Proactiveinvestors United Kingdom Aston Martin Lagonda Global Holdings PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Aston Martin Lagonda Global Holdings PLC RSS feed en Sun, 26 May 2019 05:07:30 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190521145150_14082269/ Tue, 21 May 2019 14:51:50 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190521145150_14082269/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190521145006_14082267/ Tue, 21 May 2019 14:50:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190521145006_14082267/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190521144549_14082258/ Tue, 21 May 2019 14:45:49 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190521144549_14082258/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190521144545_14082257/ Tue, 21 May 2019 14:45:45 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190521144545_14082257/ <![CDATA[RNS press release - Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190520101139_14080075/ Mon, 20 May 2019 10:11:39 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190520101139_14080075/ <![CDATA[News - What connects the recent spate of high-profile IPO flops? ]]> https://www.proactiveinvestors.co.uk/companies/news/220335/what-connects-the-recent-spate-of-high-profile-ipo-flops-220335.html The last few months have been a difficult time for new companies coming to market, both in London and across the Atlantic.

Three prominent initial public offerings (IPOs) on London’s main market, Amigo Holdings PLC (LON:AMGO), Funding Circle Holdings PLC (LON:PCH) and car maker Aston Martin Lagonda Global Holdings PLC (LON:AML), are all currently trading lower than their offer prices despite much fanfare at the time of their floats.

Aston Martin has had a particularly stinking rebuke from investors after it began trading in early October last year, with the share price having lost more than 50% of its value.

Meanwhile in the US, ride-hailing apps Lyft Inc (NASDAQ:LYFT) and Uber Technologies Inc (NYSE:UBER) are also languishing below their IPO prices.

Uncertain futures

In trying to draw a connection between these sub-par showings, it could be the case that the roadmap for some of them just wasn’t clear enough to stand up to market scrutiny.

Neil Wilson, chief market analyst at Markets.com, said that companies like Amigo and Funding Circle had “dubious financial models” which gave off a lot of uncertainty around their future cash flows.

Aston suffered a similar problem, Wilson adds, saying the company came to market “thinking it was going to be the next Ferrari” but didn’t have a clear strategy for how it was going to deliver on its ambitious plans.

“The common theme is uncertainty around future cash flows, earnings and profitability” Wilson said, with Uber and Lyft also falling into the category as it was “impossible to value them accurately”.

Falling off the hype train

Another potential connection is that companies may have inflated their valuations due to the popularity of their brands and increased media attention before suffering from the cold hard maths of the market.

“[The companies] sort of believed their own hype, they put up a big valuation because they expect people to buy it and obviously it doesn’t always work out like that”, Wilson says.
“As soon as you float you get much better price discovery and the market tells you what it really is worth”.

Aston Martin is particularly guilty of this, with its pitch as a luxury car brand trickling down into its valuation and giving it a market cap at IPO of £4.3bn which has since dropped to less than £2bn.

The group was also put in its place by Deutsche Bank, who in an April note said the firm lacked the prestige of Ferrari and instead compared it to less premium rival BMW.

Is it just bad luck?

However, despite talk of over-hyped valuations and murky business models, the litany of IPO flops could simply be down to macroeconomic bad luck.

Many of the recent floats were planned during 2018 when markets were reaching all-time highs only to fall back going into 2019 as uncertainty over Brexit, the US-China trade war and general global economic malaise all dampened investor enthusiasm.

Aston Martin in particular has been hard hit by the Chinese slowdown, Wilson says, as the world’s second largest economy is one of its key growth markets.

Wilson added that the broader economic uncertainty also had implications for Uber’s float.

“If Uber had [floated] a year ago…the shares wouldn’t have fallen like that. The market is a lot more scared now.”

But investors still have appetite

While these high-profile misfortunes may have many thinking that investors have had enough of IPOs, there have been a number of recent success stories.

