of GBP37m (H1 2022: GBP67m outflow). The
largest driver was a GBP33m increase in inventories (H1 2022:
GBP105m increase), primarily driven by higher levels of ordered
vehicles at the end of the period, as well as initiatives to
improve production and supply chain resilience ahead of upcoming
vehicle launches. This was partially offset by a GBP22m decrease in
receivables (H1 2022: GBP41m increase), driven by improved
collections.
Although demand for Specials remains strong, there was a GBP17m
decrease in the deposit balance in the first half of 2023, as new
deposits were more than offset by the unwind from Specials
delivered in the period. We expect to see new deposits increase in
the second half of the year, following the launch of Valour in July
2023, as well as higher deposits from Valhalla.
Capital expenditure was GBP181m in the first half of 2023, an
increase of GBP43m 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.
Free cash outflow of GBP218m in the first half of 2023 compared
to a GBP234m outflow in the first half of 2022, with the
improvement in cash flow from operating activities detailed above,
offset by the year-on-year increase in capital expenditure.
GBPm 30-June-23 31-Dec-22 30-June-22
----------- ----------
Loan notes (1,051.9) (1,104.0) (1,221.5)
Inventory financing (39.9) (38.2) (38.8)
Bank loans and overdrafts (57.8) (107.1) (62.3)
Lease liabilities (IFRS 16) (96.7) (99.8) (102.0)
Gross debt (1,246.3) (1,349.1) (1,424.6)
----------- ----------
Cash balance 400.1 583.3 156.2
Cash not available for short term
use - 0.3 2.0
----------------------------------- ----------- ---------- -----------
Net debt (846.2) (765.5) (1,266.4)
----------------------------------- ----------- ---------- -----------
Cash at 30 June 2023 of GBP400m is after a GBP50m repayment of
the revolving credit facility during H1 2023 as well as GBP95m of
proceeds from the subscription shares issued to Geely International
(Hong Kong) Limited. Net debt was GBP846m, up from GBP766m at 31
December 2022, including a positive GBP62m non-cash FX revaluation
of US dollar-denominated debt as the GBP strengthened against the
US dollar during the period.
APPICES
Dealerships
30 June-23 31 Dec-22 30 June-22
----------- ----------
UK 20 21 21
Americas 44 44 44
EMEA ex. UK 52 52 52
APAC 47 48 49
Total 163 165 166
----------- ----------
Number of countries 54 54 55
--------------------- ----------- ---------- -----------
Units
Wholesale Q1-23 Q1-22 Change Q2-23 Q2-22 Change H1-23 H1-22 Change
------ ------ ------- ------ ------ ------ ------
UK 220 264 (17%) 225 224 0% 445 488 (9%)
Americas 467 361 29% 595 359 66% 1,062 720 48%
EMEA ex. 343
UK [9] 271 27% 491 343 43% 834 614 36%
239
APAC [10] 272 (12%) 374 582 (36%) 613 854 (28%)
Total 1,269 1,168 9% 1,685 1,508 12% 2,954 2,676 10%
------ ------ ------- ------ ------ ------ ------
Wholesale Q1-23 Q1-22 Change Q2-23 Q2-22 Change H1-23 H1-22 Change
------ ------ ------- ------ ------ ------ ------
GT/Sport 582 728 (20%) 787 833 (6%) 1,369 1,561 (12%)
SUV 669 421 59% 878 662 33% 1,547 1,083 43%
Specials 18 19 (5%) 20 13 54% 38 32 19%
Total 1,269 1,168 9% 1,685 1,508 12% 2,954 2,676 10%
------ ------ ------- ------ ------ ------ ------
Note: GT/Sport includes Vantage, DB11 and DBS
Summary financials
GBPm Q1 2023 Q1 2022 Q2 2023 Q2 2022 H1 2023 H1 2022
-------- -------- --------
Total wholesale volumes(1) 1,269 1,168 1,685 1,508 2,954 2,676
Revenue 295.9 232.7 381.5 309.0 677.4 541.7
Gross profit 101.9 84.0 134.4 104.1 236.3 188.1
Gross margin 34.4% 36.1% 35.2% 33.7% 34.9% 34.7%
Adjusted EBITDA 30.2 24.4 50.4 34.2 80.6 58.6
Adjusted EBITDA margin 10.2% 10.5% 13.2% 11.1% 11.9% 10.8%
Adjusted EBIT (47.8) (34.3) (38.9) (38.4) (86.7) (72.7)
Adjusting operating
items (3.1) (13.4) (3.4) (3.8) (6.5) (17.2)
Adjusting financing
items (13.8) 10.8 (24.1) 13.6 (37.9) 24.4
Operating loss (50.9) (47.7) (42.3) (42.2) (93.2) (89.9)
Loss before tax (74.2) (111.6) (68.0) (173.8) (142.2) (285.4)
-------- -------- -------- -------- -------- --------
Note: For definition of alternative performance measures please
see the Appendices and note 17 of the Interim Financial Statements;
(1) Number of vehicles including specials
Summary cash flow statement
GBPm Q1 2023 Q1 2022 Q2 2023 Q2 2022 H1 2023 H1 2022
-------- -------- -------- --------
Cash (used in)/ generated
from operating activities (33.0) 43.2 50.5 (76.3) 17.5 (33.1)
Cash used in investing
activities (excl. interest) (85.3) (66.7) (94.9) (71.5) (180.2) (138.2)
Net interest paid - (1.9) (55.6) (60.6) (55.6) (62.5)
-------- -------- -------- -------- -------- --------
Free cash outflow (118.3) (25.4) (100.0) (208.4) (218.3) (233.8)
Cash (outflow)/inflow
from financing activities
(excl. interest) (54.2) 5.9 98.9 (46.9) 44.7 (41.0)
-------- -------- -------- -------- -------- --------
Decrease in net cash (172.5) (19.5) (1.1) (255.3) (173.6) (274.8)
-------- -------- -------- -------- -------- --------
Effect of exchange
rates on cash & cash
equivalents (3.0) 4.4 (6.6) 7.7 (9.6) 12.1
Cash balance 407.8 403.8 400.1 156.2 400.1 156.2
-------- -------- -------- -------- -------- --------
Alternative Performance Measure
GBPm H1 2023 H1 2022
--------
Loss before tax (142.2) (285.4)
Adjusting operating expense 6.5 17.2
Adjusting finance expense 37.9 -
Adjusting finance (income) - (24.4)
Adjusted EBT (97.8) (292.6)
Adjusted finance (income) (66.8) (1.2)
Adjusted finance expense 77.9 221.1
Adjusted EBIT (86.7) (72.7)
Reported depreciation 45.7 38.2
Reported amortisation 121.6 93.1
Adjusted EBITDA 80.6 58.6
--------
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 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.
Principal risks and uncertainties
The principal risks and uncertainties that could substantially
affect the Group's business and results were previously reported on
pages 82 to 84 of the 2022 Annual Report and Accounts. The Group's
risk environment has been reassessed as at 30 June 2023 to consider
any significant changes to the Group's previous risk assessment
including any new and emerging risks and opportunities.
There have not been any significant changes to the principal
risks previously disclosed within the 2022 Annual Report and
Accounts and the principal risks and uncertainties that the Group
faces for the second half of the year are consistent with those
previously reported as summarised below.
Strategic risks
Macro-economic and political instability: Exposure to multiple
political and economic factors could impact customer demand or
affect the markets in which we operate.
The Group operates in the ultra-luxury segment (ULS) vehicle
market and accordingly its performance is linked to market
conditions and consumer demand in that market. Sales of ULS
vehicles are affected by general economic conditions and can be
materially affected by the economic cycle. Demand for luxury goods,
including ULS vehicles, is volatile and depends to a large extent
on the general economic, political, and social conditions in a
given market. Furthermore, economic slowdowns in the past have
significantly affected the automotive and related markets. Periods
of deteriorating general economic conditions may result in a
significant reduction in ULS vehicle sales, which may put downward
pressure on the Group's product and service prices and volumes, and
negatively affect profitability. These effects may have a more
pronounced effect on the Group's business, due to the relatively
small scale of its operations and its limited product range.
Political change has the potential to directly affect the Group
through the introduction of new laws (including tax and
environmental laws) or regulations or indirectly by altering
customer sentiment. Government policy in areas such as trade and
the environment also have the opportunity to impact the business
through the introduction of new barriers, for example in relation
to the trade between the United Kingdom and the European Union or
through changes in emissions legislation. Any future change in
government in both the United Kingdom and the Group's key markets
could have an impact on the Group due to changes in policy,
legislation, or regulatory interpretation.
Brand / reputational damage: Our brand and reputation are
critical in securing demand for our vehicles and in developing
additional revenue streams.
The Group's success depends on the preservation and enhancement
of our brand and reputation with ultra-luxury consumers. Damage
caused by any reason (e.g. poor customer experience, poor design,
quality issues, late delivery) could significantly impact our
ability to deliver planned volume growth. We promote brand
awareness and identity through our marketing activity, leveraging
the global reach of the Aston Martin Aramco Cognizant Formula
One(TM) Team. We continue to pursue our 'build to order' strategy,
which combined with the positive impact of our fixed marketing
activity is driving brand exclusivity. Investment in new technology
combined with delivery of our three-pillar strategy will further
enhance the appeal of the brand and increase our customer base.
