TIDMAML
RNS Number : 4470U
Aston Martin Lagonda Global Hld PLC
29 July 2020
29 July 2020
Aston Martin Lagonda Global Holdings plc
Interim results for the six months to 30 June 2020
- Yew Tree Consortium and other investors inject GBP688m of new equity
- Lawrence Stroll appointed Executive Chairman in April
- Appointment of New Executive team, led by Tobias Moers (ex. Mercedes AMG)
- Significant progress in rebalancing supply to demand, reducing dealer inventory
- Decisive action on costs to align organisation to lower wholesales
- Highly competitive Aston Martin branded Formula One(TM) team from 2021
- DBX deliveries started in July and media launch underway
GBPm H1 2020 H1 2019(1) % change
--------- -----------
Total retails(2) 1,770 2,996 (41%)
Total wholesales(2) 895 2,442 (63%)
Revenue 146.0 406.0 (64%)
Adjusted EBITDA(3) (89.0) 20.8 (n.m.)
Adjusted operating loss(3) (145.5 ) (36.4) (n.m.)
Total adjusting items before
tax(4) (13.8) (9.1) (n.m.)
Operating loss (159.3) (38.9) (n.m.)
Loss before tax (227.4) (80.0) (n.m.)
Net debt(5) 751.0 843.6
------------------------------ --------- ----------- ---------
(1) H1 2019 has been restated for the correction of an error see
note 2 of the Interim Financial Statements for detail; (2) Number
of vehicles including specials; (3) Alternative performance
measures are defined in the Appendix; (4) Adjusting items are
detailed in note 5 of the Interim Financial Statements; (5)
Includes lease liabilities (30 June 2020: GBP110m, 30 June 2019:
GBP112m)
Lawrence Stroll, Aston Martin Lagonda Executive Chairman,
said:
"This has been a very intense and challenging six months. In
January, I and my co-investors in the Yew Tree Consortium,
committed to make a significant investment in Aston Martin and I
took on the role of Executive Chairman from April to give clear
leadership to the business, our partners and our dealers. Since
then we have been fully engaged in executing the initial reset in
order to achieve our ambition to build Aston Martin into one of the
great global luxury car brands.
Obviously, it has been a challenging period with our dealers and
factories closed due to Covid-19, in addition to aligning our sales
with inventory with the associated impact on financial performance
as we reposition for future success. However, I have been most
impressed that through this most challenging of times we have been
able to reduce our dealers' sports car inventory by 869 units.
We have also taken action to right-size the cost base in
alignment with our plans and raised GBP688m of new equity from my
consortium and other investors, to strengthen the balance sheet and
improve liquidity. Throughout this time our primary concern has
been the safety of our colleagues and I am full of admiration for
how they have responded to the many challenges Covid-19 has
presented.
We have recruited an outstanding new senior Executive team with
the appointment of Tobias Moers as CEO and Ken Gregor as CFO - both
bring deep experience of this industry.
The new DBX is critical to our successful future and I am
delighted that, after more than a month of closure, production
restarted and initial deliveries have now been made. Also critical
to our future is the ability to market and engage with our
customers. From next year, we will have the great benefit of a
highly competitive Aston Martin branded Formula One(TM) team giving
us a significant global marketing platform to further strengthen
our Brand and engage with our customers and partners across the
world.
Our ambition for the Company is significant, clear and only
matched by our determination to succeed, to transform Aston Martin
and capture the huge and exciting opportunity ahead of us. We have
already made great progress in the first 90 days I've been in the
business. There is still much to be done and I am looking forward
to working with Tobias, Ken and the rest of the Aston Martin team
as we execute our plans and keeping you updated as we
progress."
Key results - six months to 30 June 2020
-- Total retail(1) sales (1,770 cars) down 41%, ahead of
wholesales in unit terms leading to an 869 unit reduction in dealer
inventory
- Q2 down 48%, weaker than Q1 down 34% due to full quarter
impact of Covid-19; early signs from China, where all dealerships
were re-opened in June, are encouraging with retails up 11%
year-on-year in the month
-- Total wholesales(2) (895 cars), down 63%. Covid-19 impacted
dealer operations, amplifying the planned reduction of wholesales
to reduce dealer inventories to luxury norm levels and rebalance
supply to demand for sports cars
- One Special, a DB5 Goldfinger Continuation, compared with 36
Specials in H1 2019
-- Revenues declined to GBP146m principally due to volume decline
- Product mix was favourable (higher DB11 and DBS
Superleggera)
- Customer and retail financing support per vehicle remained
elevated at broadly similar levels to
H2 2019
-- Operating loss increased year-on-year principally due to the
revenue decline and included a GBP17m FX headwind
- Results benefited from c.GBP10m of furlough credits, reduced
marketing spend (some of which was phasing) and cost control
actions offsetting incremental St Athan ramp-up costs of
c.GBP3m;
-- Free cashflow(3) of GBP(371)m reflects the operating loss, a
working capital outflow of GBP86m, H1 weighted capital expenditure
of GBP162m and net interest paid of GBP30m
-- Cash at 30 June of GBP359m includes net equity raise proceeds
received in the period (GBP662m)
- Funds from the draw of approximately $68m of delayed draw
notes (DDNs), the GBP5m retail element of the June placing and the
GBP20m Coronavirus Large Business Interruption Loan Scheme (CLBILS)
were received in July; Proforma cash at 30 June including these
funds and net of fees was c.GBP430m
- Net debt at 30 June was GBP751m (31 December 2019:
GBP988m).
Strategic progress
-- Continued progress in rebalancing supply to demand of core
sports cars with dealer stock reduced by 869 units (Q1 428 units,
Q2 441 units), representing approximately three-months' retail
sales
-- Appointment of new Chief Executive Officer, Tobias Moers,
joining 1 August and new Chief Financial Officer, Ken Gregor, who
joined on 22 June, both with significant automotive experience
-- Scaled up St Athan manufacturing operations with full
production of the Company's first SUV, DBX, now started; media
launch and deliveries underway; car named as one of UK automotive
publication Autocar's 2020 Game Changers
-- Outlined further actions to improve the cost efficiency of
the business to operate as a true luxury car brand, in alignment
with the strategic plan to deliver sustainable profitable growth.
Proposals to reduce employee numbers by up to 500, reflecting lower
than originally planned production volumes and improved
productivity across the business. Annualised efficiencies of
c.GBP28m expected.
Outlook
-- 2020 is the year in which the business is being reset to
enable it to operate as a true luxury company. This process, which
involves reducing core wholesales to rebalance supply to demand and
has a negative impact on results through the reset period, is
necessary for the long-term performance of the Company
-- The uncertainty surrounding the duration and impact of
Covid-19 on the global economy continues. Trading remains
challenging in many markets and the pace of emergence from lockdown
and consumer recovery varies significantly. This will impact the
duration of the dealer de-stocking process for sports cars,
currently expected to continue well into 2021
o More than 90% of the dealer network globally is now open
o For the full year total wholesales are currently expected to
be broadly evenly balanced between sports cars and DBX; DB5
Goldfinger Continuations have started to be delivered and 19 DBS GT
Zagatos are on track for H2 delivery. As previously updated, Aston
Martin Valkyrie deliveries are expected to start in FY 2021
o Gaydon is due to resume manufacturing at the end of August,
later than originally planned
o Additional cost efficiencies are being delivered in-line with
plans (c.GBP28m annualised in 2021: reduced direct manufacturing
costs in line with volumes (c.GBP8m), operating costs (c.GBP10m)
and reduced capital expenditure (c.GBP10m)), with low single digit
GBPm benefit expected this year. The associated cash restructuring
costs are expected to be c. GBP12m and have been booked in H1
o Capital expenditure was H1 weighted, as planned, with FY 2020
investment expected to be c.GBP260m
o With DBX and Specials deliveries in H2 depreciation and
amortisation will increase year-on-year; the full year income
statement net finance charge is expected to be c.GBP123m (assuming
current exchange rates prevail for the remainder of the year).
Prior year accounting adjustment
-- During the H1 results preparation process, the Company
identified that its US region was deducting the majority of dealer
and customer incentive support from revenue later than it should
have been. As a result, the balance sheets of the Group as at 31
December 2018, 30 June 2019 and 31 December 2019 and the income
statements for the six months ended 30 June 2019 and the year ended
31 December 2019 have been restated to correct this error.
o This is a non-cash adjustment and has no impact on historic or
future cashflows. Full details are set out in note 2 of the Interim
Financial Statements
o The impact of the adjustment is a reduction in EBIT of
GBP(15.3)m in the full year to December 2019.
(1) Dealers sales to customers (some Specials are direct to
customer)
2 Company sales to dealers (some Specials are direct to
customer)
(3) Operating cashflow less capital investment and net
interest
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 +44 (0)7771
976764
charlotte.cowley@astonmartin.com
Media
Kevin Watters Director of Communications +44 (0)7764 386683
kevin.watters@astonmartin.com
Grace Barnie Corporate Communications Manager +44 (0)7880
903490
grace.barnie@astonmartin.com
Tulchan Communications
Harry Cameron and Simon Pilkington +44 (0)20 73534200
-- Recorded presentations accompanying this release from
Lawrence Stroll and Kenneth Gregor are available on the corporate
website from 7.30am today
-- There will be a live Q&A for investors and analysts today at 08:30am
-- Presentations and the Q&A can be accessed here https://www.astonmartinlagonda.com/investors/calendar/h1-2020-results ; a dial-in facility is also available on +44 (0) 203 0095710; PIN: 2849635#
-- 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.
Sales & Revenue analysis
Number of vehicles H1 2020 H1 2019 % change
-------- --------
Retail 1,770 2,996 (41%)
Core (excluding Specials) 1,763 2,907 (39%)
---------------------------- -------- -------- ---------
Number of vehicles H1 2020 H1 2019 % change
Wholesale 895 2,442 (63%)
Core (excluding Specials) 894 2,406 (63%)
By region:
UK 275 565 (51%)
Americas 280 700 (60%)
EMEA ex. UK 191 490 (61%)
APAC 149 687 (78%)
By model:
Sports 283 865 (67%)
GT 596 1,458 (59%)
Other 15 83 (82%)
Specials 1 36 (97%)
---------------------------- -------- -------- ---------
Note: Sports includes Vantage, GT includes DB11 and DBS
Superleggera, Other includes prior generation models such as Rapide
AMR
Total retails were down 41% with dealer operations and customer
demand more heavily impacted by the advance of Covid-19 globally
during Q2 (down 48%) than Q1 (down 34%). Early signs from China,
where all dealerships were re-open in June, were encouraging with
retail sales up 11% year-on-year in the month, albeit off low
volumes.
Total wholesales declined 63% aligned to the strategy of
rebalancing supply to demand and reflecting lower dealer demand
given the disruption to operations from Covid-19. Q2 (down 77%) was
weaker than Q1 (down 45%) as expected. There was one Special
delivered in the period, a DB5 Goldfinger Continuation, compared
with 36 Specials in the prior year.
With retails significantly ahead of wholesales in unit terms,
core dealer inventory reduced by 869 units (Q1 428 units, Q2 441
units), as the Company makes significant progress towards reducing
dealer stock to more typical luxury levels.
Revenue by Category
GBPm H1 2020 H1 2019(1) % change
-------- -----------
Sale of vehicles 113.1 355.0 (68%)
Sale of parts 23.1 32.2 (28%)
Servicing of vehicles 3.5 5.2 (33%)
Brand and motorsport 6.3 13.6 (54%)
Total 146.0 406.0 (64%)
-------- -----------
Note: H1 2019 has been restated to correct for an error, see
note 2 of Interim Financial Statements for detail
First half revenues were GBP146m, down year-on-year, as the
Company started to reset core sports car volumes aligned to
regaining exclusivity and operations were impacted by the advance
of Covid-19.