Video conferencing firm Zoom Video Communications Inc (NASDAQ:ZM) IPO’d on the stock market in mid-April at US$36 per share, and since then has seen the price climb around 100% and netted the company US$751mln.

There has been even more success for meat substitute maker Beyond Meat Inc (NASDAQ:BYND), which has risen 212% from its IPO price of US$25 per share.

London has also seen a recent profitable float from café chain Loungers PLC (LON:LGRS), which IPO’d onto the junior AIM market at the end of April and is currently trading around 11% higher than its 200p offer price.

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Wed, 15 May 2019 16:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220335/what-connects-the-recent-spate-of-high-profile-ipo-flops-220335.html
<![CDATA[News - Aston Martin swings to a first-quarter loss as margins squeezed ]]> https://www.proactiveinvestors.co.uk/companies/news/220304/aston-martin-swings-to-a-first-quarter-loss-as-margins-squeezed-220304.html The market couldn’t make its mind up about Aston Martin Lagonda Global Holdings PLC’s (LON:AML) first-quarter results on Wednesday.

Shares in the luxury carmaker opened the day broadly unchanged at 819p, athough that was less than half of what they were sold for in last autumn’s initial public offering.

READ: JP Morgan predicts pricing pressure for Aston Martin

The FTSE 250 listed company swung to a pre-tax loss of £17.3mln in the three months to the end of March. That compared with a small £2.8mln profit in the same period of 2018.

Bosses put the fall down to financing costs associated with the conversion of preference shares to ordinary shares in the recent IPO.

Margin squeeze

Softer margins also played a part, with Aston Martin selling fewer “special” cars on which it makes more money. It sold 32 specials in the first quarter of this year, versus 48 in 2018.

Adjusted operating margins fell to -1.1% (Q1 18: 11.9%), meaning, on average, it made a loss on every car that rolled off its production line.

Even gross profit margins slipped by 2 percentage points to 42%, largely driven by a drop in prices and lower demand for its more expensive cars.

Revenue and guidance provides some reassurance

But revenue rose 6% to £196.0mln (Q1 18: £185.4mln) as it shipped more cars: 1,057 to be precise, 10% more than last year (Q1 18: 963 cars sold).

That was despite a contraction in the industry, with supercar sales around the world falling in the opening three months of 2019.

Aston Martin also reassured about its full-year performance, keeping its guidance in place.

'Challenging' environment

“Despite declining total industry volumes, Aston Martin Lagonda has delivered a sales increase that reaffirms its position as a luxury marque that offers some resilience to these wider automotive trends,” said chief executive Andy Palmer.

“We remain conscious of the challenging external environment in certain of our markets and we have taken this into account in our planning whilst ensuring we do not compromise on delivery.”

He added: “Our guidance is unchanged. We expect our normal H2 seasonality to be amplified by Specials which are heavily weighted to Q4 this year.”

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Wed, 15 May 2019 09:45:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220304/aston-martin-swings-to-a-first-quarter-loss-as-margins-squeezed-220304.html
<![CDATA[RNS press release - 1st Quarter Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190515070012_14074066/ Wed, 15 May 2019 07:00:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190515070012_14074066/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190430112917_14057343/ Tue, 30 Apr 2019 11:29:17 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190430112917_14057343/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190429103004_14055301/ Mon, 29 Apr 2019 10:30:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190429103004_14055301/ <![CDATA[News - JP Morgan lets some air out of Aston Martin's tyres as it predicts pricing pressure and "softening" demand ]]> https://www.proactiveinvestors.co.uk/companies/news/218705/jp-morgan-lets-some-air-out-of-aston-martin-s-tyres-as-it-predicts-pricing-pressure-and--softening--demand-218705.html Shares in Aston Martin Lagonda Global Holdings PLC (LON:AML) skidded in late-afternoon after JP Morgan cut its target price to 1,500p from 1,800p.

