Source - LSE Regulatory
RNS Number : 7084X
Aston Martin Lagonda Global Hld PLC
07 January 2022
 

7 January 2022

Aston Martin Lagonda Global Holdings plc
FY 2021 Trading Update

Aston Martin Lagonda Global Holdings plc ("Aston Martin" or the "Company") today updates on FY 2021 trading.

·    Wholesales grew 82% to 6,182 as planned

3,001 DBX units wholesaled in first full year of production taking estimated 20% market share of the luxury SUV segment

·    Retails (dealer sales to customers) greater than wholesales for both GT/Sport and DBX as aligned supply to demand and as we operate as a true luxury brand

·    Following an extensive and challenging development and testing schedule which has now successfully completed, the game-changing Aston Martin Valkyrie hypercar programme is in production and deliveries to customers have commenced

With a quality focused production ramp-up, 10 Aston Martin Valkyrie and Valkyrie AMR Pro vehicles were shipped in Q4. This was fewer than previously planned and accordingly, adjusted EBITDA is anticipated to be c.£15m lower than expected. The impact is timing only, all Aston Martin Valkyrie Coupes are sold and remain allocated to customers with significant deposits

An associated reduction in 2021 depreciation and amortisation is expected to result in a broadly net neutral impact on adjusted operating profit

This timing change will see deliveries and the associated EBITDA continue through 2022 as planned and now through 2023

·    Year-end cash balance of c.£420m, higher than previously anticipated

·    Preliminary results for the twelve months to 31 December 2021 will be announced on 24 February 2022

Lawrence Stroll, Aston Martin Lagonda Executive Chairman commented:

"I am extremely pleased that our core business has delivered to plan with over 6,000 core wholesales in the year whilst driving inventory to levels that are appropriate for an ultra-luxury business. The evidence is there that our strategy is working, as retail sales are well ahead of wholesales supported by strong pricing and improving residual values. It is a very long time since the core business was in such good health as it is today.

We have achieved an enormous amount and are well on track with our transformation of Aston Martin into one of the greatest ultra-luxury brands in the world with new leadership, partners and products, and our return to Formula OneTM, which has significantly increased our brand exposure, perception and desirability. We inherited a challenging programme with Valkyrie but we are now producing these fabulous hypercars. Our progress to-date underpins my confidence in the future, our continued success and the potential for the business. With a full year of DBX deliveries completed and our compelling product pipeline, including a new generation of front-engine sports cars in 2023, I am more assured than ever of achieving our medium-term objectives of revenues of c.£2bn and adjusted EBITDA of c.£500m by 2024/25."

Tobias Moers, Aston Martin Lagonda Chief Executive Officer commented:

"Our core business delivered as planned while navigating a challenging external operating environment. Brand desirability is strong, with new customers being attracted to Aston Martin and retail sales ahead of wholesales as we follow our demand-led ultra-luxury business model. We are achieving strong pricing and closed the year with dealer stock at optimum levels aligned to our business approach.

With the DBX having achieved about 20% share of the luxury SUV market I am pleased that we also successfully launched the DBX straight-six in China in November as planned, creating opportunities for 2022.

There is also tremendous demand for our limited editions including the two times oversubscribed Aston Martin Valkyrie Spider, launched in August, and the plug-in hybrid super car Valhalla. In addition, we have taken aggressive action on improving the efficiency and profitability of the business, through Project Horizon.

The Valkyrie programme is now running at rate for 2022 having focused on delivering with no compromises in the face of supply chain challenges and huge complexity in the production ramp-up which resulted in a timing impact for 2021. With a full year of Aston Martin Valkyrie programme deliveries in 2022 we are expecting to deliver significant growth, in addition to the launch of our second DBX derivative, intended to disrupt the performance luxury SUV market and the final edition of the V12 Vantage." 

 

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is being released on behalf of Aston Martin Lagonda Global Holdings plc by Rachael Hambrook, Interim Company Secretary.

Enquiries

Investors and Analysts


Charlotte Cowley

Director of Investor Relations

+44 (0)7771 976764
charlotte.cowley@astonmartin.com

Holly Grainger

Deputy Head, Investor Relations

+44 (0)7442 989551
holly.grainger@astonmartin.com

Brandon Henderson

Senior Manager, Investor Relations

+44 (0)7585 326704
brandon.henderson@astonmartin.com

Media



Kevin Watters

Director of Communications

+44 (0)7764 386683
kevin.watters@astonmartin.com

Paul Garbett

Head of Corporate and 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 73534200

 

 

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. 

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