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Aston Martin valued its brands at £298m in 2018, representing 20 per cent of its intangible assets – however, the biggest intangible was deferred development costs of just over £1bn or 68 per cent of the total. These deferred development costs rose by £202.3m in 2018 as the company capitalised 95 per cent of its £213.8m in research and development spend. There is nothing wrong with this per se, but the level of capitalisation (which means spending is recorded as an asset on the balance sheet rather than a cost in the profit-and-loss account) is high compared with Ferrari, which capitalised only €318m (£273m), or 38 per cent, of its €846m 2018 R&D cost.

https://www.investorschronicle.co.uk/tips-ideas/2019/03/28/aston-martin-a-view-to-a-sell/

I couldn't; care less what you think Noah, this is for everyone else that might want to know.

https://www.undervalued-shares.com/weekly-dispatches/the-aston-martin-ipo-how-007-glamour-blinded-gullible-investors/

Aston's reported EBITDA is completely fake - the real EBITDA is actually deeply negative. The main reason for this is that they capitalise 95% of R&D, which makes no sense. Ferrari capitalises <50%. Most other OEM globally capitalise c. 50%.

This article was written in January 2020, so in less than 2 years, Stroll has more than doubled the net debt.
I'll be doing calculations for how much cash has been spunked since then too, watch this space :)
Net debt then was £385m.
Today it stands at £808m.
Way to go Stroll!

https://www.ft.com/content/166bd7a9-7849-4503-b779-92b38f561c5c
Absent this lifeline, Aston Martin would have had to load on more debt at double-digit interest rates. The capital injection will help reduce precariously high leverage of almost 7 times adjusted ebitda and fund production of the new DBX sport utility vehicle. The £500m in cash brings net debt to £385m or three times ebitda. Working capital needs will be met with an upfront £56m from Mr Stroll

Doyezee
Posted in: AML
Posts: 1,042
Price: 1,874.00
Strong Buy
RE: AML share price25 Jun 2021 10:12
Theregulator, makes no sense to sell now at a loss and ‘come back later in the year’. If you think this is a buy later in the year, why aren’t you just adding to your position now to take advantage of when SP moves significantly upwards (which it will IMO)? There’s no bad news been published or envisaged and there’s much to be positive about. You have to be lucky to ‘strike it rich’ quickly in any share you invest in do not the best strategy to duck in and out unless you’re simply trading and not investing

I couldn't care less how you think dealers work in the US, it's a lie to say the DBX is built to order when it definitely isn't. I supplied proof too.
We have had 2 US based posters confirm there are a lot more in stock at US dealerships than what autocar shows.
Between 6 and 8 per dealership I think it was.

Nella, my point is proving the previous poster is still stating DBX are made to order when I have just proven they are not.

Stroll’s time in charge:

He has HALVED sports/GT (you know, the backbone of the company, the bond cars etc) from pre-pandemic levels in 2019
Debt has increased substantially to over $1.3bn dollars, and at a much higher interest rate then pre-Stroll.
He's used the Aston Martin brand name to raise funds for his privately owned F1 team, yet STILL takes £24m every year from AML for the privilege.
He stupidly compares us to Ferrari, and has set an unrealistic target for 2024/25. Sales and turnover need to nearly DOUBLE from here in 2 years.
He lies about never failing in business when Asprey and Garrard is brutal evidence he is untruthful.
He sues the 2 Swiss guys we desperately need to sell 25% of AM specials in St Gallen.
He creates a court case which most rational people would agree is not good for any company on the Stockmarket.
He uses hyperbole to say we have growth when we have not.
He gave away 20% of the company in able to BUY Merc tech for the next 4/5 years, not so much of a hard-nosed deal-maker as capitulation.

If you call that success you need a dictionary.

https://www.autotrader.com/cars-for-sale/new-cars/aston-martin/dbx/new-york-ny-10001?dma=&searchRadius=0&location=&marketExtension=include&isNewSearch=true&showAccelerateBanner=false&sortBy=relevance&numRecords=25

There are 132 for sale BRAND NEW in the US, how can that be built to order?

Optimism when the share price is breaking through support levels because of mismanagement? You're brave.
I guess I have been wrong all along, the SP has consistently dropped from £23 to £16 and all you guys are totally 100% correct, the whole market has gotten AML wrong.
Well done, I doff my cap.

The market hates uncertainty, I hope Stroll is sweating.

https://www.telegraph.co.uk/business/2021/11/03/aston-martins-billionaire-owner-head-on-collision-super-rich/

Yeah, the boiler room here is correct and Telegraph, FT, Aston owners are all wrong!

"Customers and dealers who have spoken to the Telegraph say they are aghast at the row, with many arguing it has no grounds and will end with “no winners”.

