Aston Martin CFO to leave as losses widen
ASTON Martin shares skidded to a record low as its losses mounted and it warned of possible disruption from the coronavirus outbreak.
The luxury car maker, which has proved a disaster for investors since listing on the London stock market at 1900p in October 2018, said its chief financial officer, Mark Wilson, will step down no later than the end of April.
It is pressing ahead with a £500million rescue fundraising that includes a £182million investment from a consortium led by Formula One tycoon Lawrence Stroll, who will become executive chairman.
The company’s annual pre-tax loss widened to £104.3million from £68.2million last time on 9 per cent lower revenue of £997.3million as sales to dealers fell. Net debt increased from £560million to £876million. Shares reversed 35¼p to 355¾p.
CEO Andy Palmer said: “2019 was extremely challenging for the company. We were unable to generate the revenue and profits we had originally planned. This performance led to severe liquidity pressures and higher year-end net debt.
“With our revised plan and appropriate funding in place, I believe we will have the building blocks in place to secure the necessary financial turnaround.”
The firm acknowledged that Covid-19 “has the potential to impact both the supply chain and customer demand in China and other markets”. China was its fastest growing market last year.
AJ Bell investment director Russ
Mould said: “The results are as ugly as you can get.Worst of all is the scale of its borrowings. Its net debt position of £876million is nearly as much as the entire year’s revenue.
“Lawrence Stroll may have underestimated the scale of Aston Martin’s financial problems. Let’s hope he has deep pockets.”