In pursuit of lowering dealer stock to luxury levels, customer
and retail financing support per unit to drive retail sales
remained elevated at broadly similar levels to H2 2019. Product mix
was positive, with a greater proportion of DB11 and DBS
Superleggera than in the prior year period. These factors combined
with lower volumes led to a 68% decline in revenue from sale of
vehicles.
Wholesale average selling price (ASP) is impacted by the
customer and retail financing support and the de-stocking dynamic
with retail units about double wholesales in the period. Core ASP
decreased to GBP121k (H1 2019: GBP139k) and improved to GBP136k in
Q2 compared with GBP113k in Q1. With just one Special compared with
36 in H1 2019, total ASP was GBP124k (H1 2019: GBP145k).
Summary income statement and analysis
GBPm H1 2020 H1 2019(1)
--------
Revenue 146.0 406.0
Cost of sales (148.8) (259.2)
-------- -----------
Gross ( loss)/profit (2.8) 146.8
Gross margin n.m. 36.2%
Operating expenses(2) (142.7) (164.2)
of which depreciation & amortisation 56.5 57.2
Other (expense) - (19.0)
Adjusted operating loss (145.5) (36.4)
Adjusted operating margin n.m. n.m.
Adjusting operating items (13.8) (2.5)
-------- -----------
Operating loss (159.3) (38.9)
Net financing expense (68.1) (41.1)
of which adjusting financing items - (6.6)
-------- -----------
Loss before tax (227.4) (80.0)
Taxation 27.6 17.2
-------- -----------
Reported net income (199.8) (62.8)
Adjusted EBITDA (89.0) 20.8
Adjusted EBITDA margin n.m. 5.1%
Adjusted loss before tax (213.6) (70.9)
EPS (pence)(3) (16.7) (7.3)
Adjusted EPS (pence) (3) (15.8) (6.4)
---------------------------------------- -------- -----------
Note: For definition of alternative performance measures and
detail on adjusting items please see the Appendix and note 19 of
the Interim Financial Statements; (1) H1 2019 has been restated to
correct for an error, see note 2 of Interim Financial Statements
for detail; (2) Excludes adjusting items;(3) Under IAS 33 The
weighted average number of ordinary shares in the comparative
period has been restated to reflect the bonus element of the rights
issue completed on 1 April 2020.
The operating loss of GBP159m reflected the flow through of the
revenue reduction to gross margin, with an offset from tight
control of operating expenses, there was also an FX headwind of
GBP17m.
Total adjusted operating expenses were GBP143m, down GBP21m
year-on-year reflecting cost discipline through the Covid-19 crisis
and includes the benefit of c.GBP10m of furlough credits from the
Government's Coronavirus Job Retention Scheme. At its peak, more
than 75% of employees were furloughed. As St Athan re-opened on 5
May these credits reduced as the period progressed, and at the end
of June c.30% of employees remained furloughed. Expenses also
benefited from some fixed marketing savings and some re-phasing of
spend, as an example the revised timings for the release of the new
James Bond film. The fixed cost base started to see the benefits of
the initial cost reduction programme, offsetting c.GBP3m of
incremental St Athan costs as it scaled up to start production.
Depreciation and amortisation of GBP57m was broadly unchanged
year-on-year giving adjusted EBITDA of GBP(89)m
(H1 2019: GBP21m).
Adjusting operating items of GBP14m predominantly consist of
restructuring costs of GBP12m associated with the previously
announced cost reduction actions expected to deliver annualised
savings of c.GBP28m in FY 2021, with low single digit GBPm savings
expected in H2 2020. Other adjusting operating items totalled GBP2m
(GBP2m lease asset impairment related to a site closure, GBP3m
related to management settlement agreements and a GBP3m credit
associated with legacy incentive schemes).
Net financing costs of GBP68m were up from GBP41m in the prior
year reflecting higher interest payments year-on-year given the
$150m of new notes issued in H2 2019 and a full six months of
interest on the $190m Senior Secured Notes drawn April 2019. Net
financing costs includes a GBP20m adverse FX charge principally due
to the US dollar denomination of the notes. The loss before tax was
GBP227m (H1 2019: GBP80m).
The effective tax rate for the half-year was 12%, lower than the
prior year principally due to a corporate interest rate restriction
(relating to the tax treatment of interest costs) (H1 2019:
22%).
The total share count at 30 June 2020 was 1,824m, increased by
1,596m shares due to issuance in the period. The weighted average
number of shares in the period was 1,203m giving an adjusted EPS of
(15.8)p (H1 2019: (6.4)p).
Cash flow and net debt
GBPm H1 2020 H1 2019
--------
Cash (used in) / generated from operating
activities (179.4) 20.8
Cash used in investing activities (159.9) (159.0)
Cash inflow from financing activities 597.3 121.0
Effect of exchange rates on cash and cash
equivalents (6.5) (0.5)
------------------------------------------- -------- --------
Increase/(Decrease) in net cash 251.5 (17.7)
------------------------------------------- -------- --------
Cash balance 359.4 126.9
------------------------------------------- -------- --------
Net cash outflow from operating activities was GBP179m (H1 2019:
GBP21m inflow) driven by the operating loss of GBP159m and a
working capital outflow of GBP86m. A substantial payables outflow
of GBP110m, largely in early Q2, was the most significant
contributor to the working capital outflow. Inventory increased to
support the production of DBX at St Athan. This planned increase
was somewhat offset by reduced finished goods stock, with Gaydon
manufacturing suspended throughout Q2. The resulting inventory
outflow was GBP30m. Offsetting these, a receivables inflow of
GBP51m is largely due to lower wholesales and realisation of the
majority of the Q4 2019 overhang in Q1 2020. Deposits were broadly
unchanged at GBP322m.
Capital expenditure was GBP162m with investment focused on DBX
and Aston Martin Valkyrie. Capital expenditure is still expected to
be significantly H1 weighted, with investment shifting towards core
sports car mid-cycle refreshes and mid-engine development in
H2.
Free cashflow(1) of GBP(371)m (H1 2019: GBP(161)m) prior to
financing was significantly improved towards the end of the
quarter, with lower payables outflow in June and reduced capital
expenditure.
Cash inflow from financing of GBP597m included net proceeds of
GBP662m from the placing and equity raise completed in April and
the non-pre-emptive equity raise in June (GBP5m relating to the
retail element of the June placing was received in early July)
along with a c.GBP20m reduction in inventory financing. This
inventory financing facility remains available for up to GBP40m to
support short term working capital as required. Cash interest paid
in the period was GBP31m (H1 2019: GBP23m).
The net cash inflow of GBP252m resulted in a closing cash
balance of GBP359m at 30 June 2020, up from GBP108m at 31 December
2019.
(1) Operating cashflow less capital investment and net
interest
GBPm 30-Jun-20 31-Dec-19 30-Jun-19
---------- ----------
Senior Secured Notes (1) 877.0 829.9 734.9
Unsecured loans - - 0.9
Inventory financing 19.5 38.9 -
Bank loans and overdrafts 114.6 124.0 123.1
Lease liabilities (IFRS 16) 110.0 111.4 111.6
----------------------------------- ---------- ---------- ----------
Gross debt 1,121.1 1,104.2 970.5
----------------------------------- ---------- ---------- ----------
Cash balance 359.4 107.9 126.9
Cash not available for short-term
use 10.7 8.7 -
Net debt 751.0 987.6 843.6
Adjusted leverage n.m. 8.3x 5.3x
---------- ----------
(1) Nominal value GBP882m (GBP285m @ 5.75%, $590m @6.5% and
$150m @12%)
Net debt at 30 June 2020 was down to GBP751m (31 December 2019:
GBP988m) primarily due to the higher cash balance. Gross debt
includes back-to-back facilities in China (GBP34m) and a GBP70m
drawdown of the RCF supporting working capital requirements.
Inventory financing reduced to GBP20m (31 December 2019:
GBP39m).
Post quarter-end, funds of approximately $68m from the delayed
draw notes (DDNs) at 12% (6% cash; 6% PIK), the retail element (1)
(GBP5m) of the June equity placing and the GBP20m Coronavirus Large
Business Interruption Loan Scheme (CLBILS) were received. Proforma
gross debt post CLBILS and DDN draw was GBP1,196m. Proforma cash at
30 June including these additional funds and the retail element of
the June equity placing was c.GBP430m net of fees.
APPICES
Dealerships
30 Jun-20 30 Jun-19
----------
UK 22 21
Americas 44 44
EMEA ex. UK 50 55
APAC 46 42
Total 162 162
----------
Number of countries 51 53
--------------------- ---------- ----------
Units
Retail Q1-20 Q1-19 Change Q2-20 Q2-19 Change H1-20 H1-19 Change
------ ------ ------- ------ ------ ------ ------
Total 1,010 1,528 (34%) 760 1,468 (48%) 1,770 2,996 (41%)
------ ------ ------- ------ ------ ------- ------ ------ -------
Core (ex.
Specials) 1,006 1,468 (31%) 757 1,439 (47%) 1,763 2,907 (39%)
------ ------ ------- ------ ------ ------- ------ ------ -------
Wholesale Q1-20 Q1-19 Change Q2-20 Q2-19 Change H1-20 H1-19 Change
------ ------ ------- ------ ------ ------ ------
UK 229 235 (3%) 46 330 (86%) 275 565 (51%)
Americas 107 250 (57%) 173 450 (62%) 280 700 (60%)
EMEA ex.
UK 148 211 (30%) 43 279 (85%) 191 490 (61%)
APAC 94 361 (74%) 55 326 (83%) 149 687 (78%)
Total 578 1,057 (45%) 317 1,385 (77%) 895 2,442 (63%)
------ ------ ------- ------ ------ ------ ------
Wholesale Q1-20 Q1-19 Change Q2-20 Q2-19 Change H1-20 H1-19 Change
------ ------ ------- ------ ------ ------ ------
Sport 188 289 (35%) 95 576 (84%) 283 865 (67%)
GT 382 693 (45%) 214 763 (72%) 596 1,458 (59%)
Other 8 43 (81%) 7 42 (83%) 15 85 (82%)
Specials 0 32 n.m. 1 4 (75%) 1 36 (97%)
Total 578 1,057 (45%) 317 1,385 (77%) 895 2,442 (63%)
------ ------ ------- ------ ------ ------ ------
Note: Sports includes Vantage, GT includes DB11 and DBS
Superleggera, Other includes prior generation models such as Rapide
AMR
Retail/Wholesale units historic data
Retail Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19
------ ------ ------ ------ ------ ------
Total 1,114 1,272 1,579 1,562 1,528 1,468 1,486 1,654
------ ------ ------ ------ ------ ------ ------ ------
Core (ex.
