Aston Martin Lagonda Global Hld PLC Trading Statement - Clarification (0604Z)

TIDMAML

RNS Number : 0604Z

Aston Martin Lagonda Global Hld PLC

07 January 2020

7 January 2020

Aston Martin Lagonda Global Holdings plc

FY 2019 Trading Update - Clarification

In the annoucement made this morning in calculating the expected leverage ratio, the last 12 months adjusted EBITDA did not exclude the estimated benefit from first time adoption of IFRS 16. The statement should have read:

   --      Year-end cash balance was GBP107m, giving expected net debt and leverage ranges of 

GBP875m-GBP885m and 6.9-7.6x* respectively

Please see below the full corrected announcement:

-- The challenging trading conditions highlighted in November continued through the peak delivery period of December resulting in lower sales, higher selling costs and lower margins

   --     Core wholesales declined 7% year-on-year to 5,809 

o Americas, UK and APAC performed broadly in-line with our volume expectations, while Europe underperformed

o Vantage performance improved in the fourth quarter, supported by retail financing particularly in the UK and the US

-- All planned Specials (65) including the remaining 13 DB4 GT Zagato Continuations were delivered

-- Core retail sales increased by 12% year-on-year and exceeded wholesale volumes leading to reduced dealer inventory and reversing the trend of the prior year

-- For FY 2019, we now expect adjusted EBITDA to be GBP130m-GBP140m with an associated margin of 12.5-13.5% principally reflecting:

o Higher than anticipated retail and customer financing support;

o Weaker core model mix weighing on average selling price, with a shift towards Vantage;

o Lower than expected wholesale volumes as noted above;

o Incremental fixed marketing spend to support retail campaigns, particularly in the US, leading to lower cost savings than originally planned and;

o The late December rally in Sterling resulting in an incremental FX headwind due to retranslation of non-Sterling balances. At net income level, translational exposure on the USD denominated debt will be significantly positive

   --     Year-end cash balance was GBP107m, giving expected net debt and leverage ranges of 

GBP875m-GBP885m and 6.9-7.6x* respectively

-- DBX order book has built rapidly to c.1,800 since it opened on 20 November 2019, c.1,200 of which are customer-specified

-- As a result, we have now exceeded the various conditions to be able to draw the additional $100m of April 2022 notes and currently anticipate drawing these down within the next four weeks

-- Consistent with our announcement on 13 December 2019, we continue to review our funding requirements and the various funding options

-- We also remain in discussions with potential strategic investors which may or may not involve an equity investment into the Company

-- We are reviewing our planning for FY 2020 and will provide an update on our expectations in due course. Preliminary Results for the twelve months to 31 December 2019 will be announced on 27 February 2020.

* Note leverage is Net Debt/last 12 months adjusted EBITDA excluding the first time adoption of IFRS 16

Dr Andy Palmer, Aston Martin Lagonda President and Group CEO, said:

"From a trading perspective, 2019 has been a very disappointing year. Whilst retails have grown by 12%, our best result since 2007, our underlying performance will fail to deliver the profits we planned, despite a reduction in dealer stock levels.

We are taking a series of actions to manage the business through this difficult period. This will include a cost saving programme alongside a focus on returning dealer stock levels to those more normally associated with a luxury company; winning back our strong price positioning is a key focus.

The signs from the launch of the DBX are very encouraging and the order rate seen to date is materially better than for any of our previous models. Launch plans are progressing well and we are achieving all of our key operational milestones. Start of production remains on track for Q2 2020.

Whilst we are disappointed with trading performance in 2019, our focus is now on revitalising the business, launching DBX and ensuring profitable growth in the medium-term."

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is being released on behalf of Aston Martin Lagonda Global Holdings plc by Catherine Sukmonowski, Company Secretary.

The financial information contained herein is unaudited.

All metrics and commentary in this announcement exclude adjusting items unless stated otherwise and certain financial data within this announcement have been rounded.

Enquiries

Investors and Analysts

Charlotte Cowley Director of Investor Relations [phone]

[e-mail]

Media

Kevin Watters Director of Communications [phone]

[e-mail]

Toby Bates Senior Adviser, Financial Communications [phone]

[e-mail]

Grace Barnie Corporate Communication Manager [phone]

[e-mail]

Brunswick

Dan Roberts, Andrew Porter, Diana Vaughton [phone]

[e-mail]

   --      There will be a call for investors and analysts today at 07:45am UK time 

-- The conference call can be accessed live via a dial-in facility on [phone]; PIN: 6639757#

   --      A recording of this call will be available on the corporate website later today https://www.astonmartinlagonda.com/investors 

-- Current market expectations, updated on 4 December 2019, can be found on our corporate website here: https://www.astonmartinlagonda.com/investors/consensus

No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this release. This release contains certain forward-looking statements, which are based on current assumptions and estimates by the management of Aston Martin Lagonda Global Holdings plc ("Aston Martin Lagonda"). Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. These risks may include, for example, changes in the global economic situation, and changes affecting individual markets and exchange rates.

Aston Martin Lagonda provides no guarantee that future development and future results achieved will correspond to the forward-looking statements included here and accepts no liability if they should fail to do so. Aston Martin Lagonda undertakes no obligation to update these forward-looking statements and will not publicly release any revisions that may be made to these forward-looking statements, which may result from events or circumstances arising after the date of this release.

This release is for informational purposes only and does not constitute or form part of any invitation or inducement to engage in investment activity, nor does it constitute an offer or invitation to buy any securities, in any jurisdiction including the United States, or a recommendation in respect of buying, holding or selling any securities.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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January 07, 2020 13:01 ET (18:01 GMT)