Aston-ishing share sale...
£5bn value despite significant Brexit fears
LUXURY carmaker Aston Martin yesterday issued a Brexit warning as it gears up for a bumper £5billion stock market listing.
Bosses admitted leaving the EU with no deal next March and the triggering of tariffs would “significantly” hit sales and profits. Around 18% of its cars are sold to European buyers.
A hard Brexit would also have a “material adverse effect” on its supply chain, leading to the need to stockpile parts, and could impact the large portion of engineers and family workers from other EU countries. Aston Martin also warned of an uneconomic downturn in a long list of risks, and spoke of the dangers of ramping up production which would reduce its “exclusivity”.
But the company still thinks it can cash in on the world’s booming number of super-rich as it announced the planned pricing for a share sale in October.
Super-spy James Bond’s favourite carmaker has set a range of £17.50 to £22.50, valuing the company at £4bn to just over £5bn. Boss Andy Palmer said the sale provided investors “with a fitting opportunity to participate in our future success”.
However, the initial sale of shares will be restricted to big City firms, employees and Aston Martin owners.
The Warwickshire-based firm believes it has a rosy future after making its first profit for seven years in 2017 – £84million – as sales jumped to £876m.
There is still strong demand for its motors, including the Aston Martin Valkyrie, which costs up to £4m.
But experts question its potential stock-market value given the firm’s chequered past, which has seen it go bust seven times in its 105-year history. It also has more than £900m of debt.
Laith Khalaf, analyst at broker Hargreaves Lansdown, said: “It’s important for potential investors to concentrate on the company’s long-term financial prospects and not to get too carried away by
the brand.”