In a note, the US investment bank said the car maker's pricing power for its lower-cost vehicles could come under pressure in its 2019 fiscal year, which could affect as much as 15% of its sales.

READ: Aston Martin ‘more like BMW than Ferrari’ according to Deutsche Bank

Analysts also highlighted a “softening” of demand for premium models across Europe, citing low-single digit declines over the last five months as opposed to four years of “straight line growth” since 2015.

The bank also forecast that a lack of output in the first quarter from the group’s DBX luxury SUV model as well as higher depletion and amortisation (D&A), would “take a toll” on its first quarter results, and as such cut their earnings forecasts for the full year by 10%.

JP Morgan’s analysts aren’t the only ones expecting lower earnings from Aston Martin, with Deutsche Bank saying they saw a “risk to earnings in 2019” as a result of “muted demand momentum” and increasing costs due to ramp-ups at the company’s St Athan manufacturing plant.

Shares were down 0.6% at 931.4p.

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Tue, 16 Apr 2019 15:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218705/jp-morgan-lets-some-air-out-of-aston-martin-s-tyres-as-it-predicts-pricing-pressure-and--softening--demand-218705.html
<![CDATA[News - Aston Martin ‘more like BMW than Ferrari’ according to Deutsche Bank ]]> https://www.proactiveinvestors.co.uk/companies/news/218142/aston-martin-more-like-bmw-than-ferrari-according-to-deutsche-bank-218142.html Shares in Aston Martin Lagonda Global Holdings PLC (LON:AML) backfired on Monday after Deutsche Bank claimed the carmaker lacked the prestige of its Italian rival Ferrari.

Global political and economic uncertainty has dented consumer appetite for big-ticket items such as cars over the past year or so.

READ: Aston Martin swings to a loss on huge IPO costs

Luxury brands such as Ferrari, which sell to the uber-rich, are generally unaffected by such macro issues, but Deutsche claimed it has seen a decline in demand for Aston Martins.

“We observed much higher volatility in demand versus its peer, Ferrari, closer in fact to the premium OEMs, like BMW,” read a note to clients.

“In line with the previous company communication, we have been of the view that Aston Martin would be less exposed to end-market volatility, but we revise our view, on the back of a slowdown in Aston's key markets, Germany and the UK, weighing on sales momentum.”

In order to try to prop up sales, the analysts expect Aston Martin to have to lower its prices which will hit profits.

‘2019 earnings risk’

“With muted demand momentum forecast in the short term, but increasing fixed costs already, due to St Athan (manufacturing plant) ramping up, we see a risk to earnings in 2019.

“To us, the DBX launch, late this year, has always been the key story and remains the key trigger of the stock; but with deliveries of that model still several months out, we see limited share price potential in the meantime.”

They concluded: “With all this in mind, we lower our target price to 1,000p from (2,000p) and downgrade to ‘hold’ (from ‘buy’) on valuation grounds.”

Aston Martin shares fell 4% to 977p on Monday morning, almost half what they were valued at the back when the company floated in October.

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Mon, 08 Apr 2019 09:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218142/aston-martin-more-like-bmw-than-ferrari-according-to-deutsche-bank-218142.html
<![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190403111024_14027306/ Wed, 03 Apr 2019 11:10:24 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190403111024_14027306/ <![CDATA[RNS press release - Issue of Debt ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190401180212_14024369/ Mon, 01 Apr 2019 18:02:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190401180212_14024369/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190328100001_14019376/ Thu, 28 Mar 2019 10:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190328100001_14019376/ <![CDATA[RNS press release - Annual Financial Report ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190314140003_14002800/ Thu, 14 Mar 2019 14:00:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190314140003_14002800/ <![CDATA[RNS press release - Change of Auditor ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190306100004_13992170/ Wed, 06 Mar 2019 10:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190306100004_13992170/ <![CDATA[RNS press release - Director Declaration ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190228133710_13985709/ Thu, 28 Feb 2019 13:37:10 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190228133710_13985709/ <![CDATA[News - Aston Martin backfires as it swings to a loss on huge IPO costs ]]> https://www.proactiveinvestors.co.uk/companies/news/215516/aston-martin-backfires-as-it-swings-to-a-loss-on-huge-ipo-costs-215516.html Aston Martin Lagonda Global Holdings PLC (LON:AML) fell to a loss last year after forking out a massive £136mln to list on the London Stock Exchange.

