Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Aston Martin flags big second-half recovery in interim results
(Sharecast News) - Shares in Aston Martin Lagonda were in the green on Wednesday morning, after it reiterated its 2024 guidance in its half-year results, including positive free cash flow in the second half. The FTSE 250 luxury carmaker said its wholesale volumes were down 32% in the first half to 1,998 units, aligning with its planned transition to new Vantage and upgraded DBX707 models.
Despite that decline, its total average selling price rose 29% to £274,000, driven by increased Specials volumes and enhanced personalisation options.
Revenue for the period was 11% weaker at £603m, impacted by lower volumes and foreign exchange headwinds.
Gross profit remained relatively stable, with a slight decrease of 1% to £233m.
The company said its gross margin improved 370 basis points to 39%, supported by a strong mix of higher-margin Specials and personalisation options.
Adjusted EBITDA for the six months ended 30 June was £62m, a 23% decrease from the first half of 2023, reflecting lower core volumes during the transition period.
The company reported an operating loss before tax of £106m, a 14% increase compared to the prior year, due to the transitional phase of its portfolio.
Net cash outflow from operating activities was £72m, with a free cash outflow of £313m, primarily due to capital expenditure on future product development and increased inventories.
Aston Martin successfully refinanced in the first quarter, establishing a new upsized revolving credit facility.
As of 30 June, total liquidity stood at £247m, and net debt was £1.19bn, reflecting higher gross debt and a lower cash balance.
Looking ahead, the company said it anticipated significant growth in the second half, driven by the launch of new models, including the V12 flagship Vanquish and the ultra-exclusive Special Valiant.
Wholesale volumes were expected to ramp up significantly, leading to substantial growth in gross profit and EBITDA in the second half.
Third-quarter volumes were projected to improve materially compared to the second, with the fourth quarter being the most significant for volumes and financial performance.
Aston Martin said it remained confident in delivering its full-year financial targets, including enhanced profitability, gross margin improvement to around 40%, and EBITDA margin expansion into the low-20s.
The company said it expected free cash flow to turn positive in the second half, supported by continued improvement in working capital management and disciplined capital investment.
Its medium-term outlook for 2027-2028 remained unchanged, with targets including revenue of around £2.5bn, a mid-40s gross margin, adjusted EBITDA of around £800m, and a net leverage ratio below 1.0x.
Aston Martin said it was planning to invest around £2bn from 2023 to 2027 to support long-term growth and the transition to electrification.
"In line with prior guidance, our execution in the first half of the year focused on the successful delivery of our new Vantage and upgraded DBX707 and we remain on track to deliver a strong second half performance," said executive chairman Lawrence Stroll.
"This will be underpinned by a significant ramp up in wholesale volumes including both the new V12 flagship Vanquish and ultra-exclusive Valiant Special, which we recently unveiled at Goodwood with Fernando Alonso.
"Our high performance products and ultra-luxury brand positioning strategies are creating strong demand amongst a new audience and existing loyal customers."
Stroll said the Vantage's "extremely positive" media reception and reviews positioned it "at the very top" of the sports car segment, while the upgraded DBX707 with new interior and "state-of-the-art" infotainment and the "multi-award-winning" DB12 underpinned the strength of the company's next generation models.
"In tandem, Formula One continues to drive considerable excitement and reappraisal of our brand with new and existing audiences.
"Earlier this year we successfully completed our planned refinancing, securing improved five-year terms following credit rating agency upgrades, and enhancing our liquidity through a new increased revolving credit facility provided by our existing lenders.
"We were also delighted to announce that Adrian Hallmark will become our new chief executive officer."
Aston Martin confirmed on Wednesday that Hallmark's appointment would take effect on 1 September.
At 1035 BST, shares in Aston Martin Lagonda Global Holdings were up 10% at 165p.
Reporting by Josh White for Sharecast.com.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.