TIDMAML

RNS Number : 4470U

Aston Martin Lagonda Global Hld PLC

29 July 2020

29 July 2020

Aston Martin Lagonda Global Holdings plc

Interim results for the six months to 30 June 2020

   -     Yew Tree Consortium and other investors inject GBP688m of new equity 
   -     Lawrence Stroll appointed Executive Chairman in April 
   -     Appointment of New Executive team, led by Tobias Moers (ex. Mercedes AMG) 
   -     Significant progress in rebalancing supply to demand, reducing dealer inventory 
   -     Decisive action on costs to align organisation to lower wholesales 
   -     Highly competitive Aston Martin branded Formula One(TM) team from 2021 
   -     DBX deliveries started in July and media launch underway 
 
 GBPm                             H1 2020   H1 2019(1)   % change 
                                ---------  ----------- 
 Total retails(2)                   1,770        2,996      (41%) 
 Total wholesales(2)                  895        2,442      (63%) 
 Revenue                            146.0        406.0      (64%) 
 Adjusted EBITDA(3)                (89.0)         20.8     (n.m.) 
 Adjusted operating loss(3)      (145.5 )       (36.4)     (n.m.) 
 
 Total adjusting items before 
  tax(4)                           (13.8)        (9.1)     (n.m.) 
 Operating loss                   (159.3)       (38.9)     (n.m.) 
 Loss before tax                  (227.4)       (80.0)     (n.m.) 
 
 Net debt(5)                        751.0        843.6 
------------------------------  ---------  -----------  --------- 
 

(1) H1 2019 has been restated for the correction of an error see note 2 of the Interim Financial Statements for detail; (2) Number of vehicles including specials; (3) Alternative performance measures are defined in the Appendix; (4) Adjusting items are detailed in note 5 of the Interim Financial Statements; (5) Includes lease liabilities (30 June 2020: GBP110m, 30 June 2019: GBP112m)

Lawrence Stroll, Aston Martin Lagonda Executive Chairman, said:

"This has been a very intense and challenging six months. In January, I and my co-investors in the Yew Tree Consortium, committed to make a significant investment in Aston Martin and I took on the role of Executive Chairman from April to give clear leadership to the business, our partners and our dealers. Since then we have been fully engaged in executing the initial reset in order to achieve our ambition to build Aston Martin into one of the great global luxury car brands.

Obviously, it has been a challenging period with our dealers and factories closed due to Covid-19, in addition to aligning our sales with inventory with the associated impact on financial performance as we reposition for future success. However, I have been most impressed that through this most challenging of times we have been able to reduce our dealers' sports car inventory by 869 units.

We have also taken action to right-size the cost base in alignment with our plans and raised GBP688m of new equity from my consortium and other investors, to strengthen the balance sheet and improve liquidity. Throughout this time our primary concern has been the safety of our colleagues and I am full of admiration for how they have responded to the many challenges Covid-19 has presented.

We have recruited an outstanding new senior Executive team with the appointment of Tobias Moers as CEO and Ken Gregor as CFO - both bring deep experience of this industry.

The new DBX is critical to our successful future and I am delighted that, after more than a month of closure, production restarted and initial deliveries have now been made. Also critical to our future is the ability to market and engage with our customers. From next year, we will have the great benefit of a highly competitive Aston Martin branded Formula One(TM) team giving us a significant global marketing platform to further strengthen our Brand and engage with our customers and partners across the world.

Our ambition for the Company is significant, clear and only matched by our determination to succeed, to transform Aston Martin and capture the huge and exciting opportunity ahead of us. We have already made great progress in the first 90 days I've been in the business. There is still much to be done and I am looking forward to working with Tobias, Ken and the rest of the Aston Martin team as we execute our plans and keeping you updated as we progress."

Key results - six months to 30 June 2020

-- Total retail(1) sales (1,770 cars) down 41%, ahead of wholesales in unit terms leading to an 869 unit reduction in dealer inventory

- Q2 down 48%, weaker than Q1 down 34% due to full quarter impact of Covid-19; early signs from China, where all dealerships were re-opened in June, are encouraging with retails up 11% year-on-year in the month

-- Total wholesales(2) (895 cars), down 63%. Covid-19 impacted dealer operations, amplifying the planned reduction of wholesales to reduce dealer inventories to luxury norm levels and rebalance supply to demand for sports cars

- One Special, a DB5 Goldfinger Continuation, compared with 36 Specials in H1 2019

   --      Revenues declined to GBP146m principally due to volume decline 

- Product mix was favourable (higher DB11 and DBS Superleggera)

- Customer and retail financing support per vehicle remained elevated at broadly similar levels to

H2 2019

-- Operating loss increased year-on-year principally due to the revenue decline and included a GBP17m FX headwind

- Results benefited from c.GBP10m of furlough credits, reduced marketing spend (some of which was phasing) and cost control actions offsetting incremental St Athan ramp-up costs of c.GBP3m;

-- Free cashflow(3) of GBP(371)m reflects the operating loss, a working capital outflow of GBP86m, H1 weighted capital expenditure of GBP162m and net interest paid of GBP30m

-- Cash at 30 June of GBP359m includes net equity raise proceeds received in the period (GBP662m)

- Funds from the draw of approximately $68m of delayed draw notes (DDNs), the GBP5m retail element of the June placing and the GBP20m Coronavirus Large Business Interruption Loan Scheme (CLBILS) were received in July; Proforma cash at 30 June including these funds and net of fees was c.GBP430m

- Net debt at 30 June was GBP751m (31 December 2019: GBP988m).

Strategic progress

-- Continued progress in rebalancing supply to demand of core sports cars with dealer stock reduced by 869 units (Q1 428 units, Q2 441 units), representing approximately three-months' retail sales

-- Appointment of new Chief Executive Officer, Tobias Moers, joining 1 August and new Chief Financial Officer, Ken Gregor, who joined on 22 June, both with significant automotive experience

-- Scaled up St Athan manufacturing operations with full production of the Company's first SUV, DBX, now started; media launch and deliveries underway; car named as one of UK automotive publication Autocar's 2020 Game Changers

-- Outlined further actions to improve the cost efficiency of the business to operate as a true luxury car brand, in alignment with the strategic plan to deliver sustainable profitable growth. Proposals to reduce employee numbers by up to 500, reflecting lower than originally planned production volumes and improved productivity across the business. Annualised efficiencies of c.GBP28m expected.

Outlook

-- 2020 is the year in which the business is being reset to enable it to operate as a true luxury company. This process, which involves reducing core wholesales to rebalance supply to demand and has a negative impact on results through the reset period, is necessary for the long-term performance of the Company

-- The uncertainty surrounding the duration and impact of Covid-19 on the global economy continues. Trading remains challenging in many markets and the pace of emergence from lockdown and consumer recovery varies significantly. This will impact the duration of the dealer de-stocking process for sports cars, currently expected to continue well into 2021

o More than 90% of the dealer network globally is now open

o For the full year total wholesales are currently expected to be broadly evenly balanced between sports cars and DBX; DB5 Goldfinger Continuations have started to be delivered and 19 DBS GT Zagatos are on track for H2 delivery. As previously updated, Aston Martin Valkyrie deliveries are expected to start in FY 2021

o Gaydon is due to resume manufacturing at the end of August, later than originally planned

o Additional cost efficiencies are being delivered in-line with plans (c.GBP28m annualised in 2021: reduced direct manufacturing costs in line with volumes (c.GBP8m), operating costs (c.GBP10m) and reduced capital expenditure (c.GBP10m)), with low single digit GBPm benefit expected this year. The associated cash restructuring costs are expected to be c. GBP12m and have been booked in H1

o Capital expenditure was H1 weighted, as planned, with FY 2020 investment expected to be c.GBP260m

o With DBX and Specials deliveries in H2 depreciation and amortisation will increase year-on-year; the full year income statement net finance charge is expected to be c.GBP123m (assuming current exchange rates prevail for the remainder of the year).

Prior year accounting adjustment

-- During the H1 results preparation process, the Company identified that its US region was deducting the majority of dealer and customer incentive support from revenue later than it should have been. As a result, the balance sheets of the Group as at 31 December 2018, 30 June 2019 and 31 December 2019 and the income statements for the six months ended 30 June 2019 and the year ended 31 December 2019 have been restated to correct this error.

o This is a non-cash adjustment and has no impact on historic or future cashflows. Full details are set out in note 2 of the Interim Financial Statements

o The impact of the adjustment is a reduction in EBIT of GBP(15.3)m in the full year to December 2019.

(1) Dealers sales to customers (some Specials are direct to customer)

2 Company sales to dealers (some Specials are direct to customer)

(3) Operating cashflow less capital investment and net interest

All metrics and commentary in this announcement exclude adjusting items unless stated otherwise and certain financial data within this announcement have been rounded.

Enquiries

Investors and Analysts

Charlotte Cowley Director of Investor Relations +44 (0)7771 976764

charlotte.cowley@astonmartin.com

Media

Kevin Watters Director of Communications +44 (0)7764 386683

kevin.watters@astonmartin.com

Grace Barnie Corporate Communications Manager +44 (0)7880 903490

grace.barnie@astonmartin.com

Tulchan Communications

Harry Cameron and Simon Pilkington +44 (0)20 73534200

-- Recorded presentations accompanying this release from Lawrence Stroll and Kenneth Gregor are available on the corporate website from 7.30am today

   --      There will be a live Q&A for investors and analysts today at 08:30am 
   --      Presentations and the Q&A can be accessed here https://www.astonmartinlagonda.com/investors/calendar/h1-2020-results ; a dial-in facility is also available on +44 (0) 203 0095710; PIN: 2849635# 
   --      A replay facility will be available on the website later in the day 

No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this release. This release contains certain forward-looking statements, which are based on current assumptions and estimates by the management of Aston Martin Lagonda Global Holdings plc ("Aston Martin Lagonda"). Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future. Such statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. These risks may include, for example, changes in the global economic situation, and changes affecting individual markets and exchange rates.

Aston Martin Lagonda provides no guarantee that future development and future results achieved will correspond to the forward-looking statements included here and accepts no liability if they should fail to do so. Aston Martin Lagonda undertakes no obligation to update these forward-looking statements and will not publicly release any revisions that may be made to these forward-looking statements, which may result from events or circumstances arising after the date of this release.

This release is for informational purposes only and does not constitute or form part of any invitation or inducement to engage in investment activity, nor does it constitute an offer or invitation to buy any securities, in any jurisdiction including the United States, or a recommendation in respect of buying, holding or selling any securities.