Specials) 1,058 1,217 1,533 1,531 1,468 1,439 1,463 1,629
------ ------ ------ ------ ------ ------ ------ ------
Wholesale Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19
------ ------ ------ ------ ------ ------ ------ ------
Sport - 261 854 1,080 289 576 585 800
GT 682 902 836 1,112 693 763 862 1,066
Other 233 126 71 99 43 42 39 40
Specials 48 47 15 75 32 4 11 17
------ ------ ------ ------ ------ ------ ------ ------
Total 963 1,336 1,776 2,366 1,057 1,385 1,497 1,923
------ ------ ------ ------ ------ ------ ------ ------
Note: Sports includes Vantage, GT includes DB11 and DBS
Superleggera, Other includes prior generation models such as Rapide
AMR
Restatement summary
Q1-19 Q2-19 Q3-19 Q4-19 Q1-20
-------- -------- --------
Additional accrual (GBPm) 8.1 15.0 21.8 29.1 20.3
Impact on EBIT (GBPm) 5.7 (7.0) (6.8) (7.2) 8.8
ASP Total/core (GBPk) 165/154 129/128 147/126 158/127 113/113
-------- -------- -------- -------- --------
As previously reported
ASP Total/core (GBPk) 160/149 134/134 151/130 163/132 98/98
-------- -------- -------- -------- --------
All data in the tables below is presented restated for the
adjustments above. For full detail see note 2 of the
Interim Financial Statements
Summary financials
GBPm Q1-20 Q1-19 Q2-20 Q2-19 H1-20 H1-19
-------- ------- --------
Total wholesale volumes(1) 578 1,057 317 1,385 895 2,442
Revenue 88.8 201.5 57.2 204.5 146.0 406.0
Gross profit 14.3 88.1 (17.1) 58.7 (2.8) 146.8
Gross margin 16.1% 43.7% (29.9%) 28.7% (1.9%) 36.2%
Adjusted EBITDA (38.1) 34.0 (50.9) (13.2) (89.0) 20.8
Adjusted EBITDA margin (42.9%) 16.9% (89.0%) (6.5%) (61.0%) 5.1%
Adjusted operating (loss) (67.0) 3.5 (78.5) (39.9) (145.5) (36.4)
Adjusted operating
margin (75.5%) 1.7% n.m. (19.5%) n.m. (9.0%)
Adjusting operating
items (0.9) (1.0) (12.9) (1.5) (13.8) (2.5)
Adjusting financing
items - (8.0) - 1.4 - (6.6)
Operating (loss)/profit (67.9) 2.5 (91.4) (41.4) (159.3) (38.9)
(Loss) before tax (110.1) (11.6) (117.3) (68.4) (227.4) (80.0)
-------- ------- -------- -------- -------- -------
Note: For definition of alternative performance measures please
see Appendix and note 19 of the Interim Financial Statements; (1)
Number
of vehicles including specials
Summary cash flow statement
GBPm Q1-20 Q1-19 Q2-20 Q2-19 H1-20 H1-19
------- ------- -------- -------
Cash (used in)/generated
from operating activities (4.1) 46.6 (175.3) (25.8) (179.4) 20.8
Cash used in investing
activities (84.2) (76.3) (75.7) (82.7) (159.9) (159.0)
Cash inflow from financing
activities 156.4 14.6 440.9 106.4 597.3 121.0
Effect of exchange rates
on cash and cash equivalents (4.3) (1.7) (2.2) 1.2 (6.5) (0.5)
Net cash inflow/(outflow) 63.8 (16.8) 187.7 (0.9) 251.5 (17.7)
------------------------------- ------- ------- -------- ------- -------- --------
Cash balance 171.7 127.8 359.4 126.9 359.4 126.9
------- ------- -------- ------- -------- --------
Alternative Performance Measure
GBPm H1 2020 H1 2019
--------
Loss for the period (227.4) (80.0)
Adjusting operating expense 13.8 2.5
Adjusting finance expense - 6.6
Adjusted EBT (213.6) (70.9)
Adjusted finance income (1.6) (3.2)
Adjusted finance expense 69.7 37.7
Adjusted o perating loss (145.5) (36.4)
Reported depreciation 22.7 24.7
Reported amortisation 33.8 32.5
Adjusted EBITDA (89.0) 20.8
--------
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.
-- Adjusted EBT is the loss before tax and adjusting items
-- Adjusted operating loss is loss from operating activities before adjusting items
-- Adjusted EBITDA removes depreciation, loss/(profit) on sale
of fixed assets and amortisation from adjusted EBIT
-- 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,
cash held not available for short-term use (the definition of this
APM has been updated since 31 December 2019)
-- Adjusted leverage is represented by the ratio of Net Debt, to
the last 12 months adjusted EBITDA (the definition of this APM has
been updated since 31 December 2019)
-- Free cashflow is represented by net cash (outflow)/inflow
from operating activities plus the net cash used in investing
activities plus interest paid in the period.
Further details and definitions of adjusting items are contained
in note 5 of the Interim Financial Statements.
Principal risks
Delivery of our strategic objectives is dependent on effective
risk management and there are a number of potential risks and
uncertainties which could have a material impact on the Group's
performance. The principal risks previously reported on pages 55 to
66 of the 2019 Annual Report have been reassessed during the period
together with consideration of new and emerging risks and
opportunities.
Covi-19 has impacted many aspects of the Group's operations and
finances, with global dealerships experiencing extended periods of
closure, the temporary cessation of manufacturing activity at the
Gaydon and St Athan manufacturing plants and significant disruption
to the global supply chain. The Group implemented its incident
management plan in response to this evolving situation with daily
Executive Committee Covid-19 briefings and the establishment of a
Covid-19 Taskforce to manage the situation. This comprised key
senior management from all functions of the business. The health,
safety and well-being of our employees, associates, customers and
other stakeholders remains our priority and is at the forefront of
our response to the pandemic.
The Group has taken action to mitigate the significant risks
posed by Covid-19. These include:
-- Capital and funding actions including the successful equity
placing, rights issue and non-pre-emptive equity raise, partial
drawdown of the delayed draw notes, obtaining grant income from the
Coronavirus Job Retention Scheme and accessing the Coronavirus
Large Business Interruption Loan Scheme;
-- Operational processes including the provision of appropriate
personal protective equipment to employees and the implementation
of other measures to ensure a safe working environment;
-- Facilitating temporary working from home arrangements to
minimise risk of infection and spread on site;
-- Implementing strict cost control measures to protect short
term liquidity including shut-down of manufacturing facilities and
making use of the Job Retention Scheme to place employees on
furlough where appropriate; and,
-- Commencing a restructuring programme to further reduce the
fixed cost base of the business to be more commensurate with the
forecast future demand for our vehicles.
The current and ongoing impact of Covid-19 has been considered
as part of the half-year risk assessment, with all corporate risks
being reassessed in the light of the Covid-19 pandemic. Covid-19
has emerged as a multi-faceted risk impacting a number of our
principal risks and so we have assessed its impact across our
individual corporate risk assessments. The temporary closure of the
majority our dealership network and temporary cessation of
production at Gaydon and St Athan presented immediate Cash flow and
operational challenges.
We have not identified any new principal risks. Several of the
principal risk likelihood and impact ratings have changed,
primarily as a result of the Covid-19 pandemic with the most
significant changes being:
-- Increased likelihood of supply chain disruption due to the
impact of Covid-19 and the approaching end of the Brexit transition
period on 31 December 2020;
-- Increased likelihood and impact of the failure to attract,
develop and retain top talent risk as a result of the recent
Executive Management and Board personnel changes and the current
restructuring activity;
-- Increased likelihood of potential impairment of capitalised
development costs as a result of volume reductions within the reset
Business Plan and the ongoing impact of Covid-19 on global
sales;
-- Reduced likelihood and impact of the inability to deliver
major programmes risk as St Athan is now fully operational and
production of the DBX has commenced; and,
-- Insufficient liquidity risk remains a principal risk despite
the likelihood initially reducing due to the successful capital
raise activity, with this being offset by pressure in the opposite
direction caused by underperformance against plan due to
Covid-19.
Aside from the above key changes the remaining 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: The Group operates in
many markets exposing us to changing economic, regulatory, social
and political developments that may impact customer demand,
profitability or our ability to sell within those markets. Adverse
macro-economic conditions or country-specific changes to the
operating, regulatory or political environment may lead to an
unfavourable business climate and significant tensions between
major trading parties which could impact the Group's operations.
This may include explicit trade protectionism, differing tax or
regulatory regimes, changing public sentiment or reduced disposable
incomes which could affect demand for our vehicles. The impact of
Covid-19 and changing customer behaviours could adversely affect
demand for our vehicles.
Inability to maintain favourable competitive positioning:
Maintaining our competitiveness in the high luxury segment car
market is critical to achieving our strategic growth objectives.
The Group competes with a number of other manufacturers with strong
brands and reputations and which may have access to greater
financial resources. The high luxury segment is relatively small
due to the price at which cars are sold and significant investment
is required to introduce new models to the market, which relies on
a sufficient level of demand to support the growing levels of
production and competition. The trend towards cars with lower
engine capacity and alternative powertrains could adversely affect
the Group.
Brand/reputational damage arising from poor quality, late
delivery, product recall or ineffective brand positioning and
awareness: Our brand and reputation are critical in securing demand
for our vehicles and in developing additional revenue streams.
Damage to our brand or reputation for any reason could
significantly impact our ability to deliver the volume growth
required to support our strategy.
Inability to incorporate automotive technological advancements
(e.g. active safety, connected car, electrification, autonomous
driving): Inability to keep pace with changing customer
requirements and expectations with the move towards more advanced
technologies due to reliance on third parties for key components
and availability of funds to invest internally on product
development. The Group's current liquidity position and funding
structure may restrict the availability of funds to pursue
potential acquisitions, invest in organic growth projects or
exploit emerging business opportunities to maintain our
competitiveness in relation to technological change. In particular,
keeping abreast of the development of new technology (e.g. active
safety, connected car, electrification, autonomous driving) in line
with changes in trends and customer tastes. The Group is currently
reliant upon certain key suppliers maintaining their pace of
technological development and making this available to the Group in
a timely manner and at an acceptable cost.
Operational risks
Failure to attract, develop and retain top talent: Inability to
attract, motivate, develop and retain our people to perform to the
best of their ability to meet our strategic objectives. Our
performance, operating results and future growth depend on our
ability to attract, motivate and retain talent with the appropriate
level of expertise to deliver our strategy. The impact of current
financial performance on remuneration and benefits and recent
restructuring activities increase the risk of loss of key
individuals and skills.
Inability to deliver major programmes: Failure to implement
major programmes on time, within budget and to the right technical
specification could jeopardise delivery of the strategy and have
significant adverse financial and reputational consequences.
Successful delivery of significant programmes (including the new
manufacturing facility in St Athan and core (DBX) and special
(Valkyrie) vehicle programmes) is fundamental to the achievement of
the Group's strategic objectives.
Inadequate protection against cyber-attack resulting in
potential loss of data, system availability or operational
disruption: A cyber security breach could result in an unplanned
system outage, impacting core operations and/or result in a major
data loss leading to reputational damage and financial loss. The
Group's technology environment is critical to its success and
operational resilience. A robust control environment helps decrease
the risk of core business operational disruption and major data
loss.
Potential disruption to the supply chain: Supply chain
disruption could result in production stoppages, delays, quality
issues and/or increased costs resulting in adverse operational and
financial consequences for the Group. Potential loss of key Tier 1
supplier or a single-source supplier, or deterioration in quality,
could seriously jeopardise production resulting in delayed or lost
sales and brand/reputational damage. (See also the principal risk
relating to Brexit). The Group's exposure to this risk is adversely
affected by Covid-19 due to the complex, global nature of the
automotive supply chain and the increased likelihood of supplier
failure in the current environment.
Compliance risks
Potential non-compliance with laws and regulations: The Group's
operations are subject to a broad spectrum of national and regional
laws and regulations in the various jurisdictions in which we
operate. These include product safety, emissions, trademarks,
competition, employee and customer health and safety, data,
corporate governance, employment and tax. Changes to laws and
regulations or a major compliance breach could have a material
impact on the business.
Uncertainty surrounding Brexit: Various Brexit scenarios could
impact the Group's financial position, supply chain and people.
Whilst the UK officially left the EU on 31 January 2020 uncertainty
remains as to the nature of any future trade agreements once the
transition period ends on 31 December 2020. The current uncertainty
regarding the way the UK leaves the EU makes it very difficult to
plan for, with multiple scenarios having to be considered and
addressed.
