[pomphotothailand - stock.adobe.com]

In a trading update released today, Aston Martin Lagonda Global Holdings (AML ) told investors that it anticipates adjusted EBITDA for FY21 to be around £15m lower than previously expected.

The Company reported that 10 Aston Martin Valkyrie and Valkyrie AMR Pro vehicles in total were shipped during 4Q and that this was fewer than previously planned. Accordingly, the group told investors that adjusted EBITDA is therefore anticipated to be around £15m lower.

‘The impact is timing only, all Aston Martin Valkyrie Coupes are sold and remain allocated to customers with significant deposits,’ the luxury vehicles firm explained to its shareholders. 

For the twelve months to 31 December 2021, the Company said its wholesales grew by 82% for th to 6,182 as planned. It reported a total of 3,001 DBX units that were wholesaled in the first full year of production, taking its estimated 20% market share of the luxury SUV segment.

The business said it is currently achieving strong pricing and that it had previously closed the FY21 year with dealer stock “at optimum levels” aligned to the Company’s business approach.

The Group’s Aston Martin Valkyrie hypercar programme is now in production and deliveries to customers have commenced following the completion of a development and testing schedule.

With a full year of Aston Martin Valkyrie programme deliveries in 2022, the Group said it is expecting to deliver “significant growth, in addition to the launch of its second DBX derivative.”

With associated reduction in 2021 depreciation and amortisation expected to result in a broadly net neutral impact on adjusted operating profit, the Group said this change will see deliveries and the associated EBITDA continue through 2022 as well as now through 2023.

For FY21, the Company expects to report a year-end cash balance of around £420m, higher than previously anticipated. Meanwhile, the Group told investors that its preliminary results for the twelve months to 31 December 2021 will be announced next month on 24 February 2022.

Executive Chairman of Aston Martin Lagonda, Lawrence Stroll, commented: “I am extremely pleased that our core business has delivered to plan with over 6,000 core wholesales in the year whilst driving inventory to levels that are appropriate for an ultra-luxury business.”

He added that: “The evidence is there that our strategy is working, as retail sales are well ahead of wholesales supported by strong pricing and improving residual values. It has been a very long time since the core business was in such good health as it is today.”

Stroll said the Company’s recent return to Formula One has “significantly increased” its brand exposure, perception and desirability and that the Company’s progress to-date underpins his confidence in the future, its continued success as well as the potential for the business. 

He said he is “more assured than ever” of achieving revenues of c.£2bn and adjusted EBITDA of c.£500m by 2024/25 following a full year of DBX deliveries completed and a “compelling product pipeline”, which includes a new generation of front-engine sports cars in 2023. 

Tobias Moers, Aston Martin Lagonda’s Chief Executive Officer, commented: “Our core business delivered as planned while navigating a challenging external operating environment. Brand desirability is strong, with new customers being attracted to Aston Martin and retail sales ahead of wholesales as we follow our demand-led ultra-luxury business model.”

Follow News & Updates from Aston Martin Lagonda Global Holdings: