Aston Martin Lagonda (lon:aml)
Aston Martin – Resuming Production.

Aston Martin Lagonda Financials

ItemCurrent PeriodPrevious Period
Year20192018
Period12 Months12 Months
Revenue£997m£1097m
Earnings
Adjusted Earnings
EBITDA
Adjusted EBITDA£134m£247m
Statutory Profit(£104m)(£57m)
Adjusted Profit
Total Debt
Net Debt£876m£560m

Commentary History
Aston Martin Lagonda Share Price
Grade:The Black Grade - Shares That I Think Could Collapse To Nothing Or Suffer A Massive Share Issue.
Title: Aston Martin – Resuming Production.
Company: AML - Aston Martin Lagonda
Share Price Then: 58p
Author: Ian Smith
Date: Mon 27 Apr 2020
Comments: When Aston said that they were furloughing most of their employees I thought that it was very bad news.

With the St Athan factory being reopened on May 5th and Gaydon later it may turn on that that the short closure has actually been to Aston’s benefit.

Keeping Gaydon, where most of the traditional cars are built, closed for another month or so added to some aggressive sales deals may allow Aston to clear their inventory of models that they thought the customer would want but don’t and equally importantly no new cars were made when the market was closed or semi closed.

Although I may be overstating the case it seems to me that with the share issue funds production at Gaydon is of cars that will just about keep the company profitable, rather than providing for the future.

The DBX is made at St Athan and getting cars out to customers will show the real demand for the vehicle, rather than positive reviews and expressions of interest from potential customers.

Knowing this is critical to the future and producing the DBX whilst the government meets 80% of the payroll whilst running down stocks of the sports car range seems to be a really clear way of seeing what the company needs to make whilst saving a lot of money.
Read Count/ID: 520/10126

Buy/No Buy In A Nutshell
NegativesToo much debt and they have already done a share issue to fix that, very heavily reliant on sales of the DBX the new SUV, a worrying number of statements about how sponsoring the Stroll owned F1 team is great news.
PositivesNew management getting much more aggressive with people complaining that they asked for and were given loans but they can't afford them.
Initial Review Price51p
Last Review Price55.73p
Last Review Date02-Sep-2020
Navigation & Details
Pages


Share Commentaries, their purpose.