Sales & Revenue analysis

 
 Number of vehicles            H1 2020   H1 2019   % change 
                              --------  -------- 
 Retail                          1,770     2,996      (41%) 
 Core (excluding Specials)       1,763     2,907      (39%) 
----------------------------  --------  --------  --------- 
 
 Number of vehicles            H1 2020   H1 2019   % change 
 Wholesale                         895     2,442      (63%) 
 Core (excluding Specials)         894     2,406      (63%) 
 
 By region: 
   UK                              275       565      (51%) 
   Americas                        280       700      (60%) 
   EMEA ex. UK                     191       490      (61%) 
   APAC                            149       687      (78%) 
 
 By model: 
   Sports                          283       865      (67%) 
   GT                              596     1,458      (59%) 
   Other                            15        83      (82%) 
   Specials                          1        36      (97%) 
----------------------------  --------  --------  --------- 
 

Note: Sports includes Vantage, GT includes DB11 and DBS Superleggera, Other includes prior generation models such as Rapide AMR

Total retails were down 41% with dealer operations and customer demand more heavily impacted by the advance of Covid-19 globally during Q2 (down 48%) than Q1 (down 34%). Early signs from China, where all dealerships were re-open in June, were encouraging with retail sales up 11% year-on-year in the month, albeit off low volumes.

Total wholesales declined 63% aligned to the strategy of rebalancing supply to demand and reflecting lower dealer demand given the disruption to operations from Covid-19. Q2 (down 77%) was weaker than Q1 (down 45%) as expected. There was one Special delivered in the period, a DB5 Goldfinger Continuation, compared with 36 Specials in the prior year.

With retails significantly ahead of wholesales in unit terms, core dealer inventory reduced by 869 units (Q1 428 units, Q2 441 units), as the Company makes significant progress towards reducing dealer stock to more typical luxury levels.

Revenue by Category

 
 GBPm                     H1 2020   H1 2019(1)   % change 
                         --------  ----------- 
 Sale of vehicles           113.1        355.0      (68%) 
 Sale of parts               23.1         32.2      (28%) 
 Servicing of vehicles        3.5          5.2      (33%) 
 Brand and motorsport         6.3         13.6      (54%) 
 Total                      146.0        406.0      (64%) 
                         --------  ----------- 
 

Note: H1 2019 has been restated to correct for an error, see note 2 of Interim Financial Statements for detail

First half revenues were GBP146m, down year-on-year, as the Company started to reset core sports car volumes aligned to regaining exclusivity and operations were impacted by the advance of Covid-19.

In pursuit of lowering dealer stock to luxury levels, customer and retail financing support per unit to drive retail sales remained elevated at broadly similar levels to H2 2019. Product mix was positive, with a greater proportion of DB11 and DBS Superleggera than in the prior year period. These factors combined with lower volumes led to a 68% decline in revenue from sale of vehicles.

Wholesale average selling price (ASP) is impacted by the customer and retail financing support and the de-stocking dynamic with retail units about double wholesales in the period. Core ASP decreased to GBP121k (H1 2019: GBP139k) and improved to GBP136k in Q2 compared with GBP113k in Q1. With just one Special compared with 36 in H1 2019, total ASP was GBP124k (H1 2019: GBP145k).

Summary income statement and analysis

 
 GBPm                                      H1 2020   H1 2019(1) 
                                          -------- 
 Revenue                                     146.0        406.0 
 Cost of sales                             (148.8)      (259.2) 
                                          --------  ----------- 
 Gross ( loss)/profit                        (2.8)        146.8 
   Gross margin                               n.m.        36.2% 
 
 Operating expenses(2)                     (142.7)      (164.2) 
   of which depreciation & amortisation       56.5         57.2 
 Other (expense)                                 -       (19.0) 
 Adjusted operating loss                   (145.5)       (36.4) 
   Adjusted operating margin                  n.m.         n.m. 
 Adjusting operating items                  (13.8)        (2.5) 
                                          --------  ----------- 
 Operating loss                            (159.3)       (38.9) 
 
 Net financing expense                      (68.1)       (41.1) 
   of which adjusting financing items            -        (6.6) 
                                          --------  ----------- 
 Loss before tax                           (227.4)       (80.0) 
 Taxation                                     27.6         17.2 
                                          --------  ----------- 
 Reported net income                       (199.8)       (62.8) 
 
 Adjusted EBITDA                            (89.0)         20.8 
   Adjusted EBITDA margin                     n.m.         5.1% 
 Adjusted loss before tax                  (213.6)       (70.9) 
 
 EPS (pence)(3)                             (16.7)        (7.3) 
 Adjusted EPS (pence) (3)                   (15.8)        (6.4) 
----------------------------------------  --------  ----------- 
 

Note: For definition of alternative performance measures and detail on adjusting items please see the Appendix and note 19 of the Interim Financial Statements; (1) H1 2019 has been restated to correct for an error, see note 2 of Interim Financial Statements for detail; (2) Excludes adjusting items;(3) Under IAS 33 The weighted average number of ordinary shares in the comparative period has been restated to reflect the bonus element of the rights issue completed on 1 April 2020.

The operating loss of GBP159m reflected the flow through of the revenue reduction to gross margin, with an offset from tight control of operating expenses, there was also an FX headwind of GBP17m.

Total adjusted operating expenses were GBP143m, down GBP21m year-on-year reflecting cost discipline through the Covid-19 crisis and includes the benefit of c.GBP10m of furlough credits from the Government's Coronavirus Job Retention Scheme. At its peak, more than 75% of employees were furloughed. As St Athan re-opened on 5 May these credits reduced as the period progressed, and at the end of June c.30% of employees remained furloughed. Expenses also benefited from some fixed marketing savings and some re-phasing of spend, as an example the revised timings for the release of the new James Bond film. The fixed cost base started to see the benefits of the initial cost reduction programme, offsetting c.GBP3m of incremental St Athan costs as it scaled up to start production.

Depreciation and amortisation of GBP57m was broadly unchanged year-on-year giving adjusted EBITDA of GBP(89)m

(H1 2019: GBP21m).

Adjusting operating items of GBP14m predominantly consist of restructuring costs of GBP12m associated with the previously announced cost reduction actions expected to deliver annualised savings of c.GBP28m in FY 2021, with low single digit GBPm savings expected in H2 2020. Other adjusting operating items totalled GBP2m (GBP2m lease asset impairment related to a site closure, GBP3m related to management settlement agreements and a GBP3m credit associated with legacy incentive schemes).

Net financing costs of GBP68m were up from GBP41m in the prior year reflecting higher interest payments year-on-year given the $150m of new notes issued in H2 2019 and a full six months of interest on the $190m Senior Secured Notes drawn April 2019. Net financing costs includes a GBP20m adverse FX charge principally due to the US dollar denomination of the notes. The loss before tax was GBP227m (H1 2019: GBP80m).

The effective tax rate for the half-year was 12%, lower than the prior year principally due to a corporate interest rate restriction (relating to the tax treatment of interest costs) (H1 2019: 22%).

The total share count at 30 June 2020 was 1,824m, increased by 1,596m shares due to issuance in the period. The weighted average number of shares in the period was 1,203m giving an adjusted EPS of (15.8)p (H1 2019: (6.4)p).

Cash flow and net debt

 
 GBPm                                         H1 2020   H1 2019 
                                             -------- 
 Cash (used in) / generated from operating 
  activities                                  (179.4)      20.8 
 Cash used in investing activities            (159.9)   (159.0) 
 Cash inflow from financing activities          597.3     121.0 
 Effect of exchange rates on cash and cash 
  equivalents                                   (6.5)     (0.5) 
-------------------------------------------  --------  -------- 
 Increase/(Decrease) in net cash                251.5    (17.7) 
-------------------------------------------  --------  -------- 
 Cash balance                                   359.4     126.9 
-------------------------------------------  --------  -------- 
 

Net cash outflow from operating activities was GBP179m (H1 2019: GBP21m inflow) driven by the operating loss of GBP159m and a working capital outflow of GBP86m. A substantial payables outflow of GBP110m, largely in early Q2, was the most significant contributor to the working capital outflow. Inventory increased to support the production of DBX at St Athan. This planned increase was somewhat offset by reduced finished goods stock, with Gaydon manufacturing suspended throughout Q2. The resulting inventory outflow was GBP30m. Offsetting these, a receivables inflow of GBP51m is largely due to lower wholesales and realisation of the majority of the Q4 2019 overhang in Q1 2020. Deposits were broadly unchanged at GBP322m.

Capital expenditure was GBP162m with investment focused on DBX and Aston Martin Valkyrie. Capital expenditure is still expected to be significantly H1 weighted, with investment shifting towards core sports car mid-cycle refreshes and mid-engine development in H2.

Free cashflow(1) of GBP(371)m (H1 2019: GBP(161)m) prior to financing was significantly improved towards the end of the quarter, with lower payables outflow in June and reduced capital expenditure.

Cash inflow from financing of GBP597m included net proceeds of GBP662m from the placing and equity raise completed in April and the non-pre-emptive equity raise in June (GBP5m relating to the retail element of the June placing was received in early July) along with a c.GBP20m reduction in inventory financing. This inventory financing facility remains available for up to GBP40m to support short term working capital as required. Cash interest paid in the period was GBP31m (H1 2019: GBP23m).

The net cash inflow of GBP252m resulted in a closing cash balance of GBP359m at 30 June 2020, up from GBP108m at 31 December 2019.

(1) Operating cashflow less capital investment and net interest

 
 GBPm                                 30-Jun-20   31-Dec-19   30-Jun-19 
                                     ----------  ---------- 
 Senior Secured Notes (1)                 877.0       829.9       734.9 
 Unsecured loans                              -           -         0.9 
 Inventory financing                       19.5        38.9           - 
 Bank loans and overdrafts                114.6       124.0       123.1 
 Lease liabilities (IFRS 16)              110.0       111.4       111.6 
-----------------------------------  ----------  ----------  ---------- 
 Gross debt                             1,121.1     1,104.2       970.5 
-----------------------------------  ----------  ----------  ---------- 
 Cash balance                             359.4       107.9       126.9 
 Cash not available for short-term 
  use                                      10.7         8.7           - 
 Net debt                                 751.0       987.6       843.6 
 Adjusted leverage                         n.m.        8.3x        5.3x 
                                     ----------  ---------- 
 

(1) Nominal value GBP882m (GBP285m @ 5.75%, $590m @6.5% and $150m @12%)

Net debt at 30 June 2020 was down to GBP751m (31 December 2019: GBP988m) primarily due to the higher cash balance. Gross debt includes back-to-back facilities in China (GBP34m) and a GBP70m drawdown of the RCF supporting working capital requirements. Inventory financing reduced to GBP20m (31 December 2019: GBP39m).

Post quarter-end, funds of approximately $68m from the delayed draw notes (DDNs) at 12% (6% cash; 6% PIK), the retail element (1) (GBP5m) of the June equity placing and the GBP20m Coronavirus Large Business Interruption Loan Scheme (CLBILS) were received. Proforma gross debt post CLBILS and DDN draw was GBP1,196m. Proforma cash at 30 June including these additional funds and the retail element of the June equity placing was c.GBP430m net of fees.