Technological advancement: It is essential to maintain pace with
technological development to meet evolving customer expectation,
remain competitive and stay ahead of regulatory requirements.
To remain competitive the Group needs to incorporate the latest
technologies (e.g. electrification, active safety, connected car,
autonomous driving) into its products and keep pace with the
transition to electrified and lower emission powertrains. Strategic
agreements with key suppliers, including Lucid and Mercedes Benz AG
provide access to technology that may otherwise be too costly to
develop internally.
Operational risks
Talent acquisition and retention: We may fail to attract,
retain, engage and develop a productive workforce or develop key
talent.
The Group's future success depends substantially on the
continued service and performance of the members of its senior
management team for running its daily operations, as well as
planning and executing its strategy. The Group is also dependent on
its ability to retain and replace its design, engineering, and
technical personnel so that the Group is able to continue to
produce vehicles that are competitive in terms of performance,
quality, and aesthetics. There is strong competition worldwide for
experienced senior management and personnel with technical and
industry expertise. If the Group loses the services of its senior
management or other key personnel, the Group may have difficulty
and incur additional costs in replacing them. If the Group is
unable to find suitable replacements in a timely manner, its
ability to realise its strategic objectives could be impaired. In
addition, the Group's ability to realise its strategic objectives
could also be impaired if the Group is unable to recruit sufficient
numbers of new personnel of the right calibre and with the required
skills and capabilities to support its strategic objectives.
Programme delivery: Failure to implement major programmes on
time, within budget and to the right technical and quality
specification could jeopardise delivery of our strategy and have
significant adverse financial and reputational consequences.
The Group employ vehicle line Project Management teams to
deliver significant programmes using our 'Mission' programme
delivery governance methodology.
Achieving financial and cost-reduction targets: The Group's size
and low-volume demand-led strategy may inhibit its ability to
deliver targeted cost reductions or work within budget constraints
while delivering the planned vehicle programme.
The Group's ability to successfully implement its strategy will
depend on, at least in part, its ability to achieve its financial
targets as well as to maintain capital expenditures without
limiting its ability to introduce new vehicles in line with changes
in trends and advances in technology. Market conditions and trends
change over time, with current impacts being seen as a result of
higher rates of inflation, increasing interest rates, rising
commodity prices and the increasing risk of regional or global
recession. These may inhibit the Group's ability to achieve these
goals, or to achieve them only in part or later than expected,
resulting in increased costs, damage to the Aston Martin brand,
decreased sales, elevated levels of Group or dealer stocks and/or
liquidity constraints, any of which could have a material adverse
effect on the Group's business, financial condition and results of
operations.
Cyber security and IT resilience: Breach of cyber security could
result in a system outage, impacting core operations and / or
result in a major data loss leading to reputational damage and
financial loss.
The increasing threat of cyberattack presents risk to the
availability, confidentiality and integrity of information and
IT-supported operating systems. A robust technology environment is
critical to the Group's success and operational resilience. The
Group is investing in tools and resources to enhance the control
environment and reduce the risk of core business operational
disruption or major data loss. The next phase of the implementation
of a new ERP system through 2023 will improve the operational
resilience of our IT environment.
Supply chain disruption: Supply chain disruption could result in
production stoppages, delays, quality issues and increased
costs.
The Group's dependence on a limited number of suppliers exposes
the Group to the risk of increased material costs due to suppliers'
pricing power, limited availability and disrupted delivery
schedules, including as a result of the effects of ongoing global
supply chain issues, and the risk of the quality of the products
produced by that supplier declining. If one or more of the Group's
suppliers becomes unable or unwilling to fulfil its delivery
obligations, or is unable to supply products of the requisite
quality for any reason (including favouring other purchasers due to
better pricing or volume, financial difficulties, damage to
production, transportation difficulties, labour disruption, supply
bottlenecks of raw materials and pre-products, natural disasters,
other pandemics, the ongoing war in Ukraine and other wars,
terrorism or political unrest), there is a risk that the Group's
ability to produce the targeted number or quality of vehicles could
be negatively affected, which could adversely affect production and
therefore demand for its vehicles.
Compliance risks
Compliance with laws and regulations: Non-compliance with laws
or regulations could damage our corporate reputation and subject
the Group to significant financial penalties and / or trading
sanctions / restrictions. Non-compliance with product and supply
chain due diligence regulations could prevent the Group from
competing in certain markets.
The Group is subject to a broad range of national and regional
laws and regulations, some of which are specific to the automotive
industry e.g. vehicle emissions, fuel consumption, vehicle
certification requirements, connected car regulations; others which
are applicable to businesses conduct more generally e.g.
competition law, health and safety, data protection, corporate
governance rules, employment laws, and taxation. Changes to laws
and regulations, or a major compliance breach, could have a
material impact on the business. The Group has been investing in
compliance activities, including experienced personnel, and
developing its risk management systems.
Failure to keep pace with increasing stakeholder expectations to
not just meet but exceed evolving ESG requirements could result in
brand / reputational damage which could ultimately affect our sales
pipeline and planned growth. As emissions regulations become
increasingly stringent the Group continues to invest in product
portfolio expansion to accelerate its transition towards
electrified powertrains and reduced emissions.
Climate Change risks
Climate change : The impact of climate change could
significantly impact demand for our vehicles, our ability to sell
within certain markets or have financial consequences through
increased carbon pricing, taxes and other regulatory restrictions
on Internal Combustion Engine vehicles.
The Group faces a number of transition and physical climate
related risks. Transitioning to a lower-carbon economy poses the
most significant climate related risk with the Group being exposed
to:
-- Policy and legal risk: Capital and operating expenses required in order to comply with environmental laws and regulations can be significant. New policy actions and/or legislation changes relating to environmental matters, such as the implementation of carbon pricing mechanisms to reduce GHG emissions or the imposition of more stringent vehicle emissions regulations, could give rise to significant costs.
-- Technology risk: New technologies that support the transition
to lower-carbon, energy-efficient economic system, including the
increasing demand for lower emission vehicles and electrified
powertrains, could have a significant impact on the Group. The
Group many be unable to develop lower capacity and fully electric
vehicles successfully, as quickly as its competitors or at a
reasonable cost.
-- Market risk: Customer preferences may change more quickly
than anticipated away from traditional ICEs towards alternative
non-ICE powertrains (e.g. plug-in hybrid electric vehicle, battery
electric vehicles, Hydrogen, Synthetic fuels). This could
significantly affect demand for the Group's products. Increasing
consumer awareness around sustainability and the resultant desire
to buy products which use sustainable materials may adversely
impact demand for the Group's products.
-- Reputation risk: Customers and communities are increasingly
concerned with an organisation's contribution to or detraction from
the transition to a lower-carbon economy. If the Group does not
deliver on its net-zero goals, sustainability targets, the
production of hybrid and fully-electric models or does not
otherwise demonstrate its commitment to reducing its impact on
climate change, this could have a material adverse effect on the
Group.
Physical risks resulting from climate change can be event driven
(such as an extreme weather event) or longer-term shifts in climate
patterns (such as global warming). Increased frequency and severity
of extreme weather events could lead to damage to assets and/or
facilities or lead to production or supply chain disruption. In
each case, this could have a material adverse effect on the Group's
business, financial condition, and results of operations.
Financial risks
Liquidity: The Group may not be able to generate sufficient cash
to fund its capital expenditure, service its debt or sustain its
operations.
The Group's significant leverage and existing levels of debt may
make it difficult to obtain additional debt financing should the
need arise due to unforeseen economic shocks. Failure to collect
planned deposits could place additional stress on the Group's
liquidity. The Group's liquidity requirements arise primarily from
its need to fund capital expenditure for product development,
including the electrification of its product portfolio, and to
service debt. The Group is also subject to foreign exchange risks
and opportunities and manages its exposure in accordance with the
Group Hedging Policy.
Impairment of capitalised development costs: The value of
capitalised development costs continue to grow as we invest in and
expand our product portfolio.
The Group's balance sheet and income statement may be adversely
impacted by an impairment in the carrying value of capitalised
development costs. A significant reduction in vehicle lifecycle
profitability could result in the need to impair the capitalised
development intangible asset. Where potential impairment triggers
are identified management perform assessments to evaluate the
recoverability of capitalised development costs.