After taking into account the hefty initial public offering (IPO) costs, the British supercar maker, made famous by James Bond, fell to a pre-tax loss of £68.2mln in 2018, compared with a profit of £84.5mln a year earlier.

READ: Aston Martin shares reverse as price declines cloud growth

Revenue rose 25% to £1.10bn from £0.88bn in 2017 after selling slightly more cars than it had expected to back in September, with demand from rich Chinese and Americans particularly strong.

The FTSE 250 company also said it had set aside up to £30mln to help it deal with any issues that might arise once the UK departs from the European Union.

“2018 was an outstanding year for Aston Martin Lagonda, delivering strong growth, with improving revenues, unit sales and adjusted profits,” said chief executive Andy Palmer.

“Our well-defined expansion plans, that combine outstanding high-performance cars with iconic brand-status, are on track as we manage through the uncertainties and disruption impacting the wider auto industry.”

Shares at all-time low

In October, Aston Martin became the first British carmaker in decades to float on the LSE.

It listed with a £4.3bn valuation – a figure which raised eyebrows in the City, especially given Aston’s history of bankruptcies and the fact that 2017 was the only profitable year this decade.

The shares, which were priced at 1,900p at the IPO, quickly went in reverse though, not helped by a third-quarter update which showed the average price of a new Aston Martin had fallen 7% year-on-year.

After falling another 15% today, the stock sits at 1,168p – a fresh all-time low for Aston and almost 40% below their IPO value.

In fact, the stock has performed so badly since listing that some in the Square Mile think it has led to other companies postponing their plans for the time being.

‘Abject failure’

“From an investor perspective, it’s been an abject failure,” said Jordan Hiscott, chief trader at Ayondo markets.

“This has been even more eye-watering for the company itself with the cost of £136mln to gain its public listing.

“Yet, given the good news of soaring revenue on a year-on-year basis to over £1 billion, and a 26% rise in car sales, that does seem like the move to all-time lows today is slightly overdone.”

“However, the contrarian in me also highlights that possibly the market doesn’t share the same confidence in forward guidance as much as Aston Martin does.”

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Thu, 28 Feb 2019 10:18:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/215516/aston-martin-backfires-as-it-swings-to-a-loss-on-huge-ipo-costs-215516.html
<![CDATA[RNS press release - Final Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190228070009_13984425/ Thu, 28 Feb 2019 07:00:09 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190228070009_13984425/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190227144603_13984056/ Wed, 27 Feb 2019 14:46:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190227144603_13984056/ <![CDATA[RNS press release - Change of accounting reference date ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190220154659_13976173/ Wed, 20 Feb 2019 15:46:59 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190220154659_13976173/ <![CDATA[RNS press release - Notice of Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190207163343_13962373/ Thu, 07 Feb 2019 16:33:43 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190207163343_13962373/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190129151414_13950758/ Tue, 29 Jan 2019 15:14:14 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190129151414_13950758/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190102095013_13920708/ Wed, 02 Jan 2019 09:50:13 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20190102095013_13920708/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181217131955_13906426/ Mon, 17 Dec 2018 13:19:55 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181217131955_13906426/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181130120004_13887213/ Fri, 30 Nov 2018 12:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181130120004_13887213/ <![CDATA[News - Aston Martin recovers some ground after post-results drop as two more brokers initiate coverage on the stock ]]> https://www.proactiveinvestors.co.uk/companies/news/209369/aston-martin-recovers-some-ground-after-post-results-drop-as-two-more-brokers-initiate-coverage-on-the-stock-209369.html Deutsche Bank and JPMorgan Cazenove were the latest brokers to initiate coverage on luxury carmaker Aston Martin Lagonda Global Holdings PLC (LON:AML), a day after the firm posted its maiden results as a listed company.