APPICES

Dealerships

 
                        30 Jun-20   30 Jun-19 
                       ---------- 
 UK                            22          21 
 Americas                      44          44 
 EMEA ex. UK                   50          55 
 APAC                          46          42 
 Total                        162         162 
                       ---------- 
 Number of countries           51          53 
---------------------  ----------  ---------- 
 

Units

 
  Retail       Q1-20   Q1-19   Change   Q2-20   Q2-19   Change   H1-20   H1-19   Change 
              ------  ------  -------  ------  ------           ------  ------ 
 Total         1,010   1,528    (34%)     760   1,468    (48%)   1,770   2,996    (41%) 
              ------  ------  -------  ------  ------  -------  ------  ------  ------- 
 Core (ex. 
  Specials)    1,006   1,468    (31%)     757   1,439    (47%)   1,763   2,907    (39%) 
              ------  ------  -------  ------  ------  -------  ------  ------  ------- 
 
 
  Wholesale    Q1-20   Q1-19   Change   Q2-20   Q2-19   Change   H1-20   H1-19   Change 
              ------  ------  -------  ------  ------           ------  ------ 
 UK              229     235     (3%)      46     330    (86%)     275     565    (51%) 
 Americas        107     250    (57%)     173     450    (62%)     280     700    (60%) 
 EMEA ex. 
  UK             148     211    (30%)      43     279    (85%)     191     490    (61%) 
 APAC             94     361    (74%)      55     326    (83%)     149     687    (78%) 
 Total           578   1,057    (45%)     317   1,385    (77%)     895   2,442    (63%) 
              ------  ------  -------  ------  ------           ------  ------ 
 
 
 Wholesale    Q1-20   Q1-19   Change   Q2-20   Q2-19   Change   H1-20   H1-19   Change 
             ------  ------  -------  ------  ------           ------  ------ 
 Sport          188     289    (35%)      95     576    (84%)     283     865    (67%) 
 GT             382     693    (45%)     214     763    (72%)     596   1,458    (59%) 
 Other            8      43    (81%)       7      42    (83%)      15      85    (82%) 
 Specials         0      32     n.m.       1       4    (75%)       1      36    (97%) 
 Total          578   1,057    (45%)     317   1,385    (77%)     895   2,442    (63%) 
             ------  ------  -------  ------  ------           ------  ------ 
 

Note: Sports includes Vantage, GT includes DB11 and DBS Superleggera, Other includes prior generation models such as Rapide AMR

Retail/Wholesale units historic data

 
  Retail       Q1-18   Q2-18   Q3-18   Q4-18   Q1-19   Q2-19   Q3-19   Q4-19 
              ------  ------  ------          ------  ------  ------ 
 Total         1,114   1,272   1,579   1,562   1,528   1,468   1,486   1,654 
              ------  ------  ------  ------  ------  ------  ------  ------ 
 Core (ex. 
  Specials)    1,058   1,217   1,533   1,531   1,468   1,439   1,463   1,629 
              ------  ------  ------  ------  ------  ------  ------  ------ 
 Wholesale     Q1-18   Q2-18   Q3-18   Q4-18   Q1-19   Q2-19   Q3-19   Q4-19 
              ------  ------  ------  ------  ------  ------  ------  ------ 
 Sport             -     261     854   1,080     289     576     585     800 
 GT              682     902     836   1,112     693     763     862   1,066 
 Other           233     126      71      99      43      42      39      40 
 Specials         48      47      15      75      32       4      11      17 
              ------  ------  ------  ------  ------  ------  ------  ------ 
 Total           963   1,336   1,776   2,366   1,057   1,385   1,497   1,923 
              ------  ------  ------  ------  ------  ------  ------  ------ 
 

Note: Sports includes Vantage, GT includes DB11 and DBS Superleggera, Other includes prior generation models such as Rapide AMR

Restatement summary

 
                                Q1-19     Q2-19     Q3-19     Q4-19     Q1-20 
                             --------  --------  -------- 
 Additional accrual (GBPm)        8.1      15.0      21.8      29.1      20.3 
 Impact on EBIT (GBPm)            5.7     (7.0)     (6.8)     (7.2)       8.8 
 ASP Total/core (GBPk)        165/154   129/128   147/126   158/127   113/113 
                             --------  --------  --------  --------  -------- 
 As previously reported 
  ASP Total/core (GBPk)       160/149   134/134   151/130   163/132     98/98 
                             --------  --------  --------  --------  -------- 
 

All data in the tables below is presented restated for the adjustments above. For full detail see note 2 of the

Interim Financial Statements

Summary financials

 
 GBPm                            Q1-20    Q1-19     Q2-20     Q2-19     H1-20    H1-19 
                              --------  -------            -------- 
 Total wholesale volumes(1)        578    1,057       317     1,385       895    2,442 
 Revenue                          88.8    201.5      57.2     204.5     146.0    406.0 
 Gross profit                     14.3     88.1    (17.1)      58.7     (2.8)    146.8 
   Gross margin                  16.1%    43.7%   (29.9%)     28.7%    (1.9%)    36.2% 
 Adjusted EBITDA                (38.1)     34.0    (50.9)    (13.2)    (89.0)     20.8 
   Adjusted EBITDA margin      (42.9%)    16.9%   (89.0%)    (6.5%)   (61.0%)     5.1% 
 Adjusted operating (loss)      (67.0)      3.5    (78.5)    (39.9)   (145.5)   (36.4) 
   Adjusted operating 
    margin                     (75.5%)     1.7%      n.m.   (19.5%)      n.m.   (9.0%) 
 
 Adjusting operating 
  items                          (0.9)    (1.0)    (12.9)     (1.5)    (13.8)    (2.5) 
 Adjusting financing 
  items                              -    (8.0)         -       1.4         -    (6.6) 
 Operating (loss)/profit        (67.9)      2.5    (91.4)    (41.4)   (159.3)   (38.9) 
 (Loss) before tax             (110.1)   (11.6)   (117.3)    (68.4)   (227.4)   (80.0) 
                              --------  -------  --------  --------  --------  ------- 
 

Note: For definition of alternative performance measures please see Appendix and note 19 of the Interim Financial Statements; (1) Number

of vehicles including specials

Summary cash flow statement

 
 GBPm                              Q1-20    Q1-19     Q2-20    Q2-19     H1-20     H1-19 
                                 -------  -------  --------  ------- 
 Cash (used in)/generated 
  from operating activities        (4.1)     46.6   (175.3)   (25.8)   (179.4)      20.8 
 Cash used in investing 
  activities                      (84.2)   (76.3)    (75.7)   (82.7)   (159.9)   (159.0) 
 Cash inflow from financing 
  activities                       156.4     14.6     440.9    106.4     597.3     121.0 
 Effect of exchange rates 
  on cash and cash equivalents     (4.3)    (1.7)     (2.2)      1.2     (6.5)     (0.5) 
 Net cash inflow/(outflow)          63.8   (16.8)     187.7    (0.9)     251.5    (17.7) 
-------------------------------  -------  -------  --------  -------  --------  -------- 
 Cash balance                      171.7    127.8     359.4    126.9     359.4     126.9 
                                 -------  -------  --------  -------  --------  -------- 
 

Alternative Performance Measure

 
 GBPm                           H1 2020   H1 2019 
                               -------- 
 Loss for the period            (227.4)    (80.0) 
 Adjusting operating expense       13.8       2.5 
 Adjusting finance expense            -       6.6 
 Adjusted EBT                   (213.6)    (70.9) 
 Adjusted finance income          (1.6)     (3.2) 
 Adjusted finance expense          69.7      37.7 
 Adjusted o perating loss       (145.5)    (36.4) 
 Reported depreciation             22.7      24.7 
 Reported amortisation             33.8      32.5 
 Adjusted EBITDA                 (89.0)      20.8 
                               -------- 
 

Alternative performance measures

In the reporting of financial information, the Directors have adopted various Alternative Performance Measures ("APMs"). APMs should be considered in addition to IFRS measurements. The Directors believe that these APMs assist in providing useful information on the underlying performance of the Group, enhance the comparability of information between reporting periods, and are used internally by the Directors to measure the Group's performance.

   --      Adjusted EBT is the loss before tax and adjusting items 
   --      Adjusted operating loss is loss from operating activities before adjusting items 

-- Adjusted EBITDA removes depreciation, loss/(profit) on sale of fixed assets and amortisation from adjusted EBIT

-- Adjusted Earnings Per Share is loss after income tax before adjusting items, divided by the weighted average number of ordinary shares in issue during the reporting period

-- Net Debt is current and non-current borrowings in addition to inventory financing arrangements, lease liabilities recognised following the adoption of IFRS 16, less cash and cash equivalents, cash held not available for short-term use (the definition of this APM has been updated since 31 December 2019)

-- Adjusted leverage is represented by the ratio of Net Debt, to the last 12 months adjusted EBITDA (the definition of this APM has been updated since 31 December 2019)

-- Free cashflow is represented by net cash (outflow)/inflow from operating activities plus the net cash used in investing activities plus interest paid in the period.

Further details and definitions of adjusting items are contained in note 5 of the Interim Financial Statements.

Principal risks

Delivery of our strategic objectives is dependent on effective risk management and there are a number of potential risks and uncertainties which could have a material impact on the Group's performance. The principal risks previously reported on pages 55 to 66 of the 2019 Annual Report have been reassessed during the period together with consideration of new and emerging risks and opportunities.

Covi-19 has impacted many aspects of the Group's operations and finances, with global dealerships experiencing extended periods of closure, the temporary cessation of manufacturing activity at the Gaydon and St Athan manufacturing plants and significant disruption to the global supply chain. The Group implemented its incident management plan in response to this evolving situation with daily Executive Committee Covid-19 briefings and the establishment of a Covid-19 Taskforce to manage the situation. This comprised key senior management from all functions of the business. The health, safety and well-being of our employees, associates, customers and other stakeholders remains our priority and is at the forefront of our response to the pandemic.

The Group has taken action to mitigate the significant risks posed by Covid-19. These include:

-- Capital and funding actions including the successful equity placing, rights issue and non-pre-emptive equity raise, partial drawdown of the delayed draw notes, obtaining grant income from the Coronavirus Job Retention Scheme and accessing the Coronavirus Large Business Interruption Loan Scheme;

-- Operational processes including the provision of appropriate personal protective equipment to employees and the implementation of other measures to ensure a safe working environment;

-- Facilitating temporary working from home arrangements to minimise risk of infection and spread on site;

-- Implementing strict cost control measures to protect short term liquidity including shut-down of manufacturing facilities and making use of the Job Retention Scheme to place employees on furlough where appropriate; and,

-- Commencing a restructuring programme to further reduce the fixed cost base of the business to be more commensurate with the forecast future demand for our vehicles.

