TIDMAML
RNS Number : 9160Y
Aston Martin Lagonda Global Hld PLC
07 January 2020
7 January 2020
Aston Martin Lagonda Global Holdings plc
FY 2019 Trading Update
-- The challenging trading conditions highlighted in November
continued through the peak delivery period of December resulting in
lower sales, higher selling costs and lower margins
-- Core wholesales declined 7% year-on-year to 5,809
o Americas, UK and APAC performed broadly in-line with our
volume expectations, while Europe underperformed
o Vantage performance improved in the fourth quarter, supported
by retail financing particularly in the UK and the US
-- All planned Specials (65) including the remaining 13 DB4 GT
Zagato Continuations were delivered
-- Core retail sales increased by 12% year-on-year and exceeded
wholesale volumes leading to reduced dealer inventory and reversing
the trend of the prior year
-- For FY 2019, we now expect adjusted EBITDA to be
GBP130m-GBP140m with an associated margin of 12.5-13.5% principally
reflecting:
o Higher than anticipated retail and customer financing
support;
o Weaker core model mix weighing on average selling price, with
a shift towards Vantage;
o Lower than expected wholesale volumes as noted above;
o Incremental fixed marketing spend to support retail campaigns,
particularly in the US, leading to lower cost savings than
originally planned and;
o The late December rally in Sterling resulting in an
incremental FX headwind due to retranslation of non-Sterling
balances. At net income level, translational exposure on the USD
denominated debt will be significantly positive
-- Year-end cash balance was GBP107m, giving expected net debt and leverage ranges of
GBP875m-GBP885m and 6.2-6.8x* respectively
-- DBX order book has built rapidly to c.1,800 since it opened
on 20 November 2019, c.1,200 of which are customer-specified
-- As a result, we have now exceeded the various conditions to
be able to draw the additional $100m of April 2022 notes and
currently anticipate drawing these down within the next four
weeks
-- Consistent with our announcement on 13 December 2019, we
continue to review our funding requirements and the various funding
options
-- We also remain in discussions with potential strategic
investors which may or may not involve an equity investment into
the Company
-- We are reviewing our planning for FY 2020 and will provide an
update on our expectations in due course. Preliminary Results for
the twelve months to 31 December 2019 will be announced on 27
February 2020.
* Note leverage is Net Debt/last 12 months adjusted EBITDA
Dr Andy Palmer, Aston Martin Lagonda President and Group CEO,
said:
"From a trading perspective, 2019 has been a very disappointing
year. Whilst retails have grown by 12%, our best result since 2007,
our underlying performance will fail to deliver the profits we
planned, despite a reduction in dealer stock levels.
We are taking a series of actions to manage the business through
this difficult period. This will include a cost saving programme
alongside a focus on returning dealer stock levels to those more
normally associated with a luxury company; winning back our strong
price positioning is a key focus.
The signs from the launch of the DBX are very encouraging and
the order rate seen to date is materially better than for any of
our previous models. Launch plans are progressing well and we are
achieving all of our key operational milestones. Start of
production remains on track for Q2 2020.
Whilst we are disappointed with trading performance in 2019, our
focus is now on revitalising the business, launching DBX and
ensuring profitable growth in the medium-term."
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
Catherine Sukmonowski, Company Secretary.
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
Charlotte Cowley Director of Investor Relations +44 (0)7771
976764
charlotte.cowley@astonmartin.com
Media
Kevin Watters Director of Communications +44 (0)7764 386683
kevin.watters@astonmartin.com
Toby Bates Senior Adviser, Financial Communications +44 (0)7584
773837
toby.bates1@astonmartin.com
Grace Barnie Corporate Communication Manager +44 (0)7880
903490
grace.barnie@astonmartin.com
Brunswick
Dan Roberts, Andrew Porter, Diana Vaughton +44 (0)204045959
astonmartin@brunswickgroup.com
-- There will be a call for investors and analysts today at 07:45am UK time
-- The conference call can be accessed live via a dial-in
facility on +44 (0)20 7192 8391; PIN: 6639757#
-- A recording of this call will be available on the corporate website later today https://www.astonmartinlagonda.com/investors
-- Current market expectations, updated on 4 December 2019, can
be found on our corporate website here:
https://www.astonmartinlagonda.com/investors/consensus
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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