The German bank started Aston Martin with a ‘buy’ rating and a 2,000p price target, pointing out that the luxury icon with a 105-year heritage, amplified by its association with the James Bond franchise, has a global reach.

READ: Aston Martin shares drive higher as raft of brokers initiate coverage two months after flotation

In a note to clients, Deutsche Bank’s analysts pointed out that Aston Martin “caters to a very exclusive, underpenetrated customer group that is more resilient to economic cycles and much less price sensitive than the average car buyer.”

Meanwhile, JPMorgan’s analysts started the carmaker with an ‘overweight rating’ and a price target of 2,000p as well.

In morning trading on Friday, Aston Martin shares were 0.2% higher at 1,508p, remaining stuck below the 1,900p offer price it floated at back in October.

The stock was steadier, however, following a post-results drop on Thursday when a decline in average sale prices weighed against strong growth in third-quarter earnings as its volumes doubled.

READ: Aston Martin shares reverse as sales price declines cloud strong growth in third-quarter earnings, volumes

The company saw its third-quarter adjusted underlying earnings (EBITDA) jump by 93% year-on-year to £54mln, with its EBITDA in the year-to-date up 32% to £160.3mln.

Aston Martin added that total wholesale unit sales of 1,776 were almost double the 891 shifted in the same quarter of 2017, primarily driven by growth in the Americas and the Asia Pacific, including China.

Earlier this week, US investment banks Goldman Sachs and BofA Merrill Lynch both started the stock with ‘buy’ ratings, while Credit Suisse tagged it as an ‘outperform’.

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Fri, 16 Nov 2018 10:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209369/aston-martin-recovers-some-ground-after-post-results-drop-as-two-more-brokers-initiate-coverage-on-the-stock-209369.html
<![CDATA[News - Aston Martin shares reverse as sales price declines cloud strong growth in third-quarter earnings, volumes ]]> https://www.proactiveinvestors.co.uk/companies/news/209255/aston-martin-shares-reverse-as-sales-price-declines-cloud-strong-growth-in-third-quarter-earnings-volumes-209255.html Aston Martin Lagonda Global Holdings PLC (LON:AML) shares reversed on Thursday although the recently-listed luxury carmaker reported strong growth in third-quarter earnings as its volumes doubled, with a decline in average sales prices possibly causing some concern. 

The company saw its third-quarter adjusted underlying earnings (EBITDA) jump by 93% year-on-year to £54mln, with its EBITDA in the year-to-date up 32% to £160.3mln.

READ: Aston Martin shares drive higher as raft of brokers initiate coverage two months after flotation

The firm said its third-quarter revenue increased by 81% to £282mln, driven by continuing strong demand for its DB11 variants and the first full quarter of Vantage production.

Aston Martin added that total wholesale unit sales of 1,776 were almost double the 891 shifted in the same quarter of 2017, primarily driven by growth in the Americas and the Asia Pacific, including China.

The luxury brand, which last month became the first British carmaker in decades to float on the London Stock Exchange, said it expected full-year sales to come in at the top end of expectations at up to 6,400 vehicles.

Dr Andy Palmer, Aston Martin Lagonda president and group CEO, said: "These strong results give us confidence that we will meet our full-year targets with sales at the top end of the range.

“This will pave the way for future growth as we prepare to begin production of the breakthrough DBX model at our new plant at St Athan, and as we receive further orders for new models including the DBS Superleggera and special editions.”

The company also said that it was making progress towards opening its second British factory next year which will build its first sport-utility vehicle.

