Aston Martin Lagonda Global
Holdings plc
("Aston
Martin", or "AML", or the "Company"; or the "Group")
Interim results for the six
months ended 30 June 2024
Q2 performance reflects core
portfolio transition in line with guidance and strong Specials
volumes
Reiterating 2024 guidance,
including positive Free Cash Flow in H2'24, and medium-term
targets
Significant growth in total
ASP and gross margin underpinned by personalisation and
Specials
Order book continues to
progress with DB12 sold out into 2025; new models launched as
planned
Successful refinancing
completed following rating agency upgrades; new upsized RCF
established
|
£m
|
H1 2024
|
H1 2023
|
% change
|
Q2 2024
|
Q2 2023
|
% change
|
|
Total wholesale volumes1
|
1,998
|
2,954
|
(32%)
|
1,053
|
1,685
|
(38%)
|
|
Revenue
|
603.0
|
677.4
|
(11%)
|
335.3
|
381.5
|
(12%)
|
|
Gross profit
|
232.9
|
236.3
|
(1%)
|
133.2
|
134.4
|
(1%)
|
|
Gross margin (%)
|
38.6%
|
34.9%
|
370 bps
|
39.7%
|
35.2%
|
450 bps
|
|
Adjusted EBITDA2
|
62.2
|
80.6
|
(23%)
|
42.3
|
50.4
|
(16%)
|
|
Adjusted
EBIT2
|
(99.8)
|
(86.7)
|
15%
|
(42.7)
|
(38.9)
|
10%
|
|
|
|
|
|
|
|
|
|
Operating (loss)/profit
|
(106.1)
|
(93.2)
|
14%
|
(47.4)
|
(42.3)
|
12%
|
|
(Loss)/profit before
tax
|
(216.7)
|
(142.2)
|
52%
|
(77.9)
|
(68.0)
|
15%
|
|
|
|
|
|
|
|
|
|
Net debt2
|
(1,193.8)
|
(846.2)
|
41%
|
(1,193.8)
|
(846.2)
|
41%
|
1 Number of vehicles
including Specials; 2 For definition of alternative
performance measures please see Appendix
Lawrence Stroll, Aston
Martin Executive Chairman commented:
"As we commence an exciting second
half of 2024, Aston Martin is at a pivotal moment in its journey,
with our immense product transformation supporting volume growth
and sustainable positive free cash flow generation later this year,
of which we have full confidence in achieving.
"In line with prior guidance, our
execution in the first half of the year focused on the successful
delivery of our new Vantage and upgraded DBX707 and we remain on
track to deliver a strong second half performance. This will be
underpinned by a significant ramp up in wholesale volumes including
both the new V12 flagship Vanquish and ultra-exclusive Valiant
Special, which we recently unveiled at Goodwood with Fernando
Alonso.
"Our high performance products and
ultra-luxury brand positioning strategies are creating strong
demand amongst a new audience and existing loyal customers.
Vantage's extremely positive media reception and reviews position
it at the very top of the sports car segment, while the upgraded
DBX707 with new interior and state of the art infotainment and the
multi-award-winning DB12 underpin the strength of our next
generation models. In tandem, Formula One® continues to drive
considerable excitement and reappraisal of our brand with new and
existing audiences.
"Earlier this year we successfully
completed our planned refinancing, securing improved five-year
terms following credit rating agency upgrades, and enhancing our
liquidity through a new increased RCF provided by our existing
lenders. We were also delighted to announce that Adrian Hallmark
will become our new Chief Executive Officer. We have today
confirmed his appointment will take effect on 1 September 2024,
bringing unrivalled experience in both the ultra-luxury and British
automotive sectors to further progress delivery of our strategic
goals."
Aston Martin's management team will host a video webcast presentation and live Q&A at 8am (BST) today.
Details can be found on page 4 of this announcement and online
at www.astonmartinlagonda.com/investors
H1 2024 financial summary
· Delivered core wholesale volumes in line with guidance as
portfolio transition continues ahead of significant H2 2024 ramp up
in wholesale volumes driven by timing of four new model launches in
2024:
- H1 2024 wholesale volumes decreased 32% to 1,998 (H1 2023:
2,954) reflecting, as expected, our planned transition to new
Vantage and upgraded DBX707 models, with both entering production
on track at the end of Q2; Sport/GT volumes largely reflect
continued demand for DB12 which is fully sold out into
2025
- Q2 2024 core wholesale volumes were in line with guidance,
supported by strong delivery of 73 Specials (Q2 2023:
20)
§ Total
wholesales decreased 38% to 1,053 (Q2 2023: 1,685), while
marginally ahead of the previous quarter (Q1 2024: 945) reflecting
ongoing portfolio transition ahead of significant ramp up in H2
2024, including launch of the new V12 flagship Vanquish in
September and new ultra-exclusive Special, Valiant, which are both
progressing as planned.
·
H1 2024 revenue decreased 11%
to £603m (H1 2023: £677m) reflecting volume impact of planned
portfolio transition ahead of significantly improved financial
performance in H2 2024, in addition to foreign exchange headwinds
as sterling strengthened against major currencies compared to H1
2023:
- Increased Specials volumes driving growth in total
ASP:
§ H1 2024
total ASP of £274k, up 29% (H1 2023: £212k)
§ Q2 2024
total ASP of £293k, up 38% (Q2 2023: £212k)
- Core ASP marginally lower due to prior year periods including
higher priced limited edition core vehicles including V12 Vantage
Roadster in addition to V12 flagship DBS and DBS 770 Ultimate
volumes:
§ H1 2024
core ASP of £180k, down 2% (H1 2023: £184k)
§ Contribution to core revenue from options increased 410 basis
points to 18%
§ Q2 2024
core ASP of £183k, down 2% (Q2 2023: £187k); 4% sequential
improvement compared to Q1 2024 (£176k) as transition to new
Vantage and upgraded DBX707 commences
· Gross profit remained broadly flat despite volume impact
during portfolio transition; gross margin improvement driven by Specials volume and mix in addition to
positive momentum in personalisation; progressing towards c. 40%
target in FY 2024:
- H1 2024 gross profit decreased by 1% to £233m (H1 2023:
£236m); gross margin improved by 370 basis points to 39% (H1 2023:
35%)
- Q2 2024 gross profit decreased by 1%
to £133m (Q2 2023: £134m); gross margin at 40% (Q2 2023:
35%)
· H1 2024 adjusted EBITDA1 was ahead of guidance due to
phasing of Specials at £62m (H1 2023: £81m); 23% decrease in
adjusted EBITDA and margin of 10% (H1 2023: 12%) reflect lower core
volumes during portfolio transition period partially offset by
strong delivery of Specials
·
H1 2024 operating loss before
tax increased by 14% to £106m (H1 2023: £93m loss) reflecting
impact on profitability during planned period of portfolio
transition ahead of significant growth in profitability in H2 2024
compared with the prior year period
· H1 2024 net cash outflow from operating activities of £72m
(H1 2023: £18m cash inflow); free cash
outflow[1] of £313m (H1
2023: £218m outflow) reflecting:
- Q2 free cash outflow of £122m (Q2 2023: £100m outflow),
improving sequentially (Q1 2024: £190m outflow) due to improved
working capital outflow of £45m (Q1 2024: £74m outflow) and
exclusion of cash interest paid (Q1 2024: £43m) due to early
payment in Q1 2024 following successful refinancing in March
2024
- H1 2024 net cash interest paid of £41m (H1 2023:
£56m)
- As expected, capital expenditure of £200m (H1 2023: £180m)
focused on development of future product pipeline; expect FY 2024
capital expenditure in line with guidance
- H1 2024 working capital outflow of £119m (H1 2023: £37m
outflow), primarily reflecting the unwinding of
customer deposits on delivery of Specials, a trend expected to
continue in H2 2024, and the increase in inventories ahead of new
core model production, partially offset by a decrease in
receivables
· Total liquidity (cash and available facilities) at 30 June
2024 of £247m (31 March 2024: £395m), reflecting free cash outflow
in Q2 ahead of inflection point of positive free cash flow
generation in H2 2024
· Net debt at 30 June 2024 of £1,194m (30 June 2023: £846m)
reflects higher gross debt following refinancing in Q1 2024 and
lower cash balance; adjusted net leverage ratio of 4.2x (30 June
2023: 4.0x); remain committed to medium-term deleveraging target
through disciplined strategic delivery
Outlook remains unchanged as we continue to deliver in line
with guidance ahead of significant H2 ramp up in wholesale
volumes
We remain confident in the
delivery of our FY 2024 financial targets announced at our FY 2023
results on 28 February 2024, as we execute
another year of significant strategic and financial progress,
completing the product portfolio transformation that will drive
future growth. In FY 2024:
· Enhanced profitability and EBITDA will be driven by high
single-digit percentage wholesale volume growth
· Gross margin further improving to achieve our target of c.
40%
· EBITDA margin expansion continuing into the low
20s%
Having delivered the new Vantage
and upgraded DBX707 as planned, we remain confident in the launch
timings of the remaining two new models in 2024 and the ramp up in
wholesale volumes in H2'24:
· Wholesale volumes will be heavily weighted to the second half
of the year, resulting in significant H2'24 growth in gross profit
and EBITDA compared with the prior year period
· Q3'24 volume performance expected to materially improve
sequentially compared with Q2'24. Q4'24 is expected to be the most
material quarter of FY 2024 for both volumes and financial
performance
·
Core V12 flagship Vanquish,
launching in September, and Valiant, ultra-exclusive Special -
deliveries remain on track, scheduled to begin in Q4'24, with the
majority delivered by year end
We continue to expect FCF to
materially improve in FY 2024 compared with the prior year. The
sequential improvement in free cash outflow is expected to continue
in Q3'24 to support positive FCF generation in H2 2024. FY 2024
capital investment in new product developments to support our
growth strategy remains at c. £350m.
Through disciplined strategic
delivery, executing on our portfolio transformation which will
drive volume ramp up in H2'24, we expect to deleverage towards our
net leverage ratio target of c. 1.5x in FY 2024/25.
Following our refinancing in Q1'24, we expect net
cash interest of c. £120m in FY 2024[2].
Depreciation and amortisation forecast remains at c. £400m in FY
2024.
The Group's medium-term outlook for FY 2027/28, remains
unchanged:
·
Revenue: c. £2.5
billion
·
Gross margin: mid-40s%
·
Adjusted EBITDA:
c. £800 million
·
Adjusted EBITDA margin:
c. 30%
·
Free cash flow: to be
sustainably positive
·
Net leverage ratio:
below 1.0x
·
Expect to invest: c.
£2bn over FY 2023-2027 in long-term growth and transition to
electrification
[1] For
definition of alternative performance measures please see
Appendix
[2] Assuming current exchange
rates prevail for 2024
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
James Arnold
Head
of Investor Relations
+44
(0) 7385 222347
james.arnold@astonmartin.com
Ella South
Investor Relations Analyst
+44 (0) 7776 545420
ella.south@astonmartin.com
Media
Kevin Watters
Director of
Communications
+44 (0) 7764
386683
kevin.watters@astonmartin.com
Paul Garbett
Head
of Corporate & Brand Communications
+44 (0) 7501 380799
paul.garbett@astonmartin.com
FGS Global
James Leviton and Jenny Bahr
+44 (0) 20
7251 3801
Results Presentation
·
There will be a video presentation and Q&A
for today at 08.00am BST:
https://app.webinar.net/w85pDwAmog0
·
The presentation and Q&A can be accessed live
via the corporate website:
https://www.astonmartinlagonda.com/investors/results-and-presentations
·
A replay facility will be available on the
website later in the day
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.
FINANCIAL REVIEW
Wholesale volume summary
|
Number of vehicles
|
H1 2024
|
H1 2023
|
% change
|
Q2 2024
|
Q2 2023
|
% change
|
|
Total wholesale
|
1,998
|
2,954
|
(32%)
|
1,053
|
1,685
|
(38%)
|
|
Core (excluding
Specials)
|
1,880
|
2,916
|
(36%)
|
980
|
1,665
|
(41%)
|
|
|
|
|
|
|
|
|
|
By region:
|
|
|
|
|
|
|
|
UK
|
295
|
445
|
(34%)
|
141
|
225
|
(37%)
|
|
Americas
|
635
|
1,062
|
(40%)
|
332
|
595
|
(44%)
|
|
EMEA ex. UK
|
674
|
834
|
(19%)
|
391
|
491
|
(20%)
|
|
APAC
|
394
|
613
|
(36%)
|
189
|
374
|
(49%)
|
|
|
|
|
|
|
|
|
|
By model:
|
|
|
|
|
|
|
|
Sport/GT
|
1,373
|
1,369
|
0%
|
723
|
787
|
(8%)
|
|
SUV
|
507
|
1,547
|
(67%)
|
257
|
878
|
(71%)
|
|
Specials
|
118
|
38
|
211%
|
73
|
20
|
265%
|
Note: Sport/GT includes Vantage, DB11, DB12, and
DBS
Aston Martin's product
transformation continued to progress on track during H1 2024 as the
Company introduces four new models during the year. In line with
guidance, total wholesales of 1,998 decreased by 32% (H1 2023:
2,954), ahead of the significant ramp up in wholesale volumes in H2
2024:
· Sport/GT wholesales of 1,373 were flat year-on-year (H1 2023:
1,369), with the majority of units representing DB12 wholesales in
addition to the initial ramp up phase of new Vantage wholesales in
Q2 2024.
·
SUV wholesales of 507
decreased by 67% (H1 2023: 1,547), reflecting a strategic
transitional ramp down in prior model volumes as we begin the
initial ramp up phase of upgraded DBX707 wholesales in Q2 2024,
with all new interiors and bespoke infotainment.
· Specials wholesales of 118 (H1 2023: 38), comprised of a
mature cadence of 45 Aston Martin Valkyries (H1 2023: 38) and
Valour deliveries, demonstrating the Company's unique ability to
operate at the very highest levels of the luxury automotive segment
and attract new customers and collectors to the brand.
As expected, total wholesales of
1,053 in Q2 2024 decreased by 38% compared to Q2 2023, though
increased sequentially by 11% compared to Q1 2024 (945 units), due
to the ongoing portfolio transition with the new Vantage and
upgraded DBX707 both entering production during the period. Aston
Martin continues to operate a demand-led approach, aligned with its
ultra-luxury high performance strategy. Year to date, retails
outpaced wholesales and the Company expects to see this continue in
FY 2024 and beyond as its next generation of vehicles are
launched.
