Aston Martin has announced it is looking to raise cash as it issued its second profit warning in two months. The UK luxury car maker is now expecting to turn a profit of up to £280m ($352m) in 2024 – below last year’s £305.9m.
The company, famed for its links to the James Bond movie franchise, says a “minor delay” in deliveries of its ultra-exclusive Valiant models caused the shortfall.
Aston Martin had already warned over its profits in September, saying it had been hit by a fall in demand in China, where a slowing economy has affected sales of high-end goods. To bolster its finances, the car maker has said it will issue new shares and debt totalling £210m.
“The financing we are undertaking supports our growth and provides the investment to continue with future product innovation,” said Adrian Hallmark, Aston Martin’s chief executive, in a statement.
Aston Martin issues second profit
“We are already taking decisive actions to better position the group for the future including a more balanced production and delivery profile.”
Aston Martin said it now expects to deliver about half of 38 Valiant model orders by the end of the year. It had previously said it would be able to deliver the majority of those cars. UK-listed shares in the high-end car maker have now halved since the beginning of the year.
Aston Martin is a prestige brand which makes upmarket cars in relatively small quantities. Last year, it sold 6,620 vehicles, with about a fifth of those going to the Asia-Pacific region.
On top of the slowdown in China, it has faced problems at a number of suppliers, which have affected its ability to build a number of new models. As a result, Aston Martin has said it will make about 1,000 fewer cars than originally planned this year.
Car makers across Europe have been suffering lately, with disappointing sales and increased competition from abroad taking a heavy toll on earnings.
Source: BBC
In other news – Sir Keir Starmer says UK isn’t working as he announces jobs push
Prime Minister Sir Keir Starmer has promised to get more people into work with reforms to overhaul job centres and more mental health funding. Sir Keir said the government had inherited a country that “isn’t working”, and the changes would tackle the biggest drivers of unemployment and inactivity.
But many details of what the reforms will mean in practice have not been confirmed, and it is understood such decisions will not be made until next year. Read more