The current and ongoing impact of Covid-19 has been considered as part of the half-year risk assessment, with all corporate risks being reassessed in the light of the Covid-19 pandemic. Covid-19 has emerged as a multi-faceted risk impacting a number of our principal risks and so we have assessed its impact across our individual corporate risk assessments. The temporary closure of the majority our dealership network and temporary cessation of production at Gaydon and St Athan presented immediate Cash flow and operational challenges.

We have not identified any new principal risks. Several of the principal risk likelihood and impact ratings have changed, primarily as a result of the Covid-19 pandemic with the most significant changes being:

-- Increased likelihood of supply chain disruption due to the impact of Covid-19 and the approaching end of the Brexit transition period on 31 December 2020;

-- Increased likelihood and impact of the failure to attract, develop and retain top talent risk as a result of the recent Executive Management and Board personnel changes and the current restructuring activity;

-- Increased likelihood of potential impairment of capitalised development costs as a result of volume reductions within the reset Business Plan and the ongoing impact of Covid-19 on global sales;

-- Reduced likelihood and impact of the inability to deliver major programmes risk as St Athan is now fully operational and production of the DBX has commenced; and,

-- Insufficient liquidity risk remains a principal risk despite the likelihood initially reducing due to the successful capital raise activity, with this being offset by pressure in the opposite direction caused by underperformance against plan due to Covid-19.

Aside from the above key changes the remaining principal risks and uncertainties that the Group faces for the second half of the year are consistent with those previously reported as summarised below:

Strategic risks

Macro-economic and political instability: The Group operates in many markets exposing us to changing economic, regulatory, social and political developments that may impact customer demand, profitability or our ability to sell within those markets. Adverse macro-economic conditions or country-specific changes to the operating, regulatory or political environment may lead to an unfavourable business climate and significant tensions between major trading parties which could impact the Group's operations. This may include explicit trade protectionism, differing tax or regulatory regimes, changing public sentiment or reduced disposable incomes which could affect demand for our vehicles. The impact of Covid-19 and changing customer behaviours could adversely affect demand for our vehicles.

Inability to maintain favourable competitive positioning: Maintaining our competitiveness in the high luxury segment car market is critical to achieving our strategic growth objectives. The Group competes with a number of other manufacturers with strong brands and reputations and which may have access to greater financial resources. The high luxury segment is relatively small due to the price at which cars are sold and significant investment is required to introduce new models to the market, which relies on a sufficient level of demand to support the growing levels of production and competition. The trend towards cars with lower engine capacity and alternative powertrains could adversely affect the Group.

Brand/reputational damage arising from poor quality, late delivery, product recall or ineffective brand positioning and awareness: Our brand and reputation are critical in securing demand for our vehicles and in developing additional revenue streams. Damage to our brand or reputation for any reason could significantly impact our ability to deliver the volume growth required to support our strategy.

Inability to incorporate automotive technological advancements (e.g. active safety, connected car, electrification, autonomous driving): Inability to keep pace with changing customer requirements and expectations with the move towards more advanced technologies due to reliance on third parties for key components and availability of funds to invest internally on product development. The Group's current liquidity position and funding structure may restrict the availability of funds to pursue potential acquisitions, invest in organic growth projects or exploit emerging business opportunities to maintain our competitiveness in relation to technological change. In particular, keeping abreast of the development of new technology (e.g. active safety, connected car, electrification, autonomous driving) in line with changes in trends and customer tastes. The Group is currently reliant upon certain key suppliers maintaining their pace of technological development and making this available to the Group in a timely manner and at an acceptable cost.

Operational risks

Failure to attract, develop and retain top talent: Inability to attract, motivate, develop and retain our people to perform to the best of their ability to meet our strategic objectives. Our performance, operating results and future growth depend on our ability to attract, motivate and retain talent with the appropriate level of expertise to deliver our strategy. The impact of current financial performance on remuneration and benefits and recent restructuring activities increase the risk of loss of key individuals and skills.

Inability to deliver major programmes: Failure to implement major programmes on time, within budget and to the right technical specification could jeopardise delivery of the strategy and have significant adverse financial and reputational consequences. Successful delivery of significant programmes (including the new manufacturing facility in St Athan and core (DBX) and special (Valkyrie) vehicle programmes) is fundamental to the achievement of the Group's strategic objectives.

Inadequate protection against cyber-attack resulting in potential loss of data, system availability or operational disruption: A cyber security breach could result in an unplanned system outage, impacting core operations and/or result in a major data loss leading to reputational damage and financial loss. The Group's technology environment is critical to its success and operational resilience. A robust control environment helps decrease the risk of core business operational disruption and major data loss.

Potential disruption to the supply chain: Supply chain disruption could result in production stoppages, delays, quality issues and/or increased costs resulting in adverse operational and financial consequences for the Group. Potential loss of key Tier 1 supplier or a single-source supplier, or deterioration in quality, could seriously jeopardise production resulting in delayed or lost sales and brand/reputational damage. (See also the principal risk relating to Brexit). The Group's exposure to this risk is adversely affected by Covid-19 due to the complex, global nature of the automotive supply chain and the increased likelihood of supplier failure in the current environment.

Compliance risks

Potential non-compliance with laws and regulations: The Group's operations are subject to a broad spectrum of national and regional laws and regulations in the various jurisdictions in which we operate. These include product safety, emissions, trademarks, competition, employee and customer health and safety, data, corporate governance, employment and tax. Changes to laws and regulations or a major compliance breach could have a material impact on the business.

Uncertainty surrounding Brexit: Various Brexit scenarios could impact the Group's financial position, supply chain and people. Whilst the UK officially left the EU on 31 January 2020 uncertainty remains as to the nature of any future trade agreements once the transition period ends on 31 December 2020. The current uncertainty regarding the way the UK leaves the EU makes it very difficult to plan for, with multiple scenarios having to be considered and addressed.

Financial risks

Insufficient liquidity and lack of financial stability to support planned growth and operations: The Group may not be able to generate sufficient cash to fund its capital expenditure and sustain its operations and its significant leverage may make it difficult for the Group to operate its business. The liquidity of the Group improved as a result of the strategic equity placement and rights issue which completed during Q1. However since then the ongoing impact of Covid-19 has exerted additional liquidity pressure on the business. The Group's liquidity requirements arise primarily from its need to fund capital expenditure for product development, working capital and to service debt.

Potential impairment of capitalised development costs: The value of capitalised development costs continues to grow as we expand our product portfolio. The carrying value of development costs in our balance sheet is dependent upon the future profitability of the vehicle platforms to which they are attributed. A significant reduction in vehicle lifecycle profitability could result in the need to impair the capitalised development intangible asset.

The risks summarised above, linkage to the Group's strategy, and mitigating actions taken in respect of them, are explained and described in more detail on pages 55 to 66 of the 2019 Annual Report.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 
                                                                        6 months ended                  12 months ended 
                                       6 months ended                30 June 2019 restated              31 December 2019 
                                        30 June 2020                          (1)                         restated (1) 
                                          Adjusting                        Adjusting                        Adjusting 
                       Notes   Adjusted       items     Total   Adjusted       items     Total   Adjusted       items     Total 
                                   GBPm        GBPm      GBPm       GBPm        GBPm      GBPm       GBPm        GBPm      GBPm 
--------------------  ------  ---------  ----------  --------  ---------  ----------  --------  ---------  ----------  -------- 
 Revenue                 3        146.0           -     146.0      406.0           -     406.0      980.5           -     980.5 
 Cost of sales                  (148.8)           -   (148.8)    (259.2)           -   (259.2)    (642.7)           -   (642.7) 
                              ---------  ----------  --------  ---------  ----------  --------  ---------  ----------  -------- 
 Gross (loss)/profit              (2.8)           -     (2.8)      146.8           -     146.8      337.8           -     337.8 
 Selling and 
  distribution 
  expenses                       (34.2)           -    (34.2)     (44.8)           -    (44.8)     (95.0)           -    (95.0) 
 Administrative 
  expenses               5      (108.5)      (13.8)   (122.3)    (119.4)       (2.5)   (121.9)    (233.7)      (42.1)   (275.8) 
 Other expense           4            -           -         -     (19.0)           -    (19.0)     (19.0)           -    (19.0) 
                              ---------  ----------  --------  ---------  ----------  --------  ---------  ----------  -------- 
 Operating 
  (loss)/profit                 (145.5)      (13.8)   (159.3)     (36.4)       (2.5)    (38.9)      (9.9)      (42.1)    (52.0) 
 Finance income          6          1.6           -       1.6        3.2           -       3.2       16.3           -      16.3 
                        5, 
 Finance expense         7       (69.7)           -    (69.7)     (37.7)       (6.6)    (44.3)     (77.3)       (6.6)    (83.9) 
                              ---------  ----------  --------  ---------  ----------  --------  ---------  ----------  -------- 
 Loss before tax                (213.6)      (13.8)   (227.4)     (70.9)       (9.1)    (80.0)     (70.9)      (48.7)   (119.6) 
 Income tax 
  credit/(charge)        8         24.0         3.6      27.6       15.8         1.4      17.2      (6.8)         8.8       2.0 
                              ---------  ----------  --------  ---------  ----------  --------  ---------  ----------  -------- 
 Loss for the period            (189.6)      (10.2)   (199.8)     (55.1)       (7.7)    (62.8)     (77.7)      (39.9)   (117.6) 
                              ---------  ----------  --------  ---------  ----------  --------  ---------  ----------  -------- 
 
 (Loss)/profit for the period 
  attributable to: 
    Owners of the 
     group                                            (200.3)                           (63.8)                          (126.4) 
    Non-controlling 
     interests                                            0.5                              1.0                              8.8 
                                                     --------                         --------                         -------- 
                                                      (199.8)                           (62.8)                          (117.6) 
                                                     --------                         --------                         -------- 
 
 Other comprehensive 
  income 
 Items that will never be reclassified 
         to the Income Statement 
 Remeasurement of defined benefit 
  liability                                            (22.2)                            (1.0)                            (1.4) 
 Taxation on items that will never 
  be reclassified to the Income Statement                 5.2                              0.2                              0.2 
 Items that are or may be reclassified 
  to the Income Statement 
 Foreign exchange translation 
  differences                                             2.8                              0.2                            (2.7) 
 Fair value adjustment on cash flow 
  hedges                                               (26.8)                            (2.3)                              9.0 
 Amounts recycled to the Income Statement 
  in respect of cash flow hedges                          6.0                              3.8                             15.6 
 Taxation on items that may be reclassified 
  to the Income Statement                                 3.9                              1.2                            (3.4) 
                                                     --------                         --------                         -------- 
 Other comprehensive (expense)/income 
  for the period, net of income tax                    (31.1)                              2.1                             17.3 
                                                     --------                         --------                         -------- 
 Total comprehensive loss for the 
  period                                              (230.9)                           (60.7)                          (100.3) 
                                                     --------                         --------                         -------- 
 