Geographically, as guided,
wholesale volumes across all regions were down compared to H1 2023
due to the product portfolio transition, while remaining well
balanced across all regions. The Americas and EMEA excluding UK
were the largest regions in H1 2024, collectively representing 66%
of total wholesales, primarily driven by strong demand for
DB12. UK and APAC wholesales were down, as
expected, broadly in line with the overall decline in volumes,
reflecting the planned portfolio transition. Finally, the trend in
China continued, with volumes decreasing by 72% compared with H1
2023, and now reflecting a very small percentage of total
wholesales. This performance was driven by a combination of market
dynamics and the timing of new model deliveries, including DB12,
which are only due to commence from Q3 2024 onwards. China
continues to be a market where we see significant opportunity for
long-term growth. Wholesale volumes in APAC excluding China were
down 13% year-on-year (H1 2023: down 13%).
Revenue and ASP summary
|
£m
|
H1 2024
|
H1 2023
|
% change
|
Q2 2024
|
Q2 2023
|
% change
|
|
Sale of vehicles
|
548.8
|
627.3
|
(13%)
|
309.2
|
357.2
|
(13%)
|
|
Total ASP
(£k)
|
274
|
212
|
29%
|
293
|
212
|
38%
|
|
Core ASP
(£k)
|
180
|
184
|
(2%)
|
183
|
187
|
(2%)
|
|
Sale of parts
|
42.8
|
40.3
|
6%
|
21.9
|
20.1
|
9%
|
|
Servicing of vehicles
|
6.3
|
4.2
|
50%
|
2.7
|
2.1
|
29%
|
|
Brand and motorsport
|
5.1
|
5.6
|
(9%)
|
1.5
|
2.1
|
(29%)
|
|
Total revenue
|
603.0
|
677.4
|
(11%)
|
335.3
|
381.5
|
(12%)
|
H1 2024 revenue decreased by 11%
to £603m (H1 2023: £677m), reflecting the volume impact of the
planned portfolio transition ahead of significant financial
performance in H2 2024 driven by the timing of four new model
launches this year, in addition to foreign exchange headwinds as
sterling strengthened against major currencies compared to the
prior year:
·
Total ASP increased reflecting
the richer mix resulting from deliveries of Specials including the
Aston Martin Valkyrie Spider and Valour limited edition
models.
·
Core ASP marginally down
reflecting the prior year period mix benefitting from the
contribution of V12 Vantage, DBS, DBS 770 Ultimate and higher SUV
sales:
- Continued strong demand for product personalisation drove an
increase in contribution to core revenue from options, up 410 basis
points to 18% compared to H1 2023, reflecting the launch period of
new models.
- Core ASP in Q2 2024 (£183k) increased sequentially by 4%
compared with core ASP in Q1 2024 (£176k), as the transition to new
Vantage and upgraded DBX707 models commenced.
Income statement summary
|
£m
|
H1 2024
|
H1 2023
|
Q2 2024
|
Q2 2023
|
|
Revenue
|
603.0
|
677.4
|
335.3
|
381.5
|
|
Cost of sales
|
(370.1)
|
(441.1)
|
(202.1)
|
(247.1)
|
|
Gross profit
|
232.9
|
236.3
|
133.2
|
134.4
|
|
Gross margin %
|
38.6%
|
34.9%
|
39.7%
|
35.2%
|
|
|
|
|
|
|
|
Adjusted operating
expenses1
|
(332.7)
|
(323.0)
|
(175.9)
|
(173.3)
|
|
of which depreciation & amortisation
|
162.0
|
167.3
|
85.0
|
89.3
|
|
Adjusted EBIT2
|
(99.8)
|
(86.7)
|
(42.7)
|
(38.9)
|
|
Adjusting operating
items
|
(6.3)
|
(6.5)
|
(4.7)
|
(3.4)
|
|
Operating loss
|
(106.1)
|
(93.2)
|
(47.4)
|
(42.3)
|
|
|
|
|
|
|
|
Net financing expense
|
(110.6)
|
(49.0)
|
(30.5)
|
(25.7)
|
|
of
which adjusting financing (expense)/ income
|
(22.3)
|
(37.9)
|
4.4
|
(24.1)
|
|
Loss before tax
|
(216.7)
|
(142.2)
|
(77.9)
|
(68.0)
|
|
Tax (charge)/credit
|
9.1
|
0.2
|
9.2
|
(0.2)
|
|
Loss for the period
|
(207.6)
|
(142.0)
|
(68.7)
|
(68.2)
|
|
|
|
|
|
|
|
Adjusted EBITDA1,2
|
62.2
|
80.6
|
42.3
|
50.4
|
|
Adjusted EBITDA margin
|
10.3%
|
11.9%
|
12.6%
|
13.2%
|
|
Adjusted loss before tax1
|
(188.1)
|
(97.8)
|
(77.6)
|
(40.5)
|
|
|
|
|
|
|
|
EPS (pence)
|
(25.3)
|
(20.3)
|
|
|
|
Adjusted EPS (pence)
|
(21.8)
|
(13.9)
|
|
|
|
|
|
|
|
|
|
1 Excludes adjusting items; 2 Alternative Performance
Measures are defined in Appendix
Despite the lower revenue and
volumes in H1 2024, gross profit of £233m was broadly flat,
decreasing by £3m, or 1% (H1 2023: £236m), resulting in a gross
margin of 39%, expanding by 370 basis points (H1 2023: 35%). The
gross margin performance reflected benefits from the ongoing
portfolio transformation to next generation models in addition to
strong volumes of high margin Specials. This was partially offset
by higher manufacturing, logistics and other costs ahead of the
significant ramp up in production in H2 2024. The Company continues
to target over 40% gross margin from future products, aligned with
the Company's ultra-luxury strategy.
Adjusted EBITDA was ahead of
guidance at £62m (H1 2023: £81m) decreasing by 23%, with adjusted
EBITDA margin declining to 10% (H1 2023: 12%). This was
primarily due to the lower core volumes during
the transition period and a 10% increase in adjusted operating
expenses (excluding D&A), partially offset by higher Special
wholesale volumes. While SG&A costs were only marginally
higher, this was offset by the phasing of non-capitalised
engineering spend, relating mostly to our future electrification
strategy.
Adjusted EBIT decreased by 15% in
H1 2024 to £(100)m (H1 2023: £(87)m) with depreciation and
amortisation broadly flat at £162m (H1 2023: £167m).
Adjusted net financing costs of
£88m (H1 2023: £11m), increased primarily due to the year-on-year
impact of US dollar debt revaluations, and accelerated amortisation
of fees related to prior loan notes as a result of the refinancing.
The £22m net adjusting finance charge (H1 2023: £38m) was largely
due to movements in fair value of outstanding warrants, and the
redemption premiums associated with the refinancing of the senior
secured notes.
The adjusted loss before tax of
£188m (H1 2023: £98m loss), reflects the lower adjusted EBIT and
increased adjusted net finance costs.
On a reported basis, the operating
loss of £106m increased 14% in H1 2024 (H1 2023: £93m loss)
primarily driven by the volume and gross profit impact as described
above. These and the increase in net finance expenses resulted in a
loss before tax of £217m (H1 2023: £142m).
Cash flow and net debt summary
|
£m
|
H1 2024
|
H1 2023
|
Q2 2024
|
Q2 2023
|
|
Cash generated from operating
activities
|
(71.9)
|
17.5
|
(10.4)
|
50.5
|
|
Cash used in investing activities
(excl. interest)
|
(200.1)
|
(180.2)
|
(113.8)
|
(94.9)
|
|
Net cash interest paid
|
(40.6)
|
(55.6)
|
2.0
|
(55.6)
|
|
Free cash outflow
|
(312.6)
|
(218.3)
|
(122.2)
|
(100.0)
|
|
Cash inflow from financing
activities (excl. interest)
|
93.8
|
44.7
|
65.9
|
98.9
|
|
Decrease in net cash
|
(218.8)
|
(173.6)
|
(56.3)
|
(1.1)
|
|
Effect of exchange rates on cash
and cash equivalents
|
(0.9)
|
(9.6)
|
(0.6)
|
(6.6)
|
|
Cash balance
|
172.7
|
400.1
|
172.7
|
400.1
|
|
Available facilities
|
74.1
|
52.1
|
74.1
|
52.1
|
|
Total cash and available facilities
("liquidity")
|
246.8
|
452.2
|
246.8
|
452.2
|
Net cash outflow from operating
activities was £72m in H1 2024 (H1 2023: £18m inflow). The outflow
was primarily driven by a £19m decrease in adjusted EBITDA, as
explained above, and a working capital outflow of £119m (H1 2023:
£37m outflow). The largest drivers of working capital outflow
were:
·
£84m decrease (H1 2023: £17m decrease) in
deposits held, due to the increased volume of Specials delivered
compared to the prior period, a trend expected to continue in H2
2024,
·
£39m decrease in payables (H1 2023: £9m)
following reduction from peak production volumes in Q4
2023,
·
£51m increase in inventories (H1 2023: £33m
increase) ahead of the ramp up in new Vantage and upgraded DBX707
production,
·
which was partially offset by a decrease in
receivables of £55m (H1 2023: £22m decrease) following collections
from wholesales in the prior period from peak sales volumes in Q4
2023.
Capital expenditure of £200m was
marginally higher compared to the comparative period (H1 2023:
£180m). Investment is focused on the future product pipeline,
including the next generation of models and development of the
Company's electrification programme.
Free cash outflow of £313m in H1
2024 (H1 2023: £218m outflow), was primarily due to the increase in
cash outflow from operating activities as detailed above.
Sequentially, free cash outflow improved in Q2 2024 to £122m
compared to £190m in Q1 2024, primarily due to the net cash
interest payment brought forward to Q1 from the previous Q2 payment
date as part of the Company's refinancing exercise and improved
working capital outflow. In Q3 2024, this improving trend in free
cash outflow is expected to continue, supporting positive FCF
generation in H2 2024, in line with guidance.
|
£m
|
|
30 Jun-24
|
31 Dec-23
|
30 Jun-23
|
|
Loan notes
|
|
(1,140.5)
|
(980.3)
|
(1,051.9)
|
|
Inventory financing
|
|
(38.9)
|
(39.7)
|
(39.9)
|
|
Bank loans and
overdrafts
|
|
(88.1)
|
(89.4)
|
(57.8)
|
|
Lease liabilities (IFRS
16)
|
|
(99.0)
|
(97.3)
|
(96.7)
|
|
Gross debt
|
|
(1,366.5)
|
(1,206.7)
|
(1,246.3)
|
|
Cash balance
|
|
172.7
|
392.4
|
400.1
|
|
Cash not available for short term
use
|
|
0.0
|
0.0
|
0.0
|
|
Net debt
|
|
(1,193.8)
|
(814.3)
|
(846.2)
|
Compared with 31 December 2023,
gross debt increased to £1,367m (31 December 2023: £1,207m) as a
result of the refinancing where, following upgrades from leading
credit agencies, the Group priced on improved terms senior secured
notes of $960m at 10.000% and £400m at 10.375% due in 2029. In
addition, existing lenders entered into a new super senior
revolving credit facility agreement, increasing their binding
commitments by c. £70 million to £170 million. This new facility
provides the Company with additional liquidity as it continues to
accelerate its growth strategy.
Total cash and available
facilities was £247m on 30 June 2024 which decreased compared to 31
March 2024 (£395m), reflecting the guided free cash outflow in Q2
2024. As announced in March 2024, the proceeds from the offering of
the notes, together with cash on the balance sheet, were used to
redeem in full the existing senior secured notes and second lien
split coupon notes, to repay in full the borrowings under the
previous revolving credit facility and make the early interest
payment in March that was previously due in April 2024.
Net debt of £1,194m at 30 June
2024 increased from £846m as at 30 June 2023 due to the higher
gross debt (30 June 2023: £1,246m) and lower cash balance (30 June
2023: £400m). The net leverage ratio of 4.2x (30 June 2023: 4.0x)
reflects the EBITDA performance during the portfolio transition
period in H1 2024 and the increase in net debt with disciplined
strategic delivery and EBITDA growth supporting future deleveraging
in line with the Group's medium-term target.
APPENDICES
Dealerships
|
|
30 Jun-24
|
31 Dec-23
|
30 Jun-23
|
|
UK
|
20
|
20
|
20
|
|
Americas
|
44
|
44
|
44
|
|
EMEA ex. UK
|
54
|
54
|
52
|
|
APAC
|
41
|
45
|
47
|
|
Total
|
159
|
163
|
163
|
|
Number of countries
|
53
|
53
|
54
|
Alternative Performance Measure
|
£m
|
H1 2024
|
H1 2023
|
|
Loss before tax
|
(216.7)
|
(142.2)
|
|
Adjusting operating
expense
|
6.3
|
6.5
|
|
Adjusting finance
expense
|
35.7
|
37.9
|
|
Adjusting finance
(income)
|
(13.4)
|
0.0
|
|
Adjusted EBT
|
(188.1)
|
(97.8)
|
|
Adjusted finance
(income)
|
(4.1)
|
(66.8)
|
|
Adjusted finance
expense
|
92.4
|
77.9
|
|
Adjusted EBIT
|
(99.8)
|
(86.7)
|
|
Reported depreciation
|
45.4
|
45.7
|
|
Reported amortisation
|
116.6
|
121.6
|
|
Adjusted EBITDA
|
62.2
|
80.6
|
In the reporting of financial
information, the Directors have adopted various Alternative
Performance Measures ("APMs"). APMs should be considered in
addition to IFRS measurements. The Directors believe that these
APMs assist in providing useful information on the underlying
performance of the Group, enhance the comparability of information
between reporting periods, and are used internally by the Directors
to measure the Group's performance.
- Adjusted EBT is the
loss before tax and adjusting items as shown on the Consolidated
Income Statement
- Adjusted EBIT is
loss from operating activities before adjusting items
- Adjusted EBITDA
removes depreciation, loss/(profit) on sale of fixed assets and
amortisation from adjusted operating loss
- Adjusted
operating margin is adjusted EBIT divided by revenue
- Adjusted
EBITDA margin is adjusted EBITDA (as defined above) divided by
revenue
- Adjusted Earnings
Per Share is loss after income tax before adjusting items, divided
by the weighted average number of ordinary shares in issue during
the reporting period
- Net Debt is
current and non-current borrowings in addition to inventory
financing arrangements, lease liabilities recognised following the
adoption of IFRS 16, less cash and cash equivalents and cash held
not available for short-term use
- Adjusted
leverage is represented by the ratio of Net Debt to the last twelve
months ('LTM') Adjusted EBITDA
- Free cashflow is
represented by cash (outflow)/inflow from operating activities plus
the cash used in investing activities (excluding interest received)
plus interest paid in the year less interest received.
Principal risks and
uncertainties
The principal risks and
uncertainties that could substantially affect the Group's business
and results were previously reported on pages 66 to 68 of the 2023
Annual Report and Accounts. The Group's risk environment has
been reassessed as of 30 June 2024 to consider any significant
changes to the Group's previous risk assessment including any new
and emerging risks and opportunities.
