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| 'British to our core' Aston Martin brushes off Brexit concerns | 'British to our core' Aston Martin brushes off Brexit concerns |
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| Aston Martin has brushed off concerns over Brexit after announcing plans to press ahead with a flotation on the London Stock Exchange that could value the luxury carmaker at about £5bn. | Aston Martin has brushed off concerns over Brexit after announcing plans to press ahead with a flotation on the London Stock Exchange that could value the luxury carmaker at about £5bn. |
| James Bond’s favourite carmaker said that while it had given detailed consideration to what impact Britain’s departure from the EU might have on business, it did not believe it would pose a major threat to the 105-year-old firm. Aston Martin’s confidence over Brexit differs from the wider UK car industry, which has expressed strong concerns over the state of post-EU planning. | James Bond’s favourite carmaker said that while it had given detailed consideration to what impact Britain’s departure from the EU might have on business, it did not believe it would pose a major threat to the 105-year-old firm. Aston Martin’s confidence over Brexit differs from the wider UK car industry, which has expressed strong concerns over the state of post-EU planning. |
| “We’ve done a lot of thinking about Brexit but it doesn’t materially impact our plans. We’ve considered it very deeply,” said Mark Wilson, the company’s chief financial officer. | “We’ve done a lot of thinking about Brexit but it doesn’t materially impact our plans. We’ve considered it very deeply,” said Mark Wilson, the company’s chief financial officer. |
| Aston Martin is hoping the sale of at least 25% of its shares through the public listing will allow it to invest in greater production volumes and new products. | Aston Martin is hoping the sale of at least 25% of its shares through the public listing will allow it to invest in greater production volumes and new products. |
| The flotation will be seen as a vote of confidence in the UK, with few large initial public offerings (IPOs) expected before Britain is scheduled to leave the European Union in March 2019. Wilson said that while there was the possibility of listing the company elsewhere, with New York a possibility, the company “started out with the hypothesis that London was the right place”. | The flotation will be seen as a vote of confidence in the UK, with few large initial public offerings (IPOs) expected before Britain is scheduled to leave the European Union in March 2019. Wilson said that while there was the possibility of listing the company elsewhere, with New York a possibility, the company “started out with the hypothesis that London was the right place”. |
| He said: “Aston is a 105-year-old brand, British to our core, manufacturing and engineering exclusively in Britain. The London Stock Exchange is a truly global pool of capital and arguably sets the highest standards of governance.” | He said: “Aston is a 105-year-old brand, British to our core, manufacturing and engineering exclusively in Britain. The London Stock Exchange is a truly global pool of capital and arguably sets the highest standards of governance.” |
| The plans to float come at a key time for the company, which has gone bust seven times since it was founded by Robert Bamford and Lionel Martin in a small London workshop in 1913. Its main owners are the Italian investment firm Investindustrial and a group of Kuwait-based investors. | The plans to float come at a key time for the company, which has gone bust seven times since it was founded by Robert Bamford and Lionel Martin in a small London workshop in 1913. Its main owners are the Italian investment firm Investindustrial and a group of Kuwait-based investors. |
| Under the current chief executive, Andy Palmer, Aston Martin has revamped its product lineup and been transformed from a loss-making company into a profitable one. | Under the current chief executive, Andy Palmer, Aston Martin has revamped its product lineup and been transformed from a loss-making company into a profitable one. |
| Revenues increased 8% to £445m in the first half of 2018, while pre-tax profits rose 2.5% to £20.8m. The company expects to sell between 6,200 and 6,400 cars in 2018 after selling a record 5,098 cars last year – its highest number in nine years. Aston Martin’s biggest market is the UK, which accounts for 30% of sales, with the EU (excluding the UK) accounting for 25%, followed by the Asia-Pacific region with 24% and the US with 20%. | Revenues increased 8% to £445m in the first half of 2018, while pre-tax profits rose 2.5% to £20.8m. The company expects to sell between 6,200 and 6,400 cars in 2018 after selling a record 5,098 cars last year – its highest number in nine years. Aston Martin’s biggest market is the UK, which accounts for 30% of sales, with the EU (excluding the UK) accounting for 25%, followed by the Asia-Pacific region with 24% and the US with 20%. |