 Total comprehensive (loss)/income 
  for the period attributable to: 
    Owners of the 
     group                                            (231.4)                           (61.7)                          (109.1) 
    Non-controlling 
     interests                                            0.5                              1.0                              8.8 
                                                     --------                         --------                         -------- 
                                                      (230.9)                           (60.7)                          (100.3) 
                                                     --------                         --------                         -------- 
 Earnings per 
 ordinary 
 share (2) 
    Basic                9                            (16.7p)                           (7.3p)                          (14.5p) 
    Diluted              9                            (16.7p)                           (7.3p)                          (14.5p) 
                                                     --------                         --------                         -------- 
 
 1. The comparative periods have been restated for the correction of an 
  error - see note 2 for further details. 
  2. The comparative basic and diluted earnings per ordinary share values 
  have been restated to reflect the bonus element of the rights issue completed 
  on 1 April 2020. 
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 
                    Share     Share    Merger   Capital   Translation     Hedge   Retained   Non-controlling     Total 
                  Capital   Premium   Reserve   Reserve       Reserve   Reserve   Earnings          Interest    Equity 
                     GBPm      GBPm      GBPm      GBPm          GBPm      GBPm       GBPm              GBPm      GBPm 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 At 1 January 
  2020                2.1     352.3         -       6.6         (0.4)     (2.3)     (13.5)              14.1     358.9 
 Correction of 
  error 
  (net of tax) 
  - 
  see note 2            -         -         -         -             -         -     (26.4)                 -    (26.4) 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 At 1 January 
  2020 
  restated (1)        2.1     352.3         -       6.6         (0.4)     (2.3)     (39.9)              14.1     332.5 
 Total 
 comprehensive 
 loss for the 
 period 
 (Loss)/profit 
  for 
  the period            -         -         -         -             -         -    (200.3)               0.5   (199.8) 
 
 Other 
 comprehensive 
 income 
 Foreign 
  currency 
  translation 
  differences           -         -         -         -           2.8         -          -                 -       2.8 
 Fair value 
  movement 
  - cash flow 
  hedges                -         -         -         -             -    (26.8)          -                 -    (26.8) 
 Amounts 
  recycled 
  to the Income 
  Statement 
  - cash flow 
  hedges                -         -         -         -             -       6.0          -                 -       6.0 
 Remeasurement 
  of 
  defined 
  benefit 
  liability             -         -         -         -             -         -     (22.2)                 -    (22.2) 
 Taxation on 
  other 
  comprehensive 
  income                -         -         -         -             -       3.9        5.2                 -       9.1 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Total other 
  comprehensive 
  (loss)/income         -         -         -         -           2.8    (16.9)     (17.0)                 -    (31.1) 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Total 
  comprehensive 
  (loss)/income 
  for 
  the period            -         -         -         -           2.8    (16.9)    (217.3)               0.5   (230.9) 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Transactions 
 with 
 owners, 
 recorded 
 directly in 
 equity 
 Issue of 
  ordinary 
  shares (note 
  16)                14.4     499.0     144.0         -             -         -          -                 -     657.4 
 Credit for the 
  period under 
  equity 
  settled 
  share-based 
  payments              -         -         -         -             -         -        3.1                 -       3.1 
 Tax on items 
  credited 
  to equity             -         -         -         -             -         -        1.6                 -       1.6 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Total 
  transactions 
  with owners        14.4     499.0     144.0         -             -         -        4.7                 -     662.1 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 At 30 June 
  2020               16.5     851.3     144.0       6.6           2.4    (19.2)    (252.5)              14.6     763.7 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 
                    Share     Share    Merger   Capital   Translation     Hedge   Retained   Non-controlling     Total 
                  Capital   Premium   Reserve   Reserve       Reserve   Reserve   Earnings          Interest    Equity 
                     GBPm      GBPm      GBPm      GBPm          GBPm      GBPm       GBPm              GBPm      GBPm 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 At 1 January 
  2019                2.1     352.3         -       6.6           2.3    (23.5)       97.2              10.2     447.2 
 Correction of 
  error 
  (net of tax) 
  - 
  see note 2            -         -         -         -             -         -     (13.2)                 -    (13.2) 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 At 1 January 
  2019 
  restated (1)        2.1     352.3         -       6.6           2.3    (23.5)       84.0              10.2     434.0 
 Total 
 comprehensive 
 loss for the 
 period 
 (Loss)/profit 
  for 
  the period            -         -         -         -             -         -     (63.8)               1.0    (62.8) 
 
 Other 
 comprehensive 
 income 
 Foreign 
  currency 
  translation 
  differences           -         -         -         -           0.2         -          -                 -       0.2 
 Fair value 
  movement 
  - cash flow 
  hedges                -         -         -         -             -     (2.3)          -                 -     (2.3) 
 Amounts 
  recycled 
  to the Income 
  Statement 
  - cash flow 
  hedges                -         -         -         -             -       3.8          -                 -       3.8 
 Remeasurement 
  of 
  defined 
  benefit 
  liability             -         -         -         -             -         -      (1.0)                 -     (1.0) 
 Income tax on 
  other 
  comprehensive 
  income                -         -         -         -             -       1.2        0.2                 -       1.4 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Total other 
  comprehensive 
  (loss)/income         -         -         -         -           0.2       2.7      (0.8)                 -       2.1 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Total 
  comprehensive 
  (loss)/income 
  for 
  the period            -         -         -         -           0.2       2.7     (64.6)               1.0    (60.7) 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Transactions 
 with 
 owners, 
 recorded 
 directly in 
 equity 
 Credit for the 
  year under 
  equity 
  settled 
  share-based 
  payments              -         -         -         -             -         -        2.0                 -       2.0 
 Tax on items 
 credited 
 to equity              -         -         -         -             -         -          -                 -         - 
 Total 
  transactions 
  with owners           -         -         -         -             -         -        2.0                 -       2.0 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 At 30 June 
  2019                2.1     352.3         -       6.6           2.5    (20.8)       21.4              11.2     375.3 
---------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 
 
                      Share     Share    Merger   Capital   Translation     Hedge   Retained   Non-controlling     Total 
                    Capital   Premium   Reserve   Reserve       Reserve   Reserve   Earnings          Interest    Equity 
                       GBPm      GBPm      GBPm      GBPm          GBPm      GBPm       GBPm              GBPm      GBPm 
-----------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 At 1 January 
  2019                  2.1     352.3         -       6.6           2.3    (23.5)       97.2              10.2     447.2 
 Correction of 
  error 
  (net of tax) - 
  see note 2              -         -         -         -             -         -     (13.2)                 -    (13.2) 
-----------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 At 1 January 
  2019 
  restated (1)          2.1     352.3         -       6.6           2.3    (23.5)       84.0              10.2     434.0 
-----------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Total 
 comprehensive 
 loss for the 
 year 
 (Loss)/profit 
  for 
  the year                -         -         -         -             -         -    (126.4)               8.8   (117.6) 
 
 Other 
 comprehensive 
 income 
 Foreign currency 
  translation 
  differences             -         -         -         -         (2.7)         -          -                 -     (2.7) 
 Fair value 
  movement 
  - cash flow 
  hedges                  -         -         -         -             -       9.0          -                 -       9.0 
 Amounts recycled 
  to the Income 
  Statement 
  - cash flow 
  hedges                  -         -         -         -             -      15.6          -                 -      15.6 
 Remeasurement of 
  defined benefit 
  liability               -         -         -         -             -         -      (1.4)                 -     (1.4) 
 Tax on other 
  comprehensive 
  income                  -         -         -         -             -     (3.4)        0.2                 -     (3.2) 
-----------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Total other 
  comprehensive 
  (loss)/income           -         -         -         -         (2.7)      21.2      (1.2)                 -      17.3 
-----------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Total 
  comprehensive 
  (loss)/income 
  for 
  the year                -         -         -         -         (2.7)      21.2    (127.6)               8.8   (100.3) 
-----------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Transactions 
 with 
 owners, recorded 
 directly in 
 equity 
 Credit for the 
  year under 
  equity 
  settled 
  share-based 
  payments                -         -         -         -             -         -        3.7                 -       3.7 
 Dividend paid to 
  non-controlling 
  interest                -         -         -         -             -         -          -             (4.9)     (4.9) 
 Tax on items 
 credited 
 to equity                -         -         -         -             -         -          -                 -         - 
-----------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 Total 
  transactions 
  with owners             -         -         -         -             -         -        3.7             (4.9)     (1.2) 
-----------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 At 31 December 
  2019                  2.1     352.3         -       6.6         (0.4)     (2.3)     (39.9)              14.1     332.5 
-----------------  --------  --------  --------  --------  ------------  --------  ---------  ----------------  -------- 
 

1. The comparative periods have been restated for the correction of an error - see note 2 for further details.

 
 CONSOLIDATED STATEMENT OF FINANCIAL 
  POSITION 
                                                               As at          As at        As at 
                                                             30 June    31 December    1 January 
                                                   As at        2019           2019         2019 
                                                 30 June    restated       restated     restated 
                                        Notes       2020         (1)            (1)          (1) 
                                                    GBPm        GBPm           GBPm         GBPm 
-------------------------------------  ------  ---------  ----------  -------------  ----------- 
 Non-current assets 
 Intangible assets                               1,272.6     1,154.5        1,183.6      1,071.7 
 Property, plant and equipment                     406.6       335.0          350.5        313.0 
 Right-of-use assets                                77.9        77.0           81.8         82.5 
 Trade and other receivables                         2.0         2.1            1.8          1.8 
 Other financial assets                                -           -            0.2            - 
 Deferred tax asset                       8         70.2        34.8           45.7         32.7 
                                               ---------  ----------  -------------  ----------- 
                                                 1,829.3     1,603.4        1,663.6      1,501.7 
 Current assets 
 Inventories                                       229.2       242.2          200.7        165.3 
 Trade and other receivables                       192.7       202.2          249.7        243.0 
 Income tax receivable                               4.8           -            0.3          0.8 
 Other financial assets                             13.5           -            8.9          0.1 
 Cash and cash equivalents               11        359.4       126.9          107.9        144.6 
                                               ---------  ----------  -------------  ----------- 
                                                   799.6       571.3          567.5        553.8 
                                               ---------  ----------  -------------  ----------- 
 Total assets                                    2,628.9     2,174.7        2,231.1      2,055.5 
                                               ---------  ----------  -------------  ----------- 
 