There have not been any
significant changes to the principal risks previously disclosed
within the 2023 Annual Report and Accounts and the principal risks
and uncertainties that the Group faces for the second half of the
year are consistent with those previously reported as summarised
below.
Strategic risks
Macro-economic and political
instability: Exposure to multiple
political and economic factors could impact customer demand or
affect the markets in which we operate.
The Group operates in the
ultra-luxury segment (ULS) vehicle market and accordingly its
performance is linked to market conditions and consumer demand in
that market. Sales of ULS vehicles are affected by general economic
conditions and can be materially affected by the economic cycle.
Demand for luxury goods, including ULS vehicles, is volatile and
depends to a large extent on the general economic, political, and
social conditions in a given market. Furthermore, economic
slowdowns in the past have significantly affected the automotive
and related markets. Periods of deteriorating general economic
conditions may result in a significant reduction in ULS vehicle
sales, which may put downward pressure on the Group's product and
service prices and volumes, and negatively affect profitability.
These effects may have a more pronounced effect on the Group's
business, due to the relatively small scale of its operations and
its limited product range.
Political change, such as the
recent UK General Election and the subsequent change of Government,
has the potential to directly affect the Group through the
introduction of new laws (including tax and environmental laws) or
regulations or indirectly by altering customer sentiment.
Government policy in areas such as vehicle electrification, trade
and the environment also have the opportunity to impact the
business through the introduction of new barriers, for example in
relation to the trade between the United Kingdom and the European
Union or through changes in emissions legislation. Any future
changes in governments in both the United Kingdom and the Group's
key markets could have an impact on the Group due to changes in
policy, legislation, or regulatory interpretation.
Brand / reputational
damage: Our brand and reputation are
critical in securing demand for our vehicles and in developing
additional revenue streams.
The Group's success depends on the
preservation and enhancement of our brand and reputation with
ultra-luxury consumers. Damage caused by any reason (e.g.
poor customer experience, poor design, quality issues, late
delivery) could significantly impact our ability to deliver planned
volume growth. We promote brand awareness and identity
through our marketing activity, leveraging the global reach of the
Aston Martin Aramco Formula OneTM Team. We
continue to pursue our 'build to order' strategy, which combined
with the positive impact of our fixed marketing activity is driving
brand exclusivity. Investment in new technology combined with
delivery of our three-pillar strategy will further enhance the
appeal of the brand and increase our customer base.
Technological
advancement: It is essential to
maintain pace with technological development to meet evolving
customer expectation, remain competitive and stay ahead of
regulatory requirements.
To remain competitive the Group
needs to incorporate the latest technologies (e.g. electrification,
active safety, connected car, autonomous driving) into its products
and keep pace with the transition to electrified and lower emission
powertrains. Strategic agreements with key suppliers,
including Lucid, Geely and Mercedes Benz AG provide access to
technology that may otherwise be too costly to develop
internally.
Operational
risks
Talent acquisition and
retention: We may fail to attract,
retain, engage and develop a productive workforce or develop key
talent.
The Group's future success depends
substantially on the continued service and performance of the
members of its senior management team for running its daily
operations, as well as planning and executing its strategy. The
Group is also dependent on its ability to retain and replace its
design, engineering, and technical personnel so that the Group is
able to continue to produce vehicles that are competitive in terms
of performance, quality, and aesthetics. There is strong
competition worldwide for experienced senior management and
personnel with technical and industry expertise. If the Group loses
the services of its senior management or other key personnel, the
Group may have difficulty and incur additional costs in replacing
them. If the Group is unable to find suitable replacements in a
timely manner, its ability to realise its strategic objectives
could be impaired. In addition, the Group's ability to realise its
strategic objectives could also be impaired if the Group is unable
to recruit sufficient numbers of new personnel of the right calibre
and with the required skills and capabilities to support its
strategic objectives.
Programme
delivery: Failure to implement major
programmes on time, within budget and to the right technical and
quality specification could jeopardise delivery of our strategy and
have significant adverse financial and reputational
consequences.
The Group employ vehicle line
Project Management teams to deliver significant programmes using
our 'Mission' programme delivery governance
methodology.
Achieving financial and
cost-reduction targets: The Group's size
and low-volume demand-led strategy may inhibit its ability to
deliver targeted cost reductions or work within budget constraints
while delivering the planned vehicle programme.
The Group's ability to
successfully implement its strategy will depend on, at least in
part, its ability to achieve its financial targets as well as to
maintain capital expenditures without limiting its ability to
introduce new vehicles in line with changes in trends and advances
in technology. Market conditions and trends change over time, with
current impacts being seen as a result of higher rates of
inflation, increasing interest rates, rising commodity prices and
the increasing risk of regional or global recession. These may
inhibit the Group's ability to achieve these goals, or to achieve
them only in part or later than expected, resulting in increased
costs, damage to the Aston Martin brand, decreased sales, elevated
levels of Group or dealer stocks and / or liquidity constraints,
any of which could have a material adverse effect on the Group's
business, financial condition and results of operations.
Cyber security and IT
resilience: Breach of cyber security
could result in a system outage, impacting core operations and / or
result in a major data loss leading to reputational damage and
financial loss.
The increasing threat of
cyberattack presents risk to the availability, confidentiality and
integrity of information and IT-supported operating systems. A
robust technology environment is critical to the Group's success
and operational resilience. The Group continues to invest in tools
and resources to enhance the control environment and reduce the
risk of core business operational disruption or major data loss.
The implementation of the new ERP system is ongoing through 2024
and will continue to improve the operational resilience of our IT
environment.
Supply chain
disruption: Supply chain disruption
could result in production stoppages, delays, quality issues and
increased costs.
The Group's dependence on a
limited number of suppliers exposes the Group to the risk of
increased material costs due to suppliers' pricing power, limited
availability of scarce resources / components and disrupted
delivery schedules, including as a result of the effects of ongoing
global supply chain issues, and the risk of the quality of the
products produced by that supplier declining. If one or more of the
Group's suppliers becomes unable or unwilling to fulfil its
delivery obligations, or is unable to supply products of the
requisite quality for any reason (including favouring other
purchasers due to better pricing or volume, financial difficulties,
damage to production, transportation difficulties, labour
disruption, supply bottlenecks of raw materials and pre-products,
natural disasters, other pandemics, the ongoing war in Ukraine and
other wars, terrorism or political unrest), there is a risk that
the Group's ability to produce the targeted number or quality of
vehicles could be negatively affected, which could adversely affect
production and therefore demand for its vehicles.
Compliance
risks
Compliance with laws and
regulations: Non-compliance with laws
or regulations could damage our corporate reputation and subject
the Group to significant financial penalties and / or trading
sanctions / restrictions. Non-compliance with product and supply
chain due diligence regulations could prevent the Group from
competing in certain markets.
The Group is subject to a broad
range of national and regional laws and regulations, some of which
are specific to the automotive industry e.g. vehicle emissions,
fuel consumption, vehicle certification requirements, connected car
regulations; others which are applicable to businesses conduct more
generally e.g. competition law, health and safety, data protection,
corporate governance rules, employment laws, and taxation. Changes
to laws and regulations, or a major compliance breach, could have a
material impact on the business. The Group continues to
invest in compliance activities, including experienced personnel,
and the development of its risk management systems.
Failure to keep pace with
increasing stakeholder expectations to not just meet but exceed
evolving ESG requirements could result in brand / reputational
damage which could ultimately affect our sales pipeline and planned
growth. As emissions regulations become increasingly stringent the
Group continues to invest in product portfolio expansion to
accelerate its transition towards electrified powertrains and
reduced emissions.
Climate Change risks
Climate change: The impact of climate change could significantly impact
demand for our vehicles, our ability to sell within certain markets
or have financial consequences through increased carbon pricing,
taxes and other regulatory restrictions on Internal Combustion
Engine vehicles.
The Group faces a number of
transition and physical climate related risks. Transitioning to a
lower-carbon economy poses the most significant climate related
risk with the Group being exposed to:
•
Policy and legal risk: Capital
and operating expenses required in order to comply with
environmental laws and regulations can be significant. New policy
actions and / or legislative changes relating to environmental
matters, such as the implementation of carbon pricing mechanisms to
reduce GHG emissions or the imposition of more stringent vehicle
emissions regulations, could give rise to significant
costs.
•
Technology risk: New technologies
that support the transition to lower-carbon, energy-efficient
economic system, including the increasing demand for lower emission
vehicles and electrified powertrains, could have a significant
impact on the Group. The Group may be unable to develop lower
capacity and fully electric vehicles successfully, or as quickly as
its competitors or at a reasonable cost.
•
Market risk: Customer
preferences may change more quickly than anticipated away from
traditional ICEs towards alternative non-ICE powertrains (e.g.
plug-in hybrid electric vehicles, battery electric vehicles,
Hydrogen, Synthetic fuels). This could significantly affect demand
for the Group's products. Increasing consumer awareness around
sustainability and the resultant desire to buy products which use
sustainable materials may adversely impact demand for the Group's
products.
•
Reputation risk: Customers and
communities are increasingly concerned with an organisation's
contribution to or detraction from the transition to a lower-carbon
economy. If the Group does not deliver on its net-zero goals,
sustainability targets, the production of hybrid and battery
electric models or does not otherwise demonstrate its commitment to
reducing its impact on climate change, this could have a material
adverse effect on the Group.
Physical risks resulting from
climate change can be event driven (such as an extreme weather
event) or longer-term shifts in climate patterns (such as global
warming). Increased frequency and severity of extreme weather
events could lead to damage to assets and / or facilities or lead
to production or supply chain disruption. In each case, this could
have a material adverse effect on the Group's business, financial
condition, and results of operations.
Financial risks
Liquidity: The Group may not be able to generate sufficient cash to fund
its capital expenditure, service its debt or sustain its
operations.
The Group's significant leverage
and existing levels of debt may make it difficult to obtain
additional debt financing should the need arise due to unforeseen
economic shocks. Failure to collect planned deposits could place
additional stress on the Group's liquidity. The Group's liquidity
requirements arise primarily from its need to fund capital
expenditure for product development, including the electrification
of its product portfolio, and to service debt. The Group is
also subject to foreign exchange risks and opportunities and
manages its exposure in accordance with the Group Hedging
Policy.
Impairment of capitalised
development costs: The value of
capitalised development costs continue to grow as we invest in and
expand our product portfolio.
The Group's balance sheet and
income statement may be adversely impacted by an impairment in the
carrying value of capitalised development costs. A significant
reduction in vehicle lifecycle profitability could result in the
need to impair the capitalised development intangible asset.
Where potential impairment triggers are identified management
perform assessments to evaluate the recoverability of capitalised
development costs.
The risks and opportunities
summarised above, linkage to the Group's strategy, and additional
mitigating actions taken in respect of them, are explained and
described in more detail on pages 66 to 68 of the 2023 Annual
Report and Accounts.
CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
6 months
ended
30 June
2024
|
6
months ended
30 June
2023
|
12
months ended
31
December 2023
|
|
|
Notes
|
Adjusted
|
Adjusting
items*
|
Total
|
Adjusted
|
Adjusting items*
|
Total
|
Adjusted
|
Adjusting items*
|
Total
|
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Revenue
|
3
|
603.0
|
-
|
603.0
|
677.4
|
-
|
677.4
|
1,632.8
|
-
|
1,632.8
|
|
Cost of sales
|
|
(370.1)
|
-
|
(370.1)
|
(441.1)
|
-
|
(441.1)
|
(993.6)
|
-
|
(993.6)
|
|
Gross profit
|
|
232.9
|
-
|
232.9
|
236.3
|
-
|
236.3
|
639.2
|
-
|
639.2
|
|
Selling and distribution
expenses
|
|
(66.9)
|
-
|
(66.9)
|
(70.7)
|
-
|
(70.7)
|
(143.8)
|
-
|
(143.8)
|
|
Administrative expenses
|
4
|
(265.8)
|
(6.3)
|
(272.1)
|
(252.3)
|
(6.5)
|
(258.8)
|
(575.1)
|
(31.5)
|
(606.6)
|
|
Operating loss
|
|
(99.8)
|
(6.3)
|
(106.1)
|
(86.7)
|
(6.5)
|
(93.2)
|
(79.7)
|
(31.5)
|
(111.2)
|
|
Finance income
|
4,
5
|
4.1
|
13.4
|
17.5
|
66.8
|
-
|
66.8
|
74.3
|
-
|
74.3
|
|
Finance expense
|
4,
6
|
(92.4)
|
(35.7)
|
(128.1)
|
(77.9)
|
(37.9)
|
(115.8)
|
(166.4)
|
(36.5)
|
(202.9)
|
|
Loss before tax
|
|
(188.1)
|
(28.6)
|
(216.7)
|
(97.8)
|
(44.4)
|
(142.2)
|
(171.8)
|
(68.0)
|
(239.8)
|
|
Income tax credit
|
4,
7
|
9.1
|
-
|
9.1
|
0.2
|
-
|
0.2
|
13.0
|
-
|
13.0
|
|
Loss for the period
|
|
(179.0)
|
(28.6)
|
(207.6)
|
(97.6)
|
(44.4)
|
(142.0)
|
(158.8)
|
(68.0)
|
(226.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the period attributable
to:
|
|
|
|
|
|
|
|
|
|
Owners of the
group
|
|
|
|
(207.8)
|
|
|
(142.6)
|
|
|
(228.1)
|
|
Non-controlling
interests
|
|
|
|
0.2
|
|
|
0.6
|
|
|
1.3
|
|
|
|
|
|
(207.6)
|
|
|
(142.0)
|
|
|
(226.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
Items that will never be reclassified to the Income
Statement
|
|
|
|
|
|
|
|
|
Remeasurement of defined benefit
pension liability (note 15)
|
|
0.3
|
|
|
0.3
|
|
|
(0.1)
|
|
Change in fair value of
investments in equity instruments (note 12)
|
|
51.4
|
|
|
-
|
|
|
-
|
|
Taxation on items that will never
be reclassified to the Income Statement
|
(12.9)
|
|
|
(0.1)
|
|
|
-
|
|
Items that are or may be reclassified to the Income
Statement
|
|
|
|
|
|
|
|
|
Foreign exchange translation
differences
|
|
(0.3)
|
|
|
(4.5)
|
|
|
(4.0)
|
|
Fair value adjustment on cash flow
hedges
|
3.8
|
|
|
1.5
|
|
|
0.7
|
|
Amounts recycled to the Income
Statement in respect of cash flow hedges
|
0.2
|
|
|
(4.4)
|
|
|
(5.4)
|
|
Taxation on items that may be
reclassified to the Income Statement
|
(1.0)
|
|
|
0.7
|
|
|
1.2
|
|
Other comprehensive income/(loss) for the period, net of
income tax
|
41.5
|
|
|
(6.5)
|
|
|
(7.6)
|
|
Total comprehensive loss for the period
|
(166.1)
|
|
|
(148.5)
|
|
|
(234.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive (loss)/income for the period attributable
to:
|
|
|
|
|
|
|
|
|
Owners of the
group
|
|
|
|
(166.3)
|
|
|
(149.1)
|
|
|
(235.7)
|
|
Non-controlling
interests
|
|
|
|
0.2
|
|
|
0.6
|
|
|
1.3
|
|
|
|
|
|
(166.1)
|
|
|
(148.5)
|
|
|
(234.4)
|
|
Earnings per ordinary share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
8
|
|
|
(25.3)p
|
|
|
(20.3p)
|
|
|
(30.5p)
|
|
Diluted
|
8
|
|
|
(25.3)p
|
|
|
(20.3p)
|
|
|
(30.5p)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Adjusting items are
detailed in note 4.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
Share Capital
|
Share Premium
|
Merger Reserve
|
Capital Redemption
Reserve
|
Capital Reserve
|
Translation Reserve
|
Hedge Reserve
|
Retained Earnings
|
Non-controlling
Interest
|
Total Equity
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
At 1 January 2024
|
82.4
|
2,094.5
|
143.9
|
9.3
|
6.6
|
2.5
|
0.8
|
(1,437.7)
|
20.8
|
923.1
|
|
Total comprehensive loss for the
period
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the
period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(207.8)
|
0.2
|
(207.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
differences
|
-
|
-
|
-
|
-
|
-
|
(0.3)
|
-
|
-
|
-
|
(0.3)
|
|
Fair value movement - cash flow
hedges
|
-
|
-
|
-
|
-
|
-
|
-
|
3.8
|
-
|
-
|
3.8
|
|
Amounts recycled to the Income
Statement - cash flow hedges
|
-
|
-
|
-
|
-
|
-
|
-
|
0.2
|
-
|
-
|
0.2
|
|
Remeasurement of defined benefit
liability
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.3
|
-
|
0.3
|
|
Change in fair value of investments
in equity instruments (note 12)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
51.4
|
-
|
51.4
|
|
Taxation on other comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
-
|
(1.0)
|
(12.9)
|
-
|
(13.9)
|
|
Total other comprehensive (loss)/income
|
-
|
-
|
-
|
-
|
-
|
(0.3)
|
3.0
|
38.8
|
-
|
41.5
|
|
Total comprehensive (loss)/income
for the period
|
-
|
-
|
-
|
-
|
-
|
(0.3)
|
3.0
|
(169.0)
|
0.2
|
(166.1)
|
|
Transactions with owners, recorded directly in
equity
|
|
|
|
|
|
|
|
|
|
|
|
Issue of shares to Employee Benefit
Trust (notes 8, 16)
|
0.1
|
-
|
-
|
-
|
-
|
-
|
-
|
(0.1)
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit for the period under equity
settled share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
4.3
|
-
|
4.3
|
|
Tax on items credited to
equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(0.2)
|
-
|
(0.2)
|
|
Total transactions with owners
|
0.1
|
-
|
-
|
-
|
-
|
-
|
-
|
4.0
|
-
|
4.1
|
|
At
30 June 2024
|
82.5
|
2,094.5
|
143.9
|
9.3
|
6.6
|
2.2
|
3.8
|
(1,602.7)
|
21.0
|
761.1
|
|
|
Share Capital
|
Share Premium
|
Merger Reserve
|
Capital Redemption
Reserve
|
Capital Reserve
|
Translation Reserve
|
Hedge Reserve
|
Retained Earnings
|
Non-controlling Interest
|
Total Equity
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
At 1 January 2023
(restated*)
|
69.9
|
1,697.4
|
143.9
|
9.3
|
6.6
|
6.5
|
4.3
|
(1,233.9)
|
19.5
|
723.5
|
|
Total comprehensive loss for the
period
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for the
period
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(142.6)
|
0.6
|
(142.0)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
differences
|
-
|
-
|
-
|
-
|
-
|
(4.5)
|
-
|
-
|
-
|
(4.5)
|
|
Fair value movement - cash flow
hedges
|
-
|
-
|
-
|
-
|
-
|
-
|
1.5
|
-
|
-
|
1.5
|
|
Amounts recycled to the Income
Statement - cash flow hedges
|
-
|
-
|
-
|
-
|
-
|
-
|
(4.4)
|
-
|
-
|
(4.4)
|
|
Remeasurement of defined benefit
liability
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.3
|
-
|
0.3
|
|
Taxation on other comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
-
|
0.7
|
(0.1)
|
-
|
0.6
|
|
Total other comprehensive
(loss)/income
|
-
|
-
|
-
|
-
|
-
|
(4.5)
|
(2.2)
|
0.2
|
-
|
(6.5)
|
|
Total comprehensive (loss)/income
for the period
|
-
|
-
|
-
|
-
|
-
|
(4.5)
|
(2.2)
|
(142.4)
|
0.6
|
(148.5)
|
|
Transactions with owners, recorded
directly in equity
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of new shares (note
16)
|
2.8
|
91.7
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
94.5
|
|
Issuance of share to Employee
Benefit Trust (notes 8, 16)
|
0.1
|
-
|
-
|
-
|
-
|
-
|
-
|
(0.1)
|
-
|
-
|
|
Credit for the period under equity
settled share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2.1
|
-
|
2.1
|
|
Shares to be issued to warrant
holders
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
6.2
|
-
|
6.2
|
|
Total transactions with
owners
|
2.9
|
91.7
|
-
|
-
|
-
|
-
|
-
|
8.2
|
-
|
102.8
|
|
At 30 June 2023
(restated*)
|
72.8
|
1,789.1
|
143.9
|
9.3
|
6.6
|
2.0
|
2.1
|
(1,368.1)
|
20.1
|
677.8
|
* Detail on the
restatement is disclosed in note 2.
|
Group
|
Share
capital
£m
|
Share premium
£m
|
Merger reserve
£m
|
Capital redemption
reserve
£m
|
Capital reserve
£m
|
Translation reserve
£m
|
Hedge reserves
£m
|
Retained earnings
£m
|
Non-controlling interest
£m
|
Total
Equity
£m
|
|
At 1 January 2023 (restated*)
|
69.9
|
1,697.4
|
143.9
|
9.3
|
6.6
|
6.5
|
4.3
|
(1,233.9)
|
19.5
|
723.5
|
|
Total comprehensive loss for
the year
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/profit for
the year
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(228.1)
|
1.3
|
(226.8)
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
differences
|
-
|
-
|
|
|
-
|
(4.0)
|
-
|
-
|
-
|
(4.0)
|
|
Fair value movement - cash flow
hedges
|
-
|
-
|
-
|
-
|
-
|
-
|
0.7
|
-
|
-
|
0.7
|
|
Amounts reclassified to the Income
Statement - cash flow hedges
|
-
|
-
|
-
|
-
|
-
|
-
|
(5.4)
|
-
|
-
|
(5.4)
|
|
Remeasurement of Defined Benefit
liability
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(0.1)
|
-
|
(0.1)
|
|
Tax on other comprehensive
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
1.2
|
-
|
-
|
1.2
|
|
Total other comprehensive
loss
|
-
|
-
|
-
|
-
|
-
|
(4.0)
|
(3.5)
|
(0.1)
|
-
|
(7.6)
|
|
Total comprehensive (loss)/income
for the year
|
-
|
-
|
-
|
-
|
-
|
(4.0)
|
(3.5)
|
(228.2)
|
1.3
|
(234.4)
|
|
Transactions with owners, recorded
directly in equity
|
|
|
-
|
-
|
|
|
|
|
|
|
|
Issuance of new shares
(note 16)
|
11.5
|
383.0
|
|
|
-
|
-
|
-
|
-
|
-
|
394.5
|
|
Issue of shares to Employee Benefit
Trust (notes 8, 16)
|
0.1
|
-
|
-
|
-
|
-
|
-
|
-
|
(0.1)
|
-
|
-
|
|
Warrant options
exercised
|
0.9
|
14.1
|
-
|
-
|
-
|
-
|
-
|
18.6
|
-
|
33.6
|
|
Credit for the year under
equity-settled share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
5.4
|
-
|
5.4
|
|
Tax on items credited
to equity
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
0.5
|
-
|
0.5
|
|
Total transactions with owners
|
12.5
|
397.1
|
-
|
-
|
-
|
-
|
-
|
24.4
|
-
|
434.0
|
|
At 31 December 2023
|
82.4
|
2,094.5
|
143.9
|
9.3
|
6.6
|
2.5
|
0.8
|
(1,437.7)
|
20.8
|
923.1
|
* Detail on the
restatement is disclosed in note 2.
|
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
|
|
|
|
|
|
|
|
Notes
|
|
As at
30 June
2024
|
As
at
30
June
2023
(restated*)
|
As
at
31
December 2023
|
|
|
|
|
£m
|
£m
|
£m
|
|
Non-current assets
|
|
|
|
|
|
|
Intangible assets
|
|
|
1,599.9
|
1,398.7
|
1,577.6
|
|
Property, plant and
equipment
|
|
|
356.8
|
370.7
|
353.7
|
|
Investments in equity
interests
|
12
|
|
69.6
|
-
|
18.2
|
|
Right-of-use assets
|
|
|
72.8
|
70.7
|
70.4
|
|
Trade and other
receivables
|
|
|
5.4
|
2.5
|
5.3
|
|
Deferred tax asset
|
|
|
156.7
|
137.2
|
156.3
|
|
|
|
|
2,261.2
|
1,979.8
|
2,181.5
|
|
Current assets
|
|
|
|
|
|
|
Inventories
|
|
|
337.1
|
320.6
|
272.7
|
|
Trade and other
receivables
|
|
|
263.8
|
222.8
|
322.2
|
|
Income tax receivable
|
|
|
0.5
|
1.3
|
0.9
|
|
Other financial assets
|
13
|
|
6.6
|
8.3
|
3.3
|
|
Cash and cash
equivalents
|
10
|
|
172.7
|
400.1
|
392.4
|
|
|
|
|
780.7
|
953.1
|
991.5
|
|
Total assets
|
|
|
3,041.9
|
2,932.9
|
3,173.0
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Borrowings
|
10
|
|
88.1
|
57.8
|
89.4
|
|
Trade and other
payables
|
|
|
756.5
|
844.4
|
840.4
|
|
Income tax payable
|
|
|
1.9
|
1.9
|
2.1
|
|
Other financial
liabilities
|
13
|
|
12.1
|
64.3
|
25.2
|
|
Lease liabilities
|
10
|
|
8.2
|
7.3
|
8.8
|
|
Provisions
|
14
|
|
21.1
|
18.3
|
20.2
|
|
|
|
|
887.9
|
994.0
|
986.1
|
|
Non-current liabilities
|
|
|
|
|
|
|
Borrowings
|
10
|
|
1,140.5
|
1,051.9
|
980.3
|
|
Trade and other
payables
|
|
|
97.3
|
42.3
|
122.3
|
|
Lease liabilities
|
10
|
|
90.8
|
89.4
|
88.5
|
|
Provisions
|
14
|
|
22.1
|
22.0
|
23.7
|
|
Employee benefits
|
15
|
|
42.2
|
54.8
|
49.0
|
|
Deferred tax
liabilities
|
|
|
-
|
0.7
|
-
|
|
|
|
|
1,392.9
|
1,261.1
|
1,263.8
|
|
Total liabilities
|
|
|
2,280.8
|
2,255.1
|
2,249.9
|
|
Net assets
|
|
|
761.1
|
677.8
|
923.1
|
|
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
|
|
|
Share capital
|
16
|
|
82.5
|
72.8
|
82.4
|
|
Share premium
|
|
|
2,094.5
|
1,789.1
|
2,094.5
|
|
Merger reserve
|
|
|
143.9
|
143.9
|
143.9
|
|
Capital redemption
reserve
|
|
|
9.3
|
9.3
|
9.3
|
|
Capital reserve
|
|
|
6.6
|
6.6
|
6.6
|
|
Translation reserve
|
|
|
2.2
|
2.0
|
2.5
|
|
Hedge reserve
|
|
|
3.8
|
2.1
|
0.8
|
|
Retained earnings
|
|
|
(1,602.7)
|
(1,368.1)
|
(1,437.7)
|
|
Equity attributable to owners of the group
|
|
|
740.1
|
657.7
|
902.3
|
|
Non-controlling
interests
|
|
|
21.0
|
20.1
|
20.8
|
|
Total shareholders' equity
|
|
|
761.1
|
677.8
|
923.1
|
|
|
|
|
|
|
|
* Detail on the
restatement is disclosed in note 2.