The risks and opportunities summarised above, linkage to the
Group's strategy, and additional mitigating actions taken in
respect of them, are explained and described in more detail on
pages 82 to 84 of the 2022 Annual Report and Accounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months ended 6 months ended 12 months ended
30 June 2023 30 June 2022 31 December 2022
Adjusting Adjusting Adjusting
Notes Adjusted items* Total Adjusted items* Total Adjusted items* Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- ------ --------- ---------- -------- --------- ---------- ---------- --------- ---------- ---------
Revenue 2 677.4 - 677.4 541.7 - 541.7 1,381.5 - 1,381.5
Cost of sales (441.1) - (441.1) (353.6) - (353.6) (930.8) - (930.8)
--------- ---------- -------- --------- ---------- ---------- --------- ---------- ---------
Gross profit 236.3 - 236.3 188.1 - 188.1 450.7 - 450.7
Selling and
distribution
expenses (70.7) - (70.7) (51.9) - (51.9) (113.0) - (113.0)
Administrative
expenses 3 (252.3) (6.5) (258.8) (208.9) (17.2) (226.1) (455.6) (23.9) (479.5)
--------- ---------- -------- --------- ---------- ---------- --------- ---------- ---------
Operating loss (86.7) (6.5) (93.2) (72.7) (17.2) (89.9) (117.9) (23.9) (141.8)
3,
Finance income 4 66.8 - 66.8 1.2 24.4 25.6 3.0 12.5 15.5
Finance expense 3,5 (77.9) (37.9) (115.8) (221.1) - (221.1) (336.1) (32.6) (368.7)
--------- ---------- -------- --------- ---------- ---------- --------- ---------- ---------
(Loss)/profit
before tax (97.8) (44.4) (142.2) (292.6) 7.2 (285.4) (451.0) (44.0) (495.0)
Income tax 3,
credit/(charge) 6 0.2 - 0.2 (2.6) (1.8) (4.4) (32.7) - (32.7)
--------- ---------- -------- --------- ---------- ---------- --------- ---------- ---------
(Loss)/profit
for the period (97.6) (44.4) (142.0) (295.2) 5.4 (289.8) (483.7) (44.0) (527.7)
--------- ---------- -------- --------- ---------- ---------- --------- ---------- ---------
(Loss)/profit for the period
attributable to:
Owners of the
group (142.6) (290.0) (528.6)
Non-controlling
interests 0.6 0.2 0.9
-------- ---------- ---------
(142.0) (289.8) (527.7)
-------- ---------- ---------
Other comprehensive
income
Items that will never be reclassified
to the Income Statement
Remeasurement of defined benefit
pension liability 0.3 6.1 6.8
Taxation on items that will never
be reclassified to the Income Statement (0.1) (1.5) (1.7)
Items that are or may be reclassified
to the Income Statement
Foreign exchange translation
differences (4.5) 4.3 3.8
Fair value adjustment on cash flow
hedges 1.5 (4.2) (6.1)
Amounts recycled to the Income Statement
in respect of cash flow hedges (4.4) (0.8) 2.9
Taxation on items that may be reclassified
to the Income Statement 0.7 1.3 0.8
Other comprehensive income for
the period, net of income tax (6.5) 5.2 6.5
-------- ---------- ---------
Total comprehensive loss for the
period (148.5) (284.6) (521.2)
-------- ---------- ---------
Total comprehensive (loss)/income
for the period attributable to:
Owners of the
group (149.1) (284.8) (522.1)
Non-controlling
interests 0.6 0.2 0.9
-------- ---------- ---------
(148.5) (284.6) (521.2)
-------- ---------- ---------
Earnings per
ordinary
share
Basic 7 (20.3p) (88.4p)** (124.5p)
Diluted 7 (20.3p) (88.4p)** (124.5p)
-------- ---------- ---------
* Adjusting items are detailed in note 3.
** EPS as at 30 June 2022 has been restated reflecting the bonus
element of the rights issue undertaken in September 2022 (note
7).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Capital
Share Share Redemption Merger Capital Translation Hedge Retained Non-controlling Total
Capital Premium Reserve Reserve Reserve Reserve Reserve Earnings Interest Equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- -------- ----------- -------- -------- ------------ -------- ---------- ---------------- --------
At 1 January
2023 69.9 1,697.4 9.3 143.9 6.6 6.5 4.3 (1,184.9) 19.5 772.5
Total
comprehensive
loss for the
period
(Loss)/profit
for
the period - - - - - - - (142.6) 0.6 (142.0)
Other
comprehensive
income
Foreign
currency
translation
differences - - - - - (4.5) - - - (4.5)
Fair value
movement
- cash flow
hedges - - - - - - 1.5 - - 1.5
Amounts
recycled
to the Income
Statement
- cash flow
hedges - - - - - - (4.4) - - (4.4)
Remeasurement
of
defined
benefit
liability
(note
13) - - - - - - - 0.3 - 0.3
Taxation on
other
comprehensive
income - - - - - - 0.7 (0.1) - 0.6
Total other
comprehensive
(loss)/income - - - - - (4.5) (2.2) 0.2 - (6.5)
--------------- -------- -------- ----------- -------- -------- ------------ -------- ---------- ---------------- --------
Total
comprehensive
(loss)/income
for
the period - - - - - (4.5) (2.2) (142.4) 0.6 (148.5)
--------------- -------- -------- ----------- -------- -------- ------------ -------- ---------- ---------------- --------
Transactions
with
owners,
recorded
directly in
equity
Issuance of
new
shares (note
14) 2.8 91.7 - - - - - - - 94.5
Issuance of
share
to Employee
Benefit
Trust (notes
7,
14) 0.1 - - - - - - (0.1) - -
Credit for the
period under
equity
settled
share-based
payments - - - - - - - 2.1 - 2.1
Shares to be
issued
to warrant
holders - - - - - - - 6.2 - 6.2
Total
transactions
with owners 2.9 91.7 - - - - - 8.2 - 102.8
--------------- -------- -------- ----------- -------- -------- ------------ -------- ---------- ---------------- --------
At 30 June
2023 72.8 1,789.1 9.3 143.9 6.6 2.0 2.1 (1,319.1) 20.1 726.8
--------------- -------- -------- ----------- -------- -------- ------------ -------- ---------- ---------------- --------
Capital
Share Share Redemption Merger Capital Translation Hedge Retained Non-controlling Total
Capital Premium Reserve Reserve Reserve Reserve Reserve Earnings Interest Equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- -------- ----------- -------- -------- ------------ -------- --------- ---------------- --------
At 1 January
2022 11.6 1,123.4 9.3 143.9 6.6 2.7 6.7 (662.4) 18.6 660.4
Total
comprehensive
loss for the
period
(Loss)/profit
for
the period - - - - - - - (290.0) 0.2 (289.8)
Other
comprehensive
income
Foreign
currency
translation
differences - - - - - 4.3 - - - 4.3
Fair value
movement
- cash flow
hedges - - - - - - (4.2) - - (4.2)
Amounts
recycled
to the Income
Statement
- cash flow
hedges - - - - - - (0.8) - - (0.8)
Remeasurement
of
defined
benefit
liability - - - - - - - 6.1 - 6.1
Taxation on
other
comprehensive
income - - - - - - 1.3 (1.5) - (0.2)
--------------- -------- -------- ----------- -------- -------- ------------ -------- --------- ---------------- --------
Total other
comprehensive
income/(loss) - - - - - 4.3 (3.7) 4.6 - 5.2
--------------- -------- -------- ----------- -------- -------- ------------ -------- --------- ---------------- --------
Total
comprehensive
income/(loss)
for
the period - - - - - 4.3 (3.7) (285.4) 0.2 (284.6)
--------------- -------- -------- ----------- -------- -------- ------------ -------- --------- ---------------- --------
Transactions
with
owners,
recorded
directly in
equity
Credit for the
period under
equity
settled
share-based
payments - - - - - - - 2.1 - 2.1
Tax on items
credited
to equity - - - - - - - (0.1) - (0.1)
--------------- -------- -------- ----------- -------- -------- ------------ -------- --------- ---------------- --------
Total
transactions
with owners - - - - - - - 2.0 - 2.0
--------------- -------- -------- ----------- -------- -------- ------------ -------- --------- ---------------- --------
At 30 June
2022 11.6 1,123.4 9.3 143.9 6.6 7.0 3.0 (945.8) 18.8 377.8
--------------- -------- -------- ----------- -------- -------- ------------ -------- --------- ---------------- --------
Capital
Share Share Merger redemption Capital Translation Hedge Retained Non-controlling Total
capital premium reserve reserve reserve reserve reserves earnings interest equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- ------- ------- ------- ---------- ------- ----------- -------- --------- --------------- -------
At 1 January
2022 11.6 1,123.4 143.9 9.3 6.6 2.7 6.7 (662.4) 18.6 660.4
--------------- ------- ------- ------- ---------- ------- ----------- -------- --------- --------------- -------
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
recycled
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 - - - - - - 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 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 69.9 1,697.4 143.9 9.3 6.6 6.5 4.3 (1,184.9) 19.5 772.5
--------------- ------- ------- ------- ---------- ------- ----------- -------- --------- --------------- -------
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
As at As at As at
30 June 30 June 31 December
Notes 2023 2022 2022
GBPm GBPm GBPm
------------------------------------- ------ ---------- --------- -------------
Non-current assets
Intangible assets 1,398.7 1,392.6 1,394.6
Property, plant and equipment 370.7 352.6 369.9
Right-of-use assets 70.7 76.6 74.4
Trade and other receivables 2.5 2.3 6.3
Deferred tax asset 137.2 157.3 133.7
---------- --------- -------------
1,979.8 1,981.4 1,978.9
Current assets
Inventories 320.6 307.6 286.2
Trade and other receivables 222.8 288.1 245.7
Income tax receivable 1.3 1.2 1.4
Other financial assets 11 8.3 9.2 8.8
Cash and cash equivalents 400.1 156.2 583.3
---------- --------- -------------
953.1 762.3 1,125.4
---------- --------- -------------
Total assets 2,932.9 2,743.7 3,104.3
---------- --------- -------------
Current liabilities
Borrowings 9 57.8 62.3 107.1
Trade and other payables 829.5 842.8 876.3
Income tax payable 1.9 4.0 6.3