Financial risks
Insufficient liquidity and lack of financial stability to
support planned growth and operations: The Group may not be able to
generate sufficient cash to fund its capital expenditure and
sustain its operations and its significant leverage may make it
difficult for the Group to operate its business. The liquidity of
the Group improved as a result of the strategic equity placement
and rights issue which completed during Q1. However since then the
ongoing impact of Covid-19 has exerted additional liquidity
pressure on the business. The Group's liquidity requirements arise
primarily from its need to fund capital expenditure for product
development, working capital and to service debt.
Potential impairment of capitalised development costs: The value
of capitalised development costs continues to grow as we expand our
product portfolio. The carrying value of development costs in our
balance sheet is dependent upon the future profitability of the
vehicle platforms to which they are attributed. A significant
reduction in vehicle lifecycle profitability could result in the
need to impair the capitalised development intangible asset.
The risks summarised above, linkage to the Group's strategy, and
mitigating actions taken in respect of them, are explained and
described in more detail on pages 55 to 66 of the 2019 Annual
Report.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 months ended 12 months ended
6 months ended 30 June 2019 restated 31 December 2019
30 June 2020 (1) restated (1)
Adjusting Adjusting Adjusting
Notes Adjusted items Total Adjusted items Total Adjusted items Total
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- ------ --------- ---------- -------- --------- ---------- -------- --------- ---------- --------
Revenue 3 146.0 - 146.0 406.0 - 406.0 980.5 - 980.5
Cost of sales (148.8) - (148.8) (259.2) - (259.2) (642.7) - (642.7)
--------- ---------- -------- --------- ---------- -------- --------- ---------- --------
Gross (loss)/profit (2.8) - (2.8) 146.8 - 146.8 337.8 - 337.8
Selling and
distribution
expenses (34.2) - (34.2) (44.8) - (44.8) (95.0) - (95.0)
Administrative
expenses 5 (108.5) (13.8) (122.3) (119.4) (2.5) (121.9) (233.7) (42.1) (275.8)
Other expense 4 - - - (19.0) - (19.0) (19.0) - (19.0)
--------- ---------- -------- --------- ---------- -------- --------- ---------- --------
Operating
(loss)/profit (145.5) (13.8) (159.3) (36.4) (2.5) (38.9) (9.9) (42.1) (52.0)
Finance income 6 1.6 - 1.6 3.2 - 3.2 16.3 - 16.3
5,
Finance expense 7 (69.7) - (69.7) (37.7) (6.6) (44.3) (77.3) (6.6) (83.9)
--------- ---------- -------- --------- ---------- -------- --------- ---------- --------
Loss before tax (213.6) (13.8) (227.4) (70.9) (9.1) (80.0) (70.9) (48.7) (119.6)
Income tax
credit/(charge) 8 24.0 3.6 27.6 15.8 1.4 17.2 (6.8) 8.8 2.0
--------- ---------- -------- --------- ---------- -------- --------- ---------- --------
Loss for the period (189.6) (10.2) (199.8) (55.1) (7.7) (62.8) (77.7) (39.9) (117.6)
--------- ---------- -------- --------- ---------- -------- --------- ---------- --------
(Loss)/profit for the period
attributable to:
Owners of the
group (200.3) (63.8) (126.4)
Non-controlling
interests 0.5 1.0 8.8
-------- -------- --------
(199.8) (62.8) (117.6)
-------- -------- --------
Other comprehensive
income
Items that will never be reclassified
to the Income Statement
Remeasurement of defined benefit
liability (22.2) (1.0) (1.4)
Taxation on items that will never
be reclassified to the Income Statement 5.2 0.2 0.2
Items that are or may be reclassified
to the Income Statement
Foreign exchange translation
differences 2.8 0.2 (2.7)
Fair value adjustment on cash flow
hedges (26.8) (2.3) 9.0
Amounts recycled to the Income Statement
in respect of cash flow hedges 6.0 3.8 15.6
Taxation on items that may be reclassified
to the Income Statement 3.9 1.2 (3.4)
-------- -------- --------
Other comprehensive (expense)/income
for the period, net of income tax (31.1) 2.1 17.3
-------- -------- --------
Total comprehensive loss for the
period (230.9) (60.7) (100.3)
-------- -------- --------
Total comprehensive (loss)/income
for the period attributable to:
Owners of the
group (231.4) (61.7) (109.1)
Non-controlling
interests 0.5 1.0 8.8
-------- -------- --------
(230.9) (60.7) (100.3)
-------- -------- --------
Earnings per
ordinary
share (2)
Basic 9 (16.7p) (7.3p) (14.5p)
Diluted 9 (16.7p) (7.3p) (14.5p)
-------- -------- --------
1. The comparative periods have been restated for the correction of an
error - see note 2 for further details.
2. The comparative basic and diluted earnings per ordinary share values
have been restated to reflect the bonus element of the rights issue completed
on 1 April 2020.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Merger Capital Translation Hedge Retained Non-controlling Total
Capital Premium Reserve Reserve Reserve Reserve Earnings Interest Equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
At 1 January
2020 2.1 352.3 - 6.6 (0.4) (2.3) (13.5) 14.1 358.9
Correction of
error
(net of tax)
-
see note 2 - - - - - - (26.4) - (26.4)
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
At 1 January
2020
restated (1) 2.1 352.3 - 6.6 (0.4) (2.3) (39.9) 14.1 332.5
Total
comprehensive
loss for the
period
(Loss)/profit
for
the period - - - - - - (200.3) 0.5 (199.8)
Other
comprehensive
income
Foreign
currency
translation
differences - - - - 2.8 - - - 2.8
Fair value
movement
- cash flow
hedges - - - - - (26.8) - - (26.8)
Amounts
recycled
to the Income
Statement
- cash flow
hedges - - - - - 6.0 - - 6.0
Remeasurement
of
defined
benefit
liability - - - - - - (22.2) - (22.2)
Taxation on
other
comprehensive
income - - - - - 3.9 5.2 - 9.1
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Total other
comprehensive
(loss)/income - - - - 2.8 (16.9) (17.0) - (31.1)
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Total
comprehensive
(loss)/income
for
the period - - - - 2.8 (16.9) (217.3) 0.5 (230.9)
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Transactions
with
owners,
recorded
directly in
equity
Issue of
ordinary
shares (note
16) 14.4 499.0 144.0 - - - - - 657.4
Credit for the
period under
equity
settled
share-based
payments - - - - - - 3.1 - 3.1
Tax on items
credited
to equity - - - - - - 1.6 - 1.6
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Total
transactions
with owners 14.4 499.0 144.0 - - - 4.7 - 662.1
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
At 30 June
2020 16.5 851.3 144.0 6.6 2.4 (19.2) (252.5) 14.6 763.7
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Share Share Merger Capital Translation Hedge Retained Non-controlling Total
Capital Premium Reserve Reserve Reserve Reserve Earnings Interest Equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
At 1 January
2019 2.1 352.3 - 6.6 2.3 (23.5) 97.2 10.2 447.2
Correction of
error
(net of tax)
-
see note 2 - - - - - - (13.2) - (13.2)
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
At 1 January
2019
restated (1) 2.1 352.3 - 6.6 2.3 (23.5) 84.0 10.2 434.0
Total
comprehensive
loss for the
period
(Loss)/profit
for
the period - - - - - - (63.8) 1.0 (62.8)
Other
comprehensive
income
Foreign
currency
translation
differences - - - - 0.2 - - - 0.2
Fair value
movement
- cash flow
hedges - - - - - (2.3) - - (2.3)
Amounts
recycled
to the Income
Statement
- cash flow
hedges - - - - - 3.8 - - 3.8
Remeasurement
of
defined
benefit
liability - - - - - - (1.0) - (1.0)
Income tax on
other
comprehensive
income - - - - - 1.2 0.2 - 1.4
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Total other
comprehensive
(loss)/income - - - - 0.2 2.7 (0.8) - 2.1
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Total
comprehensive
(loss)/income
for
the period - - - - 0.2 2.7 (64.6) 1.0 (60.7)
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Transactions
with
owners,
recorded
directly in
equity
Credit for the
year under
equity
settled
share-based
payments - - - - - - 2.0 - 2.0
Tax on items
credited
to equity - - - - - - - - -
Total
transactions
with owners - - - - - - 2.0 - 2.0
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
At 30 June
2019 2.1 352.3 - 6.6 2.5 (20.8) 21.4 11.2 375.3
--------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Share Share Merger Capital Translation Hedge Retained Non-controlling Total
Capital Premium Reserve Reserve Reserve Reserve Earnings Interest Equity
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
At 1 January
2019 2.1 352.3 - 6.6 2.3 (23.5) 97.2 10.2 447.2
Correction of
error
(net of tax) -
see note 2 - - - - - - (13.2) - (13.2)
----------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
At 1 January
2019
restated (1) 2.1 352.3 - 6.6 2.3 (23.5) 84.0 10.2 434.0
----------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Total
comprehensive
loss for the
year
(Loss)/profit
for
the year - - - - - - (126.4) 8.8 (117.6)
Other
comprehensive
income
Foreign currency
translation
differences - - - - (2.7) - - - (2.7)
Fair value
movement
- cash flow
hedges - - - - - 9.0 - - 9.0
Amounts recycled
to the Income
Statement
- cash flow
hedges - - - - - 15.6 - - 15.6
Remeasurement of
defined benefit
liability - - - - - - (1.4) - (1.4)
Tax on other
comprehensive
income - - - - - (3.4) 0.2 - (3.2)
----------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Total other
comprehensive
(loss)/income - - - - (2.7) 21.2 (1.2) - 17.3
----------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Total
comprehensive
(loss)/income
for
the year - - - - (2.7) 21.2 (127.6) 8.8 (100.3)
----------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Transactions
with
owners, recorded
directly in
equity
Credit for the
year under
equity
settled
share-based
payments - - - - - - 3.7 - 3.7
Dividend paid to
non-controlling
interest - - - - - - - (4.9) (4.9)
Tax on items
credited
to equity - - - - - - - - -
----------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
Total
transactions
with owners - - - - - - 3.7 (4.9) (1.2)
----------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
At 31 December
2019 2.1 352.3 - 6.6 (0.4) (2.3) (39.9) 14.1 332.5
----------------- -------- -------- -------- -------- ------------ -------- --------- ---------------- --------
1. The comparative periods have been restated for the correction
of an error - see note 2 for further details.
CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
As at As at As at
30 June 31 December 1 January
As at 2019 2019 2019
30 June restated restated restated
Notes 2020 (1) (1) (1)
GBPm GBPm GBPm GBPm
------------------------------------- ------ --------- ---------- ------------- -----------
Non-current assets
Intangible assets 1,272.6 1,154.5 1,183.6 1,071.7
Property, plant and equipment 406.6 335.0 350.5 313.0
Right-of-use assets 77.9 77.0 81.8 82.5
Trade and other receivables 2.0 2.1 1.8 1.8
Other financial assets - - 0.2 -
Deferred tax asset 8 70.2 34.8 45.7 32.7
--------- ---------- ------------- -----------
1,829.3 1,603.4 1,663.6 1,501.7
Current assets
Inventories 229.2 242.2 200.7 165.3
Trade and other receivables 192.7 202.2 249.7 243.0
Income tax receivable 4.8 - 0.3 0.8
Other financial assets 13.5 - 8.9 0.1
Cash and cash equivalents 11 359.4 126.9 107.9 144.6
--------- ---------- ------------- -----------
799.6 571.3 567.5 553.8
--------- ---------- ------------- -----------
Total assets 2,628.9 2,174.7 2,231.1 2,055.5
--------- ---------- ------------- -----------
Current liabilities
Borrowings 12 106.8 113.3 114.8 99.4
Trade and other payables 639.7 734.2 731.2 655.2
Income tax payable 0.4 3.5 8.9 4.9
Other financial liabilities 13 15.0 6.8 6.3 4.2
Lease liabilities 11.3 10.6 14.1 15.0
Provisions 14 24.2 7.9 12.0 10.8
--------- ---------- ------------- -----------
797.4 876.3 887.3 789.5
Non-current liabilities
Borrowings 12 884.8 745.6 839.1 604.7
Trade and other payables 8.6 19.4 9.4 49.8
Other financial liabilities 13 2.9 7.1 2.6 4.4
Lease liabilities 98.7 101.0 97.3 101.5
Provisions 14 14.5 12.0 16.2 12.9
Employee benefits 15 57.8 38.0 36.8 38.7
Deferred tax liabilities 8 0.5 - 9.9 20.0
--------- ---------- ------------- -----------
1,067.8 923.1 1,011.3 832.0
--------- ---------- ------------- -----------
Total liabilities 1,865.2 1,799.4 1,898.6 1,621.5
--------- ---------- ------------- -----------
Net assets 763.7 375.3 332.5 434.0
--------- ---------- ------------- -----------
Capital and reserves
Share capital 16 16.5 2.1 2.1 2.1
Share premium 16 851.3 352.3 352.3 352.3
Merger reserve 16 144.0 - - -
Capital reserve 6.6 6.6 6.6 6.6
Translation reserve 2.4 2.5 (0.4) 2.3
Hedge reserve (19.2) (20.8) (2.3) (23.5)
Retained earnings (252.5) 21.4 (39.9) 84.0
--------- ---------- ------------- -----------
Equity attributable to owners of
the group 749.1 364.1 318.4 423.8
Non-controlling interests 14.6 11.2 14.1 10.2
--------- ---------- ------------- -----------
Total shareholders' equity 763.7 375.3 332.5 434.0
--------- ---------- ------------- -----------
1. The prior period comparatives have been restated for the
correction of an error - see note 2 for further details.
CONSOLIDATED STATEMENT OF CASH FLOWS
6 months 12 months
ended ended
6 months 30 June 31 December
ended 2019 2019
30 June restated restated
Notes 2020 (1) (1)
GBPm GBPm GBPm
Operating activities
Loss for the period (199.8) (62.8) (117.6)
Adjustments to reconcile loss for the period
to net cash (outflow)/inflow from operating
activities
Tax (credit)/charge on continuing operations 8 (27.6) (17.2) (2.0)
Net finance costs 68.1 41.1 67.6
Other non-cash movements 5.9 1.3 (4.4)
Loss on sale of non-current assets - - 0.9
Depreciation and impairment of property,
plant and equipment 16.6 18.9 38.8
Depreciation and impairment of right-of-use
assets 8.1 5.8 13.3
Amortisation and impairment of intangible
assets 33.8 32.5 112.4
Difference between pension contributions
paid and amounts recognised in Income Statement (1.6) (2.3) (4.4)
Increase in inventories (30.0) (70.9) (33.3)
Decrease/(increase) in trade and other receivables 51.1 41.2 (28.9)
Increase in trade and other payables (109.8) (27.8) (54.7)
Increases in advances and customer deposits 2.8 72.3 48.4
Movement in provisions 11.2 (3.8) 4.5
--------- ---------- -------------
Cash (outflow)/inflow from operations (171.2) 28.3 40.6
Increase in cash held not available for short-term
use (1.2) - (8.7)
Income taxes paid (7.0) (7.5) (12.5)
--------- ---------- -------------
Net cash (outflow)/inflow from operating
activities (179.4) 20.8 19.4
--------- ---------- -------------
Cash flows from investing activities
Interest received 1.6 3.2 5.0
Payments to acquire property, plant and equipment (38.7) (40.9) (82.2)
Payments to acquire intangible assets (122.8) (121.3) (228.0)
--------- ---------- -------------
Net cash used in investing activities (159.9) (159.0) (305.2)
--------- ---------- -------------
Cash flows from financing activities
Interest paid (31.3) (23.1) (52.0)
Proceeds from issuance of shares 16 682.5 - -
Principal element of lease payments 11 (5.8) (5.2) (10.9)
Repayment of existing borrowings 11 (83.0) - (91.5)
Proceeds from existing borrowings 11 - 11.1 102.3
Proceeds from inventory repurchase arrangement 11 19.5 - 38.7
Repayment of inventory repurchase arrangement 11 (38.7) - -
New borrowings 11 75.0 138.6 260.8
Transaction fees on issuance of shares (20.9) - -
Transaction fees on financing activities - (0.4) (4.1)
--------- ---------- -------------
Net cash inflow from financing activities 597.3 121.0 243.3
--------- ---------- -------------
Net increase/(decrease) in cash and cash
equivalents 258.0 (17.2) (42.5)
Cash and cash equivalents at the beginning
of the period 11 107.9 144.6 144.6
Effect of exchange rates on cash and cash
equivalents (6.5) (0.5) 5.8
--------- ---------- -------------
Cash and cash equivalents at the end of the
period 359.4 126.9 107.9
--------- ---------- -------------
1. The comparative periods have been restated for the correction
of an error - see note 2 for further details.
Notes to the Interim Financial Statements
1. Basis of preparation
The results for the 6 month period ended 30 June 2020 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 2019 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 2019 was not qualified and did not
contain any statements under section 498(2) or (3) of the Companies
Act 2006. The report made reference to a material uncertainty
around the ability of the Group to continue trading as a going
concern pending completion of a strategic investment by a
consortium led by Lawrence Stroll and subsequent rights issue. The
strategic investment and rights issue were successfully completed
during the 6 month period ended 30 June 2020. A copy of the
statutory accounts for the year ended 31 December 2019 prepared
under International Financial Reporting Standards as adopted by the
EU ("IFRS") have been delivered to the Registrar of Companies.
Aston Martin Lagonda Global Holdings plc (the "Company") is a
company incorporated and domiciled in the UK. The Consolidated
Interim Financial Statements of the Company as at the end of the
period ended 30 June 2020 comprise the Company and its subsidiaries
(together referred to as the 'Group').
The Group meets its day-to-day working capital requirements and
medium-term funding requirements through a mixture of Senior
Secured Notes ($400m and $190m at 6.5%, $150m at 12%, GBP230m and
GBP55m at 5.75% which all mature in April 2022), a revolving credit
facility (GBP80m) which matures in January 2022, facilities to
finance inventory, back-to-back loans and a wholesale vehicle
financing facility. At the balance sheet date the Group had cash
and cash equivalents of GBP359m. After the balance sheet date, the
Group has arranged further Senior Secured Notes of $68m at 12%
which mature in April 2022 and a GBP20m Coronavirus Large Business
Interruption Loan Scheme (CLBILS) which matures in January 2022,
and have entered into a new wholesale finance facility with a term
of August 2021.
The Directors have prepared trading and cash flow forecasts for
the 12 month period from the date of approval of these Interim
Financial Statements. These forecasts show that the Group has
sufficient financial resources to meet its obligations as they fall
due for the period of at least 12 months from the date of these
Interim Financial Statements.
The forecasts reflect our strategy of rebalancing supply and
demand and the decisive actions taken to improve cost efficiency,
in alignment with reduced sports car production levels as further
described in the Chairman's statement. The forecasts make
assumptions in respect of future market conditions and, in
particular, wholesale volumes, average selling price, the launch of
new models including Valkyrie and the potential impact of
Coronavirus on sales. 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. Key Covid-19 assumptions within the
forecasts include a reduction in production and wholesale volumes
and we have considered how we would manage the risk of the impact
of supply chain disruption and another period of extended lockdown.
The forecasts take into account these factors to the extent which
the 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 Financial Statements. After
applying a reverse stress test and making comparisons to the
detailed forecasts, the directors have a reasonable expectation
that the financial headroom will not be exhausted during this
period.
The Group plans to make continued investment for growth in the
next 12 months, 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, for
instance, an elongated recovery and further impact from Covid-19,
actions such as constraining capital spending, working capital
improvements, reduction in marketing expenditure and continuation
of the strict and immediate expense control would be taken to
safeguard the Group's financial position.
After making enquiries the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future. For these
reasons, they continue to adopt the going concern basis in
preparing the Interim Financial Statements.
Statement of compliance
These Interim Financial Statements have been prepared in
accordance with International Accounting Standard 34 'Interim
Financial Reporting' as endorsed by the European Union. 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
2019.
Significant accounting policies
These Interim 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 2019.
The Group has recognised amounts due from government-sponsored
Covid-19 related employee furlough schemes, of GBP9.7m, as a credit
against the related staff costs and not as an item of Other income.
These amounts are recognised on an accruals basis and in line with
the Groups accounting policy on government grants.
2. Prior year restatement
The Group reports that in the preparation for the interim
financial results it has determined that an adjustment should be
made in respect of the timing of accounting recognition of the
majority of customer and retail incentive support (variable
marketing expense (VME)) associated with supporting lease and other
incentive programs in the US. This is a non-cash adjustment and has
no impact on the timing of the Company's historic or forecast cash
flows.
Pursuant to IFRS 15, future VME in the US should be estimated
and accrued for on the balance sheet of the Group and deducted from
revenue at the point revenue is recognised for the wholesale of the
vehicle to the dealer rather than at the time of retail sale by the
dealer to the end customer, as had previously been the approach.
Outside of the US, the majority of retailer incentive reward
programs are considered to be related to the purchase of future
vehicles and are accounted for accordingly at that time.
As a result, the balance sheet of the Group as at 1 January
2019, 30 June 2019 and 31 December 2019 and the income statement
for the six months ended 30 June 2019 and the year ended 31
December 2019 have been restated to correct this error and the
related adjustments to tax.
The adjustment results in an earlier accrual for VME in the US
than previously reported and impacts the balance sheet and income
statement for each financial period as set out below.