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
Notes
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
|
|
£m
|
£m
|
£m
|
|
Operating activities
|
|
|
|
|
|
Loss for the period
|
|
(207.6)
|
(142.0)
|
(226.8)
|
|
Adjustments to reconcile loss for
the period to net cash inflow from operating activities
|
|
|
|
|
|
Tax credit
|
7
|
(9.1)
|
(0.2)
|
(13.0)
|
|
Net finance costs
|
|
110.6
|
49.0
|
128.6
|
|
Depreciation of property, plant and
equipment
|
|
40.6
|
41.0
|
90.3
|
|
Depreciation of right-of-use
assets
|
|
4.8
|
4.7
|
9.3
|
|
Amortisation of intangible
assets
|
|
116.6
|
121.6
|
283.4
|
|
Loss on sale/scrap of property,
plant and equipment
|
|
-
|
-
|
2.6
|
|
Difference between pension
contributions paid and amounts recognised in operating
profit
|
|
(7.5)
|
(7.5)
|
(15.0)
|
|
(Increase)/Decrease in
inventories
|
|
(51.0)
|
(32.7)
|
11.9
|
|
Decrease/(increase) in trade and
other receivables
|
|
54.9
|
21.5
|
(82.3)
|
|
(Decrease)/increase in trade and
other payables
|
|
(39.4)
|
(8.7)
|
50.9
|
|
Decrease in advances and customer
deposits
|
|
(83.7)
|
(17.2)
|
(66.0)
|
|
Movement in provisions
|
|
(0.8)
|
(0.2)
|
3.4
|
|
Other non-cash movements including
foreign exchange differences
|
|
4.7
|
(1.3)
|
(0.3)
|
|
Other non-cash movements -
Movements in hedging position and foreign exchange
derivatives
|
|
0.2
|
(2.5)
|
(7.2)
|
|
Increase in other derivative
contracts
|
|
-
|
(0.8)
|
(11.2)
|
|
Movements in RDEC credit
|
|
(4.2)
|
(2.9)
|
(7.4)
|
|
Cash (outflow)/inflow from
operations
|
|
(70.9)
|
21.8
|
151.2
|
|
Decrease in cash held not available
for short-term use
|
|
-
|
0.3
|
0.3
|
|
Income taxes paid
|
|
(1.0)
|
(4.6)
|
(5.6)
|
|
Net cash (outflow)/inflow from
operating activities
|
|
(71.9)
|
17.5
|
145.9
|
|
Cash flows from investing
activities
|
|
|
|
|
|
Interest received
|
|
4.0
|
5.2
|
13.5
|
|
Repayment of loan assets
|
|
-
|
0.5
|
0.5
|
|
Payments to acquire property, plant
and equipment
|
|
(48.8)
|
(43.8)
|
(91.1)
|
|
Cash outflow on development
expenditure
|
|
(151.3)
|
(136.9)
|
(306.3)
|
|
Net cash used in investing
activities
|
|
(196.1)
|
(175.0)
|
(383.4)
|
|
Cash flows from financing
activities
|
|
|
|
|
|
Interest paid
|
|
(44.6)
|
(60.8)
|
(122.5)
|
|
Proceeds from equity share
issue
|
|
-
|
94.8
|
310.9
|
|
Proceeds received in advance of the
exercise of warrants
|
|
-
|
6.2
|
15.0
|
|
Proceeds from financial instrument
utilised during refinancing transactions
|
4
|
0.7
|
-
|
-
|
|
Principal element of lease
payments
|
11
|
(4.8)
|
(4.0)
|
(7.9)
|
|
Repayment of existing
borrowings
|
11
|
(1,084.9)
|
(49.5)
|
(129.7)
|
|
Premium paid upon redemption of
borrowings
|
|
(35.7)
|
-
|
(8.0)
|
|
Proceeds from inventory repurchase
arrangement
|
11
|
37.7
|
-
|
38.0
|
|
Repayment of inventory repurchase
arrangement
|
11
|
(40.0)
|
-
|
(40.0)
|
|
Proceeds from new
borrowings
|
11
|
1,243.1
|
-
|
11.5
|
|
Transaction fees on issuance of
shares from prior year
|
|
(1.7)
|
(2.8)
|
(7.6)
|
|
Transaction fees on financing
activities
|
11
|
(20.6)
|
-
|
-
|
|
Net cash inflow/(outflow) from
financing activities
|
|
49.2
|
(16.1)
|
59.7
|
|
Net decrease in cash and cash
equivalents
|
|
(218.8)
|
(173.6)
|
(177.8)
|
|
Cash and cash equivalents at the
beginning of the period
|
|
392.4
|
583.3
|
583.3
|
|
Effect of exchange rates on cash
and cash equivalents
|
|
(0.9)
|
(9.6)
|
(13.1)
|
|
Cash and cash equivalents at the
end of the period
|
|
172.7
|
400.1
|
392.4
|
Notes to the Interim Condensed Financial
Statements
1. Basis of
preparation
The results for the 6 month period
ended 30 June 2024 have been reviewed by Ernst & Young LLP, the
Group's auditor, and a copy of their review report appears at the
end of this interim report. The financial information for the year
ended 31 December 2023 does not constitute statutory accounts as
defined in section 435 of the Companies Act 2006. The auditor's
report on the statutory accounts for the year ended 31 December
2023 was not qualified and did not draw attention to any matters by
way of emphasis and did not contain a statement under section
498(2) or (3) of the Companies Act 2006. A copy of the statutory
accounts for the year ended 31 December 2023 prepared in accordance
with UK adopted international accounting standards have been
delivered to the Registrar of Companies. The annual report for the
year ended 31 December 2024 will be prepared in accordance with UK
adopted international accounting standards.
Aston Martin Lagonda Global
Holdings plc (the "Company") is a company incorporated and
domiciled in the UK. The Consolidated Interim Condensed Financial
Statements of the Company as at the end of the period ended 30 June
2024 comprise the Company and its subsidiaries (together referred
to as the 'Group').
Going Concern
The Group meets its day-to-day
working capital requirements and medium-term funding requirements
through a mixture of $960.0m SSNs at 10.0% and £400.0m of SSNs at
10.375% both of which mature in March 2029, a Revolving Credit
Facility (RCF) (£170.0m) which matures on 31 December 2028,
facilities to finance inventory, a bilateral RCF and a wholesale
vehicle financing facility. Under the RCF, the Group is required to
comply with a leverage covenant tested quarterly.
Leverage is calculated as the ratio of adjusted
EBITDA to net debt, after certain accounting adjustments are made.
Of these adjustments, the most significant is to account for lease
liabilities under "frozen GAAP", i.e. under IAS17 rather than IFRS
16. The Group expects to comply with its covenant requirements for
the going concern period.
The directors have developed
trading and cash flow forecasts for the period from the date of
approval of these Interim Condensed Financial Statements through 30
September 2025 (the "going concern review period"). These forecasts
show that the Group has sufficient financial resources to meet its
obligations as they fall due and to comply with covenants for the
going concern review period.
The forecasts reflect the Group's
ultra-luxury performance-oriented strategy, balancing supply and
demand and the actions taken to improve cost efficiency and gross
margin. The forecasts include the costs of the Group's
environmental, social and governance ("ESG") commitments and make
assumptions in respect of future market conditions and, in
particular, wholesale volumes, average selling price, the launch of
new models, and future operating costs. The nature of the Group's
business is such that there can be variation in the timing of cash
flows around the development and launch of new models. In addition,
the availability of funds provided through the vehicle wholesale
finance facility changes as the availability of credit insurance
and sales volumes vary, in total and seasonally. The forecasts take
into account these factors to the extent which the Group directors
consider them to represent their best estimate of the future based
on the information that is available to them at the time of
approval of these Interim Condensed Financial
Statements.
The Group directors have
considered a severe but plausible downside scenario that includes
considering the impact of a 15% reduction in DBX volumes and a 10%
reduction in sports volumes from forecast levels, operating costs
higher than the base plan incremental working capital requirements
such as reduced deposit inflows or increased deposit outflows and
the impact of the strengthening of the sterling-dollar exchange
rate.
The Group plans to make continued
investment for growth in the period and, accordingly, funds
generated through operations are expected to be reinvested in the
business mainly through new model development and other capital
expenditure. To a certain extent such expenditure is discretionary
and, in the event of risks occurring which could have a
particularly severe effect on the Group, as identified in the
severe but plausible downside scenario, actions such as
constraining capital spending, working capital improvements,
reduction in marketing expenditure and the continuation of strict
and immediate expense control would be taken to safeguard the
Group's financial position.
In addition, the Group also
considered the circumstances which would be needed to exhaust the
Group's liquidity over the assessment period, a reverse stress
test. This would indicate that total core vehicle sales (DBX and
GT/Sports) would need to reduce by more than 30% from forecast
levels without any of the above mitigations to result in having no
liquidity and/or breach of covenants. The likelihood of management
not taking substantial mitigating actions over such a long period
(such as reducing capital spending to preserve liquidity and ensure
covenant compliance) together with these circumstances occurring is
considered remote both in terms of the magnitude of the reduction
and occurrence over such a long period.
Accordingly, after considering the
forecasts, appropriate sensitivities, current trading and available
facilities, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the foreseeable future and to comply with its financial
covenants and, therefore, the directors continue to adopt the going
concern basis in preparing the Interim Condensed Financial
Statements.
Statement of compliance
These Interim Condensed Financial
Statements have been prepared in accordance with
UK adopted International Accounting Standard 34,
"Interim Financial Reporting". They do not
include all the information required for full annual financial
statements and should be read in conjunction with the Consolidated
Financial Statements of the Group for the year ended 31 December
2023.
Material accounting policies
These Interim Condensed Financial
Statements have been prepared applying the accounting policies and
presentation that were applied in the preparation of the Group's
published Consolidated Financial Statements for the year ended 31
December 2023. A number of new or amended standards became
applicable for the current reporting period and the Group did not
have to change its accounting policies or make retrospective
adjustments as a result of adopting these standards. The Group has
not early adopted any standard, interpretation or amendment that
has been issued but is not yet effective. The significant
judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the
same as those that applied to the consolidated financial statements
for the year ended 31 December 2023.
2. Prior year
restatement
Consistent with the restatements
disclosed in the Consolidated Financial Statements of the Group for
the year ended 31 December 2023, the Consolidated Statement of
Financial Position as at 30 June 2023 has been restated to reflect
a prior period adjustment in respect of the deferral of tax relief
income received under the Research and Development Expenditure
Credit ('RDEC') regime. The Group previously recognised the income
within Administrative and other operating expenses in the
Consolidated Income Statement, in the period in which the
qualifying expenditure giving rise to the RDEC claim was incurred.
The Group has reassessed the treatment under IAS 20 in respect of
income from RDEC claims where the qualifying expenditure has been
capitalised. For these capitalised expenses, the RDEC income earned
has been deferred to the Consolidated Statement of Financial
Position and will be released to the Consolidated Income Statement
over the same period as the amortisation of the costs capitalised
to which the RDEC income relates. Where the qualifying expenditure
is not capitalised, the RDEC income will continue to be recognised
in the Consolidated Income Statement in the year the expenditure is
incurred, as has previously been the approach.
The impact of this adjustment is
that as at 31 December 2022 and 30 June 2023, £49.0m of deferred
income has been recognised on the balance sheet split between
current £14.9m and non-current £34.1m Trade and Other Payables with
a corresponding adjustment to retained earnings. There is no
adjustment to the Consolidated Income Statement for the year ended
31 December 2022 or period ended 30 June 2023 as the impact of the
adjustment is not material to the individual reporting period.
There is no change to the Consolidated Statement of Cash Flows as,
whilst the accounting impact of the claim is deferred, there is no
change to the timing of the cash receipt. No change in the
corporation tax position is recognised for the year ended 31
December 2022 or period ended 30 June 2023 in either the
Consolidated Income Statement or Consolidated Statement of
Financial Position, as the recoverability assessment of the Group's
deferred tax position has not been materially changed by this
restatement. As there is no adjustment to the Consolidated Income
Statement and no change in the corporation tax position, there is
no impact on earnings per share.
The following table details the
impact on the Consolidated Statement of Financial Position as at 31
December 2022 and 30 June 2023.
|
Liabilities
|
As previously reported 30 June
2023
£m
|
Adjustment
£m
|
Restated balance
30 June 2023
£m
|
|
Non-current liabilities
|
|
|
|
|
Trade and other payables
|
8.2
|
34.1
|
42.3
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
829.5
|
14.9
|
844.4
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
|
Retained Earnings
|
(1,319.1)
|
(49.0)
|
(1,368.1)
|
|
|
|
|
|
|
Liabilities
|
As previously reported 1 January
2023
£m
|
Adjustment
£m
|
Restated balance
1 January 2023
£m
|
|
Non-current liabilities
|
|
|
|
|
Trade and other payables
|
9.1
|
34.1
|
43.2
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
876.3
|
14.9
|
891.2
|
|
|
|
|
|
|
Capital and reserves
|
|
|
|
|
Retained Earnings
|
(1,184.9)
|
(49.0)
|
(1,233.9)
|
|
|
|
|
|
3. Segmental
information
Operating segments are defined as
components of the Group about which separate financial information
is available and is evaluated regularly by the chief operating
decision-maker in assessing performance. The Group has only one
operating segment, the automotive segment, and therefore no
separate segmental report is disclosed. The automotive segment
includes all activities relating to design, development,
manufacture and marketing of vehicles including consulting
services; as well as the sale of parts, servicing and automotive
brand activities from which the Group derives its
revenues.
|
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
Revenue
|
£m
|
£m
|
£m
|
|
Analysis by category
|
|
|
|
|
Sale of vehicles
|
548.8
|
627.3
|
1,531.9
|
|
Sale of parts
|
42.8
|
40.3
|
80.0
|
|
Servicing of vehicles
|
6.3
|
4.2
|
9.8
|
|
Brands and motorsport
|
5.1
|
5.6
|
11.1
|
|
|
603.0
|
677.4
|
1,632.8
|
|
|
|
|
|
|
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
Revenue
|
£m
|
£m
|
£m
|
|
Analysis by geographic
location
|
|
|
|
|
United Kingdom
|
103.6
|
134.3
|
309.9
|
|
The Americas
|
196.1
|
214.5
|
452.8
|
|
Rest of Europe, Middle East &
Africa
|
202.9
|
199.2
|
547.0
|
|
Asia Pacific
|
100.4
|
129.4
|
323.1
|
|
|
603.0
|
677.4
|
1,632.8
|
4. Adjusting
items
|
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
ERP implementation
costs1
|
(4.5)
|
(6.1)
|
(14.5)
|
|
Defined Benefit pension scheme
closure costs2
|
-
|
(0.4)
|
(1.0)
|
|
Legal settlement
income3
|
2.4
|
-
|
-
|
|
Legal costs3
|
(4.2)
|
-
|
(16.0)
|
|
|
(6.3)
|
(6.5)
|
(31.5)
|
|
Adjusting finance income:
|
|
|
|
|
Gain on
financial instruments recognised at fair value through Income
Statement4
|
12.7
|
-
|
-
|
|
Gain on
financial instrument utilised during refinance
transactions5
|
0.7
|
-
|
-
|
|
|
13.4
|
-
|
-
|
|
Adjusting finance expenses:
|
|
|
|
|
Loss on
financial instruments recognised at fair value through Income
Statement4
|
-
|
(37.9)
|
(19.0)
|
|
Premium paid on the
early redemption of Senior Secured Notes5, 6
|
(35.7)
|
-
|
(8.0)
|
|
Write-off of
capitalised borrowing fees upon early settlement of Senior Secured
Notes6
|
-
|
-
|
(9.5)
|
|
Adjusting items before tax
|
(28.6)
|
(44.4)
|
(68.0)
|
|
Tax charge on adjusting
items7
|
-
|
-
|
-
|
|
Adjusting items after tax
|
(28.6)
|
(44.4)
|
(68.0)
|
Summary of adjusting items
1. In the 6 months
ended 30 June 2024 the Group incurred further implementation costs
for a cloud-based Enterprise Resource Planning (ERP) system for
which the Group will not own any Intellectual Property. During the
period £4.5m (6 months ended 30 June 2023: £6.1m, 12 months ended
31 December 2023: £14.5m) of costs have been incurred and expensed
to the Income Statement. The project remains ongoing for remaining
functions of the Group following the migration of the purchasing
workstream during the first half of the year. Due to the infrequent
recurrence of such costs and the expected quantum during the
implementation phase, these have been separately presented as
adjusting. The cash impact of this item is a working capital
outflow at the time of invoice payment.
