Aston Martin Lagonda Global Holdings – where is Goldfinger when you need him?

Lawrence Stroll, boss of the iconic car brand, has declared that the group ended 2022 with its strongest order book in years and that he is highly confident that it will achieve the target to deliver 10,000 wholesales over the coming years, and with it, a significantly enhanced financial performance.

Aston Martin Lagonda Global Holdings (LON:AML) has reported a 26% improvement in revenue in the year to end December 2022 to £1.38bn (£1.09bn), while its adjusted operating loss was 59% higher at £117.9m (£74.3m).

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The Group Operations

Tracing its roots back to 1913 this group, which was founded by Lionel Martin and Robert Bamford, and from 1947 was led by David Brown. Over the years it has endured seven bankruptcies and transformed its operations substantially.

Today the company designs, creates, and exports cars.

The group manufactures its sports cars range in Gaydon, Warwickshire while its luxury DBX SUV range is manufactured in St. Athan, Wales.

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The company’s activities take in the design, development, manufacture, and marketing of vehicles, as well as the sale of parts, servicing, and automotive brand activities.

The group’s products in the ultra-luxury automotive space, include GT, Sport, Super GT, SUV, mid-engine supercar, mid-engine hyper car, and sedan.

Its current models include the Vantage, DB11, DBS, DBX, the Aston Martin Valkyrie, and Valhalla.

Outlook – year on year growth sought

Group CEO Amedeo Felisa stated that:

“We remain on our way to achieving our target of c.10,000 wholesales, aligned with our ultra-luxury strategy.  In addition, we are well on track to deliver our medium-term financial targets of circa.£2bn revenue and circa £500m adjusted EBITDA in 2024/25.

For 2023 we expect to deliver significant growth in profitability compared to 2022, primarily driven by an increase in volumes and higher gross margin in both Core and Special vehicles. More specifically, we expect significant year-on-year growth and positive free cash flow in the second half of the year.”

Conclusion – profitability to improve this year

The scars of this group’s corporate history should be healing by now, especially after the additional funding given last year.

A year ago the company’s shares were trading at over 1050p each, since when various mishaps have helped them collapse to a low of 85p, that was at the start of November last year.

Ahead of the latest figures they were looking a lot steadier at around the 200p level before the results.

On the results news they have leapt 9% to 218p in reaction.

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