(Bloomberg) — Aston Martin Lagonda Global Holdings Plc tapped investors for more funds as the luxury carmaker issued its second profit warning in two months.
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The British company, synonymous with the James Bond movies, raised around £111 million ($140 million) by issuing new shares at 100 pence each — below Tuesday’s closing price of around 108 pence — and a further £100 million in debt, it confirmed in a statement Wednesday.
Due to the delayed delivery of some Valiant models, the company said late on Tuesday it now expects adjusted earnings before interest, taxes, depreciation and amortization of between £270 million and £280 million for 2024, below analyst estimates. Aston Martin had already cut its guidance in September, blaming supply-chain disruption and weak demand in China.
Aston Martin’s American depositary receipts fell 5.8% on Tuesday when the news was announced. The shares in London have more than halved this year.
Aston Martin was rescued by Lawrence Stroll in 2020 but the billionaire is struggling to turn around the company, which has required several capital raises since he took over. These have made China’s Zhejiang Geely Holding Group Co. and Saudi Arabia’s Public Investment Fund major shareholders.
The Canadian billionaire is betting he can revive the company by releasing more models more frequently and cashing in on the the hype around Formula One racing.
His turnaround is being aided by former Bentley Motors Ltd. boss Adrian Hallmark, who joined in September to become the fourth chief executive officer since Stroll arrived.
The latest financing should leave Aston Martin with liquidity of around £500 million at the end of the year, the company said. Stroll’s Yew Tree consortium subscribed for part of the share placing.
The size of the equity raise — and therefore dilution for investors — is smaller than expected, analysts at Bernstein led by Harry Martin said in a note.
Phasing deliveries to smooth financial performance is a tactic deployed by Ferrari NV that investors value, the analysts wrote. “The major difference today is one order book is underpinned by substantial excess demand, and the other less so — for Aston and new CEO Adrian Hallmark this remains the holy grail,” they added.