30 June 2019 31 December 31 December
2019 2018
GBPm GBPm GBPm
----------------------------------------- ------------- ----------- ---------------
Additional accrual required
for VME (15.0) (29.1) (13.8)
6 months 12 months
ended 30 ended December
June 2019 2019
GBPm GBPm
----------------------------------------- ------------- ----------- ---------------
Impact on EBITDA compared to previously
reported result (1.2) (15.3)
This error has been corrected by restating each of the affected
Consolidated Interim Financial Statement line items for the prior
periods as follows:
Consolidated Statement of Comprehensive Income (extract)
6 months ended 30 12 months ended
June 2019 31 December 2019
As Increase/ As As Increase/ As
reported (decrease) restated reported (decrease) restated
Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted
GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------------------- ---------- ------------ ---------- ---------- ------------ ----------
Revenue 407.1 (1.1) 406.0 997.3 (16.8) 980.5
Cost of sales (259.2) - (259.2) (642.7) - (642.7)
---------- ------------ ---------- ---------- ------------ ----------
Gross (loss)/profit 147.9 (1.1) 146.8 354.6 (16.8) 337.8
Selling and distribution expenses (44.8) - (44.8) (95.0) - (95.0)
Administrative expenses (119.3) (0.1) (119.4) (235.2) 1.5 (233.7)
Other expense (19.0) - (19.0) (19.0) - (19.0)
---------- ------------ ---------- ---------- ------------ ----------
Operating (loss)/profit (35.2) (1.2) (36.4) 5.4 (15.3) (9.9)
Finance income 3.2 - 3.2 16.3 - 16.3
Finance expense (37.7) - (37.7) (77.3) - (77.3)
Loss before income tax (69.7) (1.2) (70.9) (55.6) (15.3) (70.9)
Income tax credit/(charge) 14.6 1.2 15.8 (8.9) 2.1 (6.8)
---------- ------------ ---------- ---------- ------------ ----------
Loss for the period (55.1) - (55.1) (64.5) (13.2) (77.7)
---------- ------------ ---------- ---------- ------------ ----------
(Loss)/profit for the period
attributable
to:
Owners of the group (63.8) - (63.8) (113.2) (13.2) (126.4)
Non-controlling interests 1.0 - 1.0 8.8 - 8.8
---------- ------------ ---------- ---------- ------------ ----------
(62.8) - (62.8) (104.4) (13.2) (117.6)
---------- ------------ ---------- ---------- ------------ ----------
Other comprehensive (expense)/income
for the period, net of income tax 2.1 - 2.1 17.3 - 17.3
---------- ------------ ---------- ---------- ------------ ----------
Total comprehensive loss for the
period (60.7) - (60.7) (87.1) (13.2) (100.3)
---------- ------------ ---------- ---------- ------------ ----------
Total comprehensive (loss)/income
for the period attributable to:
Owners of the group (61.7) - (61.7) (95.9) (13.2) (109.1)
Non-controlling interests 1.0 - 1.0 8.8 - 8.8
---------- ------------ ---------- ---------- ------------ ----------
(60.7) - (60.7) (87.1) (13.2) (100.3)
---------- ------------ ---------- ---------- ------------ ----------
The impact of the correction of the restatement above, together
with the impact of the bonus element of the rights issue on
Earnings per ordinary share in the comparative periods is
summarised as follows:
6 months ended 30 June 12 months ended 31 December
2019 2019
As Bonus Error As As Bonus Error As
reported issue(1) Correction restated reported issue(1) Correction restated
------------------ ---------- ---------- ------------ ---------- ---------- ---------- ------------ ----------
Earnings per
ordinary share
Basic (28.0p) (20.7p) (0.0p) (7.3p) (49.6p) (29.3p) (5.8p) (14.5p)
Diluted (28.0p) (20.7p) (0.0p) (7.3p) (49.6p) (29.3p) (5.8p) (14.5p)
---------- ---------- ------------ ---------- ---------- ---------- ------------ ----------
1. The comparative basic and diluted earnings per ordinary share
values have been restated to reflect the bonus element of the
rights issue completed on 1 April 2020.
Consolidated Statement of Financial Position (extract)
30 June 2019 31 December 2019 1 January 2019
As Increase/ As As Increase/ As As Increase/ As
reported (decrease) restated reported (decrease) restated reported (decrease) restated
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------- --------- ----------- --------- --------- ----------- --------- --------- ----------- ---------
Deferred tax
asset 33.0 1.8 34.8 45.7 - 45.7 32.1 0.6 32.7
Deferred tax
liability - - - 12.6 (2.7) 9.9 20.0 - 20.0
Trade and other
payables -
current 719.2 15.0 734.2 702.1 29.1 731.2 641.4 13.8 655.2
--------- ----------- --------- --------- ----------- --------- --------- ----------- ---------
Net Assets 388.5 (13.2) 375.3 358.9 (26.4) 332.5 447.2 (13.2) 434.0
--------- ----------- --------- --------- ----------- --------- --------- ----------- ---------
Retained
earnings 34.6 (13.2) 21.4 (13.5) (26.4) (39.9) 97.2 (13.2) 84.0
--------- ----------- --------- --------- ----------- --------- --------- ----------- ---------
Equity
attributable
to owners of
the
group 377.3 (13.2) 364.1 344.8 (26.4) 318.4 437.0 (13.2) 423.8
Non-controlling
interests 11.2 - 11.2 14.1 - 14.1 10.2 - 10.2
--------- ----------- --------- --------- ----------- --------- --------- ----------- ---------
Total
shareholders'
equity 388.5 (13.2) 375.3 358.9 (26.4) 332.5 447.2 (13.2) 434.0
--------- ----------- --------- --------- ----------- --------- --------- ----------- ---------
There is no overall impact on the cashflow in any of the
previous periods from the restatement mentioned above. The income
statement impact and the movement in the statement of financial
position is all classified within cashflows from operations and
hence no impact on overall cashflow sub headings.
3. Segmental information
6 months 12 months
ended ended
6 months 30 June 31 December
ended 2019 2019
30 June restated restated
2020 (1) (1)
Revenue GBPm GBPm GBPm
-------------------------------------- --------- ---------- -------------
Analysis by category
Sale of vehicles 113.1 355.0 880.8
Sale of parts 23.1 32.2 63.0
Servicing of vehicles 3.5 5.2 9.3
Brands and motorsport 6.3 13.6 27.4
--------- ---------- -------------
146.0 406.0 980.5
--------- ---------- -------------
6 months 12 months
ended ended
6 months 30 June 31 December
ended 2019 2019
30 June restated restated
2020 (1) (1)
Revenue GBPm GBPm GBPm
-------------------------------------- --------- ---------- -------------
Analysis by geographic location
United Kingdom 39.4 102.0 229.6
The Americas 43.2 98.0 278.5
Rest of Europe, Middle East & Africa 33.3 84.0 231.2
Asia Pacific 30.1 122.0 241.2
--------- ---------- -------------
146.0 406.0 980.5
--------- ---------- -------------
1. The prior period segmental comparatives have been restated to
reflect the correction of an error within Sale of vehicles in The
Americas - see note 2 for further detail.
The Group's revenue, when assessed on an annual basis, is
typically weighted toward the second half of the year. This is
exaggerated in the current year in part due to the impact of
Covid-19.
Non-current assets other than financial instruments and deferred
tax assets by geographic location
Property,
Right-of-use Plant Intangible Other
As at 30 June 2020 Assets and Equipment Goodwill Assets Receivables Total
GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------- ------------- --------------- --------- ----------- ------------- --------
United Kingdom 68.5 308.7 85.4 1,169.7 - 1,632.3
The Americas 0.2 1.5 - - - 1.7
Rest of Europe, Middle East
& Africa - 95.7 - 17.5 2.0 115.2
Asia Pacific 9.2 0.7 - - - 9.9
------------- --------------- --------- ----------- ------------- --------
77.9 406.6 85.4 1,187.2 2.0 1,759.1
------------- --------------- --------- ----------- ------------- --------
Property,
Right-of-use Plant Intangible Other
As at 30 June 2019 Assets and Equipment Goodwill Assets Receivables Total
GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------- ------------- --------------- --------- ----------- ------------- --------
United Kingdom 68.0 262.2 85.4 1,050.7 - 1,466.3
The Americas 0.3 0.6 - - - 0.9
Rest of Europe, Middle East
& Africa 0.1 72.1 - 18.4 2.1 92.7
Asia Pacific 8.6 0.1 - - - 8.7
------------- --------------- --------- ----------- ------------- --------
77.0 335.0 85.4 1,069.1 2.1 1,568.6
------------- --------------- --------- ----------- ------------- --------
Property,
Right-of-use Plant Intangible Other
As at 31 December 2019 Assets and Equipment Goodwill Assets Receivables Total
GBPm GBPm GBPm GBPm GBPm GBPm
----------------------------- ------------- --------------- --------- ----------- ------------- --------
United Kingdom 71.5 266.0 85.4 1,081.3 - 1,504.2
The Americas 0.2 1.0 - - - 1.2
Rest of Europe, Middle East
& Africa 0.1 83.5 - 16.9 1.8 102.3
Asia Pacific 10.0 - - - - 10.0
------------- --------------- --------- ----------- ------------- --------
81.8 350.5 85.4 1,098.2 1.8 1,617.7
------------- --------------- --------- ----------- ------------- --------
4. Other expense
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2020 2019 2019
GBPm GBPm GBPm
------------------------------------------------ ---------- --------- -------------
Loss allowance - sale of intellectual property - (19.0) (19.0)
---------- --------- -------------
In the 6 months ended 30 June 2019 the recoverability of a
receivable relating to the sale of certain legacy intellectual
property was assessed as doubtful resulting in the recognition of a
GBP19.0m loss allowance.
5. Adjusting items
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2020 2019 2019
GBPm GBPm GBPm
------------------------------------------------------ --------- --------- -------------
Adjusting operating expenses:
Impairment of assets (1) :
Development costs - - (27.7)
Plant, machinery, fixtures and fittings - - (4.7)
Tooling - - (3.7)
Inventory - - (2.3)
Right-of-use lease assets (2.0) - (1.0)
--------- --------- -------------
(2.0) - (39.4)
Restructuring(2) :
Restructuring costs (12.4) - (2.8)
Settlement arrangements and incentive payments(3) (2.7) - -
(15.1) - (2.8)
Initial Public Offering costs:
Staff incentives(4) 3.3 (2.0) 0.6
Professional fees - (0.5) (0.5)
--------- --------- -------------
3.3 (2.5) (42.1)
--------- --------- -------------
Adjusting finance expenses:
Movement on derivatives not qualifying for hedge
accounting - (6.6) (6.6)
--------- --------- -------------
Adjusting items before tax (13.8) (9.1) (48.7)
Tax credit on adjusting items 3.6 1.4 8.8
--------- --------- -------------
Adjusting items after tax (10.2) (7.7) (39.9)
--------- --------- -------------
1. In the 6 months ended 30 June 2020 the Group commenced a
rationalisation exercise to reduce its geographical footprint. This
resulted in an impairment charge of GBP2.0m writing down the
right-of-use asset to GBPnil, triggered by conclusion of activity
at one of the Group's leased sites.
2. In the 6 months ended 30 June 2020 costs associated with the
first phase of the restructuring plan, announced in 2019, were
GBP0.3m (30 June 2019: GBPnil, 31 December 2019: GBP2.8m).
The Group announced on 4 June 2020, that it would shortly launch
a consultation process on proposals to reduce employee numbers
reflecting lower than originally planned production volumes. The
restructuring costs associated with this second phase are expected
to be GBP12.1m.
3. It was announced on 27 February 2020 that Mark Wilson would
step down as CFO and as an Executive Director of the Group on 30
April 2020. Subsequent to this, o n 25 May 2020, Dr. Andrew Palmer
stepped down as CEO and as an Executive Director of the Group.
Tobias Moers will join the Group as CEO and Executive Director on 1
August 2020. Amounts due at 30 June 2020, as a result of these
changes, are GBP2.7m.
4. In the period ended 30 June 2020 a Legacy Long-term Incentive
Plan ("LTIP") charge of GBP3.1m was recognised and is included in
Staff incentives (30 June 2019: GBP2.0m, 31 December 2019
GBP3.6m).
With the continuing reduced performance of the Group in 2020,
the remaining Initial Public Offering ("IPO") bonus held for
management is no longer expected to be paid. This decision resulted
in GBP6.4m being credited back to the Consolidated Income
Statement.