Business still overvalued

But, after gains earlier this week ahead of the numbers, Aston Martin shares reversed in mid-morning trading, losing 6.5% at 1,506.40p

Russ Mould, investment director at AJ Bell, commented: “Bullish sales guidance isn’t enough to convince investors that Aston Martin is a share to own. The stock now trades 20% below its 1,900p October IPO price as the market still clearly feels the business is overvalued.”

He added: “While solid three months’ trading is certainly encouraging, Aston Martin’s story from an investment perspective is all about a rapid increase in production, plus delivering a wider range of products.

“The stock has been pitched as a fast-growth story so Aston Martin HAS to deliver rapid growth in each set of financial results in order to live up to its own hype.”

Mould continued: “Investors may not like the news that its average selling price has fallen by 7% year-on-year, thanks to the launch of cheaper V8 editions of the DB11 and an entry-level Vantage.

“Significant investment will be needed to meet its growth ambitions so the market will be keeping a close eye on cash generation and its capacity to fund items like machinery upgrades across several production sites.

“Missing growth targets would be devastating to the share price and management credibility.”

 -- Adds share price, analyst comment --

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Thu, 15 Nov 2018 07:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209255/aston-martin-shares-reverse-as-sales-price-declines-cloud-strong-growth-in-third-quarter-earnings-volumes-209255.html
<![CDATA[RNS press release - 3rd Quarter Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181115070010_13867582/ Thu, 15 Nov 2018 07:00:10 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181115070010_13867582/ <![CDATA[News - Aston Martin shares drive higher as raft of brokers initiate coverage two months after flotation ]]> https://www.proactiveinvestors.co.uk/companies/news/209102/aston-martin-shares-drive-higher-as-raft-of-brokers-initiate-coverage-two-months-after-flotation-209102.html Shares in Aston Martin Lagonda Global Holdings PLC (LON:AML) drove higher on Tuesday as a raft of brokers initiated coverage on the luxury carmaker two months after its London Stock Exchange flotation.

US investment banks Goldman Sachs and BofA Merrill Lynch both started the stock with ‘buy’ ratings, while Credit Suisse tagged it as an ‘outperform’.

READ: Aston Martin moves slowly into gear in conditional trading

In a note to clients, the Swiss bank’s analysts forecast Aston Martin reporting a 22% compound annual growth rate (CAGR) in unit sales by 2022, making it the world's fastest-growing automotive brand.

They think the key catalyst will be the start of production for the Aston Martin DBX sports utility vehicle (SUV) by the end of 2019.

The analysts also believe the car group’s Second Century Plan will enable it to grow its top-line and margins significantly.

Less optimistic, however, were global banking giant HSBC and blue-chip French broker Kepler Chevreux, both of whom started Aston Martin shares with ‘hold’ ratings.

In early afternoon trading, Aston Martin shares were nearly 1% higher at 1,610p, although they still remained well below the 1,900p offer price following a poor opening few months trading.

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Tue, 13 Nov 2018 13:32:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209102/aston-martin-shares-drive-higher-as-raft-of-brokers-initiate-coverage-two-months-after-flotation-209102.html
<![CDATA[RNS press release - Stabilisation Notice ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181102173929_13853982/ Fri, 02 Nov 2018 17:39:29 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181102173929_13853982/ <![CDATA[RNS press release - Notification of 2018 Q3 Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181102160925_13853835/ Fri, 02 Nov 2018 16:09:25 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181102160925_13853835/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181031120001_13849615/ Wed, 31 Oct 2018 12:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181031120001_13849615/ <![CDATA[RNS press release - Stabilisation Notice ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181031090603_13849142/ Wed, 31 Oct 2018 09:06:03 +0000 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181031090603_13849142/ <![CDATA[News - Aston Martin revs higher on proposed China car tax changes ]]> https://www.proactiveinvestors.co.uk/companies/news/208046/aston-martin-revs-higher-on-proposed-china-car-tax-changes-208046.html Shares in carmakers including Aston Martin Lagonda Global Holdings PLC (LON:AML) revved higher on Monday on reports that China is considering a tax cut to revive its flagging automotive market.

