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Aston Martin CFO departs as stock hits a record low, losses deepen

LONDON — Aston Martin shares slumped to a record low on Thursday after the British luxury carmaker said its losses ballooned last year and its chief financial officer would leave by the end of April. The firm, famed for being fictional agent James Bond's car of choice, posted a pretax loss of 104 million pounds ($135 million) last year compared with 68 million pounds in 2018 following a 9% decline in sales to dealers. Aston Martin is in the midst of restructuring after announcing last month that a consortium led by Canadian billionaire Lawrence Stroll would buy up to 20% of the company and existing shareholders would inject more cash. Its shares, which were listed in October 2018, have been on a steady downward trajectory ever since and hit a record low of 328 pence following the announcements on Thursday, more than 80% lower than their flotation price. "The big difference between last year and this year is the strength of the balance sheet," Chief Executive Andy Palmer told Reuters. "We're in a very different place and have therefore an ability to properly ... destock and that means get the balance right between supply and demand." Chief Finance Officer Mark Wilson will step down from his role no later than April 30 but had not been fired, said Palmer. Coronavirus impact China, Aston's fastest growing market, was a rare bright spot last year with sales rising 28% but the company, like the rest of the industry, has seen demand drop due to the coronavirus outbreak. The virus has infected more than 80,000 people and killed about 2,800, the majority in China, confining millions to their homes, disrupting businesses and delaying the reopening of factories after the extended Lunar New Year holiday break. Aston has seen disruption to the arrival of certain parts but said it had not had to stop production at its factories, with components secured until at least the end of March because it has no direct suppliers in China. "Since almost the first weeks of the New Year we've had issues with those Tier 2 and Tier 3 (suppliers) which have meant that our supply chain guys have had to be on it constantly," said Palmer. "We're ironically benefitting from the fact that we built up a Brexit stock," he said, in a reference to extra components the firm held in case Britain's departure from the European Union led to additional delays in the movement of goods.

Aston Martin's lifeline buys carmaker time as SUV hits road

Canadian billionaire Lawrence Stroll and investors have rescued Aston Martin with a 500 million pound cash injection that analysts say will help stabilize the British carmaker whose first sport utility vehicle (SUV) is set to hit the road. Stroll agreed to buy up to 20% of the 107-year-old company and will become executive chairman of James Bond's automaker of choice, which has gone bankrupt seven times in its checkered history. A consortium led by Stroll will invest 182 million pounds($239 million), whilst major existing shareholders - primarily Italian and Kuwaiti private equity groups - will be part of a rights issue to raise 318 million pounds. "It likely gives them enough liquidity to tide them over for a couple of years," said Charles Coldicott, Redburn equity research analyst. Outgoing chairwoman Penny Hughes, who will be replaced by Stroll, spelt out the degree of trouble the firm has been in after core sales fell last year. "The difficult trading performance in 2019 resulted in severe pressure on liquidity which has left the company with no alternative but to seek substantial additional equity financing," she said. "Without this the balance sheet is not robust enough to support the operations of the group." Now Aston will need to turn the financial lifeline into part of a sustainable plan as it delays investment in electric vehicles and cuts its operating costs. A key future milestone includes around 1 billion pounds worth of debt due to mature in 2022. The company also suffers from lower gross margins than rival Ferrari, according to analysts at Jefferies, who have said scaling up is just as important as extra capital. Key to the company's success is its first foray into the lucrative SUV market, a late entrant compared to many rivals such as Volkswagen-owned Bentley and BMW's Rolls-Royce. Aston has built a new factory in Wales to make the model, known as the DBX, which it hopes will attract more women to the brand and some buyers to purchase both it and a vehicle from its traditional line-up. With the DBX model not due to roll off the production line until the second quarter of this year, the firm has taken the cost with only some of the benefit so far. Based in central England, Aston said earlier this month that it already had around 1,800 orders for the car which will retail for 158,000 pounds in Britain, a "materially better" rate than for any previous models.

Aston Martin working on a limited-edition DBR1-inspired speedster?

The Supercar Blog has heard from its supercar-privy sources that Aston Martin might be working on a new speedster. The putative roofless model could be inspired by the most important and most valuable racer in Aston Martin's history, the DBR1 that took overall honors at the 24 Hours of Le Mans in 1959. Thought to be limited to just 88 units, TSB said the carmaker might have held a VIP preview event during Monterey Car Week last month. If the English luxury maker is developing such a model, we can probably declare the speedster era officially open for business after the limited-edition Ferrari SP1 and SP2 Monzas, Porsche 911 Speedster, and the Ultimate Series speedster that McLaren recently admitted is on the way. As with the Aston Martin, all of the other high-bucks open-sky models take inspiration from racers of yesteryear.  Furthermore, if Aston Martin really has such plans, the carmaker would be re-opening a six-year-old chapter in company history. In 2013, Aston Martin unveiled the CC100 Speedster (pictured) at the 2013 Nurburgring 24-Hour race, created in just six months to celebrate the 100-year anniversary of Lionel Martin and Robert Bamford deciding to build vehicles together. The CC100 was built on the VH platform utilized by the brand's production cars, and used a 6.0-liter V12 with 565 horsepower to do 0-60 mph in four seconds and reach a top speed of 180 mph. The carmaker built two of them, sold to collectors very close to the brand. Today's DBS Superleggera platform and its 5.2-liter, 715-hp V12 could make a suitable base, and who knows, Aston Martin — unlike Ferrari or McLaren — could go all the way and swap the DBS' eight-speed automatic for a manual transmission. Another site said the speedster impetus comes from "the high interest demonstrated by multiple collectors." No one has any insight on the symbolism of 88 units, though. Aston Martin did release a series of Dragon 88 models in 2012 for the Asian market, named for the auspicious omens associated with the number 8 in Chinese culture, and the Interush International team entered a #88 Vantage GT3 race car in the 2015 GT Asia Series, but that seems a gossamer thin connection. The Aston Martin One-77, after all, had a lot of sevens in its spec sheet, but was half named for its production volume. If there is a vintage-themed speedster on the way, we'll know more when Aston Martin decides to admit it.