6. Finance income
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2020 2019 2019
GBPm GBPm GBPm
---------------------------------------------------- --------- --------- -------------
Bank deposit and other interest income 1.6 3.2 5.0
Foreign exchange gain on borrowings not designated
as part of a hedging relationship - - 11.3
--------- --------- -------------
1.6 3.2 16.3
--------- --------- -------------
7. Finance expense
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2020 2019 2019
GBPm GBPm GBPm
------------------------------------------------------ --------- --------- -------------
Bank loans, overdrafts, senior secured notes
and other interest 43.6 26.9 62.8
Foreign exchange loss on borrowings not designated
as part of a hedging relationship 17.7 3.7 -
Hedge ineffectiveness on loan instruments designated 2.3 - -
as a cashflow hedge
Net interest expense on the net defined benefit
liability 0.4 0.6 1.1
Interest on contract liabilities held 3.6 4.2 8.8
Interest on lease liabilities 2.1 2.3 4.6
Finance expense before adjusting items 69.7 37.7 77.3
Adjusting finance expenses (note 5) - 6.6 6.6
Total finance expense 69.7 44.3 83.9
--------- --------- -------------
8. Income tax credit/(charge)
The effective tax rate for the period ended 30 June 2020 is 12%
(period ended 30 June 2019: 22% restated). This compares to a UK
statutory rate of tax 19% applicable to the group for the period to
30 June 2020 (19% for the period ended 30 June 2019). The deferred
tax asset at 30 June 2020 has been calculated based on the rate of
19% substantively enacted at the period end date, except for
deferred tax assets arising in overseas subsidiaries where the
deferred tax asset has been recognised at the applicable rate for
each subsidiary. Permanently disallowable expenditure and an
unrecognised net deferred tax asset in respect of interest
deductions deductible give rise to further adjustments to the total
tax arising in the periods.
9. Earnings per ordinary share
6 months 12 months
ended ended
6 months 30 June 31 December
ended 2019 2019
30 June restated restated
Continuing and total operations 2020 (1,3) (1,3)
----------------------------------------------------- --------- ---------- -------------
Basic earnings per ordinary share
Loss available for equity holders (GBPm) (200.3) (63.8) (126.4)
Basic weighted average number of ordinary shares
(million) 1,203.0 870.4 870.4
Basic earnings per ordinary share (pence) (16.7p) (7.3p) (14.5p)
Diluted earnings per ordinary share
Loss available for equity holders (GBPm) (200.3) (63.8) (126.4)
Diluted weighted average number of ordinary shares
(million) 1,203.0 870.4 870.4
Diluted earnings per ordinary share (pence) (16.7p) (7.3p) (14.5p)
--------- ---------- -------------
30 June 30 June 31 December
2020 2019 2019
Number Number Number
----------------------------------------------------- --------- ---------- -------------
Diluted weighted average number of ordinary shares
is calculated as:
Basic weighted average number of ordinary shares(1)
(million) 1,203.0 870.4 870.4
Adjustments for calculation of diluted earnings
per share:
Long-term incentive plans(2) - - -
--------- ---------- -------------
Weighted average number of ordinary shares and
potential ordinary shares (million) 1,203.0 870.4 870.4
--------- ---------- -------------
1. The weighted average number of ordinary shares in both
comparative periods have been restated to reflect the bonus element
of the rights issue completed on 1 April 2020.
2. The impact of the Long-term incentive plan ("LTIP") shares
has been excluded from the weighted average number of ordinary
shares calculation on the basis of antidilution.
3. The comparative periods loss available to equity holders have
been restated to reflect the correction of an error - see note 2
for further details.
10. Research and Development expenditure
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2020 2019 2019
GBPm GBPm GBPm
-------------------------------------------------- --------- --------- -------------
Total research and development expenditure 123.0 121.3 226.0
Capitalised research and development expenditure 121.3 (121.3) (226.0)
--------- --------- -------------
Research and development expenditure recognised 1.7 - -
as an expense during the period
--------- --------- -------------
11. Net debt
30 June 30 June 31 December
2020 2019 2019
GBPm GBPm GBPm
----------------------------------------------- -------- -------- ------------
Cash and cash equivalents 359.4 126.9 107.9
Cash held not available for short-term use(1) 10.7 - 8.7
Bank loans and overdrafts(2) (114.6) (124.0) (124.0)
Inventory repurchase arrangements(3) (19.5) - (38.9)
Senior Secured Notes (877.0) (734.9) (829.9)
Lease liabilities(4) (110.0) (111.6) (111.4)
(751.0) (843.6) (987.6)
-------- -------- ------------
Current 232.5 3.0 (51.2)
Non-current (983.5) (846.6) (936.4)
-------- -------- ------------
(751.0) (843.6) (987.6)
-------- -------- ------------
4. In 2019, GBP8.7m held in certain local bank accounts had been
frozen in relation to local arbitration proceedings (30 June 2019:
GBPnil). At 30 June 2020 the balance held in frozen bank accounts
was GBP10.7m. The cash held in these accounts did not meet the
definition of cash and cash equivalents and therefore was
classified as an other financial asset.
5. At 30 June 2020 GBP70m of the GBP80m revolving credit
facility was drawn down (30 June 2019: GBP70.0m, 31 December 2019:
GBP70.0m). The group is party to a back-to-back loan arrangement
with HSBC Bank plc, whereby Chinese Yuan to the value of GBP36.2m
were deposited in a restricted account with HSBC in China in
exchange for a Sterling overdraft facility with HSBC in the United
Kingdom. The GBP36.2m of restricted cash is shown in the total of
cash and cash equivalents above (30 June 2019: GBP37.4m, 31
December 2019: GBP36.7m). At 30 June 2020 the Group has drawn down
GBP33.9m (30 June 2019: GBP36.7m, 31 December 2019: GBP36.3m) of
the combined overdraft facility which is included in bank loans and
overdrafts.
In 2018 the Group entered into a fixed rate loan to finance the
construction of the paint shop at the new St Athan manufacturing
facility. The loan matures on 31 March 2022. The quarterly
repayments on the loan include an element of capital repayment and
interest charge. The final payment on 31 March 2022 includes an
increased capital repayment of GBP6.3m. At 30 June 2020 the amount
outstanding is GBP10.7m with GBP2.9m included in current borrowings
and GBP7.8m included in non-current borrowings.
6. At 30 June 2020 a repurchase liability of GBP19.5m was
recognised in accruals and other payables and Net Debt. In June
2020, GBP16.2m of parts for resale, service parts and production
stock were sold for GBP19.5m (gross of indirect tax) and
subsequently repurchased. Under the repurchase agreement, the Group
will repay GBP20m 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 2020.
At 31 December 2019 a repurchase liability of GBP38.9m including
accrued interest of GBP0.2m, was recognised in accruals and other
payables and Net Debt. In November 2019, GBP32.2m of parts for
resale, service parts and production stock were sold for GBP38.7m
(gross of indirect tax) and subsequently repurchased. This
repurchase arrangement was fully settled in the 6 month period
ended 30 June 2020.
7. The comparative Group Net Debt at 30 June 2019 and 31
December 2019 have been re-presented to align with the updated
definition of Net debt to include current and non-current lease
liabilities following the Group's adoption of IFRS 16 on 1 January
2019. There is no impact on the Group's Consolidated Income
Statement, earnings per share, retained earnings or net assets. Net
Debt is a non-IFRS alternative performance measure used for
evaluating the performance of the Group and for further details see
note 19.
12. Movement in net debt
30 June 30 June 31 December
2020 2019 2019
GBPm GBPm GBPm
------------------------------------------------------ -------- -------- ------------
Cash and cash equivalents 359.4 126.9 107.9
Cash held not available for short-term use 10.7 - 8.7
Inventory repurchase arrangement (19.5) - (38.9)
Lease liabilities(1) (110.0) (111.6) (111.4)
Loans and other borrowings - current (106.8) (113.3) (114.8)
Loans and other borrowings - non-current (884.8) (745.6) (839.1)
Net debt (751.0) (843.6) (987.6)
-------- -------- ------------
Movement in net debt
Net increase/(decrease) in cash and cash equivalents 258.0 (17.2) (42.5)
Add back cash flows in respect of other components
of net debt:
New borrowings (75.0) (138.6) (260.8)
Proceeds from inventory repurchase arrangement (19.5) - (38.7)
Proceeds from existing borrowings - (11.1) (102.3)
Repayment of existing borrowings 83.0 - 91.5
Repayment of inventory repurchase arrangement 38.7 - -
Lease liability payments 5.8 5.2 10.9
Movement in cash held not available for short-term
use 1.2 - 8.7
Transaction fees - 0.4 4.1
-------- -------- ------------
Increase/(decrease) in net debt arising from
cash flows 292.2 (161.3) (329.1)
Non-cash movements:
Opening lease liability upon adoption of IFRS
16 - (116.5) (116.5)
Foreign exchange gain/(loss) on secured loan (38.5) (4.9) 23.7
Interest added to debt (4.8) (0.6) (1.1)
Borrowing fee amortisation (3.4) (1.7) (6.0)
Lease liability interest charge (2.1) (2.3) (4.6)
Lease modifications (2.0) - -
Unpaid transaction fees - (0.7) (2.0)
Foreign exchange (loss)/gain and other (4.8) 3.9 7.5
-------- -------- ------------
Decrease/(increase) in net debt 236.6 (284.1) (428.1)
Net debt at beginning of the year (987.6) (559.5) (559.5)
-------- -------- ------------
Net debt at the end of the year (751.0) (843.6) (987.6)
-------- -------- ------------
1. Net debt in the comparative periods has been re-presented to
include lease liabilities - see note 11 for further detail.
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. There were no transfers between levels
during the current and comparative periods.
30 June 2020 30 June 2019 31 December 2019
Nominal Book Fair Nominal Book Fair Nominal Book Fair
Value Value Value Value Value Value Value Value Value
Included in assets GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------------------- -------- ------- ------- -------- ------- ------- -------- ------- -------
Level 2
Forward foreign exchange
contracts - - - - - - - 0.4 0.4
Level 3
Warrant equity options(1) - 2.8 2.8 - - - - - -
-------- ------- ------- -------- ------- ------- -------- ------- -------
- 2.8 2.8 - - - - 0.4 0.4
-------- ------- ------- -------- ------- ------- -------- ------- -------
30 June 2020 30 June 2019 31 December 2019
Nominal Book Fair Nominal Book Fair Nominal Book Fair
Value Value Value Value Value Value Value Value Value
Included in liabilities GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
--------------------------- -------- ------- ------- -------- ------- ------- -------- ------- -------
Level 1
GBP285m 5.75% Sterling
Senior Secured Notes 285.0 280.2 255.9 285.0 277.9 280.8 285.0 279.0 273.6
$400m 6.5% US Dollar
Senior Secured Notes 322.9 322.9 285.8 315.4 315.4 312.9 301.6 301.6 288.0
$190m 6.5% US Dollar
Senior Secured Notes 153.4 149.1 139.4 149.8 141.6 148.3 143.3 137.2 133.8
$150m 12.0% US Dollar
Senior Secured Notes 121.1 124.7 125.4 - - - 113.1 112.1 122.1
Level 2
Forward foreign exchange
contracts - 15.0 15.0 - 13.9 13.9 - 8.9 8.9
882.4 891.9 821.5 750.2 748.8 755.9 843.0 838.8 826.4
-------- ------- ------- -------- ------- ------- -------- ------- -------
1. On 31 March 2020 Aston Martin Lagonda Limited, an indirect
subsidiary of the Company, entered into an agreement which included
warrant options for subscription in equity shares in Racing Point
UK Limited. The warrant options have been recorded as an embedded
option derivative asset at GBP2.9m on initial recognition. The fair
value movement in the options for the period to 30 June 2020 was
GBP0.1m and is recognised within the Income Statement in
administrative expenses.
The fair value of the warrant equity option above has been
established by applying the proportion of equity represented by the
derivative to an assessment of the enterprise value of Racing Point
UK Limited, which is then adjusted to reflect marketability and
control commensurate with the size of the investment. The
enterprise value has been estimated using a blend of measures
including an income-based approach and a market based approach. Due
to the size of the potential investment, as a proportion of the
equity of Racing Point UK Limited, there are no plausible
sensitivities which would give rise to a material variation in the
carrying value of the derivative.
There is a further fair value embedded derivative in the
agreement in respect of an additional economic interest in the
equity of Racing Point UK Limited which has been assessed as having
a carrying value of GBPnil at both inception and the period end.