2. On the 31 January
2022, the Group closed its defined benefit pension scheme to future
accrual. Costs associated with the closure included a past service
cost of £2.8m, cash payments to the affected employees taking place
in the first quarter of 2022, 2023 and 2024 totaling £8.7m, the
issuance of 185 shares in the first half of 2022 to each employee
at a cost of £1.0m, and a guaranteed value associated with those
shares which is being accounted for as a share based payment until
the guarantee crystalised during January 2024. These charges were
all recognised in the 6 months to 30 June 2022, totaling £13.0m,
with subsequent charges being recognised in relation to the
guaranteed value associated with shares being recognised in
subsequent reporting periods to 31 December 2023 (6 months ended 30
June 2023: £0.4m, 12 months ended 31 December 2023: £1.0m). The
Group presented these costs in adjusting items due to their
volatile nature and connection with the closure of the pension
scheme which is considered a non-recurring event. No further
costs have been recognised in the 6 months to June 2024 following
the final payments to affected employees in January
2024.
3. During the six
months ended 30 June 2024, the Group incurred legal costs in
relation to a number of disputes and claims with entities
ultimately owned by a former significant shareholder of the Group.
The Group has incurred legal costs of £4.2m associated with its
defence of such claims and pursuit of its counterclaims. AMMENA,
Aston Martin's distributor in the Middle East, North Africa and
Turkey region has brought various claims, which the Group denies.
Certain aspects of these claims, and Aston Martin's counterclaims,
are due to be heard in a confidential arbitration in September
2024. On 1 March 2024 a court order was issued quantifying the
amounts payable to the Group from the judgment of a case involving
claims against a retail dealership, which is ultimately owned by
entities that are shareholders in one of the Group's subsidiary
entities, including for unpaid debts relating to two agreements
from 2015 and 2016. All remaining amounts due in relation to this
dispute have now been resolved. As part of the final settlement the
Group was awarded £2.4m in respect of incurred legal costs and
indemnity costs under CPR 36.17(4)(d). The counter party has paid
the Group the amounts ordered on 1 March 2024. In 2023 the Group
had incurred costs of £2.7m in the year which were considered
non-recurring in nature as these were related to historic disputes
with former shareholders and not related to the ongoing business of
the Group. In line with the associated costs relating to the legal
matter, which have been considered as non-recurring in nature
above, the associated judgment income has been deemed as
non-recurring in nature.
During the year ended 31 December
2023, the Group was involved in one other High Court case against
entities ultimately owned by a former significant shareholder of
the Group. AMMENA brought a number of claims against the Group,
including claims for debts arising between 2019-2021 when Aston
Martin was acting as AMMENA's agent and several claims that the
Group had acted in bad faith when AMMENA resumed its obligations as
distributor. The Group successfully defended all the bad faith
claims and AMMENA's 2021 debt claim was dismissed. Aston Martin,
however, was unsuccessful in its claim to set off its own
counter-claim that AMMENA (as the region's distributor) should
indemnify the Group in relation to costs incurred in the
termination of a retail dealer, so was required to pay AMMENA's
debt claims for 2019 and 2020 (totalling £5.3m plus interest of
£0.6m). The Group incurred costs of £5.7m in defending AMMENA's
claims and paid opposition costs of £1.7m. The cash impact of these
costs was a cash outflow in February 2024 as well as working
capital movements during the year ended 31 December 2023 for costs
already incurred.
Whilst disputes and legal
proceedings pending are often in the normal course of the Group's
business, in all these cases the opposing party has links to
companies that were former significant shareholders of the Group.
On that basis the Group has classified these costs as non-recurring
in nature. The Group has disclosed a contingent liability in
respect of ongoing claims with former significant shareholders of
the Group at the period ended 30 June 2024 (note 18).
4. During 2020 the
Group issued second lien Senior Secured Notes which included
detachable warrants classified as a derivative option liability.
The movement in fair value of the warrants between 31 December 2023
and 30 June 2024 resulted in a gain of £12.7m being recognised in
the Income Statement (6 months ended 30 June 2023: loss of £37.9m;
12 months ended 31 December 2023: loss of £19.0m). This item has no
cash impact.
5. During the 6
months ending 30 June 2024 the Group undertook a refinancing
exercise whereby new Senior Secured Notes of $960.0m at 10.0% and
£400.0m at 10.375% repayable 31 March 2029 were issued, and all
outstanding First Lien and Second Lien Senior Secured Notes issued
by the Group were repaid. To facilitate the repayment of the
outstanding Secured Notes, the Group placed a forward currency
contract to purchase US dollars. Due to favourable movements in the
exchange rates, a gain of £0.7m was recognised in the Consolidated
Income Statement at the transaction date. There is no cash impact
of this adjustment. Additionally, in repaying the notes prior to
their redemption date, a redemption premium of £35.7m was incurred,
of which the cash impact was incurred in the period ended 30 June
2024.
6. During the year
ended 31 December 2023, the Group repaid $121.7m of Second Lien
Senior Secured Notes ("SSNs"). In repaying the notes prior to their
redemption date, a redemption premium of £8.0m was incurred, of
which the cash impact was incurred in the year ended 31 December
2023. Accelerated amortisation of capitalised borrowing costs and
discount of £9.5m was recognised which is a non-cash item. The
repayment made in 2023 was not hedged.
7. In the period to
30 June 2024, a Nil tax charge has been recognised on Adjusting
items (6 months ended 30 June 2023: Nil tax charge; 12 months ended
31 December 2023: Nil tax charge). This is on the basis that the
adjusting items generate net deferred tax assets, specifically
interest amounts disallowed under the corporate interest
restriction regime, which have not been recognised to the extent
that sufficient taxable profits are not forecast in the foreseeable
future to which the disallowed interest amounts would be
utilised.
5. Finance
income
|
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
Bank deposit and other interest
income
|
4.1
|
5.1
|
13.5
|
|
Foreign exchange gain on borrowings
not designated as part of a hedging relationship
|
-
|
61.7
|
60.8
|
|
Finance income before adjusting
items
|
4.1
|
66.8
|
74.3
|
|
Adjusting finance income items:
|
|
|
|
|
Gain on
financial instruments recognised at fair value through Income
Statement (note 4)
|
12.7
|
-
|
-
|
|
Gain on
financial instrument utilised during refinance transactions (note
4)
|
0.7
|
-
|
-
|
|
|
17.5
|
66.8
|
74.3
|
6. Finance
expense
|
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
Interest on bank loans, overdrafts
and secured notes
|
79.1
|
70.6
|
151.3
|
|
Net interest expense on the net
defined benefit liability (note 15)
|
1.0
|
1.4
|
2.7
|
|
Foreign exchange loss on borrowings
not designated as part of a hedging relationship
|
6.3
|
-
|
-
|
|
Interest on contract liabilities
held
|
2.2
|
3.9
|
7.7
|
|
Interest on lease
liabilities
|
2.1
|
2.0
|
4.1
|
|
Effect of discounting on long term
liabilities
|
1.7
|
-
|
0.6
|
|
Finance expense before adjusting
items
|
92.4
|
77.9
|
166.4
|
|
Adjusting finance expense items:
|
|
|
|
|
Loss on financial instruments
recognised at fair value through Income Statement (note
4)
|
-
|
37.9
|
19.0
|
|
Premium paid on the early
redemption of Senior Secured Notes (note 4)
|
35.7
|
-
|
8.0
|
|
Write-off of capitalised borrowing
fees upon early settlement of Senior Secured Notes (note
4)
|
-
|
-
|
9.5
|
|
Total adjusting finance
expense
|
35.7
|
37.9
|
36.5
|
|
Total finance expense
|
128.1
|
115.8
|
202.9
|
7. Income tax
credit
The Group's total income tax credit
for the period to 30 June 2024 is £9.1m (period ended 30 June 2023:
£0.2m tax credit) which represents an effective tax rate of 4.2%
(period ended 30 June 2023: 0.1%). The difference between the total
effective tax rate of 4.2% and the UK statutory rate of 25% for the
full year is predominantly due to deferred tax balances not being
recognised on losses generated in the period to 30 June 2024.
£121.3m of the net £156.7m deferred tax asset relates to unused tax
losses. Deferred tax assets on unused tax losses have been
recognised to the extent that it is probable that sufficient
taxable profits will be generated to utilise these losses based
upon the current business plan. Tax on other comprehensive income
of £12.9m is related to the deferred tax liability on the fair
value movement of investments recognised at fair value through
other comprehensive income. All other assumptions and methodologies
used in determining deferred tax balances are consistent with those
used at 31 December 2023.
Pillar Two legislation has been
enacted or substantively enacted in certain jurisdictions in which
the Group operates. The legislation is to be effective for the
Group's financial year beginning 1 January 2024. The Group has
performed an assessment of the Group's potential exposure to Pillar
Two income taxes. The assessment of the potential exposure to
Pillar Two income taxes is based on the most recent tax filings,
country-by-country reporting and financial statements for the
constituent entities in the Group. Based on the assessment, the
Pillar Two Transitional Safe Harbour provisions are expected to
apply in each jurisdiction the Group operates in, and management is
not aware of any circumstance under which this might change.
Therefore, the Group does not expect a potential exposure to Pillar
Two top-up taxes. The Group has applied the exception in IAS 12
'Income Taxes' to recognising and disclosing information about
deferred tax assets and liabilities related to Pillar Two income
taxes.
8. Earnings per ordinary
share
In calculating the basic weighted
average number of ordinary shares for the 6 months ended 30 June
2024, a total of 2,301,201 ordinary shares issued to the Employee
Benefit Trust are excluded owing to the control the Group has over
the Trust.
|
Continuing and total
operations
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
Basic earnings per ordinary
share
|
|
|
|
|
Loss available for equity holders
(£m)
|
(207.8)
|
(142.6)
|
(228.1)
|
|
Basic weighted average number of
ordinary shares (million)
|
822.6
|
704.2
|
748.2
|
|
Basic earnings per ordinary share
(pence)
|
(25.3)p
|
(20.3p)
|
(30.5p)
|
|
|
|
|
|
|
Diluted earnings per ordinary
share
|
|
|
|
|
Loss available for equity holders
(£m)
|
(207.8)
|
(142.6)
|
(228.1)
|
|
Diluted weighted average number of
ordinary shares (million)
|
822.6
|
704.2
|
748.2
|
|
Diluted earnings per ordinary share
(pence)
|
(25.3)p
|
(20.3p)
|
(30.5p)
|
|
|
|
|
|
The impact of ordinary shares
issued as part of the Long-term incentive plans ("LTIP") and the
potential number of ordinary shares issued as part of the 2020
issue of share warrants have been excluded from the weighted
average number of diluted ordinary shares as including them is
anti-dilutive in arriving at diluted earnings per share.
9. Research and Development
expenditure
|
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
Total research and development
expenditure
|
158.4
|
124.7
|
299.2
|
|
Capitalised research and
development expenditure
|
(146.5)
|
(121.0)
|
(268.5)
|
|
Research and development
expenditure recognised as an expense during the period
|
11.9
|
3.7
|
30.7
|
10. Net debt
|
|
30 June
2024
|
30
June
2023
|
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
Cash and cash
equivalents
|
172.7
|
400.1
|
392.4
|
|
Bank loans and
overdrafts1
|
(88.1)
|
(57.8)
|
(89.4)
|
|
Inventory repurchase
arrangements2
|
(38.9)
|
(39.9)
|
(39.7)
|
|
Senior Secured Notes
|
(1,140.5)
|
(1,051.9)
|
(980.3)
|
|
Lease liabilities
|
(99.0)
|
(96.7)
|
(97.3)
|
|
|
(1,193.8)
|
(846.2)
|
(814.3)
|
|
|
|
|
|
1. At 30 June 2024
£90.0m of the £170.0m revolving credit facility was drawn down in
cash (30 June 2023: £29.0m of £90.6m facility, 31 December 2023:
£90.0m of £99.6m facility). £5.9m of the revolving credit facility
has been reserved for the issuance of letters of credit and
guarantees (30 June 2023: £5.5m of the revolving credit facility
was reserved; 31 December 2023: £4.4m was reserved). The loan is
presented net of amortised transaction fees of £1.9m (30 June 2023:
£1.2m; 31 December 2023: £0.6m).
At 30 June 2023, the Group held a
bilateral revolving credit facility with HSBC Bank plc ("HSBC"),
whereby Chinese renminbi with an initial value of £31.9m were
deposited in a restricted account with HSBC in China in exchange
for a £30.0m sterling overdraft facility with HSBC in the United
Kingdom. Cash deposits in China could not be withdrawn whilst the
loan remained in place. The restricted cash was revalued at 30 June
2023 to £30.1m and is shown in the comparative period cash and cash
equivalents value above. During the period ended 31 December 2023,
the loan was repaid and the restricted cash was released. The
facility remains undrawn in the period ended 30 June
2024.
2. At 30 June 2024 a
repurchase liability of £38.9m including accrued interest of £1.5m
(December 2023: £39.7m including accrued interest of £1.7m) was
included within accruals and other payables and Net Debt relating
to parts for resale, service parts and production stock which were
sold in 2024 and subsequently repurchased. Under the repurchase
agreement, which has a repayment date of August 2024, the Group
will repay £40.0m gross of indirect tax. As part of this
arrangement legal title to the parts was surrendered, however
control remained with the Group. This repurchase arrangement will
be fully settled in 2024. As at 30 June 2023 a similar arrangement
existed and had a carrying value of £39.9m which included accrued
interest of £1.9m. This arrangement was fully settled during
2023.