| Aston Martin, whose models include the V8 and V12 Vantage, said its half-year performance was driven by its consulting business and increased revenue from sales of its special edition vehicles, including the Vanquish Zagato family and DB4 GT continuation models. | Aston Martin, whose models include the V8 and V12 Vantage, said its half-year performance was driven by its consulting business and increased revenue from sales of its special edition vehicles, including the Vanquish Zagato family and DB4 GT continuation models. |
| It is hoping to double production to 14,000 vehicles a year as demand from super-rich car enthusiasts increases. The company said the average selling price, including specials, increased by 8% from £155,000 in the first half of 2017 to £167,000 in the first six months of 2018, as more customers chose to personalise their vehicles with costly design options and special features. | It is hoping to double production to 14,000 vehicles a year as demand from super-rich car enthusiasts increases. The company said the average selling price, including specials, increased by 8% from £155,000 in the first half of 2017 to £167,000 in the first six months of 2018, as more customers chose to personalise their vehicles with costly design options and special features. |
| “You can bespoke your Aston Martin as deep as your pockets will allow,” Wilson said. | “You can bespoke your Aston Martin as deep as your pockets will allow,” Wilson said. |
| He said that because the carmaker was a global company, any weakness in one particular market, such as Europe, could be offset with sales elsewhere and added that the firm is used to dealing with tariffs in most of its export markets. China is a major growth market for Aston Martin, which is capitalising on the growth of the middle classes. | He said that because the carmaker was a global company, any weakness in one particular market, such as Europe, could be offset with sales elsewhere and added that the firm is used to dealing with tariffs in most of its export markets. China is a major growth market for Aston Martin, which is capitalising on the growth of the middle classes. |
| The company imports about two-thirds of its parts from Europe, with the rest coming from the UK. It has already started stockpiling engines in preparation for Brexit, keeping a five-day supply rather than the usual three days, Wilson said. | The company imports about two-thirds of its parts from Europe, with the rest coming from the UK. It has already started stockpiling engines in preparation for Brexit, keeping a five-day supply rather than the usual three days, Wilson said. |
| Despite playing down Brexit concerns, in official documents relating to the IPO, the company conceded Brexit posed a number of potential risks to business, including its ability to hire and retain skilled workers. | Despite playing down Brexit concerns, in official documents relating to the IPO, the company conceded Brexit posed a number of potential risks to business, including its ability to hire and retain skilled workers. |
| Aston Martin aims to publish a prospectus, including full details of the share sale, on 20 September. Eligible employees and customers of the carmaker will be able to apply to buy shares at the offer price. | Aston Martin aims to publish a prospectus, including full details of the share sale, on 20 September. Eligible employees and customers of the carmaker will be able to apply to buy shares at the offer price. |
| The company recently began production of its new Vantage sports car model, which is handbuilt at its headquarters in Gaydon, Warwickshire. Next to hit the production line will be the DBS Superleggera, a super GT with a top speed of 211mph (340km/h) and 0-62mph acceleration in 3.4 seconds. | The company recently began production of its new Vantage sports car model, which is handbuilt at its headquarters in Gaydon, Warwickshire. Next to hit the production line will be the DBS Superleggera, a super GT with a top speed of 211mph (340km/h) and 0-62mph acceleration in 3.4 seconds. |
| The company is building a new factory in Wales, where it is expected to base production of its Lagonda Vision emissions-free electric sports car. | The company is building a new factory in Wales, where it is expected to base production of its Lagonda Vision emissions-free electric sports car. |
| The character of James Bond has driven an Aston Martin intermittently on film since 1964, when he drove a DB5 in Goldfinger. | The character of James Bond has driven an Aston Martin intermittently on film since 1964, when he drove a DB5 in Goldfinger. |
| “Aston Martin’s rich history and the power of its brand – nowhere more evident than in the James Bond films – means that the carmaker’s planned flotation on the London Stock Exchange is bound to attract a lot of attention, especially as a reported £5bn valuation would put the firm on the fringes on the FTSE 100,” said Russ Mould, a director at the investment platform AJ Bell. | “Aston Martin’s rich history and the power of its brand – nowhere more evident than in the James Bond films – means that the carmaker’s planned flotation on the London Stock Exchange is bound to attract a lot of attention, especially as a reported £5bn valuation would put the firm on the fringes on the FTSE 100,” said Russ Mould, a director at the investment platform AJ Bell. |
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