Somewhat short of cash, reportedly down to their last £100m, Aston Market are looking like the fuel tank is running on reserve. Read on as we look behind the headlines at what’s going on.
Not for the first time in their long and illustrious history the great British marque is skidding towards the crash barriers. The share price has lost nearly 80% of its value since the 2018 Public Offering. Ouch!
Buying in at rock bottom price, a consortium led by Formula 1 enthusiast and Canadian billionaire, Lawrence Stroll, has injected a much needed £182m. Mr Stroll takes up the role of executive Chairman as a result.
Without this lifeline, reports were suggesting AM’s only other option was to go cap-in-hand to the money markets and borrow funds at eye watering rates. The confidence the billionaire has brought signals a probable Rights Issue hopefully raising an expected £500m.
These figures will almost certainly keep the lights on, but what or more importantly, where next for AM?
They are pinning their future on the success of the new DBX Sports Utility Vehicle, early estimates suggest the company plans to produce 2,000 of them. Aston have always been brilliant at marketing the launch of new models and taking numerous advance orders on the back of that. It remains to be seen whether they can generate enough orders and convert them in to deliveries of the DBX.
However, with a petrol head with deep, deep pockets like Mr Stroll now in the driving seat the road ahead does look less bumpy. We wish them the very best.