RE: Aston Martin Lagonda Global : Q1 2025 Results Transcript14 May 2025 11:37
The Company's previously announced organisational adjustments, to ensure the business is appropriately resourced for its future plans, are progressing as planned and we remain on track with our full year guidance to deliver a reduction in adjusted operating expenses (excluding D&A) to c.£300m.
With capital expenditure broadly in line with the prior year, and a reduced net cash outflow from operating activities, largely driven by a guided reduction in working capital outflow, free cash outflow in Q1 2025 decreased by £70m. As mentioned at the Full Year Results, compared to 2024 we expect working capital to benefit from Valhalla deposit collections throughout the course of the year, ahead of deliveries commencing. This was evidenced in Q1 with a net deposit inflow of £18m compared with a £33m outflow in the prior year.
Q2 2025 free cash outflow is expected to be broadly in line with the prior year period, despite including the semi-annual loan note interest payment which, in the prior year, was paid in Q1 as part of the refinancing exercise.
Liquidity, as we had guided, was at circa £400m at the end of the first quarter. This is before the expected liquidity benefit of over £125m associated with the proposed investment from Yew Tree Consortium and the proposed sale of our investment in AMR, which we announced on the 31st of March.
Finally, and just to reiterate what Adrian has mentioned, we will continue to monitor global events closely, in particular relating to the impact of recent U.S. tariffs and we will remain agile as we can be as the external environment continues to evolve.
Despite the increased levels of uncertainty, we still expect to make significant improvements across all key financial performance metrics in 2025, compared to 2024, including our expectation of delivering positive adjusted EBIT for the full year, and free cash flow generation in the second half
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