11. Movement in net
debt
|
|
30 June
2024
|
30
June
2023
|
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
Movement in net debt
|
|
|
|
|
Net decrease in cash and cash
equivalents
|
(219.7)
|
(183.2)
|
(190.9)
|
|
Add back cash flows in respect of
other components of net debt:
|
|
|
|
|
New borrowings
|
(1,243.1)
|
-
|
(11.5)
|
|
Proceeds from inventory repurchase
arrangement
|
(37.7)
|
-
|
(38.0)
|
|
Movement in cash held not available
for short-term use
|
-
|
(0.3)
|
(0.3)
|
|
Repayment of existing
borrowings
|
1,084.9
|
49.5
|
129.7
|
|
Repayment of inventory repurchase
arrangement
|
40.0
|
-
|
40.0
|
|
Lease liability payments
|
4.8
|
4.0
|
7.9
|
|
Transaction fees
|
20.6
|
-
|
-
|
|
|
|
|
|
|
Increase in net debt arising from
cash flows
|
(350.2)
|
(130.0)
|
(63.1)
|
|
Non-cash movements:
|
|
|
|
|
Foreign exchange (loss)/gain on
secured loan notes
|
(6.3)
|
61.7
|
60.8
|
|
Interest added to debt
|
(1.5)
|
(7.4)
|
(14.2)
|
|
Unpaid transaction fees
|
1.2
|
-
|
-
|
|
Borrowing fee
amortisation
|
(16.1)
|
(4.2)
|
(26.9)
|
|
Lease liability interest
charge
|
(2.1)
|
(2.0)
|
(4.1)
|
|
Lease modifications
|
(1.5)
|
(0.6)
|
(0.6)
|
|
New leases
|
(5.3)
|
(1.4)
|
(5.8)
|
|
Exchange and other
adjustments
|
2.3
|
3.2
|
5.1
|
|
Increase in net debt
|
(379.5)
|
(80.7)
|
(48.8)
|
|
Net debt at beginning of the
period/year
|
(814.3)
|
(765.5)
|
(765.5)
|
|
Net debt at the end of the
period/year
|
(1,193.8)
|
(846.2)
|
(814.3)
|
12. Investments in equity
interests
On 15 November 2023, the Group
subscribed for shares in AMR GP Holdings Limited by exercising its
primary warrant option and subscribing for reward shares it was
entitled to under the initial sponsorship term. The primary warrant
became exercisable following the Group entering an agreement with
AMR GP for a second sponsorship term running from 2026 to
2030.
In 2023 the fair value of the
warrant equity option and reward shares was established by applying
the proportion of equity represented by the derivatives to an
assessment of the equity value of AMR GP Limited, which was then
adjusted to reflect marketability and control commensurate with the
size of the investment. As at 30 June 2024 the Group has
measured the fair value of its holding in line with the equity
value implied by investments into AMR GP by a number of third
parties.
The Group made the election to
carry the investment at fair value through other comprehensive
income and will continue to fair value the investment in line with
the requirements of IFRS 9 at future balance sheet dates. This
election was made to reduce volatility due to movements in fair
value within the Consolidated Income Statement.
|
Investments
|
30 June 2024
|
30 June 2023
|
31 December 2023
|
|
Opening
|
18.2
|
-
|
-
|
|
Additions
|
-
|
-
|
18.2
|
|
Fair value change
|
51.4
|
-
|
-
|
|
Closing
|
69.6
|
-
|
18.2
|
13. Financial
Instruments
The following tables provide an
analysis of financial instruments grouped into Levels 1 to 3 based
on the degree to which the value is observable.
|
|
30 June
2024
|
30 June
2023
|
31
December 2023
|
|
|
Nominal Value
|
Book Value
|
Fair Value
|
Nominal Value
|
Book Value
|
Fair Value
|
Nominal Value
|
Book Value
|
Fair Value
|
|
Included in
assets
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Level 2
|
|
|
|
|
|
|
|
|
|
|
Forward foreign exchange
contracts
|
-
|
6.6
|
6.6
|
-
|
1.9
|
1.9
|
-
|
3.3
|
3.3
|
|
Investments
|
-
|
69.6
|
69.6
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Level 3
|
|
|
|
|
|
|
|
|
|
|
Investments
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
18.2
|
18.2
|
|
Other derivative
contracts
|
-
|
-
|
-
|
-
|
6.4
|
6.4
|
-
|
-
|
-
|
|
|
-
|
76.2
|
76.2
|
-
|
8.3
|
8.3
|
-
|
21.5
|
21.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
30 June
2024
|
30 June
2023
|
31
December 2023
|
|
|
Nominal Value
|
Book Value
|
Fair Value
|
Nominal Value
|
Book Value
|
Fair Value
|
Nominal Value
|
Book Value
|
Fair Value
|
|
Included in
liabilities
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
Level 1
|
|
|
|
|
|
|
|
|
|
|
$960.0m 10.0% US Dollar Senior
Secured Notes
|
759.4
|
747.0
|
746.5
|
-
|
-
|
-
|
-
|
-
|
-
|
|
£400.0m 10.375% GBP Senior Secured
Notes
|
400.0
|
393.5
|
398.5
|
-
|
-
|
-
|
-
|
-
|
-
|
|
$1,143.7m (June 2023: $1,143.7m; December 2023:
$1,143.7m) 10.5% US Dollar 1st Lien
Notes*
|
-
|
-
|
-
|
899.6
|
885.7
|
909.4
|
897.2
|
890.0
|
906.7
|
|
$121.7m (June 2023: $236.1m; December 2023:
$121.7) 15.0% US Dollar 2nd Lien Split Coupon
Notes*
|
-
|
-
|
-
|
185.7
|
166.2
|
201.6
|
95.4
|
90.3
|
103.6
|
|
Level 2
|
|
|
|
|
|
|
|
|
|
|
Forward foreign exchange
contracts
|
-
|
1.7
|
1.7
|
-
|
0.8
|
0.8
|
-
|
2.1
|
2.1
|
|
Derivative option over own
shares
|
33.1
|
10.4
|
10.4
|
48.1
|
60.6
|
60.6
|
33.1
|
23.1
|
23.1
|
|
|
1,192.5
|
1,152.6
|
1,157.1
|
1,133.4
|
1,113.3
|
1,172.4
|
1,025.7
|
1,005.5
|
1,035.5
|
* The
First and Second Lien SSNs were repaid as part of the Group
refinancing exercise in March 2024. The nominal value, book value
and fair value of the Second Lien SSNs included $9.8m, $10.5m,
$10.8m, $6.8m, $7.0m and $7.2m of PIK notes issued in April 2021,
November 2021, April 2022, November 2022, April 2023 and November
2023 respectively. The total number of Second Lien SSNs in issuance
was reduced by repayments of $143.8m and $121.7m in 2022 and 2023
respectively. The historic book value included accrued PIK notes
not issued at each reporting date.
Under IFRS 7, such assets and
liabilities are classified by the way in which their fair value is
calculated. The interest bearing loans and borrowings are
considered to be level 1 liabilities. Forward foreign exchange
contracts are considered to be level 2 assets and liabilities.
Derivative options are considered to be level 2
liabilities.
IFRS 13 defines each level as
follows:
·
level 1 assets and
liabilities have inputs observable through quoted
prices;
·
level 2 assets and
liabilities have inputs observable, other than quoted prices,
either directly (i.e. as prices) or indirectly (i.e. derived from
prices); or
·
level 3 assets and
liabilities as those with inputs not based on observable market
data.
The forward currency contracts are
carried at fair value based on pricing models and discounted cash
flow techniques derived from assumptions provided by third party
banks.
The other derivative contracts
related to one option and one issuable derivative for the Group to
acquire a minority shareholding in AMR GP Holdings Limited. Two
derivatives were exercised in the second half of 2023 resulting in
the Group recognising an investment in equity interest. The fair
value of the investment in 2023 was established by applying the
proportion of equity represented by the shareholding to an
assessment of the enterprise value of AMR GP Holdings Limited,
which was then adjusted to reflect marketability and control
commensurate with the size of the investment, and as such was a
level 3 asset. As at 30 June 2024, the Group has measured the fair
value of its holding in line with the equity value implied by
investments into AMR GP by a number of third parties, of which one
is in close proximity to the period end (note 20). The implied
equity value from the transactions, alongside a continued absence
of quoted prices, have led to the investment, being reassessed as a
level 2 asset as at 30 June 2024.
The Senior Secured Notes are all
valued at amortised cost retranslated at the year-end foreign
exchange rate where applicable. The fair value of these Notes at
the current and comparative period ends are determined by reference
to the quoted price on The International Stock Exchange Authority
in St. Peter Port, Guernsey. The fair value and nominal value
exclude the impact of transaction costs. The previous First and
Second Lien Senior Secured Notes were valued using the same
methodology.
The derivative option over own
shares reflects the detachable warrants issued alongside the 2020
second lien Senior Secured Notes enabling the warrant holders to
subscribe for a number of Ordinary Shares in the Company. The fair
value is calculated using a binomial model and updated at each
period end reflecting the latest market conditions. The inputs used
in the valuation model include the quoted share price, market
volatility, exercise ratio, and risk-free rate. The fair value
movement in the option for the period ended 30 June 2024 was a gain
of £12.7m (30 June 2023: loss of £37.9m; 31 December 2023: loss of
£19.0m) and is recognised within the Income Statement in interest
income as an adjusting item.
14. Provisions
|
|
30 June
2024
|
30
June
2023
|
31
December
2023
|
|
|
£m
|
£m
|
£m
|
|
Warranty provision
|
43.2
|
40.3
|
43.9
|
|
|
|
|
|
|
Current
|
21.1
|
18.3
|
20.2
|
|
Non-current
|
22.1
|
22.0
|
23.7
|
|
|
43.2
|
40.3
|
43.9
|
15. Pension
Scheme
The net liability for defined
benefit obligations of £49.0m at 31 December 2023 has decreased to
a net liability of £42.2m at 30 June 2024. The movement of £6.8m
comprises an underlying charge to the Income Statement of £1.0m
offset by an actuarial gain of £0.3m in addition to contributions
of £7.5m.
Following the High Court ruling in
the case of Virgin Media Limited v NTL Pension Trustees II Limited
and others in June 2023, it was held that section 37 of the Pension
Schemes Act 1993 operates to make void any amendment to the rules
of a contracted out pension scheme without written actuarial
confirmation under Regulation 42(2) of the Occupational Pension
Schemes (Contracting Out) Regulations 1996, in so far that the
amendment relates to members' section 9(2B) rights. An appeal is
due to be heard on 26 June 2024 which, it is hoped, will provide
further clarity on the issue. The Trustees of the Scheme and the
Plan (collectively the "Pension Schemes") have confirmed that; -
The Pension Schemes were contracted out of the additional state
pension between 1997 and 2016; and - It was possible that
amendments were made to the Pension Schemes that may have impacted
on the members' section 9(2B) rights. The Trustees of the Pension
Schemes and the Directors work closely together and take
appropriate legal and professional advice when making amendments to
the Pension Schemes. However, at 31 December 2023, it is not
currently possible to determine whether any amendments to section
9(2B) rights were made to the Pension Schemes that were not in
accordance with section 37 of the Pension Schemes Act 1993
requirements. Further, it is not currently possible to reliably
estimate the possible impact to the defined benefit obligations of
the Pension Schemes if these amendments were not in accordance with
section 37 of the Pension Schemes Act 1993 requirements.
16. Share capital
|
|
30 June
2024
|
30
June
2023
|
31
December
2023
|
|
|
Number
|
£m
|
Number
|
£m
|
Number
|
£m
|
|
Ordinary shares
|
825,025,531
|
82.5
|
728,074,580
|
72.8
|
823,663,785
|
82.4
|
Movement in Ordinary shares:
On 26 May 2023, the Company issued
28,300,000 ordinary shares by way of a private placing. The shares
were issued at 335p raising gross proceeds of £94.8m with £2.8m
recognised as share capital and the remaining £92.0m recognised as
share premium. Transaction fees of £0.3m were deducted from share
premium.
On 30 May 2023, the Company issued
1,017,505 ordinary shares under the Company's Share Incentive Plan
at nominal value. A transfer from retained earnings of £0.1m took
place, with £0.1m recognised in share capital.
On 4 July 2023, 3,686,017 ordinary
shares were issued to satisfy the redemption of certain warrant
options. Further issuances of 3,980,921 ordinary shares on 12 July
2023 and 1,324,037 ordinary shares on 31 July 2023 took place.
These transactions resulted in the recognition of £0.9m of share
capital with the balance of £14.1m being recognised in share
premium.
On 3 August 2023, the Company
issued a total of 58,245,957 ordinary shares comprising 56,750,000
placing shares, 1,078,168 retail offer shares and 417,789 Director
subscription shares. The shares were issued at 371p raising gross
proceeds of £216.1m, with £5.9m recognised as share capital, the
remaining £210.2m as share premium, offset by £3.3m of
fees.
On 6 November 2023, the Company
issued consideration shares to Lucid Group, Inc. in part payment
for access to technology. The fair value of technology was
evaluated which determined the issue price of the shares. £2.8m was
recognised in share capital with an initial £85.8m in share
premium. £1.4m of transaction fees were then deducted from share
premium.
On 6 March 2024, the Company
issued 78,050 ordinary shares to satisfy the vesting of the
Company's 2021 Long Term Incentive Plan and a buy-out
award.
On 13 May 2024, the Company issued
1,283,696 ordinary shares under the Company's Share Incentive Plan
at nominal value. A transfer from retained earnings of £0.1m took
place, with £0.1m recognised in share capital.
17. Related party
transactions
Transactions during 2024
During the six months ended 30
June 2024, a net marketing expense amounting to £9.7m of
sponsorship has been incurred in the normal course of business with
AMR GP Limited ("AMR GP"), an entity indirectly controlled by a
member of the Group's Key Management Personnel ("KMP"). AMR GP and
its legal structure is separate to that of the Group and the Group
does not have control or significant influence over AMR GP or its
affiliates. £0.3m remains due from AMR GP at 30 June 2024 relating
to these transactions. Under the terms of the sponsorship agreement
the Group is required to provide one fleet vehicle to each of the
two AMR GP racing drivers free of charge. This arrangement is
expected to continue for the life of the contract and is not
expected to materially affect the financial position and
performance of the Group. One of the racing drivers is an immediate
family member of one of the Group's KMP.
In addition, the Group incurred
costs of £2.7m associated with engineering design on two upcoming
vehicle programmes from Aston Martin Performance Technologies
Limited ("AMPT") of which £1.7m is outstanding to AMPT at 30 June
2024. AMPT is an associated entity of AMR GP.
During the six months ended 30
June 2024, Classic Automobiles Inc. purchased a vehicle for £3.3m
of which £nil was outstanding at 30 June 2024. Classic Automobiles
Inc. is controlled by a member of the Group's KMP.
During the six months ended 30
June 2024, the Group incurred a rental expense of £0.6m from
Michael Kors (USA), Inc., a Company which is owned by Capri
Holdings Limited. A member of the Group's KMP and Non-Executive
Director is also a member of Capri Holdings Limited KMP.
During the six months ended 30
June 2024, the Group incurred expense of £2.9m from Lucid, Inc
relating to the implementation work for the technology purchased in
2023. £nil was outstanding as at 30 June 2024. An outstanding cash
liability of £71.7m relating to the technology supply arrangement
entered in 2023 remains as at 30 June 2024, all of which is due in
2025 or later. PIF are a substantial shareholder of the Group, and
two members of the Group's KMP & Non-Executive Directors are
members of PIF's KMP.
During the six months ended 30
June 2024, the Group incurred costs of £0.3m for safety testing
services from companies within the Geely Automobile Group of
companies. A member of the Group's KMP and Non-Executive Director
is also a member of Geely Automobile Holdings Co., Limited KMP.