The proposals would help to prop up the world’s largest car market which is facing its first decline in more than two decades as the recent trade war with the US dents consumer spending. To offset the slowdown, the Chinese government is proposing to halve the tax on car purchases to 5%. Although the cuts are only likely to apply to smaller-engine vehicles like those in Volkswagen and Ford vehicles, luxury carmakers were also riding on the coattails of the uptick in sentiment.

Demand for European supercars is soaring in China, where an estimated two billionaires are ‘created’ every week.

Earlier this year, Aston Martin announced a £600mln investment drive into the country earlier this year to try to take advantage of its growing popularity in the region.

Aston Martin shares were up 2% to 1,440p in later afternoon trading, while in Milan, Ferrari shares were up by a similar percentage.

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Mon, 29 Oct 2018 15:09:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208046/aston-martin-revs-higher-on-proposed-china-car-tax-changes-208046.html
<![CDATA[RNS press release - Stabilisation Notice ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181023094846_13838890/ Tue, 23 Oct 2018 09:48:46 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181023094846_13838890/ <![CDATA[RNS press release - Stabilisation Notice ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181016170620_13831204/ Tue, 16 Oct 2018 17:06:20 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181016170620_13831204/ <![CDATA[News - Vannin Capital scraps IPO plans after recent flops from Aston Martin and Funding Circle ]]> https://www.proactiveinvestors.co.uk/companies/news/206888/vannin-capital-scraps-ipo-plans-after-recent-flops-from-aston-martin-and-funding-circle-206888.html Litigation financing firm Vannin Capital has scrapped its plans to float on the London Stock Exchange after announcing its intention to list only a month ago.

The company provides financing for law firms, companies, and individuals to fight legal disputes in return for a share of any settlement or damages payout that is reached.

READ: Aston Martin flop leads to reported IPO devaluation for law firm Vannin Capital

Richard Hextall, the group’s chief executive, blamed “volatility experienced in the equity market” as the reason behind the abandonment of its initial public offering (IPO) plans.

The news follows reports earlier in the week that Vannin had reduced its proposed float valuation to between £600mln-£700mln from a previous estimate of £1bn, a move that was speculated to be in response to poor performances from two recent IPOs, luxury car maker Aston Martin Lagonda Global Holdings PLC (LON:AML) and peer-to-peer lender Funding Circle Holdings PLC (LON:FCH).

Both companies conducted IPOs earlier in the month and both fell at the start line with shares tumbling below the offer price.

In late-morning trading Thursday, Aston Martin shares were trading at around 1,500p, 21% lower than its 1,900p offer price, while Funding Circle was trading 13% below its 440p float price at 381.3p.

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Thu, 11 Oct 2018 11:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206888/vannin-capital-scraps-ipo-plans-after-recent-flops-from-aston-martin-and-funding-circle-206888.html
<![CDATA[RNS press release - Stabilisation Notice ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181009175310_13822377/ Tue, 09 Oct 2018 17:53:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181009175310_13822377/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181009132054_13821980/ Tue, 09 Oct 2018 13:20:54 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181009132054_13821980/ <![CDATA[News - Dark days for British motoring as Jaguar Land Rover plans two-week factory shutdown due to falling sales ]]> https://www.proactiveinvestors.co.uk/companies/news/206652/dark-days-for-british-motoring-as-jaguar-land-rover-plans-two-week-factory-shutdown-due-to-falling-sales-206652.html In another blow to the British car making sector, Jaguar Land Rover has announced that it will close its plant in Solihull for two-weeks this month due to a drop in demand for its vehicles.

A reduction in global demand, particularly in China, caused the firm’s sales in September to fall 12.3% on the year before to 57,114.