The movement in the value of this derivative has been estimated
using the same method as the warrant equity option disclosed
above.
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 Sterling Senior
Secured Notes are all valued at amortised cost. The fair value of
these Senior Secured 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.
For all other receivables and payables, the carrying amount is
deemed to reflect the fair value.
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. Warrant equity options are considered to be
level 3 assets and liabilities.
IFRS 7 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.
14. Provisions
30 June 30 June 31 December
2020 2019 2019
GBPm GBPm GBPm
--------------------- -------- -------- ------------
Warranty provision 26.6 19.9 28.2
Restructuring costs 12.1 - -
-------- -------- ------------
38.7 19.9 28.2
-------- -------- ------------
Current 24.2 7.9 12.0
Non-current 14.5 12.0 16.2
-------- -------- ------------
38.7 19.9 28.2
-------- -------- ------------
The Group announced in June 2020 that it would shortly launch a
consultation process on proposals to reduce employee numbers
reflecting lower than originally planned production volumes. The
total estimated staff restructuring costs are GBP12.0m, in addition
to other directly attributable costs of GBP0.1m. These costs were
fully provided for in the current reporting period and are expected
to be fully utilised over the next 12 months.
15. Pension Scheme
The net liability for defined benefit obligations of GBP36.8m at
31 December 2019 has increased to a net liability of GBP57.8m at 30
June 2020. The movement of GBP21.0m comprises a net actuarial loss
of GBP22.2m in addition to a charge to the Income Statement of
GBP4.7m less contributions of GBP5.9m.
The net actuarial loss is primarily caused by a decrease in the
discount rate reflecting the reduction in corporate bond yields
during the period. At 30 June 2020, no adjustment has been made
under IFRIC 14 to the net pension asset as the reduction in
discount rate moved the pension deficit over and above the
discounted value of the future deficit reduction contributions.
16. Share capital
30 June 2020 30 June 2019 31 December
2019
Number GBPm Number GBPm Number GBPm
----------------- -------------- ----- ------------ ----- ------------ -----
Ordinary shares 1,824,014,450 16.5 228,002,890 2.1 228,002,890 2.1
-------------- ----- ------------ ----- ------------ -----
Movement in Ordinary shares:
During the 6 month period ended 30 June 2020 the Company issued
ordinary shares to improve liquidity, provide flexibility in
executing its strategy to operate as a true luxury company and help
build the appropriate capital structure for the longer term.
Share Share Merger
Capital Premium Reserve
Number GBPm GBPm GBPm
------------------------------------ -------------- --------- --------- ---------
Opening balance at 1 January 2020 228,002,890 2.1 352.3 -
Private placing(1) 76,000,000 0.7 170.3 -
Rights issue(2) 1,216,011,560 10.9 353.8
Non-pre-emptive placing and retail
offer(3) 304,000,000 2.8 - 149.3
1,596,011,560 14.4 524.1 149.3
Transaction costs arising on the
issuance of ordinary shares - - (25.1) (5.3)
-------------- --------- --------- ---------
Net movement during the period 1,596,011,560 14.4 499.0 144.0
Balance at 30 June 2020 1,824,014,450 16.5 851.3 144.0
-------------- --------- --------- ---------
1. On 31 March 2020 the Company issued 76.0m ordinary shares by
way of a private placing. The shares were issued at 225p raising
gross proceeds of GBP171.0m, with GBP0.7m recognised as share
capital and the remaining GBP170.3m recognised as share
premium.
2. On 1 April 2020 the Company issued 1,216.0m ordinary shares
by way of a rights issue. The shares were issued at 30p raising
gross proceeds of GBP364.7m, with GBP10.9m recognised as share
capital and the remaining GBP353.8m recognised as share
premium.
3. On 26 June 2020 the Company issued 304m ordinary shares
through a non-pre-emptive placing and retail offer. The shares were
issued at 50p raising gross proceeds of GBP152.1m, with GBP2.8m
recognised as share capital and the remaining GBP149.3m recognised
as merger reserve. At 30 June 2020 GBP5.3m of proceeds were still
to be received by the Company. The merger reserve is used where
more than 90% of the shares in a subsidiary are acquired and the
consideration includes the issue of new shares by the Company,
thereby attracting merger relief under the Companies Act 2006.
17. Related party transactions
During the 6 month period ended 30 June 2020, an agreement was
signed with the previous CEO, a Director of the Group at the time,
for the purchase of a vehicle at an expected discount of
approximately GBP0.3m, in line with the employee purchases policy
then in effect. This vehicle sale is not expected to complete in
2020 or materially affect the financial position and performance of
the Group.
There have been no other related party transactions in the 6
month period to 30 June 2020 that have materially affected the
financial position or performance of the Group.
18. Post balance sheet events
After the balance sheet date, the Group has arranged further
Senior Secured Notes of $68.0m at 12% which mature in April 2022
and a GBP20.0m Coronavirus Large Business Interruption Loan Scheme
(CLBILS) which matures in January 2022, whilst also entering into a
new wholesale finance facility with a term of August 2021.
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 loss before tax (EBT) is the loss before tax and
adjusting items (note 5) as shown in the Consolidated Income
Statement.
ii) Adjusted operating loss (EBIT) is operating (loss)/profit before adjusting items.
iii) Adjusted EBITDA removes depreciation, (profit)/loss on sale
of non-current assets and amortisation from adjusted EBIT.
iv) Adjusted Earnings Per Share is loss after income 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.
v) Net Debt is current and non-current borrowings in addition to
inventory financing 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
(the definition of this APM has been updated since 31 December 2019
- see note 11).
vi) Adjusted leverage is represented by the ratio of Net Debt,
to the last 12 months ("LTM") adjusted EBITDA (this APM definition
has been updated since 31 December 2019 - see note 11).
vii) Free cashflow is represented by net cash (outflow)/inflow
from operating activities plus the net cash used in investing
activities plus interest paid in the period.
Income statement
6 months 12 months
ended ended
6 months 30 June 31 December
ended 2019 2019
30 June restated restated
2020 (1) (1)
GBPm GBPm GBPm
---------------------------------------- --------- ---------- -------------
Loss before tax (227.4) (80.0) (119.6)
Adjusting operating expenses 13.8 2.5 42.1
Adjusting finance expenses - 6.6 6.6
--------- ---------- -------------
Adjusted loss before tax (EBT) (213.6) (70.9) (70.9)
Adjusted finance income (1.6) (3.2) (16.3)
Adjusted finance expense 69.7 37.7 77.3
--------- ---------- -------------
Adjusted operating loss (EBIT) (145.5) (36.4) (9.9)
Reported depreciation 22.7 24.7 42.7
Reported amortisation 33.8 32.5 85.2
Loss on disposal of non-current assets - - 0.9
--------- ---------- -------------
Adjusted EBITDA (89.0) 20.8 118.9
--------- ---------- -------------
8. The comparative periods have been restated to reflect a
correction of an error - see note 2 for further detail.
Earnings per share
6 months 12 months
ended ended
6 months 30 June 31 December
ended 2019 2019
30 June restated restated
2020 (1,2) (1,2)
GBPm GBPm GBPm
-------------------------------------------------- --------- ---------- -------------
Adjusted earnings per ordinary share
Loss available for equity holders (GBPm) (200.3) (63.8) (126.4)
Adjusting items
Adjusting items before tax (GBPm) 13.8 9.1 48.7
Tax on adjusting items (GBPm) (3.6) (1.4) (8.8)
--------- ---------- -------------
Adjusted earnings (GBPm) (190.1) (56.1) (86.5)
Basic weighted average number of ordinary shares
(million) 1,203.0 870.4 870.4
Adjusted earnings per ordinary share (pence) (15.8p) (6.4p) (9.9p)
--------- ---------- -------------
Adjusted diluted earnings per ordinary share
Adjusted earnings (GBPm) (190.1) (56.1) (86.5)
Diluted weighted average number of ordinary
shares (million) 1,203.0 870.4 870.4
Adjusted diluted earnings per ordinary share
(pence) (15.8p) (6.4p) (9.9p)
--------- ---------- -------------
9. The weighted average number of ordinary shares in both
comparative periods have been restated to reflect the bonus element
of the rights issue completed on 1 April 2020.
10. The comparative periods loss available to equity holders
have been restated to reflect the correction of an error - see note
2 for further details.
Net debt
30 June 31 December
2019 2019
30 June restated restated
2020 (1) (1)
GBPm GBPm GBPm
-------------------------------------------------------- -------- ---------- ------------
Opening cash and cash equivalents 107.9 144.6 144.6
Cash (outflow)/inflow from operating activities (179.4) 20.8 19.4
Cash outflow from investing activities (159.9) (159.0) (305.2)
Cash inflow from financing activities 597.3 121.0 243.3
Effect of exchange rates on cash and cash equivalents (6.5) (0.5) 5.8
-------- ---------- ------------
Cash and cash equivalents at the end of the
period 359.4 126.9 107.9
Cash held not available for short-term use 10.7 - 8.7
Inventory repurchase arrangement (19.5) - (38.9)
Lease liabilities (110.0) (111.6) (111.4)
Borrowings (991.6) (858.9) (953.9)
-------- ---------- ------------
Net Debt (751.0) (843.6) (987.6)
Adjusted LTM EBITDA 9.1 158.5 118.9
Adjusted leverage 82.5x 5.3x 8.3x
-------- ---------- ------------
1. The comparative periods adjusted LTM EBITDA and adjusted
leverage have been restated for the correction of an error in
addition to the re-presentation of Net debt to include lease
liabilities - see note 2 and 11 respectively for further
details.
Free Cashflow
30 June 30 June 31 December
2020 2019 2019
GBPm GBPm GBPm
------------------------------------------------------ -------- -------- ------------
Net cash (outflow)/inflow from operating activities (179.4) 20.8 19.4
Net cash used in investing activities (159.9) (159.0) (305.2)
Interest paid (31.3) (23.1) (52.0)
Free cashflow (370.6) (161.3) (337.8)
-------- -------- ------------
RESPONSIBILITY STATEMENT
The Interim consolidated financial information has been prepared
in accordance with IAS 34 adopted by the European Union. 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
Lawrence Stroll Ken Gregor
Executive Chairman Chief Financial Officer
29 July 2020 29 July 2020
Independent review report to Aston Martin Lagonda Global
Holdings plc
Introduction
We have been engaged by the Company to review the condensed set
of Financial Statements in the Interim Report for the 6 month
period ended 30 June 2020 which comprises the Consolidated
Statement of Comprehensive Income, the Consolidated Statement of
Financial Position, the Consolidated Statement of Changes in
Equity, the Consolidated Statement of Cash Flows and notes 1 to 19.
We have read the other information contained in the Interim Report
and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set
of Financial Statements.
This report is made solely to the company in accordance with
guidance contained in International Standard on Review Engagements
2410 (UK and Ireland) "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the
Auditing Practices Board. 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.
Directors' Responsibilities
The Interim Report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for
preparing the Interim Report in accordance with the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial
Conduct Authority.
As disclosed in note 1, the Annual Financial Statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of Financial Statements included
in this Interim Report has been prepared in accordance with
International Accounting Standard 34, "Interim Financial
Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the Interim Report
based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity" issued by the Auditing Practices Board for use in
the United Kingdom. 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.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of Financial Statements
in the Interim Report for 6 month period ended 30 June 2020 is not
prepared, in all material respects, in accordance with
International Accounting Standard 34 as adopted by the European
Union and the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
Ernst & Young LLP
Birmingham
29 July 2020
[1] Due to timing of retail share sales not closing before 30
June
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 rns@lseg.com or visit www.rns.com.
END
IR GUGDRRXDDGGC
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