Aston Martin is looking to raise funds to safeguard its future, as Autocar has learned, which wants to significantly strengthen its financial position as it increases investment for its next-generation platforms and future electrification strategy.
The move comes as a result of Aston Martin’s ongoing struggles to balance his books while juggling his cash reserves and sales revenue with the costs of developing new vehicles and paying off debt.
The British company has £ 1.2bn in bonds, bank transfers and outstanding loans to its books, which means it is unlikely to be able to raise funds by taking on more debt, especially given the level of repayments currently required to meet -lo.
As a result of its precarious position, the price of its shares has recently been at an all-time low, though there is no suggestion that its list of owners, including billionaire CEO Lawrence Stroll, should let the ‘company is retiring.
A statement issued by the company in response to reports on the subject said: “Aston Martin Lagonda (the” Company “) notes recent movements in the price of its shares and media speculation about possible fundraising efforts.
“The company continues to trade in line with expectations for the full year 2022 and reaffirms its financial orientation for the full year 2022, subject to exchange rate movements, as reported in the first quarter results on May 4, 2022.
“Order books are robust and have been further strengthened in recent months, with sports cars sold out in 2023 and DBX receiving orders more than 40% more than the previous year. In addition, production of Aston Martin Valkyrie continues to pick up the pace.The company is delighted with the reaction from customers and the market to new model derivatives and its recently improved management team is increasingly focused on launching new models from 2023 .
“As noted in the 2022 results on February 23, 2022 and the annual general meeting on May 25, 2022, the company regularly keeps its financing options under review. Any financing options, if any if explored and executed, it would be to support and accelerate the future of the company.
Autocar understands that the fundraiser could include the incorporation of a major new investor, which could offer a position on the company’s board as an incentive for a stake that experts suggest could be valued at more than £ 200 million. .
Coach sources suggest that there are two main candidates for funding. One is linked to a Saudi Arabian investment fund, with Stroll having strong ties to the country through sponsoring the Aston Martin Formula One team title with oil giant Aramco; and the other is linked to an investment fund based on the west coast of the US.