Currently reading: Aston Martin issues new shares in fundraising drive
British firm seeks new capital to help recover from financial hit of Covid-19 while gearing up to launch DBX
James Attwood, digital editor
News
2 mins read
26 June 2020

Aston Martin will issue new shares worth around 20% of its existing capital as part of a series of measures to raise about £245 million to help it recover from the coronavirus pandemic.

The struggling British firm lost £119m in the first quarter of this year as lockdown restrictions caused demand for its sports car range to plummet. The latest measures are designed to boost Aston Martin’s finances as it gears up to begin deliveries of the crucial DBX SUV next month.

The company will issue new shares worth 19.99% of its existing ordinary share capital. New chairman Lawrence Stroll’s Yew Tree consortium will buy 24.99% of those shares, with Prestige Motor Holdings taking 7.78%.

The firm has also received approval for a Coronavirus Large Business Interruption Loan Scheme loan of £20m and is also planning to draw down around £55m of borrowing.

Under Stroll’s leadership, Aston Martin has recently worked to reduce its dealer stock and cut production of its sports car models, which will involve the loss of around 500 jobs. Stroll said the new steps will “improve financial flexibility in a period of ongoing uncertainty” and provide “additional funding to executive the business plan”.

The company has also undergone a major restructuring, with the departure of former chief executive Andy Palmer. Mercedes-AMG boss Tobias Moers will replace him and is due to start in August.

Stroll said full production of the DBX has now begun at Aston’s new St Athan plant, with deliveries on course for July. He also said development work has resumed on the Valkyrie hypercar, which is set to be launched next year.

Around 90% of Aston Martin’s dealerships have now reopened following the coronavirus pandemic, although the firm expects sales to remain low in the current financial quarter. Aston Martin said it has strong demand for the DBX and predicts the SUV will account for around half its wholesale sales this year.

Although the St Athan plant is fully operational, Aston’s Gaydon facility remains closed as it lowers its stock of sports car models. The firm has yet to give a date when the Gaydon facility will reopen.

READ MORE

Aston Martin posts £119 million loss due to coronavirus impact

Aston Martin to cut 500 jobs due to reduced sports car production

Aston Martin plots long-wheelbase DBX and coupe version

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14

26 June 2020

Or maybe loose it all... But if past performance is any indication of future success, then maybe a turnaround is due. 

26 June 2020

Moers isn't the person to bring success back to Aston either. And the new shares are the equivalent of what got Stroll a quarter of the company and seat as chairman. What would the new shareholders get?

 

Moers is running away from AMG after failing with the One project. He's not a deliverer of cars, he's not the right person for Aston. He believes Reichman is doing a good job, yet it's his designs that aren't selling.

 

Aston needs someone who will fire Reichman. And not someone like Stroll who's only interested in the "Brand", not product. They need Dr Bez back!

 

27 June 2020
Insightful. Pitch it to them.

26 June 2020

When you saw an Aston Martin on the road it made your heart sing, such was its beauty, now you look and think when will theses ugly ducklings turn into swans!!

 

26 June 2020

Jesus, the morons investing in this crap company. Another 200 million needed as clained by the times to save and uprate this deadbeat. After last years debacle you would think the idiots who lost fortunes would consider their fingers well and truly burnt.

This company needs complete change of strategy to resue it.

26 June 2020

From £19 a share to penny stock in just 2 years.

Unbelivable misjudgement. Hope some of the shorters made fortunes

 

27 June 2020
lambo58 wrote:

From £19 a share to penny stock in just 2 years.

Unbelivable misjudgement. Hope some of the shorters made fortunes

 

 

Steady decline over the years. 12M total return of -84.2%. Hardcore.

But when was it 19 quid? I see max 610p back in Feb 2018.

27 June 2020
NoPasaran wrote:

lambo58 wrote:

From £19 a share to penny stock in just 2 years.

Unbelivable misjudgement. Hope some of the shorters made fortunes

 

 

Steady decline over the years. 12M total return of -84.2%. Hardcore.

But when was it 19 quid? I see max 610p back in Feb 2018.

Back in Oct 2018, sorry, misred date format. There was a 4-for-1 rights issue, were it not for the issue it would technically not be a penny stock today.

27 June 2020
NoPasaran wrote:

NoPasaran wrote:

Steady decline over the years. 12M total return of -84.2%. Hardcore.

But when was it 19 quid? I see max 610p back in Feb 2018.

Back in Oct 2018, sorry, misred date format. There was a 4-for-1 rights issue, were it not for the issue it would technically not be a penny stock today.

 

I'm not sure it was a share split but a huge number of new shares were created when Stroll bought in at 25% of the company, and effectively gained control even though he doesn't have 51% of the company.

 

As a result all the records for Aston seem to have been adjusted downward. But the shares were launched at £19 each, valuing the company at £4.3bn, and it's been on a slide ever since. At one point approacing £400M. Over 90% of the value lost.

 

It was a disaster similar to the dot (trying to avoid the anti-spam filter) com era.

 

And yet the biggest problem, the lack of sales because people don't like their current designs, isn't being fixed. it is insanity.

 

27 June 2020

My colleague at Citibank made a personal gain of 2.7 million shorting this ugly bitch as I reported last year. He knew very well it was deeply over valued as he had owned a couple of the things in the previous 5 years and they had spent more time in the shop getting problems sorted than on the road. He was once stranded on the amalfi coast near Revolo which he found mortifying as he was trying to impress his fiance at the time. It was at that point to vowed never to buy one again and broke one of his own rules never to buy jap crap. He now owns an NSX and the Lexus LC 500 neither of which you could prise out of him if life depended on it.

I should have done the same but went long on Tesla which initially didn't do so well for me but now by some miracle has passed a 1000 bucks a share. Time to cash in methinks and then buy back in at a more sensible price. I am wandering off topic, I apologise. AM needs a complete new design team and a total rethink of its drivetrain immediately.  Design first, new hybrid engines so the shock isn't too severe for dinosaurs that still think racket boxes are king, but would economy and then ultimately electric. 

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