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JT i dont agree they are maestros. this wasnt the best worded RNS. and already on this board and ADVFN lots of people dont get it. they should have had a much clearer, more upbeat stance the RNS.
Seen so many on my watchlist boom after similar restructuring RNS's. GLA
yeh think youre right 3300 on cash costs..
Hereshopin.. the plan was always to reblanace demand for the older models... so they arent sitting on dealer lots.. less models, means less staff.
what this does show is that this RNS wont be received positively by all, cos its not a blanket sunshine and lollidrops statement.. those that have researched and a re long term will get it. those who are trading wont.
As mentioned earlier - our BOD are maestro's with the press.
They are playing the shareholders symphony.
All the right musik for the market.
JT
HeresHopin what are you reading the same article? The fact that the majority of businesses are laying off as they have realised they can streamline the business with the same outcome and save money. Aston Martin are now producing to orders not in mass to cut production costs hence they dobt require as many in the factories, this in turn will save millions, there not struggling for another cash call and with huge savings round the corner will start to cover the debt, your just making up your own agenda?
RNS is positive IMO this was always going to come as they are now building to order and not over supplying the dealerships....they are putting in place more cost efficient measures and cutting down on freelance contractors....streamlining the business which is a good thing
Herespin, the order bank for DBX is excellent, this addresses front engine cars built at Gaydon. We already knew they were in over supply. This addresses that issue head on. Not a nice situation, but it's the correct action, and decisive.
IAG - BA - just layed off folks - SP moved North - obviously.
Sad - but there must be winners /losers.
Foe me - nice change to be a winner - novel in fact.............
Here we go - Nitro time again - fill her up !!!
JT -
The investor relations lady left her mobile on the RNS. Might give her a few tips on structuring an RNS
Sadly people are going to lose their jobs at a moment when unemployed numbers have ballooned, however investors will see this positively hence we can expect a significant rise in the share price IMHO.
Unknown_trader, Someone previously mentioned 2000 DBX on order, did they make it up? They are planning 4000 - 5000 per year so I read somewhere!
To clarify 20% reduction to costs...
A company has two choices to meet production, improve efficiency and therefore profits, or throw labour at it and have no profit, this is a good forward thinking plan for the first option.
I thought theyd give us the DBX numbers. but i think thyell save that for a separate RNS
In my estimates i suggested potential 20% and theyve come in with 15% which is pretty good this soon. Im not counting direct manufacuting costs.. thats related to Revenue which will be lower..
Not sure what ' cash restructuring costs' are? Are they saying tis going to cost £12m to deliver £28m of savings?
Also RBM have a word with Stroll.. he should be reacting to the Market.
Agreed, would be nice to have some numbers on the DBX orders to generate boost of confidence.
Hope we keep this moving up and people don’t jump if disappointed
“ the plan requires a fundamental reset ”
Good or bad? Good in my opinion as issues addressed will help fix a struggling company.
Not quite what we were expecting, but all makes perfect sense to me. Think the markets will like decisive action on costs.
Contractors are already being cut quite dramatically, so this is going to be predominantly productive staff.
Aston Martin Lagonda Global Hld PLC Actions on costs to deliver the strategic plan
04/06/2020 7:00am
UK Regulatory (RNS & others)
Aston Martin Lagonda Glo... (LSE:AML)
Intraday Stock Chart
Thursday 4 June 2020
Click Here for more Aston Martin Lagonda Glo... Charts.
TIDMAML
RNS Number : 8908O
Aston Martin Lagonda Global Hld PLC
04 June 2020
4 June 2020
Aston Martin Lagonda Global Holdings plc
Actions on costs to deliver the strategic plan
Aston Martin Lagonda (Aston Martin or the "Company") today updates on actions to improve the cost efficiency of the business, in alignment with its strategic plan to deliver profitable growth, operating as a true luxury car brand.
As communicated previously, the plan requires a fundamental reset which includes a planned reduction in front-engined sports car production to rebalance supply to demand. The Company's first SUV, DBX, remains on track for deliveries in the summer and has a strong order book. The measures announced today will right-size the organisational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability.
Aston Martin will shortly launch a consultation process on proposals to reduce employee numbers by up to 500, reflecting lower than originally planned production volumes and improved productivity across the business. The employee and Trade Union consultation process will be launched in the coming days.
Aston Martin continues to take decisive action in other areas to reduce cost and remove non-critical expenditure from the business at every level including in areas such as contractor numbers, site footprint, marketing and travel.
The restructuring is expected to deliver, on an annualised basis:
-- Incremental operating cost savings of c.GBP10m (in addition to the c.GBP10m announced on 31 January 2020);
-- Reduced direct manufacturing costs in line with volumes (c.GBP8m); and
-- Reduced capital expenditure (c.GBP10m).
The associated cash restructuring costs are expected to be c.GBP12m in 2020.
Enquiries
Investors and Analysts
JJ, agree that there was no actual requirement for one, but it had been suggested to me last weekend that we'd be getting one after the AGM anyway. With the upturn in SP, think they're now keeping their powder dry. Actually a slight positive to me, shows they're in control.
From what I can see there is no need for a RNS. We have been kept informed, so be patient and a 2nd Quarter update will come in due course. GLA from JJ.
Sounds like they do have some good news on DBX in the pipeline. I’ll hold for longer gains!!
Folks, I spent some time yesterday evening trying to get info from within AML, but nothing gained. Usual contacts all stating that it's been made abundantly clear this week that AML business should not be discussed externally. Also, been suggested to me that Stroll thinks that the market should be reacting to him, not the other way round! Confirmed that there is definitely good news to come, especially on DBX, but I'm now thinking that this might not be released when, currently, the SP is motoring along all on it's own. Their mood remains bullish. If there's no additional RNS early this morning, then I doubt we'll see one until it's a tactical fit for them.
In some ways, I do like their slightly arrogant control position, but it does leave us somewhat blind for now.
That said, HOLD, HOLD, HOLD and HOLD some more.....In my humble opinion.