One owner, who is following the situation but did not want to be identified, says he believed the legal battle “will only create losers”.

Others, including one major UK luxury car dealer, says the row is damaging for Aston at a time when it desperately needs all the friends it can get. The company reported a £90.7m loss for the six months to June 30, even as it tripled sales for the period."

All facts :

Sports/GT cars sales have collapsed: Half what they were in 2019, pre-pandemic.
- Current court case: Stroll tears up the Nebula agreement over Valkyrie, Valhalla and Vanquish production. Nebula are expecting 20-30m per year for financing the project. Either is costs a fortune to win, or they lose and have to pay royalties on every car sold.
-Burning through cash (after all the cost-cutting by Herr Moers)…. £60m burned between 25th Feb and 28th July (5 months, that’s £144m per annum)
-Operating losses of £250+ million per year, AML’s pretax loss for Q3 alone was £97.9m, 9 months was £188m.
-Creating new bond debt every few months £1.3bn total. Last raise was £77m in Feb ’21, £60mil spent already already. How long before next raise?
-Cannot generate enough cashflow to pay interest on debt never mind pay off debt.
-Operating Profit, Free Cash Flow, and Net Debt are consistently heading in the wrong direction,
-Loading dealers with DBX models to inflate wholesales, refusing to publish retail sales to obfuscate supply/demand.
-Interest expenses of £165m per annum (which increases every time they crate more bond debt)
-Bond debt of £1.3bn, Bondholders are undisclosed, but making 10.5% to 15% per annum, effectively doubling their cash in 5 years)
-Depreciation and amortisation increasing to >£300 million per annum next year
-Capex and R&D increasing to > £300million per annum next year.
-St Athan running at 40% capacity, having laid off 1/3 of the workforce.
-Current EBITDA doesn’t even cover interest payments on the debt

-Future EBITDA for 2024/25 making a profit even questionable then.
(Projected 10,000 sales, 2bn revenue, 500m ebitda.
Minus D&A of >£300m (so let’s say 325m), minus interest of £165m = £10m profit, but based on sales of Valkyrie/Valhalla which has gone to court to decide.
-Stroll suing the company who sell 20% of all AML’s limited edition cars through their Swiss dealership, race AML cars in GT3/GT4, and have an agreement in place to fund Valkyrie project with costs to be recouped on Valkyrie, Valhalla and Vanquish DEPOSITS AND SALES in the future, so you can pretty much say goodbye to a decent portion of the £10m profits above)
-Agreement with Merc, but Moers refuses to answer analysts if AML will receive the MBUX infotainment or Mercedes AMG EA (high performance electric powertrain) technology . Agreement runs out in 2027, what happens then?
- Stroll raising hundreds of millions for F1 team via the brand of Aston Martin. As the CEO of AML.L, he should have our best interests at heart, not F1 and his son. F1 should be paying us for the use of the brand, not the other way round

https://nypost.com/2006/02/22/a-royal-mess-once-hopeful-asprey-garrard-hunts-new/

https://www.ft.com/content/8c7792ae-b83f-11da-bfc5-0000779e2340
In February, A&G became technically insolvent, wiping out the nearly $500m ploughed into the business in recent years by its four big shareholders – Lawrence Stroll and Silas Chou’s Sportswear Holdings; Edgar Bronfman Jnr’s SBS Partners; Morgan Stanley’s private equity unit; and TAG group, the holding company of the Ojjeh family.

https://www.campaignlive.co.uk/article/mark-ritson-branding-asprey-lost-its-sparkle/557277

Sound familiar?

I don’t see many people buying with a. Court case hanging over us…

I am calm, thanks.
We're still waiting to see his figures.

Because...
Capex and R&D is up to ">£300"m from 2021
Appreciation is up to ">300"m from 2021
Interest payments are up to £165 from £135m.
Interest rates will be going up with inflation, for bank loans etc
Costs of imports/raw materials will be going up too because of weak £.
So how you get from a loss of £245m this year to a a profit of £500m next year needs scrutiny.
Unless you just made up some numbers like everyone else on here.

Chat, show us your workings for £500m profit in 2022, or it all means nothing.
Thanks

That would be sweet, wouldn't it Tiny Pie? Stroll suing me for presenting facts about his business.
I'll get the Nebula boys and Karen as my defence team.

https://www.youtube.com/watch?v=n-nyjeyFGtY&ab_channel=F1Master
Just imagine trump's voice instead, it's comedy gold ;)

I don't want the company to fail, I'd be morally vacuous if I did.

Davffed, you should maybe direct that question to Mr Stroll.
I am just stating facts so we all become wiser.