 Current liabilities 
 Borrowings                              12        106.8       113.3          114.8         99.4 
 Trade and other payables                          639.7       734.2          731.2        655.2 
 Income tax payable                                  0.4         3.5            8.9          4.9 
 Other financial liabilities             13         15.0         6.8            6.3          4.2 
 Lease liabilities                                  11.3        10.6           14.1         15.0 
 Provisions                              14         24.2         7.9           12.0         10.8 
                                               ---------  ----------  -------------  ----------- 
                                                   797.4       876.3          887.3        789.5 
 Non-current liabilities 
 Borrowings                              12        884.8       745.6          839.1        604.7 
 Trade and other payables                            8.6        19.4            9.4         49.8 
 Other financial liabilities             13          2.9         7.1            2.6          4.4 
 Lease liabilities                                  98.7       101.0           97.3        101.5 
 Provisions                              14         14.5        12.0           16.2         12.9 
 Employee benefits                       15         57.8        38.0           36.8         38.7 
 Deferred tax liabilities                 8          0.5           -            9.9         20.0 
                                               ---------  ----------  -------------  ----------- 
                                                 1,067.8       923.1        1,011.3        832.0 
                                               ---------  ----------  -------------  ----------- 
 Total liabilities                               1,865.2     1,799.4        1,898.6      1,621.5 
                                               ---------  ----------  -------------  ----------- 
 Net assets                                        763.7       375.3          332.5        434.0 
                                               ---------  ----------  -------------  ----------- 
 
 Capital and reserves 
 Share capital                           16         16.5         2.1            2.1          2.1 
 Share premium                           16        851.3       352.3          352.3        352.3 
 Merger reserve                          16        144.0           -              -            - 
 Capital reserve                                     6.6         6.6            6.6          6.6 
 Translation reserve                                 2.4         2.5          (0.4)          2.3 
 Hedge reserve                                    (19.2)      (20.8)          (2.3)       (23.5) 
 Retained earnings                               (252.5)        21.4         (39.9)         84.0 
                                               ---------  ----------  -------------  ----------- 
 Equity attributable to owners of 
  the group                                        749.1       364.1          318.4        423.8 
 Non-controlling interests                          14.6        11.2           14.1         10.2 
                                               ---------  ----------  -------------  ----------- 
 Total shareholders' equity                        763.7       375.3          332.5        434.0 
                                               ---------  ----------  -------------  ----------- 
 

1. The prior period comparatives have been restated for the correction of an error - see note 2 for further details.

CONSOLIDATED STATEMENT OF CASH FLOWS

 
                                                                           6 months      12 months 
                                                                              ended          ended 
                                                               6 months     30 June    31 December 
                                                                  ended        2019           2019 
                                                                30 June    restated       restated 
                                                       Notes       2020         (1)            (1) 
                                                                   GBPm        GBPm           GBPm 
 Operating activities 
 Loss for the period                                            (199.8)      (62.8)        (117.6) 
 Adjustments to reconcile loss for the period 
  to net cash (outflow)/inflow from operating 
  activities 
 Tax (credit)/charge on continuing operations            8       (27.6)      (17.2)          (2.0) 
 Net finance costs                                                 68.1        41.1           67.6 
 Other non-cash movements                                           5.9         1.3          (4.4) 
 Loss on sale of non-current assets                                   -           -            0.9 
 Depreciation and impairment of property, 
  plant and equipment                                              16.6        18.9           38.8 
 Depreciation and impairment of right-of-use 
  assets                                                            8.1         5.8           13.3 
 Amortisation and impairment of intangible 
  assets                                                           33.8        32.5          112.4 
 Difference between pension contributions 
  paid and amounts recognised in Income Statement                 (1.6)       (2.3)          (4.4) 
 Increase in inventories                                         (30.0)      (70.9)         (33.3) 
 Decrease/(increase) in trade and other receivables                51.1        41.2         (28.9) 
 Increase in trade and other payables                           (109.8)      (27.8)         (54.7) 
 Increases in advances and customer deposits                        2.8        72.3           48.4 
 Movement in provisions                                            11.2       (3.8)            4.5 
                                                              ---------  ----------  ------------- 
 Cash (outflow)/inflow from operations                          (171.2)        28.3           40.6 
 Increase in cash held not available for short-term 
  use                                                             (1.2)           -          (8.7) 
 Income taxes paid                                                (7.0)       (7.5)         (12.5) 
                                                              ---------  ----------  ------------- 
 Net cash (outflow)/inflow from operating 
  activities                                                    (179.4)        20.8           19.4 
                                                              ---------  ----------  ------------- 
 Cash flows from investing activities 
 Interest received                                                  1.6         3.2            5.0 
 Payments to acquire property, plant and equipment               (38.7)      (40.9)         (82.2) 
 Payments to acquire intangible assets                          (122.8)     (121.3)        (228.0) 
                                                              ---------  ----------  ------------- 
 Net cash used in investing activities                          (159.9)     (159.0)        (305.2) 
                                                              ---------  ----------  ------------- 
 Cash flows from financing activities 
 Interest paid                                                   (31.3)      (23.1)         (52.0) 
 Proceeds from issuance of shares                       16        682.5           -              - 
 Principal element of lease payments                    11        (5.8)       (5.2)         (10.9) 
 Repayment of existing borrowings                       11       (83.0)           -         (91.5) 
 Proceeds from existing borrowings                      11            -        11.1          102.3 
 Proceeds from inventory repurchase arrangement         11         19.5           -           38.7 
 Repayment of inventory repurchase arrangement          11       (38.7)           -              - 
 New borrowings                                         11         75.0       138.6          260.8 
 Transaction fees on issuance of shares                          (20.9)           -              - 
 Transaction fees on financing activities                             -       (0.4)          (4.1) 
                                                              ---------  ----------  ------------- 
 Net cash inflow from financing activities                        597.3       121.0          243.3 
                                                              ---------  ----------  ------------- 
 Net increase/(decrease) in cash and cash 
  equivalents                                                     258.0      (17.2)         (42.5) 
 Cash and cash equivalents at the beginning 
  of the period                                         11        107.9       144.6          144.6 
 Effect of exchange rates on cash and cash 
  equivalents                                                     (6.5)       (0.5)            5.8 
                                                              ---------  ----------  ------------- 
 Cash and cash equivalents at the end of the 
  period                                                          359.4       126.9          107.9 
                                                              ---------  ----------  ------------- 
 

1. The comparative periods have been restated for the correction of an error - see note 2 for further details.

Notes to the Interim Financial Statements

   1.     Basis of preparation 

The results for the 6 month period ended 30 June 2020 have been reviewed by Ernst & Young LLP, the Group's auditor, and a copy of their review report appears at the end of this interim report. The financial information for the year ended 31 December 2019 does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The auditor's report on the statutory accounts for the year ended 31 December 2019 was not qualified and did not contain any statements under section 498(2) or (3) of the Companies Act 2006. The report made reference to a material uncertainty around the ability of the Group to continue trading as a going concern pending completion of a strategic investment by a consortium led by Lawrence Stroll and subsequent rights issue. The strategic investment and rights issue were successfully completed during the 6 month period ended 30 June 2020. A copy of the statutory accounts for the year ended 31 December 2019 prepared under International Financial Reporting Standards as adopted by the EU ("IFRS") have been delivered to the Registrar of Companies.

Aston Martin Lagonda Global Holdings plc (the "Company") is a company incorporated and domiciled in the UK. The Consolidated Interim Financial Statements of the Company as at the end of the period ended 30 June 2020 comprise the Company and its subsidiaries (together referred to as the 'Group').

The Group meets its day-to-day working capital requirements and medium-term funding requirements through a mixture of Senior Secured Notes ($400m and $190m at 6.5%, $150m at 12%, GBP230m and GBP55m at 5.75% which all mature in April 2022), a revolving credit facility (GBP80m) which matures in January 2022, facilities to finance inventory, back-to-back loans and a wholesale vehicle financing facility. At the balance sheet date the Group had cash and cash equivalents of GBP359m. After the balance sheet date, the Group has arranged further Senior Secured Notes of $68m at 12% which mature in April 2022 and a GBP20m Coronavirus Large Business Interruption Loan Scheme (CLBILS) which matures in January 2022, and have entered into a new wholesale finance facility with a term of August 2021.

The Directors have prepared trading and cash flow forecasts for the 12 month period from the date of approval of these Interim Financial Statements. These forecasts show that the Group has sufficient financial resources to meet its obligations as they fall due for the period of at least 12 months from the date of these Interim Financial Statements.

The forecasts reflect our strategy of rebalancing supply and demand and the decisive actions taken to improve cost efficiency, in alignment with reduced sports car production levels as further described in the Chairman's statement. The forecasts make assumptions in respect of future market conditions and, in particular, wholesale volumes, average selling price, the launch of new models including Valkyrie and the potential impact of Coronavirus on sales. The nature of the Group's business is such that there can be variation in the timing of cash flows around the development and launch of new models. In addition the availability of funds provided through the vehicle wholesale finance facility changes as the availability of credit insurance and sales volumes vary, in total and seasonally. Key Covid-19 assumptions within the forecasts include a reduction in production and wholesale volumes and we have considered how we would manage the risk of the impact of supply chain disruption and another period of extended lockdown. The forecasts take into account these factors to the extent which the directors consider them to represent their best estimate of the future based on the information that is available to them at the time of approval of these Interim Financial Statements. After applying a reverse stress test and making comparisons to the detailed forecasts, the directors have a reasonable expectation that the financial headroom will not be exhausted during this period.

The Group plans to make continued investment for growth in the next 12 months, accordingly funds generated through operations are expected to be reinvested in the business mainly through new model development and other capital expenditure. To a certain extent such expenditure is discretionary and, in the event of risks occurring which could have a particularly severe effect on the Group, for instance, an elongated recovery and further impact from Covid-19, actions such as constraining capital spending, working capital improvements, reduction in marketing expenditure and continuation of the strict and immediate expense control would be taken to safeguard the Group's financial position.

After making enquiries the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the Interim Financial Statements.

Statement of compliance

These Interim Financial Statements have been prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' as endorsed by the European Union. They do not include all the information required for full annual financial statements and should be read in conjunction with the Consolidated Financial Statements of the Group for the year ended 31 December 2019.

Significant accounting policies

These Interim Financial Statements have been prepared applying the accounting policies and presentation that were applied in the preparation of the Group's published Consolidated Financial Statements for the year ended 31 December 2019.

The Group has recognised amounts due from government-sponsored Covid-19 related employee furlough schemes, of GBP9.7m, as a credit against the related staff costs and not as an item of Other income. These amounts are recognised on an accruals basis and in line with the Groups accounting policy on government grants.

   2.     Prior year restatement 

The Group reports that in the preparation for the interim financial results it has determined that an adjustment should be made in respect of the timing of accounting recognition of the majority of customer and retail incentive support (variable marketing expense (VME)) associated with supporting lease and other incentive programs in the US. This is a non-cash adjustment and has no impact on the timing of the Company's historic or forecast cash flows.

