Aston Martin Lagonda Glo... Share Discussion Threads

[dealy] 08/11/2019 06:22

I think the relevant ratio would be net debt to 2020 Ebitda and beyond. Because of investment in a new product cycle the debt holders are willing to ignore the current high ratio. Definitely Ebitda has to improve fast.The company has strong long term strategic shareholders to help out if necessary. This is not Debenhams

[loglorry1] 07/11/2019 14:27

Why is a D4E good for equity investors. I can't for one moment bond holders would leave current equity with £931m of value. Maybe a 1/10th of that if they are very lucky.

[dealy] 07/11/2019 13:50

Way too much negativity here. All the car manufacturers are having a tough time right now. It's a cyclical issue. Trade war thaw will improve demand. Debt is manageable

[loglorry1] 07/11/2019 13:36

Why is a D4E good for equity investors. I can't for one moment bond holders would leave current equity with £931m of value. Maybe a 1/10th of that if they are very lucky.

[dexdringle] 07/11/2019 12:37

How did they ever get the floatation away at £19 ?

You have to hand it to these City boys - they sure can 'give 'em the old 'razzle dazzle' when they need to !

[tomboyb] 07/11/2019 12:24

Spot on -

Personally a D4E would be a positive outcome for the company -

Shareholders higher up will have to take it on the chin -

The sooner the better imo - (for shareholders than is - )

[quidzinn] 07/11/2019 12:02

A pre-pack is a distinct impossibility.

Q

[sojourno] 07/11/2019 10:29

A pre-pack is a distinct possibility.

[dealy] 07/11/2019 10:18

are you basing this on the net debt/ Ebitda ratio of 5.5? Ebitda is at trough. Also a takeover is a distinct possibility

[f15jcm] 07/11/2019 10:11

Lenders will shaft investors here, 100%

[ignoble] 07/11/2019 09:53

I think Aston are now using Mercedes AMG engines, maybe that will expand
Who knows, Not I

Dyor etc.

[tomboyb] 07/11/2019 09:40

Debt pile is massive and that will cause waves that need to be resolved -

DBX needs to an "absolute" success in this very competitive market -

Interesting that Mercedes Benz have taken a 4.5% stake here -

They are not doing too well either -

[ignoble] 07/11/2019 09:37

Vantage... Cheapest in the range
£120,000

That could be a problem, ouch

Must admit, the first reviews of the the new 4 wheel drive have been very positive
Starting at a £156000, must order one for the wife to do her shopping.

In her dreams and mine, come to think about it

[tomboyb] 07/11/2019 09:32

Aston Martin swings to loss on lower Vantage demand
Luxury carmaker’s shares rise as it maintains profit guidance


Peter Campbell, Motor Industry Correspondent 2 HOURS AGOPrint this page

Aston Martin fell to a quarterly pre-tax loss following a steep fall in demand for its entry-level Vantage sports cars, but its shares rose as the company kept its full-year profit guidance intact.

The London-listed luxury carmaker swung to a pre-tax loss in the third quarter of £13.5m, compared with a profit of £3.1m a year earlier, on revenues that were 11 per cent down at £250m following a 16 per cent drop in car deliveries. In the second quarter, it made a loss of £79m.

Mark Wilson, Aston Martin’s chief financial officer, said the Vantage, which starts from £120,000 and competes against the more upmarket versions of the Porsche 911, had seen demand in its segment fall by 4 per cent globally. As the cheapest car in Aston’s range, it is also the most sensitive to economic fluctuations.

Andy Palmer, chief executive, said: “The segment of the market in which Vantage competes is declining, and notwithstanding a growing market share, Vantage demand remains weaker than our original plans. As a consequence, total wholesale volumes are down year-on-year as we balance growth, brand positioning and dealer inventories.”

However, its shares rose by 8 per cent after the results beat expectations and the company kept its guidance for the full year intact. The stock, which has fallen from £19 at its initial public offering last year, rose to 454.80p.

Over the first nine months of the year, Aston Martin has recorded pre-tax losses of £92.3m, compared with a profit of £23.9m in the same period a year earlier.

Mr Palmer said: “We see pressure on volumes continuing into the end of the year and now expect total wholesales to be lower than previously guided, but within the range of market expectations.”

The company issued a profit warning earlier in the year, after saying it had too many cars piling up unsold at dealerships.

Sales in the latest quarter in the UK fell 22 per cent, with Europe down by 17 per cent, and Asia-Pacific dropping by 34 per cent. The Americas grew 2 per cent.

The group’s hopes rest on the launch of its all-important sport utility vehicle, the DBX, which will be built in a new facility in Wales. The car will be revealed on November 20, and sales will begin in the second quarter of next year.

In September, the company was forced to raise $150m in fresh debt, paying steep borrowing costs in order to secure the bond, with a rate of 12 per cent and half of the repayment in debt. Following the issue, rating agency S&P downgraded the company to CCC+, one of the lowest tiers on the junk bond investment ladder.

[dealy] 07/11/2019 09:16

gains didn't last long. This stock is despised

[quidzinn] 07/11/2019 08:33

A successful launch of the DBX in Beijing on 20th November will help share price

Q

[dealy] 07/11/2019 07:59

the 10 year business plan doesn't show falling sales

[bookbroker] 07/11/2019 07:55

Or another takeover by a wealthier entity!

[bookbroker] 07/11/2019 07:54

Need a rights issue, best get it out the way sooner rather than later!

[bjfanc] 07/11/2019 07:52

How they going to pay the debt with failing sales.

[dealy] 07/11/2019 07:26

No disasters in today's announcement. Huge valuation gap to Ferrari and huge relative short position. This should recover to 600p by year end, 800p next year