Aston Martin raises £211m from investors after profit warning

Aston Martin Lagonda has raised £211 million in new funding to help bolster its liquidity and fund future growth after issuing a profit warning on Tuesday.

The struggling luxury car maker revealed it had issued £100m in new debt and raised £111m from investors who bought its shares for 100p each, a 7.3 per cent discount to the price closing of its shares yesterday.

Lawrence Stroll’s Yew Tree Consortium, which rescued the company in early 2020, subscribed to around £50.5 million in ordinary shares.

Following the fundraising, the company said it would end 2024 with an expected liquidity position of approximately £500 million.

Aston Martin announced a planned equity and debt placement on Tuesday while declaring its second profit warning in two months.

Due to what it called a “minor delay” in the delivery of some of its ultra-exclusive Valiant vehicles, the company now forecasts that its adjusted profits before the unpleasantries will total £270 million to £280 million this year.

The Warwickshire-based group said it would deliver around half of the 38 Valiant models by the end of 2024, with the rest arriving early next year.

In September, Aston Martin cut its profit forecasts due to supply chain challenges and weak demand from China, the world’s largest auto market.

It also said wholesale volumes would decline rather than grow, while free cash flow is predicted to “remain negative.”

To try to turn things around, the group launched expensive new ranges such as the DB12 and Vanquish and attracted significant investments from Chinese car giant Geely and Saudi Arabia’s Public Investment Fund.

However, it has continued to make massive annual losses, including a pre-tax loss of £239.8m in 2023 and a loss of £495m the year before, despite its vehicles selling at record average prices.

In September, former Bentley Motors boss Adrian Hallmark became the company’s fourth chief executive in four years.

Commenting on the financing package, Hallmark said: ‘We thank our investors, including our strategic investors who continue to show strong support for the company, for their commitments and confidence in Aston Martin.

“We are now well positioned for growth, backed by the strength of our brand and the portfolio of world-class products we have brought to market.”

It intends to spend the money on debt repayments and capital investments related to its £2 billion five-year “transition to electrification” plan.

The automaker hopes to launch its first battery-electric vehicle in 2026, having previously planned to bring it to market next year.

Susannah Streeter, director of money and markets at Hargreaves Lansdown, said: “Aston Martin may be known for its association with James Bond, but there is no secret agent in sight to get it out of its latest predicament.”

Aston Martin Lagonda Stock They fell 4.8 per cent to 102.7p on Wednesday morning, more than 90 per cent lower than their IPO price of £19.