Pursuant to IFRS 15, future VME in the US should be estimated and accrued for on the balance sheet of the Group and deducted from revenue at the point revenue is recognised for the wholesale of the vehicle to the dealer rather than at the time of retail sale by the dealer to the end customer, as had previously been the approach. Outside of the US, the majority of retailer incentive reward programs are considered to be related to the purchase of future vehicles and are accounted for accordingly at that time.

As a result, the balance sheet of the Group as at 1 January 2019, 30 June 2019 and 31 December 2019 and the income statement for the six months ended 30 June 2019 and the year ended 31 December 2019 have been restated to correct this error and the related adjustments to tax.

The adjustment results in an earlier accrual for VME in the US than previously reported and impacts the balance sheet and income statement for each financial period as set out below.

 
                                             30 June 2019  31 December      31 December 
                                                                  2019             2018 
                                                     GBPm         GBPm             GBPm 
-----------------------------------------   -------------  -----------  --------------- 
 Additional accrual required 
  for VME                                          (15.0)       (29.1)           (13.8) 
 
                                                              6 months        12 months 
                                                              ended 30   ended December 
                                                             June 2019             2019 
                                                                  GBPm             GBPm 
-----------------------------------------   -------------  -----------  --------------- 
 Impact on EBITDA compared to previously 
  reported result                                                (1.2)           (15.3) 
 

This error has been corrected by restating each of the affected Consolidated Interim Financial Statement line items for the prior periods as follows:

Consolidated Statement of Comprehensive Income (extract)

 
                                                             6 months ended 30           12 months ended 
                                                                     June 2019          31 December 2019 
                                                  As     Increase/          As          As     Increase/          As 
                                            reported    (decrease)    restated    reported    (decrease)    restated 
                                            Adjusted      Adjusted    Adjusted    Adjusted      Adjusted    Adjusted 
                                                GBPm          GBPm        GBPm        GBPm          GBPm        GBPm 
----------------------------------------  ----------  ------------  ----------  ----------  ------------  ---------- 
 Revenue                                       407.1         (1.1)       406.0       997.3        (16.8)       980.5 
 Cost of sales                               (259.2)             -     (259.2)     (642.7)             -     (642.7) 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
 Gross (loss)/profit                           147.9         (1.1)       146.8       354.6        (16.8)       337.8 
 Selling and distribution expenses            (44.8)             -      (44.8)      (95.0)             -      (95.0) 
 Administrative expenses                     (119.3)         (0.1)     (119.4)     (235.2)           1.5     (233.7) 
 Other expense                                (19.0)             -      (19.0)      (19.0)             -      (19.0) 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
 Operating (loss)/profit                      (35.2)         (1.2)      (36.4)         5.4        (15.3)       (9.9) 
 Finance income                                  3.2             -         3.2        16.3             -        16.3 
 Finance expense                              (37.7)             -      (37.7)      (77.3)             -      (77.3) 
 Loss before income tax                       (69.7)         (1.2)      (70.9)      (55.6)        (15.3)      (70.9) 
 Income tax credit/(charge)                     14.6           1.2        15.8       (8.9)           2.1       (6.8) 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
 Loss for the period                          (55.1)             -      (55.1)      (64.5)        (13.2)      (77.7) 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
 
 (Loss)/profit for the period 
 attributable 
 to: 
    Owners of the group                       (63.8)             -      (63.8)     (113.2)        (13.2)     (126.4) 
    Non-controlling interests                    1.0             -         1.0         8.8             -         8.8 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
                                              (62.8)             -      (62.8)     (104.4)        (13.2)     (117.6) 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
 
 Other comprehensive (expense)/income 
  for the period, net of income tax              2.1             -         2.1        17.3             -        17.3 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
 Total comprehensive loss for the 
  period                                      (60.7)             -      (60.7)      (87.1)        (13.2)     (100.3) 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
 
 Total comprehensive (loss)/income 
  for the period attributable to: 
    Owners of the group                       (61.7)             -      (61.7)      (95.9)        (13.2)     (109.1) 
    Non-controlling interests                    1.0             -         1.0         8.8             -         8.8 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
                                              (60.7)             -      (60.7)      (87.1)        (13.2)     (100.3) 
                                          ----------  ------------  ----------  ----------  ------------  ---------- 
 
 

The impact of the correction of the restatement above, together with the impact of the bonus element of the rights issue on Earnings per ordinary share in the comparative periods is summarised as follows:

 
                                              6 months ended 30 June                       12 months ended 31 December 
                                                                2019                                              2019 
                            As       Bonus         Error          As          As       Bonus         Error          As 
                      reported    issue(1)    Correction    restated    reported    issue(1)    Correction    restated 
------------------  ----------  ----------  ------------  ----------  ----------  ----------  ------------  ---------- 
 Earnings per 
 ordinary share 
    Basic              (28.0p)     (20.7p)        (0.0p)      (7.3p)     (49.6p)     (29.3p)        (5.8p)     (14.5p) 
    Diluted            (28.0p)     (20.7p)        (0.0p)      (7.3p)     (49.6p)     (29.3p)        (5.8p)     (14.5p) 
                    ----------  ----------  ------------  ----------  ----------  ----------  ------------  ---------- 
 

1. The comparative basic and diluted earnings per ordinary share values have been restated to reflect the bonus element of the rights issue completed on 1 April 2020.

Consolidated Statement of Financial Position (extract)

 
                                        30 June 2019                   31 December 2019          1 January 2019 
                          As    Increase/         As         As    Increase/         As         As    Increase/         As 
                    reported   (decrease)   restated   reported   (decrease)   restated   reported   (decrease)   restated 
                        GBPm         GBPm       GBPm       GBPm         GBPm       GBPm       GBPm         GBPm       GBPm 
-----------------  ---------  -----------  ---------  ---------  -----------  ---------  ---------  -----------  --------- 
 Deferred tax 
  asset                 33.0          1.8       34.8       45.7            -       45.7       32.1          0.6       32.7 
 Deferred tax 
  liability                -            -          -       12.6        (2.7)        9.9       20.0            -       20.0 
 Trade and other 
  payables - 
  current              719.2         15.0      734.2      702.1         29.1      731.2      641.4         13.8      655.2 
                   ---------  -----------  ---------  ---------  -----------  ---------  ---------  -----------  --------- 
 Net Assets            388.5       (13.2)      375.3      358.9       (26.4)      332.5      447.2       (13.2)      434.0 
                   ---------  -----------  ---------  ---------  -----------  ---------  ---------  -----------  --------- 
 
 Retained 
  earnings              34.6       (13.2)       21.4     (13.5)       (26.4)     (39.9)       97.2       (13.2)       84.0 
                   ---------  -----------  ---------  ---------  -----------  ---------  ---------  -----------  --------- 
 Equity 
  attributable 
  to owners of 
  the 
  group                377.3       (13.2)      364.1      344.8       (26.4)      318.4      437.0       (13.2)      423.8 
 Non-controlling 
  interests             11.2            -       11.2       14.1            -       14.1       10.2            -       10.2 
                   ---------  -----------  ---------  ---------  -----------  ---------  ---------  -----------  --------- 
 Total 
  shareholders' 
  equity               388.5       (13.2)      375.3      358.9       (26.4)      332.5      447.2       (13.2)      434.0 
                   ---------  -----------  ---------  ---------  -----------  ---------  ---------  -----------  --------- 
 
 

There is no overall impact on the cashflow in any of the previous periods from the restatement mentioned above. The income statement impact and the movement in the statement of financial position is all classified within cashflows from operations and hence no impact on overall cashflow sub headings.

   3.     Segmental information 
 
                                                     6 months      12 months 
                                                        ended          ended 
                                         6 months     30 June    31 December 
                                            ended        2019           2019 
                                          30 June    restated       restated 
                                             2020         (1)            (1) 
 Revenue                                     GBPm        GBPm           GBPm 
--------------------------------------  ---------  ----------  ------------- 
 Analysis by category 
 Sale of vehicles                           113.1       355.0          880.8 
 Sale of parts                               23.1        32.2           63.0 
 Servicing of vehicles                        3.5         5.2            9.3 
 Brands and motorsport                        6.3        13.6           27.4 
                                        ---------  ----------  ------------- 
                                            146.0       406.0          980.5 
                                        ---------  ----------  ------------- 
 
                                                     6 months      12 months 
                                                        ended          ended 
                                         6 months     30 June    31 December 
                                            ended        2019           2019 
                                          30 June    restated       restated 
                                             2020         (1)            (1) 
 Revenue                                     GBPm        GBPm           GBPm 
--------------------------------------  ---------  ----------  ------------- 
 Analysis by geographic location 
 United Kingdom                              39.4       102.0          229.6 
 The Americas                                43.2        98.0          278.5 
 Rest of Europe, Middle East & Africa        33.3        84.0          231.2 
 Asia Pacific                                30.1       122.0          241.2 
                                        ---------  ----------  ------------- 
                                            146.0       406.0          980.5 
                                        ---------  ----------  ------------- 
 

1. The prior period segmental comparatives have been restated to reflect the correction of an error within Sale of vehicles in The Americas - see note 2 for further detail.

The Group's revenue, when assessed on an annual basis, is typically weighted toward the second half of the year. This is exaggerated in the current year in part due to the impact of Covid-19.