Other financial liabilities 11 64.3 15.4 26.2
Lease liabilities 7.3 7.4 7.4
Provisions 12 18.3 17.9 18.6
---------- --------- -------------
979.1 949.8 1,041.9
Non-current liabilities
Borrowings 11 1,051.9 1,221.5 1,104.0
Trade and other payables 8.2 9.2 9.1
Lease liabilities 89.4 94.6 92.4
Provisions 12 22.0 20.6 22.5
Employee benefits 13 54.8 68.8 61.2
Deferred tax liabilities 0.7 1.4 0.7
---------- --------- -------------
1,227.0 1,416.1 1,289.9
---------- --------- -------------
Total liabilities 2,206.1 2,365.9 2,331.8
---------- --------- -------------
Net assets 726.8 377.8 772.5
---------- --------- -------------
Capital and reserves
Share capital 14 72.8 11.6 69.9
Share premium 1,789.1 1,123.4 1,697.4
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 2.0 7.0 6.5
Hedge reserve 2.1 3.0 4.3
Retained earnings (1,319.1) (945.8) (1,184.9)
---------- --------- -------------
Equity attributable to owners of
the group 706.7 359.0 753.0
Non-controlling interests 20.1 18.8 19.5
---------- --------- -------------
Total shareholders' equity 726.8 377.8 772.5
---------- --------- -------------
CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
Notes 2023 2022 2022
GBPm GBPm GBPm
Operating activities
Loss for the period (142.0) (289.8) (527.7)
Adjustments to reconcile loss for the period
to net cash inflow from operating activities
Tax (credit)/charge 6 (0.2) 4.4 32.7
Net finance costs 49.0 195.5 353.2
Depreciation of property, plant and equipment 41.0 33.8 77.8
Depreciation of right-of-use assets 4.7 4.4 11.0
Amortisation of intangible assets 121.6 93.1 219.3
Difference between pension contributions
paid and amounts recognised in operating
profit (7.5) (4.6) (12.1)
Increase in inventories (32.7) (104.6) (78.4)
Decrease/(increase) in trade and other receivables 21.5 (41.0) 0.1
(Decrease)/increase in trade and other payables (8.7) 68.3 81.5
(Decrease)/increase in advances and customer
deposits (17.2) 10.4 (17.9)
Movement in provisions (0.2) (1.8) 0.7
Other non-cash movements (3.8) 6.0 (2.0)
Other non-cash movements - (Increase)/decrease
in other derivative contracts (0.8) (0.4) (2.3)
Other non-cash movements - Movements in RDEC
credit (2.9) (1.4) (3.5)
Cash inflow/(outflow) from operations 21.8 (27.7) 132.4
Decrease/(increase) in cash held not available
for short-term use 0.3 (0.2) 1.5
Income taxes paid (4.6) (5.2) (6.8)
--------- --------- -------------
Net cash inflow/(outflow) from operating
activities 17.5 (33.1) 127.1
--------- --------- -------------
Cash flows from investing activities
Interest received 5.2 0.7 2.2
Repayment of loan assets 0.5 - -
Payments to acquire property, plant and equipment (43.8) (29.1) (58.6)
Cash outflow on development expenditure (136.9) (109.1) (228.3)
--------- --------- -------------
Net cash used in investing activities (175.0) (137.5) (284.7)
--------- --------- -------------
Cash flows from financing activities
Interest paid (60.8) (63.2) (141.2)
Proceeds from equity share issue 94.8 - 653.9
Proceeds received in advance of the exercise -
of warrants 6.2 -
Proceeds from financial instrument utilised
during refinancing transactions - - 4.1
Principal element of lease payments 10 (4.0) (6.4) (10.0)
Repayment of existing borrowings 10 (49.5) (52.3) (172.7)
Premium paid upon redemption of borrowings - - (14.3)
Proceeds from inventory repurchase arrangement 10 - 37.7 75.7
Repayment of inventory repurchase arrangement 10 - (20.0) (60.0)
Transaction fees on issuance of shares (2.8) - (18.6)
Transaction fees on financing activities - - (1.9)
--------- --------- -------------
Net cash (outflow)/inflow from financing
activities (16.1) (104.2) 315.0
--------- --------- -------------
Net (decrease)/increase in cash and cash
equivalents (173.6) (274.8) 157.4
Cash and cash equivalents at the beginning
of the period 583.3 418.9 418.9
Effect of exchange rates on cash and cash
equivalents (9.6) 12.1 7.0
--------- --------- -------------
Cash and cash equivalents at the end of the
period 400.1 156.2 583.3
--------- --------- -------------
Notes to the Interim Condensed Financial Statements
1. Basis of preparation
The results for the 6 month period ended 30 June 2023 have been
reviewed by Ernst & Young LLP, the Group's auditor, and a copy
of their review report appears at the end of this interim report.
The financial information for the year ended 31 December 2022 does
not constitute statutory accounts as defined in section 435 of the
Companies Act 2006. The auditor's report on the statutory accounts
for the year ended 31 December 2022 was not qualified and did not
draw attention to any matters by way of emphasis and did not
contain a statement under section 498(2) or (3) of the Companies
Act 2006. A copy of the statutory accounts for the year ended 31
December 2022 prepared in accordance with UK adopted international
accounting standards have been delivered to the Registrar of
Companies. The annual report for the year ended 31 December 2023
will be prepared in accordance with UK adopted international
accounting standards.
Aston Martin Lagonda Global Holdings plc (the "Company") is a
company incorporated and domiciled in the UK. The Consolidated
Interim Condensed Financial Statements of the Company as at the end
of the period ended 30 June 2023 comprise the Company and its
subsidiaries (together referred to as the 'Group').
Going Concern
The Group meets its day-to-day working capital requirements and
medium-term funding requirements through a mixture of $1,143.7m of
1st Lien notes at 10.5% which mature in November 2025, $236.1m of
2nd Lien split coupon notes at 15% per annum (8.89% cash and 6.11%
PIK) which mature in November 2026, a revolving credit facility
(GBP90.6m) which matures August 2025, facilities to finance
inventory, a bilateral RCF agreement and a wholesale vehicle
financing facility. Under the revolving credit facility the Group
is required to comply with a leverage covenant tested
quarterly.
The directors have developed trading and cash flow forecasts for
the period from the date of approval of these Interim Condensed
Financial Statements through 30 September 2024 (the "going concern
review period"). These forecasts show that the Group has sufficient
financial resources to meet its obligations as they fall due and to
comply with covenants for the going concern review period.
The forecasts reflect the Group's ultra-luxury
performance-oriented strategy, balancing supply and demand and the
actions taken to improve cost efficiency and gross margin. The
forecasts include the costs of the Group's environmental, social
and governance ("ESG") commitments and make assumptions in respect
of future market conditions and, in particular, wholesale volumes,
average selling price, the launch of new models, and future
operating costs. The nature of the Group's business is such that
there can be variation in the timing of cash flows around the
development and launch of new models. In addition, the availability
of funds provided through the vehicle wholesale finance facility
changes as the availability of credit insurance and sales volumes
vary, in total and seasonally. The forecasts take into account
these factors to the extent which the Group directors consider them
to represent their best estimate of the future based on the
information that is available to them at the time of approval of
these Interim Condensed Financial Statements.
The Group directors have considered a severe but plausible
downside scenario that includes considering the impact of a 25%
reduction in DBX volumes and a 10% reduction in sports volumes from
forecast levels, operating costs higher than the base plan,
incremental working capital requirements such as reduced deposit
inflows or increased deposit outflows and the impact of the
strengthening of the sterling-dollar exchange rate.
The Group plans to make continued investment for growth in the
period and, accordingly, funds generated through operations are
expected to be reinvested in the business mainly through new model
development and other capital expenditure. To a certain extent such
expenditure is discretionary and, in the event of risks occurring
which could have a particularly severe effect on the Group, as
identified in the severe but plausible downside scenario, actions
such as constraining capital spending, working capital
improvements, reduction in marketing expenditure and the
continuation of strict and immediate expense control would be taken
to safeguard the Group's financial position.
In addition, the Group also considered the circumstances which
would be needed to exhaust the Group's liquidity over the
assessment period, a reverse stress test. This would indicate that
total core vehicle sales (DBX and GT/Sports) would need to reduce
by more than 50% from forecast levels without any of the above
mitigations to result in having no liquidity. The likelihood of
management not taking substantial mitigating actions over such a
long period (such as reducing capital spending to preserve
liquidity) together with these circumstances occurring is
considered remote both in terms of the magnitude of the reduction
and occurrence over such a long period.
Accordingly, after considering the forecasts, appropriate
sensitivities, current trading and available facilities, the
directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable
future and to comply with its financial covenants and, therefore,
the directors continue to adopt the going concern basis in
preparing the Interim Condensed Financial Statements.