£nil is outstanding as at 30 June 2024.
Transactions during 2023
During the year ended 31 December
2023, a net marketing expense amounting to £19.4m of sponsorship
has been incurred in the normal course of business with AMR GP
Limited ("AMR GP"), an entity indirectly controlled by a member of
the Group's Key Management Personnel ("KMP"). AMR GP and its legal
structure is separate to that of the Group and the Group does not
have control or significant influence over AMR GP or its
affiliates. £0.7m remains due from AMR GP at 31 December 2023
relating to these transactions.
During the year ended 31 December
2023 the Group extended its sponsorship arrangements with AMR GP
for a further period of five years commencing in 2026. Amounts
under this arrangement are due within each financial year from
2026. The Group also exercised its primary warrant option and
subscribed for reward shares under the terms of the original
sponsorship arrangement giving the Group a minority stake in AMR GP
Holdings Limited, the immediate parent company of AMR GP limited.
The Group paid nominal value for the shares of which £nil was
outstanding at year end. Under the terms of the sponsorship
agreement the Group is required to provide one fleet vehicle to the
two AMR GP racing drivers free of charge. This arrangement is
expected to continue for the life of the contract and is not
expected to materially affect the financial position and
performance of the Group. One of the racing drivers is an immediate
family member of one of the Group's KMP. A separate immediate
family member of one of the Group's KMP incurred costs of less than
£0.1m relating to the export and transport of a vehicle. The
services were provided by a Group company. £nil was outstanding at
31 December 2023.
In addition, the Group incurred
costs of £8.5m associated with engineering design on two upcoming
vehicle programmes from Aston Martin Performance Technologies
Limited ("AMPT") of which £2.8m is outstanding to AMPT at 31
December 2023. AMPT is an associated entity of AMR GP.
During the year ended 31 December
2023, Classic Automobiles Inc. purchased a vehicle for £1.8m of
which £nil was outstanding at 31 December 2023. Classic Automobiles
Inc. is controlled by a member of the Group's KMP.
During the year ended 31 December
2023, a separate member of the Group's KMP and Non-Executive
Director purchased a vehicle for £1.8m, having paid a deposit to
the Group in the first half of the year. £nil was outstanding at 31
December 2023.
On 26 June 2023, the Group
announced a strategic supply arrangement with Lucid Group, Inc.
("Lucid") for future access to powertrain components for future BEV
models. The arrangement is considered a Related Party Transaction
owing to the substantial ownership of Lucid by the Public
Investment Fund ("PIF"). PIF are also a substantial shareholder of
the Group and two members of the Group's KMP & Non-Executive
Directors are members of PIF's KMP. The Group recognised an asset
of £188.5m in relation to the supply agreement. The agreement is
part-settled in equity, which was issued to Lucid in November 2023.
An outstanding cash liability of £71.7m relating to the supply
arrangement remains at 31 December 2023, all of which is due in
more than one year. The supply arrangements, commit to an effective
future minimum spend with Lucid on powertrain components of
£177.0m.
During the year ended 31 December
2023, the Group incurred costs of £2.0m for design and engineering
work from Pininfarina S.p.A. A member of the Group's KMP and
Non-Executive Director is also a member of Pininfarina S.p.A's KMP.
As of 19 May 2023 the individual ceased to be a member of the
Group's KMP and therefore any future spend under the contract will
not be disclosed as a related party transaction. £nil is
outstanding as at 31 December 2023.
During the year ended 31 December
2023, the Group incurred a rental expense of £1.2m from Michael
Kors (USA), Inc., a Company which is owned by Capri Holdings
Limited. A member of the Group's KMP and Non-Executive Director is
also a member of Capri Holdings Limited KMP.
During the year ended 31 December
2023, the Group incurred consultancy costs of £0.2m from a member
of the Group's KMP and Non-Executive Director in relation to the
oversight of two significant legal claims which the Group has been
party to. £0.1m was outstanding as at 31 December 2023. Owing to
the unique experience of the individual involved and the specifics
of the legal claims, no detailed market price assessment was
performed when engaging this service.
During the year ended 31 December
2023, an immediate family member of the Group's KMP &
Non-Executive Director provided event services at the opening of Q
New York totalling less than £0.1m of expense. £nil was outstanding
at 31 December 2023. No detailed market price assessment was
performed when engaging this service.
Terms and conditions of transactions with related
parties
Sales and purchases between
related parties are made at normal market prices unless otherwise
stated. Outstanding balances with entities other than subsidiaries
are unsecured, interest free and cash settlement is expected within
60 days of invoice. Terms and conditions for transactions with
subsidiaries are the same, with the exception that balances are
placed on intercompany accounts. The Group has not provided or
benefited from any guarantees for any related party receivables or
payables.
18. Contingent
liabilities
In the normal course of the Group's
business, claims, disputes, and legal proceedings involving
customers, dealers, suppliers, employees or others are pending or
may be brought against Group entities arising out of current or
past operations. There is presently a dispute between the Group and
the other shareholders of one of its subsidiary entities, which is
ongoing and from which a future obligation may arise. The Group
denies the claims made and is working to resolve the matters
raised.
Confidential arbitration
proceedings commenced by Nebula Project AG against the Group have
concluded, with the Tribunal determining that the arrangements with
Nebula Project AG were validly terminated and making an award of
costs in favour of the Group. The Group is taking steps to enforce
the costs award although full recovery is uncertain and,
consequently, the Group has not recognised an
asset.
19. Alternative performance
measures
In the reporting of financial
information, the directors have adopted various Alternative
Performance Measures ("APMs"). APMs should be considered in
addition to IFRS measurements. The directors believe that these
APMs assist in providing useful information on the underlying
performance of the Group, enhance the comparability of information
between reporting periods, and are used internally by the directors
to measure the Group's performance.
The key APMs that the Group
focuses on are as follows:
i) Adjusted EBT is
the loss before tax and adjusting items as shown in the
Consolidated Income Statement.
ii) Adjusted EBIT is
operating (loss)/profit before adjusting items.
iii) Adjusted EBITDA
removes depreciation, loss on sale of fixed assets and amortisation
from adjusted EBIT.
iv) Adjusted operating
margin is adjusted EBIT divided by revenue.
v) Adjusted EBITDA
margin is adjusted EBITDA (as defined above) divided by
revenue.
vi) Adjusted Earnings Per
Share is loss after tax before adjusting items as shown in the
Consolidated Income Statement, divided by the weighted average
number of ordinary shares in issue during the reporting
period.
vii) Net Debt is current and
non-current borrowings in addition to inventory repurchase
arrangements and lease liabilities, less cash and cash equivalents
and cash held not available for short-term use as shown in the
Consolidated Statement of Financial Position.
viii) Adjusted leverage is
represented by the ratio of Net Debt to the last twelve months
('LTM') Adjusted EBITDA.
ix) Free cashflow is
represented by cash (outflow)/inflow from operating activities plus
the cash used in investing activities (excluding interest received)
plus interest paid in the year less interest received.
Income Statement
|
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
Loss before tax
|
(216.7)
|
(142.2)
|
(239.8)
|
|
Adjusting operating
expenses
|
6.3
|
6.5
|
31.5
|
|
Adjusting finance income
|
(13.4)
|
-
|
-
|
|
Adjusting finance
expense
|
35.7
|
37.9
|
36.5
|
|
Adjusted loss before tax (EBT)
|
(188.1)
|
(97.8)
|
(171.8)
|
|
Adjusted finance income
|
(4.1)
|
(66.8)
|
(74.3)
|
|
Adjusted finance expense
|
92.4
|
77.9
|
166.4
|
|
Adjusted operating loss (EBIT)
|
(99.8)
|
(86.7)
|
(79.7)
|
|
Reported depreciation
|
45.4
|
45.7
|
102.2
|
|
Reported amortisation
|
116.6
|
121.6
|
283.4
|
|
Adjusted EBITDA
|
62.2
|
80.6
|
305.9
|
Earnings per share
|
|
6 months
ended
30 June
2024
|
6 months
ended
30
June
2023
|
12
months ended
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
Adjusted earnings per ordinary
share
|
|
|
|
|
Loss available for equity holders
(£m)
|
(207.8)
|
(142.6)
|
(228.1)
|
|
Adjusting items
|
|
|
|
|
Adjusting items before tax
(£m)
|
28.6
|
44.4
|
68.0
|
|
Tax on adjusting items
(£m)
|
-
|
-
|
-
|
|
Adjusted loss (£m)
|
(179.2)
|
(98.2)
|
(160.1)
|
|
Basic weighted average number of
ordinary shares (million)
|
822.6
|
704.2
|
748.2
|
|
Adjusted loss per ordinary share
(pence)
|
(21.8)p
|
(13.9p)
|
(21.4p)
|
|
|
|
|
|
|
Adjusted diluted earnings per
ordinary share
|
|
|
|
|
Adjusted loss (£m)
|
(179.2)
|
(98.2)
|
(160.1)
|
|
Diluted weighted average number of
ordinary shares (million)
|
822.6
|
704.2
|
748.2
|
|
Adjusted diluted loss per ordinary
share (pence)
|
(21.8)p
|
(13.9p)
|
(21.4p)
|
|
|
|
|
|
Net debt
|
|
30 June
2024
|
30
June
2023
|
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
Opening cash and cash
equivalents
|
392.4
|
583.3
|
583.3
|
|
Cash (outflow)/inflow from
operating activities
|
(71.9)
|
17.5
|
145.9
|
|
Cash outflow from investing
activities
|
(196.1)
|
(175.0)
|
(383.4)
|
|
Cash inflow/(outflow) from
financing activities
|
49.2
|
(16.1)
|
59.7
|
|
Effect of exchange rates on cash
and cash equivalents
|
(0.9)
|
(9.6)
|
(13.1)
|
|
Cash and cash equivalents at the end of the
period
|
172.7
|
400.1
|
392.4
|
|
Inventory repurchase
arrangement
|
(38.9)
|
(39.9)
|
(39.7)
|
|
Lease liabilities
|
(99.0)
|
(96.7)
|
(97.3)
|
|
Borrowings
|
(1,228.6)
|
(1,109.7)
|
(1,069.7)
|
|
Net Debt
|
(1,193.8)
|
(846.2)
|
(814.3)
|
|
|
|
|
|
|
Adjusted LTM EBITDA
|
287.5
|
212.2
|
305.9
|
|
Adjusted leverage (LTM)
|
4.2x
|
4.0x
|
2.7x
|
|
|
|
|
|
Free Cashflow
|
|
30 June
2024
|
30
June
2023
|
31
December 2023
|
|
|
£m
|
£m
|
£m
|
|
Net cash (outflow)/inflow from
operating activities
|
(71.9)
|
17.5
|
145.9
|
|
Net cash used in investing
activities less interest received
|
(200.1)
|
(180.2)
|
(396.9)
|
|
Interest paid less interest
received
|
(40.6)
|
(55.6)
|
(109.0)
|
|
Free cashflow
|
(312.6)
|
(218.3)
|
(360.0)
|
20. Subsequent
events
The Group operates a defined benefit
pension scheme. As part of the actuarial valuation as at 6 April
2023, the Trustee and the Group reviewed the deficit reduction
contributions being paid into the Scheme in the Recovery Plan. On 5
July 2024 the Group agreed to reduce the Recovery Plan
contributions from £15.0m per annum to £8.0m per annum effective
from 1 July 2024, given the reduction in the deficit, and amend the
end of the Recovery Plan period. If the updated Recovery Plan had
been approved on or before 30 June 2024, the deficit would have
been £32.7m, instead of £42.2m.
On 9 July 2024 the Group sold a
portion of its shareholding in AMR GP Holdings Limited for gross
proceeds of £15.7m.
RESPONSIBILITY STATEMENT
The Interim consolidated financial
information has been prepared in accordance UK adopted International Accounting Standard 34, "Interim
Financial Reporting". We confirm that to
the best of our knowledge that the Interim Management Report
includes a fair review of the information required by:
(a) DTR 4.2.7R of
the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of
the financial year and their impact on the financial statements;
and a description of the principal risks and uncertainties for the
remaining six months of the year; and
(b) DTR 4.2.8R of
the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the
current financial year and that have materially affected the
financial position or performance of the entity during that period;
and any changes in the related party transactions described in the
last annual report that could do so.
By order of the Board
Amedeo Felisa
Doug
Lafferty
Chief Executive Officer
Chief Financial
Officer
23 July 2024
23 July 2024
Independent review report to Aston Martin Lagonda Global
Holdings plc
Conclusion
We have been engaged by the Company
to review the condensed set of financial statements in the
half-yearly financial report for the six months ended 30 June 2024
which comprises the Consolidated Statement of Comprehensive Income,
the Consolidated Statement of Changes in Equity, the Consolidated
Statement of Financial Position, the Consolidated Statement of Cash
Flows and notes 1 to 20. We have read the other information
contained in the half yearly financial report and considered
whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of
financial statements.
Based on our review, nothing has
come to our attention that causes us to believe that the condensed
set of financial statements in the half-yearly financial report for
the six months ended 30 June 2024 is not prepared, in all material
respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of
the United Kingdom's Financial Conduct Authority.
Basis for Conclusion
We conducted our review in
accordance with International Standard on Review Engagements 2410
(UK) "Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" (ISRE) issued by the Financial
Reporting Council. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
As disclosed in note 1, the annual
financial statements of the group are prepared in accordance with
UK adopted international accounting standards. The condensed set of
financial statements included in this half-yearly financial report
has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting".
Conclusions Relating to Going Concern
Based on our review procedures,
which are less extensive than those performed in an audit as
described in the Basis for Conclusion section of this report,
nothing has come to our attention to suggest that management have
inappropriately adopted the going concern basis of accounting or
that management have identified material uncertainties relating to
going concern that are not appropriately disclosed.
This conclusion is based on the
review procedures performed in accordance with this ISRE, however
future events or conditions may cause the entity to cease to
continue as a going concern.
Responsibilities of the directors
The directors are responsible for
preparing the half-yearly financial report in accordance with the
Disclosure Guidance and Transparency Rules of the United Kingdom's
Financial Conduct Authority.
In preparing the half-yearly
financial report, the directors are responsible for assessing the
company's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic
alternative but to do so.
Auditor's Responsibilities for the review of the financial
information
In reviewing the half-yearly report,
we are responsible for expressing to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less
extensive than audit procedures, as described in the Basis for
Conclusion paragraph of this report.
Use
of our report
This report is made solely to the
company in accordance with guidance contained in International
Standard on Review Engagements 2410 (UK) "Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity" issued by the Financial Reporting Council. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company, for our work, for this report, or
for the conclusions we have formed.
Ernst & Young LLP
Birmingham
23 July 2024