AML losses in 2015
Discussion
I'm no financier, but I sense that there appears to be no better man than Andy Palmer to have at the helm, given his pedigree and vision. The long term plan has production increasing from c4000 units p/a to c7000 with an eventual forecast of 14000 units across both plants (DBX at St Athan and others at Gaydon). The life cycle management plans to see one new car every year from one of the segments, every 7 years. The future seems to be to be much brighter than ever, but this, as ever, hinges on the correct level of investment. Good luck to them, I say.
avinalarf said:
Let us hope that the extra £200m of investment will be sufficient to fund the new models.
It is very difficult for a company when it lacks sufficient investment and keeps chasing its tail.
It's a shame all this was not done 3 years ago.
I fear £200m is way too little. Porsche spent £60m developing the 918 steering wheel which is due to be fitted in all models.It is very difficult for a company when it lacks sufficient investment and keeps chasing its tail.
It's a shame all this was not done 3 years ago.
RobDown said:
Just reported a pre-tax loss of GBP127.9m (vs a loss of GBP71.8m in 2014). Car sales of 3615 down from 3661 in the prior year
I guess its a transition year for the company as we roll-over into the new models.
Will update when I see more details on model mix, geography etc
I guess its a transition year for the company as we roll-over into the new models.
Will update when I see more details on model mix, geography etc
Thank your posting the figures, Rob.
I keep a note of this 'stuff', including production numbers going back to the 1970s.
I know, I should get out more.
Can you see the Revenue, Gross Profit, and Debt Interest amounts?
If they show 2014 comparables, that would be useful for me to check the accuracy of my 2014 figures.
Thank you.
brakedwell said:
I fear £200m is way too little. Porsche spent £60m developing the 918 steering wheel which is due to be fitted in all models.
This could not possibly be true; it is absurd. Sound like an urban legend to me. The CEO would have to fire everyone involved and hire a complete new team if this had really happened.Jon39 said:
Can you see the Revenue, Gross Profit, and Debt Interest amounts?
If they show 2014 comparables, that would be useful for me to check the accuracy of my 2014 figures.
I've said it before, but £200m is nothing in the scheme of vehicle development. You have to think and spend like a premiership football team. Spending £1m a day on R&D is nothing these days...
JLR spent £1bn on the new Range Rover. Amazingly, almost half was upgrading their existing factory in Solihull.
Mclaren have confirmed they will invest £1bn to develop 15 new models over the next 7 years
And Aston are spending £200m. Daft as it sounds, its not enough.
JLR spent £1bn on the new Range Rover. Amazingly, almost half was upgrading their existing factory in Solihull.
Mclaren have confirmed they will invest £1bn to develop 15 new models over the next 7 years
And Aston are spending £200m. Daft as it sounds, its not enough.
RobDown said:
They are talking about an IPO though, first I've heard of that. Albeit given market conditions that must be some years away
It was mentioned a while back, in one of the Dr. Andy Palmer interviews.
He likened AML to luxury goods public companies, with much higher valuations than car manufacturers.
You cannot knock his ambition, I thought at the time, because most IPOs need profitability to attract serious investors.
Steven mentioned the extra £200m investment. It was from the existing shareholders in two tranches, and was for a specific project. I don't have my notes to hand, but it might be for the DBX project. Presumably there may also have been some public money to help increase the total available for DBX.
Annual losses of course are inevitable now, as the (is it) £500m is being spent on the development of several new models. There are dates for the debt to be repaid (or refinanced) though, so pressure is ever present.
We all wish them well though.
Edited by Jon39 on Monday 27th June 14:34
RobDown said:
where does the £200m figure come from? I think that was the amount being invested in the Welsh Dbx plant, but is there a separate comment on it?
The accounts show that the company secured additional funding during the year to support new models, with parent AMH UK issuing $165m (£99.6m) of senior subordinated payment-in-kind notes due for repayment in 2018, the proceeds of which were given to Aston Martin Lagonda.
Further financial firepower was added in April 2015, when AMH UK accepted binding subscriptions for new preference shares worth £200m. Half of this total has already been passed on to the car maker to fund development work and the rest will be made available if needed.
avinalarf said:
The accounts show that the company secured additional funding during the year to support new models, with parent AMH UK issuing $165m (£99.6m) of senior subordinated payment-in-kind notes due for repayment in 2018, the proceeds of which were given to Aston Martin Lagonda.
Further financial firepower was added in April 2015, when AMH UK accepted binding subscriptions for new preference shares worth £200m. Half of this total has already been passed on to the car maker to fund development work and the rest will be made available if needed.
I thought you must be a Big Cheese businessman Steven.
You certainly demonstrate expert accounting knowledge.
As Ken Dodd would say, "Are you Chartered"?
I worry slightly about the total debt that AML is carrying. Can you see how many hundreds of millions it is? Hopefully the profits will flow when DBX is selling, but if not, debt repayment will become a major problem. Anyway, we must be positive.
Ah I see, I think that's additional then as they say they spent gbp161m on development (+40%) in 2015
Other interesting comments:
60% of sale are outside EU, "just under half" of the remainder (so call it 17-19%) EU, rest UK
Company is hedged against FX for 18 months
Plan is to roll out a new model every 9 months (I think we knew that)
Looking to expand partnership with Red Bull
Primary markets for DBX will be US and China
Excluding one-off items (restructuring, write downs) profits rose from £66.3m to £71.4m
Expectations is flat sales in 2016
Other interesting comments:
60% of sale are outside EU, "just under half" of the remainder (so call it 17-19%) EU, rest UK
Company is hedged against FX for 18 months
Plan is to roll out a new model every 9 months (I think we knew that)
Looking to expand partnership with Red Bull
Primary markets for DBX will be US and China
Excluding one-off items (restructuring, write downs) profits rose from £66.3m to £71.4m
Expectations is flat sales in 2016
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