Statement of compliance
These Interim Condensed Financial Statements have been prepared
in accordance with UK adopted International Accounting Standard 34,
"Interim Financial Reporting" . They do not include all the
information required for full annual financial statements and
should be read in conjunction with the Consolidated Financial
Statements of the Group for the year ended 31 December 2022.
Significant accounting policies
These Interim Condensed Financial Statements have been prepared
applying the accounting policies and presentation that were applied
in the preparation of the Group's published Consolidated Financial
Statements for the year ended 31 December 2022. A number of new or
amended standards became applicable for the current reporting
period and the Group did not have to change its accounting policies
or make retrospective adjustments as a result of adopting these
standards. The Group has not early adopted any standard,
interpretation or amendment that has been issued but is not yet
effective. The significant judgements made by management in
applying the Group's accounting policies and the key sources of
estimation uncertainty were the same as those that applied to the
consolidated financial statements for the year ended 31 December
2022.
During the period the Company established an Employee Benefit
Trust which was formed to satisfy awards under selected parts of
the Group's long term incentive arrangements. The Group has
concluded that, on balance, it has control over the Trust and
therefore the Trust is included in the consolidated result of the
Group. During the 6 months ended 30 June 2023, 1,017,505 ordinary
shares were issued to the Trust to satisfy awards made under the
2023 employee share incentive plan (note 14). 1,017,505 shares were
held by the Trust at the Balance Sheet date.
2. Segmental information
Operating segments are defined as components of the Group about
which separate financial information is available and is evaluated
regularly by the chief operating decision-maker in assessing
performance. The Group has only one operating segment, the
automotive segment, and therefore no separate segmental report is
disclosed. The automotive segment includes all activities relating
to design, development, manufacture and marketing of vehicles
including consulting services; as well as the sale of parts,
servicing and automotive brand activities from which the Group
derives its revenues.
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2023 2022 2022
Revenue GBPm GBPm GBPm
-------------------------------------- --------- --------- -------------
Analysis by category
Sale of vehicles 627.3 499.6 1,291.5
Sale of parts 40.3 32.9 70.8
Servicing of vehicles 4.2 5.0 9.3
Brands and motorsport 5.6 4.2 9.9
--------- --------- -------------
677.4 541.7 1,381.5
--------- --------- -------------
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2023 2022 2022
Revenue GBPm GBPm GBPm
-------------------------------------- --------- --------- -------------
Analysis by geographic location
United Kingdom 134.3 98.6 366.0
The Americas 214.5 139.6 401.8
Rest of Europe, Middle East & Africa 199.2 138.9 260.2
Asia Pacific 129.4 164.6 353.5
--------- --------- -------------
677.4 541.7 1,381.5
--------- --------- -------------
3. Adjusting items
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
------------------------------------------------------- --------- --------- -------------
ERP implementation costs(1) (6.1) (1.2) (6.9)
Defined Benefit pension scheme closure costs(2) (0.4) (13.0) (13.5)
Director settlement and incentive arrangements(3) - (3.0) (3.5)
(6.5) (17.2) (23.9)
Adjusting finance income:
Gain on financial instruments recognised at
fair value through Income Statement(4) - 24.4 8.4
Foreign exchange gain on financial instrument
utilised during refinance transactions(5) - - 4.1
Adjusting finance expenses:
Loss on financial instruments recognised at (37.9) - -
fair value through Income Statement(4)
Premium paid on the early redemption of Senior
Secured Notes(5) - - (14.3)
Write-off of capitalised borrowing fees upon
early settlement of Senior Secured Notes(5) - - (16.4)
Professional fees incurred on refinancing expensed
directly to the Income Statement(5) - - (1.9)
Adjusting items before tax (44.4) 7.2 (44.0)
Tax charge on adjusting items(6) - (1.8) -
Tax credit due to remeasurement of deferred tax - - -
on previously classified adjusting items(6)
--------- --------- -------------
Adjusting items after tax (44.4) 5.4 (44.0)
--------- --------- -------------
1. In the 6 months ended 30 June 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. GBP6.1m of costs have been incurred in the period and
expensed to the Income Statement. The project remains ongoing for
remaining functions of the Group following the migration of the
Order to Cash workstream during the first half of the year. Due to
the infrequent recurrence of such costs and the expected quantum
during the implementation phase, these have been separately
presented as adjusting. The cash impact of this item is a working
capital outflow at the time of invoice payment.
2. On the 31 January 2022, the Group closed its defined benefit
pension scheme to future accrual. Costs associated with the closure
included a past service cost of GBP2.8m, cash payments to the
affected employees to take place in the first quarter of 2022, 2023
and 2024 totalling GBP8.7m, the issuance of 185 shares in the first
half of 2022 to each employee at a cost of GBP1.0m, and a
guaranteed value associated with those shares which is being
accounted for as a share based payment until the guarantee
crystalises in January 2024, of which GBP0.5m was recognised at
June 2022. These charges were all recognised in the 6 months to 30
June 2022, totaling GBP13.0m. A further charge of GBP0.5m was
recognised in the period up to 31 December 2022 bringing the full
year cost to GBP13.5m.
The charge associated with the guaranteed share value in the 6
months ended 30 June 2023 totals GBP0.4m. The Group will continue
to present these costs in adjusting items due to their volatile
nature and connection with the closure of the pension scheme which
is considered a non-recurring event.
3. 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 2022
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. Amounts due
as a result of these changes totalled GBP3.0m at June 2022 with a
further GBP0.5m of expense incurred in the second half of 2022. Due
to the quantum of such costs incurred in the period, they have been
separately presented.
4. During 2020 the Group issued second lien Senior Secured Notes
which included detachable warrants classified as a derivative
option liability. The movement in fair value of the warrants
between 31 December 2022 and 30 June 2023 resulted in a loss of
GBP37.9m being recognised in the Income Statement (6 months ended
30 June 2022: gain of GBP24.4m; 12 months ended 31 December 2022:
gain of GBP8.4m). This item has no cash impact.
5. Following the successful equity raise in September 2022, the
Group paid down $40.3m of First Lien Senior Secured Notes ("SSNs")
and $143.8m of Second Lien SSNs. The early settlement of these
notes incurred a redemption premium of GBP14.3m and transaction
fees of GBP1.9m and resulted in the acceleration of capitalised
borrowing costs of GBP16.4m. 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 of the SSNs the Group placed a forward
currency contract to purchase US dollars. Due to favourable
movements in the exchange rates, a gain of GBP4.1m was realised in
the Income Statement at the transaction date.
6. In the period to 30 June 2023, a nil tax charge has been
recognised on Adjusting items (6 months ended 30 June 2022: GBP1.8m
tax charge; 12 months ended 31 December 2022: Nil tax charge). This
is on the basis that the adjusting items generate net deferred tax
assets, specifically unused tax losses, which have not been
recognised to the extent that sufficient taxable profits are not
forecast in the foreseeable future to which the unused tax losses
would be utilised.
4. Finance income
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
---------------------------------------------------- --------- --------- -------------
Bank deposit and other interest income 5.1 1.2 3.0
Foreign exchange gain on borrowings not designated 61.7 - -
as part of a hedging relationship
--------- --------- -------------
Finance income before adjusting items 66.8 1.2 3.0
Adjusting finance income (note 3) - 24.4 12.5
--------- --------- -------------
66.8 25.6 15.5
--------- --------- -------------
5. Finance expense
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
---------------------------------------------------- --------- --------- -------------
Interest on bank loans, overdrafts and secured
notes 70.6 80.4 166.0
Net interest expense on the net defined benefit
liability 1.4 0.7 1.4
Foreign exchange loss on borrowings not designated
as part of a hedging relationship - 134.1 156.2
Interest on contract liabilities held 3.9 3.9 8.0
Interest on lease liabilities 2.0 2.0 4.5
Finance expense before adjusting items 77.9 221.1 336.1
Adjusting finance expense items:
Loss on financial instruments recognised at fair 37.9 - -
value through Income Statement (note 3)
Premium paid on the early redemption of Senior
Secured Notes (note 3) - - 14.3
Write-off of capitalised borrowing fees upon
early settlement of Senior Secured Notes (note
3) - - 16.4
Professional fees incurred on refinancing expensed
directly to the Income Statement (note 3) - - 1.9
--------- --------- -------------
Total adjusting finance expense 37.9 - 32.6
--------- --------- -------------
Total finance expense 115.8 221.1 368.7
--------- --------- -------------
6. Income tax charge
The Group's total income tax credit for the period to 30 June
2023 is GBP0.2m (period ended 30 June 2022: GBP4.4m tax charge)
which represents an effective tax rate of 0.1% (period ended 30
June 2022: -1.5%). The difference between the total effective tax
rate of 0.1% and the UK statutory rate of 23.5% for the full year
is predominantly due to deferred tax balances not being recognised
on asset movements generated in the period to 30 June 2023.
GBP90.8m of the net GBP137.2m Deferred Tax asset relates to unused
tax losses. Deferred tax assets on unused tax losses have been
recognised to the extent that it is probable that sufficient
taxable profits will be generated to utilise these losses based
upon the current business plan.