READ: Aston Martin flop leads to reported IPO devaluation for law firm Vannin Capital

The company’s chief commercial officer, Felix Brautigam, blamed the ongoing trade dispute between the US and China as the reason behind falling sales in the country, saying the spat was pushing up prices.

Sales in China dropped 46.2% in September, while in the UK and North America sales declined 0.8% and 6.9% respectively.

As a result of the gloomy figures, the firm said it was closing the West Midlands plant for two weeks due to the “challenging conditions” in its key markets.

However, Des Quinn of the Unite union criticised the UK government for the company’s woes, citing the “shambolic” handling of Brexit negotiations and the “trashing” of diesel engines which was “damaging the UK car industry and the supply chain”.

The news follows misery for fellow British car maker Aston Martin Lagonda Global Holdings PLC (LON:AML), which yesterday continued its flop following a float last week on the London market with shares closing 16% below its 1,900p offer price.

In afternoon trading on Tuesday, the shares had recovered slightly, up 2.04% at 1,632p.

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Tue, 09 Oct 2018 08:38:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206652/dark-days-for-british-motoring-as-jaguar-land-rover-plans-two-week-factory-shutdown-due-to-falling-sales-206652.html
<![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155955_13820674/ Mon, 08 Oct 2018 15:59:55 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155955_13820674/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155448_13820668/ Mon, 08 Oct 2018 15:54:48 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155448_13820668/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155330_13820665/ Mon, 08 Oct 2018 15:53:30 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155330_13820665/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155321_13820664/ Mon, 08 Oct 2018 15:53:21 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155321_13820664/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155237_13820661/ Mon, 08 Oct 2018 15:52:37 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008155237_13820661/ <![CDATA[RNS press release - Director/PDMR Shareholding ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008154748_13820655/ Mon, 08 Oct 2018 15:47:48 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008154748_13820655/ <![CDATA[RNS press release - Total Voting Rights ]]> https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008154410_13820651/ Mon, 08 Oct 2018 15:44:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/17022/LSE20181008154410_13820651/ <![CDATA[News - Aston Martin flop leads to reported IPO devaluation for law firm Vannin Capital ]]> https://www.proactiveinvestors.co.uk/companies/news/206592/aston-martin-flop-leads-to-reported-ipo-devaluation-for-law-firm-vannin-capital-206592.html The backlash against overvalued flotations in London seems to be sounding alarm bells amongst company’s looking to list, with legal firm Vannin Capital reportedly lowering its valuation to between £600mln-£700mln from a previous estimate of £1bn.

Despite an uptick in the legal services sector following a deluge of PPI and other financial crash-related claims against large banks such as Lloyds Banking Group PLC (LON:LLOY) and Royal Bank of Scotland Group PLC (LON:RBS), the recent spate of overvalued IPO flops seems to be causing investor restraint.

READ: Aston Martin moves slowly into gear in conditional trading

The news was followed by another poor showing from luxury car maker Aston Martin Lagonda Global Holdings PLC (LON:AML) on Monday as the firm began its first day of full trading.

By lunchtime, the stock was down 5% at 1,614.4p, a 15% cut to its float price of 1,900p when it listed last Wednesday.

Following Aston’s lead was fellow IPO flop Funding Circle Holdings PLC (LON:FCH), which was down 1.9% at 336p and suffering from a nearly 25% reduction from its float price of 440p, making it one of the worst first-week performers of any British float.

The two IPOs have recently drawn ire due to what many investors see as an overvaluation of a company, particularly evident with Aston Martin’s tendency to go bankrupt (seven times at the last count).

The car makers valuation has also been criticised for its valuation compared to fellow luxury car maker Ferrari, which carried a similar price/earnings multiple despite having a stronger brand, a larger order backlog and better profit margins.

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Mon, 08 Oct 2018 12:53:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206592/aston-martin-flop-leads-to-reported-ipo-devaluation-for-law-firm-vannin-capital-206592.html