Aston Martin has raised more than £200m as it looks to shore up its balance sheet following two profit warnings in as many months.
The Warwickshire-headquartered luxury car maker has secured £111m in equity from investors and £100m from secured notes which it intends to invest in its electrification strategy.
Aston Martin slashed its full-year profit target for the second time since September yesterday, and now expects to turn a profit of £280m in 2024, down from last year’s £305.9m.
Falling demand in China, delivery delays and the wider push into electric vehicles (EVs) has sent shares in the marque down more than 50 per cent over the last year.
The £111m in equity will be bought at a price of 100p per share, representing a discount of 7.3 per cent to yesterday’s closing price of 107.9p, Aston Martin said in a statement.
Shares fell four per cent in early trading on Wednesday.
Barclays Bank and Goldman Sachs are acting as joint co-ordinators for the raise.
Aston Martin ‘well positioned for growth’
Adrian Hallmark, Aston Martin chief executive, said: “We thank our investors, including our strategic investors who continue to show strong support for the company, for their commitments and confidence in Aston Martin.
“With this financing successfully secured, we are now well positioned for growth, underpinned by the strength of our brand and the world-class product portfolio we have brought to market.”
The car maker has struggled to bring down its debt pile since a 2018 IPO in London. The firm enjoyed a share price resurgence last year after stakeholders including the Chinese car giant Geely and its billionaire chair Lawrence Stroll injected fresh cash.
However, the revival came crashing down when supply chain issues scuppered the roll-out of its new DB12 model. Further supply chain issues have hit shares throughout 2024.
In a statement, Stroll said: “Aston Martin has made huge strategic progress since the Yew Tree Consortium first invested in the company in 2020, transforming our product offering, revitalising our brand and accelerating our business operations forward.
“With the strong backing of Aston Martin’s strategic shareholders and the board, Adrian now leads the company into an exciting 2025 with a stronger and more resilient balance sheet, readying Aston Martin to deliver long-term value for all stakeholders.”