Finance (No 2) Bill 2023, that includes Pillar Two legislation,
was substantively enacted on 20 June 2023 for IFRS purposes. The
group has applied the exemption from recognising and disclosing
information about deferred tax assets and liabilities related to
Pillar Two income taxes as required by the amendments to IAS 12 -
International Tax Reform-Pillar Two Model Rules - issued in May
2023.
7. Earnings per ordinary share
On 28 September 2022 the Group issued 559,005,660 ordinary
shares by way of a rights issue. Due to the shares being issued at
substantially below market price, a bonus issue is deemed to have
taken place. A total of 211,604,112 shares issued were considered
bonus shares. The weighted average shares used to calculate
earnings per share in the prior period comparative have been
adjusted accordingly as detailed in the table below.
In calculating the basic weighted average number of ordinary
shares for the 6 months ended 30 June 2023, 1,017,505 ordinary
shares issued in May 2023 to the Employee Benefit Trust are
excluded owing to the control the Group has over the Trust.
6 months
6 months ended 12 months
ended 30 June ended
30 June 2022 31 December
Continuing and total operations 2023 Restated 2022
---------------------------------------------------- --------- ---------- -------------
Basic earnings per ordinary share
Loss available for equity holders (GBPm) (142.6) (290.0) (528.6)
Basic weighted average number of ordinary shares
(million) 704.2 328.1 424.7
Basic earnings per ordinary share (pence) (20.3p) (88.4p) (124.5p)
Diluted earnings per ordinary share
Loss available for equity holders (GBPm) (142.6) (290.0) (528.6)
Diluted weighted average number of ordinary shares
(million) 704.2 328.1 424.7
Diluted earnings per ordinary share (pence) (20.3p) (88.4p) (124.5p)
--------- ---------- -------------
Continuing and total operations - 6 months ended As presented Bonus As presented
30 June 2022 June 2022 element above
Half Year of rights
issue
(note
14)
-------------------------------------------------- ------------- ----------- -------------
Basic earnings per ordinary share
Loss available for equity holders (GBPm) (290.0) - (290.0)
Basic weighted average number of ordinary shares
(million) 116.5 211.6 328.1
Basic loss per ordinary share (pence) (249.0p) 160.6p (88.4p)
------------- ----------- -------------
Diluted earnings per ordinary share
Loss available for equity holders (GBPm) (290.0) - (290.0)
Basic weighted average number of ordinary shares
(million) 116.5 211.6 328.1
Basic loss per ordinary share (pence) (249.0p) 160.6p (88.4p)
------------- ----------- -------------
The impact of ordinary shares issued as part of the Long-term
incentive plans ("LTIP") and the potential number of ordinary
shares issued as part of the 2020 issue of share warrants have been
excluded from the weighted average number of diluted ordinary
shares as including them is anti-dilutive in arriving at diluted
earnings per share. On 26 June 2023 the Group also announced a
future agreement with Lucid Group Inc. whereby equity will be
issued in partial exchange for access to technology. On the same
day, the Group also announced there would be no future issue of
shares for access to Mercedes-Benz AG technology (tranche 2).
8. Research and Development expenditure
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
-------------------------------------------------- --------- --------- -------------
Total research and development expenditure 124.7 113.9 246.1
Capitalised research and development expenditure (121.0) (106.1) (232.0)
--------- --------- -------------
Research and development expenditure recognised
as an expense during the period 3.7 7.8 14.1
--------- --------- -------------
9. Net debt
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
----------------------------------------------- ---------- ---------- ------------
Cash and cash equivalents 400.1 156.2 583.3
Cash held not available for short-term use(1) - 2.0 0.3
Bank loans and overdrafts(2) (57.8) (62.3) (107.1)
Inventory repurchase arrangements(3) (39.9) (38.8) (38.2)
Senior Secured Notes (1,051.9) (1,221.5) (1,104.0)
Lease liabilities (96.7) (102.0) (99.8)
(846.2) (1,266.4) (765.5)
---------- ---------- ------------
1. At 30 June 2023 GBPnil (30 June 2022: GBP2.0m; 31 December
2022: GBP0.3m) held in certain local bank accounts had been frozen
in relation to a number of local arbitration proceedings. The cash
held in these accounts did not meet the definition of cash and cash
equivalents and therefore was classified as an other financial
asset.
2. At 30 June 2023 GBP29.0m of the GBP90.6m revolving credit
facility was drawn down in cash (30 June 2022: GBP34.0m of GBP90.6m
facility, 31 December 2022: GBP78.5m of GBP90.6m facility). GBP5.5m
of the remaining facility has been utilised through the issuance of
letters of credit and guarantees (30 June 2022: GBP6.6m of the
remaining facility was utilised; 31 December 2022: GBP5.2m was
utilised). The loan is presented net of amortised transaction fees
of GBP1.2m (30 June 2022: GBP1.7m; 31 December 2022: GBP1.4m).
At 30 June 2022, the Group held a bilateral revolving credit
facility with HSBC Bank plc ("HSBC"), whereby Chinese renminbi with
an initial value of GBP31.9m were deposited in a restricted account
with HSBC in China in exchange for a GBP30.0m sterling overdraft
facility with HSBC in the United Kingdom. The restricted cash has
been revalued at 30 June 2023 to GBP30.1m (June 2022: GBP33.6m;
December 2022: GBP32.8m) and is shown in the cash and cash
equivalents value above. The cash in China cannot be withdrawn
whilst the loan remains in place.
3. At 30 June 2023 a repurchase liability of GBP39.9m including
accrued interest of GBP1.9m (December 2022: GBP38.2m including
accrued interest of GBP0.2m) was included within accruals and other
payables and Net Debt relating to parts for resale, service parts
and production stock which were sold in 2022 and subsequently
repurchased. Under the repurchase agreement, which has a repayment
date of July 2023, the Group will repay GBP40.0m gross of indirect
tax. As part of this arrangement legal title to the parts was
surrendered, however control remained with the Group. This
repurchase arrangement will be fully settled in 2023. As at 30 June
2022 a similar arrangement existed and had a carrying value of
GBP38.8m which included accrued interest of GBP1.1m. This
arrangement was fully settled during 2022.
10. Movement in net debt
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
------------------------------------------------------ -------- ---------- ------------
Movement in net debt
Net (decrease)/increase in cash and cash equivalents (183.2) (262.7) 164.4
Add back cash flows in respect of other components
of net debt:
Proceeds from inventory repurchase arrangement - (37.7) (75.7)
Movement in cash held not available for short-term
use (0.3) 0.2 (1.5)
Repayment of existing borrowings 49.5 52.3 172.7
Repayment of inventory repurchase arrangement - 20.0 60.0
Lease liability payments 4.0 6.4 10.0
Increase in net debt arising from cash flows (130.0) (221.5) 329.9
Non-cash movements:
Foreign exchange gain/(loss) on secured loan
notes 61.7 (134.1) (156.2)
Interest added to debt (7.4) (9.7) (15.7)
Borrowing fee amortisation (4.2) (4.4) (25.4)
Lease liability interest charge (2.0) (2.0) (4.5)
Lease modifications (0.6) (2.8) (3.5)
New leases (1.4) (1.4) (2.2)
Exchange and other adjustments 3.2 1.1 3.7
-------- ---------- ------------
(Increase)/decrease in net debt (80.7) (374.8) 126.1
Net debt at beginning of the period/year (765.5) (891.6) (891.6)
-------- ---------- ------------
Net debt at the end of the period/year (846.2) (1,266.4) (765.5)
-------- ---------- ------------
11. Financial Instruments
The following tables provide an analysis of financial
instruments grouped into Levels 1 to 3 based on the degree to which
the value is observable. There were no transfers between levels
during the current and comparative periods.
30 June 2023 30 June 2022 31 December 2022
Nominal Book Fair Nominal Book Fair Nominal Book Fair
Value Value Value Value Value Value Value Value Value
Included in assets GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Level 2
Forward foreign exchange
contracts - 1.9 1.9 - 2.1 2.1 - 2.3 2.3
Loan assets - - - 1.4 1.4 1.4 0.6 0.6 0.6
Level 3
Other derivative contracts - 6.4 6.4 - 3.7 3.7 - 5.6 5.6
-------- -------- -------- -------- -------- -------- -------- -------- --------
- 8.3 8.3 1.4 7.2 7.2 0.6 8.5 8.5
-------- -------- -------- -------- -------- -------- -------- -------- --------
30 June 2023 30 June 2022 31 December 2022
Nominal Book Fair Nominal Book Fair Nominal Book Fair
Value Value Value Value Value Value Value Value Value
Included in liabilities GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Level 1
$1,143.7m (June 2022:
$1,186.0m; December
2022: $1,143.7m) 10.5%
US Dollar 1(st) Lien
Notes 899.6 885.7 909.4 976.3 957.7 896.9 950.8 935.0 893.0
$236.1m (June 2022:
$366.1m; December 2022:
$229.1m) 15.0% US Dollar
2(nd) Lien Split Coupon
Notes* 185.7 166.2 201.6 301.9 263.8 272.6 190.5 169.0 194.4
Level 2
Forward foreign exchange
contracts - 0.8 0.8 - 5.9 5.9 - 0.7 0.7
Derivative option over
own shares 48.1 60.6 60.6 48.1 6.6 6.6 48.1 22.6 22.6
1,133.4 1,113.3 1,172.4 1,326.3 1,234.0 1,182.0 1,189.4 1,127.3 1,110.7
-------- -------- -------- -------- -------- -------- -------- -------- --------
*The fair value of the second lien notes as at 30 June 2023
includes $9.8m, $10.5m, $10.8m, $6.8m and $7.0m of PIK notes issued
in April 2021, November 2021, April 2022, November 2022, and April
2023 respectively. The comparative figures as at 30 June 2022 and
31 December 2022 include the respective PIK issuances which had
taken place ahead of the Balance Sheet date.
