Aston Martin has disclosed that it is seeking to raise capital after issuing its second profit warning in eight weeks. The company is now expecting to make a profit of up to £280m ($352m) in 2024, below the £305.9m figure of 2018. Aston Martin has cited a delay in releasing its ultra-exclusive Valiant models as the cause of the shortfall. The luxury carmaker had warned about its profits in September, which it claimed had been affected by a fall in demand for high-end goods in China. In a bid to bolster their finances, Aston Martin has said it will issue new debt totalling £210m in addition to additional shares.
Adrian Hallmark, the CEO of Aston Martin, has defended the company’s decision, stating that the financing to be provided would support growth, aid in future product innovation and ensure that the group was well-positioned for the future. He has also disclosed that the company is taking specific actions to secure a better position, including a more balanced production and delivery capacity. The company has now halved its shares listed on the UK exchange since the beginning of the year as it attempts to navigate the difficulties thrown at it.
Aston Martin is well known for its prestige brand status as it specializes in the production of high-end cars in relatively small quantities. The company sold 6,620 vehicles last year, and a significant proportion of those were bought in Asia Pacific. Aston Martin has also faced issues with suppliers that have impeded its ability to develop new models, while production disruption has led to a cutback on cars to be released this year.
The company’s situation is one of many that have afflicted automobile manufacturers in Europe lately, with disappointing sales and intense competition from international brands hitting earnings. The firm has elected to take considerable action and announced the action they are taking to bolster the company’s financial resources and make it more competitive in today’s challenging economic climate
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