High-end automaker Aston Martin this morning recorded an operating loss of 159.3 million pounds in the first half, facing a loss of 38.9 million pounds last year.
Revenue fell 64% to 146 million pounds. The wholesale sector performed lower, with sales falling by 63%, while the retail unit recorded a 41% drop in sales. Low numbers are not unexpected due to disruptions in logistics, production and sales due to the pandemic.
Trade remains “difficult” and the Gaydon site in Warwickshire will resume production in late August, later than originally planned. Aston Martin has warned that opposition to the reopening of economies varies by country, making plans difficult. This morning he announced that Tobias Moers will take over as CEO on August 1, while Ken Gregor began as CFO in late June. In the coming months, investors will be eager to see what projects the new control team has in place for the group. Even though Aston Martin had some rounds of financing, today’s update still commented on increased liquidity pressure.
The company was under pressure for some time before the Covid-19 crisis, so the pandemic exacerbated the group’s problems. In mid-May, Aston Martin’s percentage value fell to a record after the first quarter update. During the three-month period, the operating loss was 76.7 million pounds, a significant increase in the loss of 3.2 million pounds a year ago. Revenues fell 60% to 78.6 million pounds, while wholesale volumes fell by 45%.
Activity in the UK, the most powerful division, with sales of only 3%. The EMEA region and the Americas saw their incomes fall by 30% and 57% respectively. The APAC region performed the worst, while revenues fell 74%, due to the dire trading situation in China, where sales fell by more than 85%.
In early June, Aston Martin’s percentage value peaked two months after announcing plans to cut 500. This resolution will reduce prices by around 10 million pounds. Capital expenditures are also expected to fall to 10 million pounds. First, the upgrade was well earned by investors, as it showed that the company was in a position to adjust in a challenging environment.
For a time, Aston Martin’s percentage value increased, but it was under pressure again in late June when the company revealed that it planned to factor new percentages, the supply equivalent to just under 20% of the existing percentage capital. The automaker raised 152 million pounds in the agreement and the budget was used for the balance sheet. Issuing new percentages can be a wonderful way to raise capital, but if an organization does so too often, it can undermine confidence in the company by suggesting that control does not control its capital.
Aston Martin’s percentage value has fallen in recent years and remains below the 100-day 59p moving average, the bearish movement is expected to continue.
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