Under IFRS 7, such assets and liabilities are classified by the
way in which their fair value is calculated. The interest bearing
loans and borrowings are considered to be level 1 liabilities.
Forward foreign exchange contracts are considered to be level 2
assets and liabilities. Derivative options are considered to be
level 2 liabilities.
IFRS 13 defines each level as follows:
-- level 1 assets and liabilities have inputs observable through quoted prices;
-- level 2 assets and liabilities have inputs observable, other
than quoted prices, either directly (i.e. as prices) or indirectly
(i.e. derived from prices); or
-- level 3 assets and liabilities as those with inputs not based
on observable market data.
The forward currency contracts are carried at fair value based
on pricing models and discounted cash flow techniques derived from
assumptions provided by third party banks.
Loan assets comprised amounts advanced to Velocitas Designated
Activity Company ("Velocitas"), the special purpose vehicle which
provided the Group's wholesale financing funding. The Group acted
as a senior and subordinated lender to Velocitas providing 5% of
all funding into Velocitas in order to comply with securitisation
rules. Amounts advanced to Velocitas comprised a long-term
subordinated loan repayable at the end of the facility once all
financed dealer debt is settled and a short-term senior loan which
fluctuates on a monthly basis depending on the level of financed
dealer debt. The subordinated loan advanced in 2021 is a
mixed-currency loan of GBP0.5m sterling equivalent which was
outstanding at 30 June 2022 and 31 December 2022. At 30 June 2022,
the senior loan amounted to GBP0.9m (31 December 2022: GBP0.1m).
Both loans were fully repaid to the Group in the 6 months ended 30
June 2023 following the closure of the Velocitas program.
Other derivative contracts comprises warrant options and
non-option derivatives both of which entitle the Group to subscribe
for equity in AMR GP Holdings Limited, the immediate parent company
of AMR GP Limited. The warrant options have a carrying value of
GBP5.2m as at 30 June 2023 (30 June 2022: GBP3.4m; 31 December
2022: GBP4.7m). The fair value movement is recognised within the
Income Statement in administrative expenses. A corresponding
liability was recognised on inception of the arrangement which
represents an accrual for that element of future sponsorship
payments. Following an agreement to amend the sponsorship
arrangement in 2023, in which the terms of sponsorship up to and
including 2030 were agreed, the option will continue until
2030.
The fair value of the warrant equity option above has been
established by applying the proportion of equity represented by the
derivative to an assessment of the enterprise value of AMR GP
Limited, which is then adjusted to reflect marketability and
control commensurate with the size of the investment. The
enterprise value has been estimated using a blend of measures
including an income-based approach and a market-based approach. Due
to the size of the potential investment, as a proportion of the
equity of AMR GP Limited, there are no plausible sensitivities
which would give rise to a material variation in the carrying value
of the derivative.
There is a further embedded derivative in the agreement in
respect of an additional economic interest in the equity of AMR GP
Limited which has been assessed as having a carrying value of
GBPnil at inception. This derivative entitles the Group to
subscribe for further share capital in AMR GP Limited in the event
that the sponsorship agreement is extended for a further five year
period to 2030, a condition which completed in the 6 months ended
30 June 2023. The fair value of this derivative is GBP1.2m (30 June
2022: GBP0.3m; 31 December 2022: GBP0.9m) and movement in this
derivative is recognised within the Income Statement in
administrative expenses. The movement in the value of this
derivative has been estimated using the same method as the warrant
equity option disclosed above. There is no corresponding liability
recorded as it is a non-option embedded derivative.
The First and Second Lien Senior Secured Notes are all valued at
amortised cost retranslated at the year-end foreign exchange rate.
The fair value of these Notes at the current and comparative period
ends are determined by reference to the quoted price on The
International Stock Exchange Authority in St. Peter Port, Guernsey.
The fair value and nominal value exclude the impact of transaction
costs.
The derivative option over own shares reflects the detachable
warrants issued alongside the second lien Senior Secured Notes
enabling the warrant holders to subscribe for a number of Ordinary
Shares in the Company. The fair value is calculated using a
binomial model and updated at each period end reflecting the latest
market conditions. The inputs used in the valuation model include
the quoted share price, market volatility, exercise ratio, and
risk-free rate. The fair value movement in the option for the
period ended 30 June 2023 was a loss of GBP37.9m (30 June 2022:
gain of GBP24.4m; 31 December 2022: GBP8.4m) and is recognised
within the Income Statement in interest income as an adjusting
item.
12. Provisions
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
-------------------- -------- -------- ------------
Warranty provision 40.3 38.5 41.1
40.3 38.5 41.1
-------- -------- ------------
Current 18.3 17.9 18.6
Non-current 22.0 20.6 22.5
-------- -------- ------------
40.3 38.5 41.1
-------- -------- ------------
13. Pension Scheme
The net liability for defined benefit obligations of GBP61.2m at
31 December 2022 has decreased to a net liability of GBP54.8m at 30
June 2023. The movement of GBP6.4m comprises an underlying charge
to the Income Statement of GBP1.4m offset by an actuarial gain of
GBP0.3m in addition to contributions of GBP7.5m.
14. Share capital
30 June 2023 30 June 2022 31 December
2022
Number GBPm Number GBPm Number GBPm
----------------- ------------ ----- ------------ ----- ------------ -----
Ordinary shares 728,074,580 72.8 116,459,513 11.6 698,757,075 69.9
------------ ----- ------------ ----- ------------ -----
Movement in Ordinary shares:
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 GBP78.1m, with GBP2.4m recognised as
share capital and the remaining GBP75.7m recognised as share
premium.
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 GBP575.8m, with GBP55.9m recognised as
share capital and the remaining GBP519.9m recognised as share
premium. Share premium is reduced by GBP21.6m reflecting
transaction fees paid of which GBP2.9m 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 211,604,112 shares issued were considered bonus shares.
The weighted average shares used to calculate comparative earnings
per share (see note 7) was adjusted accordingly.
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 GBP94.8m with GBP2.8m recognised as share capital
and the remaining GBP91.7m recognised as share premium. Transaction
fees of GBP0.3m were deducted from share premium.
On 30 May 2023 the Company issued 1,017,505 ordinary shares
under the Company's Share Incentive Plan at nominal value. A
transfer from retained earnings of GBP0.1m took place, with GBP0.1m
recognised in share capital.
15. Related party transactions
Transactions during 2023
During the 6 months ended 30 June 2023, a net marketing expense
amounting to GBP7.9m of sponsorship has been incurred in the normal
course of business with AMR GP Limited, 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. Less than GBP0.1m remains due from
AMR GP Limited at 30 June 2023 relating to these transactions. In
addition, the Group incurred costs of GBP0.1m associated with
engineering design on an upcoming vehicle programme from Aston
Martin Performance Technologies Limited ("AMPT"). A total of
GBP0.1m is outstanding to AMPT at 30 June 2023. AMPT is an
associated entity of AMR GP. 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 GBP0.1m relating to the export and
transport of a vehicle. The services were provided by a Group
company. GBPnil is outstanding at 30 June 2023.
On 26 June 2023 the Group announced a strategic supply
arrangement with Lucid Group, Inc. 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 Group, Inc. by the Public Investment Fund ("PIF"). PIF are
also a substantial shareholder in the Group, and two members of the
Group's KMP & Non-Executive Directors are members of the PIF
KMP.
During the 6 months ended 30 June 2023, a separate member of the
Group's KMP & Non-Executive Director placed a deposit of
GBP0.5m with a Group company for the future purchase of a
vehicle.
During the 6 months ended 30 June 2023, the Group incurred costs
of GBP2.0m 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 a member of the Group's KMP and therefore any future
spend under the contract will not be disclosed as a related party
transaction.
During the 6 months ended 30 June 2023, the Group incurred a
rental expense of GBP0.6m from Michael Kors (USA), Inc., a Company
which is owned by Capri Holdings Limited. A member of the Group's
KMP and Non-Executive Director is also a member of Capri Holdings
Limited's KMP.
During the 6 months ended 30 June 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
GBP0.1m of expense. GBPnil was outstanding at the 30 June 2023.
Transactions during 2022
During the 6 months ended 30 June 2022, a net marketing expense
amounting to GBP9.2m of sponsorship has been incurred in the normal
course of business with AMR GP Limited, an entity indirectly
controlled by a member of the Group's 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, AMR GP acquired a car from the Group at a
total cost of GBP0.7m. Less than GBP0.1m remains due from AMR GP
Limited at 30 June 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 a vehicle from a Group company for GBP0.2m. GBPnil is
outstanding at 30 June 2022.
During the 6 months ended 30 June 2022, a separate member of the
Group's KMP & Non-Executive Director placed a deposit of
GBP1.5m with a Group company for the future purchase of a
vehicle.
During the 6 months ended 30 June 2022, a further separate
member of the Group's KMP & Non-Executive Director transacted
with a Group company to undertake service work on a car for a total
cost of less than GBP0.1m. GBPnil was outstanding at 30 June
2022.
Terms and conditions of transactions with related parties
Sales and purchases between related parties are made at normal
market prices unless otherwise stated. Outstanding balances with
entities other than subsidiaries are unsecured, interest free and
cash settlement is expected within 60 days of invoice. Terms and
conditions for transactions with subsidiaries are the same, with
the exception that balances are placed on intercompany accounts.
The Group has not provided or benefited from any guarantees for any
related party receivables or payables.
16. Contingent liabilities
In the normal course of the Group's business, claims, disputes,
and legal proceedings involving customers, dealers, suppliers,
employees or others are pending or may be brought against Group
entities arising out of current or past operations. There is
presently a dispute between the Group and the other shareholders of
one of its subsidiary entities, which is ongoing and from which a
future obligation may arise. The Group denies the claims made and
is working to resolve the matters raised.
17. Alternative performance measures
In the reporting of financial information, the directors have
adopted various Alternative Performance Measures ("APMs"). APMs
should be considered in addition to IFRS measurements. The
directors believe that these APMs assist in providing useful
information on the underlying performance of the Group, enhance the
comparability of information between reporting periods, and are
used internally by the directors to measure the Group's
performance.
The key APMs that the Group focuses on are as follows:
i) Adjusted EBT is the loss before tax and adjusting items as
shown in the Consolidated Income Statement.
ii) Adjusted EBIT is operating (loss)/profit before adjusting items.
iii) Adjusted EBITDA removes depreciation, loss on sale of fixed
assets and amortisation from adjusted EBIT.
iv) Adjusted operating margin is adjusted EBIT divided by revenue.
v) Adjusted EBITDA margin is adjusted EBITDA (as defined above) divided by revenue.
vi) Adjusted Earnings Per Share is loss after tax before
adjusting items as shown in the Consolidated Income Statement,
divided by the weighted average number of ordinary shares in issue
during the reporting period.
vii) Net Debt is current and non-current borrowings in addition
to inventory repurchase arrangements and lease liabilities, less
cash and cash equivalents and cash held not available for
short-term use as shown in the Consolidated Statement of Financial
Position.
viii) Adjusted leverage is represented by the ratio of Net Debt
to the last twelve months ('LTM') Adjusted EBITDA.
ix) Free cashflow is represented by cash (outflow)/inflow from
operating activities plus the cash used in investing activities
(excluding interest received) plus interest paid in the year less
interest received.
Income Statement
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
-------------------------------- --------- --------- -------------
Loss before tax (142.2) (285.4) (495.0)
Adjusting operating expenses 6.5 17.2 23.9
Adjusting finance income - (24.4) (12.5)
Adjusting finance expense 37.9 - 32.6
Adjusted loss before tax (EBT) (97.8) (292.6) (451.0)
Adjusted finance income (66.8) (1.2) (3.0)
Adjusted finance expense 77.9 221.1 336.1
--------- --------- -------------
Adjusted operating loss (EBIT) (86.7) (72.7) (117.9)
Reported depreciation 45.7 38.2 88.8
Reported amortisation 121.6 93.1 219.3
Adjusted EBITDA 80.6 58.6 190.2
--------- --------- -------------
Earnings per share
6 months
6 months ended 12 months
ended 30 June ended
30 June 2022 31 December
2023 Restated 2022
GBPm GBPm GBPm
-------------------------------------------------- --------- ---------- -------------
Adjusted earnings per ordinary share
Loss available for equity holders (GBPm) (142.6) (290.0) (528.6)
Adjusting items
Adjusting items before tax (GBPm) 44.4 (7.2) 44.0
Tax on adjusting items (GBPm) - 1.8 -
--------- ---------- -------------
Adjusted loss (GBPm) (98.2) (295.4) (484.6)
Basic weighted average number of ordinary shares
(million) 704.2 328.1* 424.7
Adjusted loss per ordinary share (pence) (13.9p) (90.0p) (114.1p)
--------- ---------- -------------
Adjusted diluted earnings per ordinary share
Adjusted loss (GBPm) (98.2) (295.4) (484.6)
Diluted weighted average number of ordinary
shares (million) 704.2 328.1* 424.7
Adjusted diluted loss per ordinary share (pence) (13.9p) (90.0p) (114.1p)
--------- ---------- -------------
* The weighted average number of ordinary shares has been
restated reflecting the bonus element of the rights issue
undertaken in September 2022 (note 7).
Net debt
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
-------------------------------------------------------- ---------- ---------- ------------
Opening cash and cash equivalents 583.3 418.9 418.9
Cash inflow/(outflow) from operating activities 17.5 (33.1) 127.1
Cash outflow from investing activities (175.0) (137.5) (284.7)
Cash (outflow)/inflow from financing activities (16.1) (104.2) 315.0
Effect of exchange rates on cash and cash equivalents (9.6) 12.1 7.0
---------- ---------- ------------
Cash and cash equivalents at the end of the
period 400.1 156.2 583.3
Cash held not available for short-term use - 2.0 0.3
Inventory repurchase arrangement (39.9) (38.8) (38.2)
Lease liabilities (96.7) (102.0) (99.8)
Borrowings (1,109.7) (1,283.8) (1,211.1)
---------- ---------- ------------
Net Debt (846.2) (1,266.4) (765.5)
Adjusted LTM EBITDA 212.2 147.7 190.2
Adjusted leverage (LTM) 4.0x 8.6x 4.0x
---------- ---------- ------------
Free Cashflow
30 June 30 June 31 December
2023 2022 2022
GBPm GBPm GBPm
------------------------------------------------------ -------- -------- ------------
Net cash (outflow)/inflow from operating activities 17.5 (33.1) 127.1
Net cash used in investing activities less interest
received (180.2) (138.2) (286.9)
Interest paid less interest received (55.6) (62.5) (139.0)
-------- -------- ------------
Free cashflow (218.3) (233.8) (298.8)
-------- -------- ------------
18. Post balance sheet events
On 4 July 2023 3,686,017 Ordinary Shares in the Company were
issued to satisfy the redemption of 12,286,732 warrant options.
GBP6.2m of cash was received for the shares prior to 30 June 2023
and is included within the 30 June 2023 cash balance presented in
the Statement of Financial Position and included within Financing
Cashflows in the Statement of Cashflows.
On 12 July 2023 3,980,921 Ordinary Shares in the Company were
issued to satisfy the redemption of 13,269,737 warrant options.
After the completion of these transactions, the Company's total
issued Share Capital consists of 735,741,518 Ordinary Shares.
RESPONSIBILITY STATEMENT
The Interim consolidated financial information has been prepared
in accordance UK adopted International Accounting Standard 34,
"Interim Financial Reporting". We confirm that to the best of our
knowledge that the Interim Management Report includes a fair review
of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being
an indication of important events that have occurred during the
first six months of the financial year and their impact on the
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
By order of the Board
Amedeo Felisa Doug Lafferty
Chief Executive Officer Chief Financial Officer
25 July 2023 25 July 2023
Independent review report to Aston Martin Lagonda Global
Holdings plc
Conclusion
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 June 2023 which comprises the Consolidated
Statement of Comprehensive Income, the Consolidated Statement of
Changes in Equity, the Consolidated Statement of Financial
Position, the Consolidated Statement of Cash Flows and notes 1 to
18. We have read the other information contained in the half yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
June 2023 is not prepared, in all material respects, in accordance
with UK adopted International Accounting Standard 34 and the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International
Standard on Review Engagements 2410 (UK) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" (ISRE) issued by the Financial Reporting Council. A review
of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with UK adopted international
accounting standards. The condensed set of financial statements
included in this half-yearly financial report has been prepared in
accordance with UK adopted International Accounting Standard 34,
"Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis of Conclusion
section of this report, nothing has come to our attention to
suggest that management have inappropriately adopted the going
concern basis of accounting or that management have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with this ISRE, however future events or conditions may
cause the entity to cease to continue as a going concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the company's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly report, we are responsible for
expressing to the Company a conclusion on the condensed set of
financial statements in the half-yearly financial report. Our
conclusion, including our Conclusions Relating to Going Concern,
are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK) "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial
Reporting Council. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
company, for our work, for this report, or for the conclusions we
have formed.
Ernst & Young LLP
Birmingham
25 July 2023
[3] Dealers' sales to customers (some Specials are direct to
customer)
4 Company sales to dealers (some Specials are direct to
customer)
[5] ,6 For definition of alternative performance measures please
see Appendix
7,[8] Scope 1 CO(2) emissions
9, [10] Restated from Q1 2023 results
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
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