Non-current assets other than financial instruments and deferred tax assets by geographic location

 
                                                    Property, 
                                Right-of-use            Plant              Intangible          Other 
 As at 30 June 2020                   Assets    and Equipment   Goodwill       Assets    Receivables     Total 
                                        GBPm             GBPm       GBPm         GBPm           GBPm      GBPm 
-----------------------------  -------------  ---------------  ---------  -----------  -------------  -------- 
 United Kingdom                         68.5            308.7       85.4      1,169.7              -   1,632.3 
 The Americas                            0.2              1.5          -            -              -       1.7 
 Rest of Europe, Middle East 
  & Africa                                 -             95.7          -         17.5            2.0     115.2 
 Asia Pacific                            9.2              0.7          -            -              -       9.9 
                               -------------  ---------------  ---------  -----------  -------------  -------- 
                                        77.9            406.6       85.4      1,187.2            2.0   1,759.1 
                               -------------  ---------------  ---------  -----------  -------------  -------- 
 
 
                                                    Property, 
                                Right-of-use            Plant              Intangible          Other 
 As at 30 June 2019                   Assets    and Equipment   Goodwill       Assets    Receivables     Total 
                                        GBPm             GBPm       GBPm         GBPm           GBPm      GBPm 
-----------------------------  -------------  ---------------  ---------  -----------  -------------  -------- 
 United Kingdom                         68.0            262.2       85.4      1,050.7              -   1,466.3 
 The Americas                            0.3              0.6          -            -              -       0.9 
 Rest of Europe, Middle East 
  & Africa                               0.1             72.1          -         18.4            2.1      92.7 
 Asia Pacific                            8.6              0.1          -            -              -       8.7 
                               -------------  ---------------  ---------  -----------  -------------  -------- 
                                        77.0            335.0       85.4      1,069.1            2.1   1,568.6 
                               -------------  ---------------  ---------  -----------  -------------  -------- 
 
 
                                                    Property, 
                                Right-of-use            Plant              Intangible          Other 
 As at 31 December 2019               Assets    and Equipment   Goodwill       Assets    Receivables     Total 
                                        GBPm             GBPm       GBPm         GBPm           GBPm      GBPm 
-----------------------------  -------------  ---------------  ---------  -----------  -------------  -------- 
 United Kingdom                         71.5            266.0       85.4      1,081.3              -   1,504.2 
 The Americas                            0.2              1.0          -            -              -       1.2 
 Rest of Europe, Middle East 
  & Africa                               0.1             83.5          -         16.9            1.8     102.3 
 Asia Pacific                           10.0                -          -            -              -      10.0 
                               -------------  ---------------  ---------  -----------  -------------  -------- 
                                        81.8            350.5       85.4      1,098.2            1.8   1,617.7 
                               -------------  ---------------  ---------  -----------  -------------  -------- 
 
   4.     Other expense 
 
                                                    6 months   6 months      12 months 
                                                       ended      ended          ended 
                                                     30 June    30 June    31 December 
                                                        2020       2019           2019 
                                                        GBPm       GBPm           GBPm 
------------------------------------------------  ----------  ---------  ------------- 
 Loss allowance - sale of intellectual property            -     (19.0)         (19.0) 
                                                  ----------  ---------  ------------- 
 

In the 6 months ended 30 June 2019 the recoverability of a receivable relating to the sale of certain legacy intellectual property was assessed as doubtful resulting in the recognition of a GBP19.0m loss allowance.

   5.     Adjusting items 
 
                                                         6 months   6 months      12 months 
                                                            ended      ended          ended 
                                                          30 June    30 June    31 December 
                                                             2020       2019           2019 
                                                             GBPm       GBPm           GBPm 
------------------------------------------------------  ---------  ---------  ------------- 
 Adjusting operating expenses: 
  Impairment of assets (1) : 
  Development costs                                             -          -         (27.7) 
  Plant, machinery, fixtures and fittings                       -          -          (4.7) 
  Tooling                                                       -          -          (3.7) 
  Inventory                                                     -          -          (2.3) 
  Right-of-use lease assets                                 (2.0)          -          (1.0) 
                                                        ---------  ---------  ------------- 
                                                            (2.0)          -         (39.4) 
  Restructuring(2) : 
  Restructuring costs                                      (12.4)          -          (2.8) 
  Settlement arrangements and incentive payments(3)         (2.7)          -              - 
                                                           (15.1)          -          (2.8) 
  Initial Public Offering costs: 
  Staff incentives(4)                                         3.3      (2.0)            0.6 
  Professional fees                                             -      (0.5)          (0.5) 
                                                        ---------  ---------  ------------- 
                                                              3.3      (2.5)         (42.1) 
                                                        ---------  ---------  ------------- 
 Adjusting finance expenses: 
     Movement on derivatives not qualifying for hedge 
      accounting                                                -      (6.6)          (6.6) 
                                                        ---------  ---------  ------------- 
 Adjusting items before tax                                (13.8)      (9.1)         (48.7) 
 Tax credit on adjusting items                                3.6        1.4            8.8 
                                                        ---------  ---------  ------------- 
 Adjusting items after tax                                 (10.2)      (7.7)         (39.9) 
                                                        ---------  ---------  ------------- 
 

1. In the 6 months ended 30 June 2020 the Group commenced a rationalisation exercise to reduce its geographical footprint. This resulted in an impairment charge of GBP2.0m writing down the right-of-use asset to GBPnil, triggered by conclusion of activity at one of the Group's leased sites.

2. In the 6 months ended 30 June 2020 costs associated with the first phase of the restructuring plan, announced in 2019, were GBP0.3m (30 June 2019: GBPnil, 31 December 2019: GBP2.8m).

The Group announced on 4 June 2020, that it would shortly launch a consultation process on proposals to reduce employee numbers reflecting lower than originally planned production volumes. The restructuring costs associated with this second phase are expected to be GBP12.1m.

3. It was announced on 27 February 2020 that Mark Wilson would step down as CFO and as an Executive Director of the Group on 30 April 2020. Subsequent to this, o n 25 May 2020, Dr. Andrew Palmer stepped down as CEO and as an Executive Director of the Group. Tobias Moers will join the Group as CEO and Executive Director on 1 August 2020. Amounts due at 30 June 2020, as a result of these changes, are GBP2.7m.

4. In the period ended 30 June 2020 a Legacy Long-term Incentive Plan ("LTIP") charge of GBP3.1m was recognised and is included in Staff incentives (30 June 2019: GBP2.0m, 31 December 2019 GBP3.6m).

With the continuing reduced performance of the Group in 2020, the remaining Initial Public Offering ("IPO") bonus held for management is no longer expected to be paid. This decision resulted in GBP6.4m being credited back to the Consolidated Income Statement.

   6.     Finance income 
 
                                                       6 months   6 months      12 months 
                                                          ended      ended          ended 
                                                        30 June    30 June    31 December 
                                                           2020       2019           2019 
                                                           GBPm       GBPm           GBPm 
----------------------------------------------------  ---------  ---------  ------------- 
 Bank deposit and other interest income                     1.6        3.2            5.0 
 Foreign exchange gain on borrowings not designated 
  as part of a hedging relationship                           -          -           11.3 
                                                      ---------  ---------  ------------- 
                                                            1.6        3.2           16.3 
                                                      ---------  ---------  ------------- 
 
   7.     Finance expense 
 
                                                         6 months   6 months      12 months 
                                                            ended      ended          ended 
                                                          30 June    30 June    31 December 
                                                             2020       2019           2019 
                                                             GBPm       GBPm           GBPm 
------------------------------------------------------  ---------  ---------  ------------- 
 Bank loans, overdrafts, senior secured notes 
  and other interest                                         43.6       26.9           62.8 
 Foreign exchange loss on borrowings not designated 
  as part of a hedging relationship                          17.7        3.7              - 
 Hedge ineffectiveness on loan instruments designated         2.3          -              - 
  as a cashflow hedge 
 Net interest expense on the net defined benefit 
  liability                                                   0.4        0.6            1.1 
 Interest on contract liabilities held                        3.6        4.2            8.8 
 Interest on lease liabilities                                2.1        2.3            4.6 
 Finance expense before adjusting items                      69.7       37.7           77.3 
 Adjusting finance expenses (note 5)                            -        6.6            6.6 
 Total finance expense                                       69.7       44.3           83.9 
                                                        ---------  ---------  ------------- 
 
   8.     Income tax credit/(charge) 

The effective tax rate for the period ended 30 June 2020 is 12% (period ended 30 June 2019: 22% restated). This compares to a UK statutory rate of tax 19% applicable to the group for the period to 30 June 2020 (19% for the period ended 30 June 2019). The deferred tax asset at 30 June 2020 has been calculated based on the rate of 19% substantively enacted at the period end date, except for deferred tax assets arising in overseas subsidiaries where the deferred tax asset has been recognised at the applicable rate for each subsidiary. Permanently disallowable expenditure and an unrecognised net deferred tax asset in respect of interest deductions deductible give rise to further adjustments to the total tax arising in the periods.

   9.     Earnings per ordinary share 
 
                                                                    6 months      12 months 
                                                                       ended          ended 
                                                        6 months     30 June    31 December 
                                                           ended        2019           2019 
                                                         30 June    restated       restated 
 Continuing and total operations                            2020       (1,3)          (1,3) 
-----------------------------------------------------  ---------  ----------  ------------- 
 Basic earnings per ordinary share 
 Loss available for equity holders (GBPm)                (200.3)      (63.8)        (126.4) 
 Basic weighted average number of ordinary shares 
  (million)                                              1,203.0       870.4          870.4 
 Basic earnings per ordinary share (pence)               (16.7p)      (7.3p)        (14.5p) 
 
 Diluted earnings per ordinary share 
 Loss available for equity holders (GBPm)                (200.3)      (63.8)        (126.4) 
 Diluted weighted average number of ordinary shares 
  (million)                                              1,203.0       870.4          870.4 
 Diluted earnings per ordinary share (pence)             (16.7p)      (7.3p)        (14.5p) 
                                                       ---------  ----------  ------------- 
 
                                                         30 June     30 June    31 December 
                                                            2020        2019           2019 
                                                          Number      Number         Number 
-----------------------------------------------------  ---------  ----------  ------------- 
 Diluted weighted average number of ordinary shares 
  is calculated as: 
 Basic weighted average number of ordinary shares(1) 
  (million)                                              1,203.0       870.4          870.4 
  Adjustments for calculation of diluted earnings 
   per share: 
  Long-term incentive plans(2)                                 -           -              - 
                                                       ---------  ----------  ------------- 
 Weighted average number of ordinary shares and 
  potential ordinary shares (million)                    1,203.0       870.4          870.4 
                                                       ---------  ----------  ------------- 
 

1. The weighted average number of ordinary shares in both comparative periods have been restated to reflect the bonus element of the rights issue completed on 1 April 2020.

2. The impact of the Long-term incentive plan ("LTIP") shares has been excluded from the weighted average number of ordinary shares calculation on the basis of antidilution.

3. The comparative periods loss available to equity holders have been restated to reflect the correction of an error - see note 2 for further details.

   10.    Research and Development expenditure 
 
                                                     6 months   6 months      12 months 
                                                        ended      ended          ended 
                                                      30 June    30 June    31 December 
                                                         2020       2019           2019 
                                                         GBPm       GBPm           GBPm 
--------------------------------------------------  ---------  ---------  ------------- 
 Total research and development expenditure             123.0      121.3          226.0 
 Capitalised research and development expenditure       121.3    (121.3)        (226.0) 
                                                    ---------  ---------  ------------- 
 Research and development expenditure recognised          1.7          -              - 
  as an expense during the period 
                                                    ---------  ---------  ------------- 
 
   11.    Net debt 
 
                                                  30 June   30 June   31 December 
                                                     2020      2019          2019 
                                                     GBPm      GBPm          GBPm 
-----------------------------------------------  --------  --------  ------------ 
 Cash and cash equivalents                          359.4     126.9         107.9 
 Cash held not available for short-term use(1)       10.7         -           8.7 
 Bank loans and overdrafts(2)                     (114.6)   (124.0)       (124.0) 
 Inventory repurchase arrangements(3)              (19.5)         -        (38.9) 
 Senior Secured Notes                             (877.0)   (734.9)       (829.9) 
 Lease liabilities(4)                             (110.0)   (111.6)       (111.4) 
                                                  (751.0)   (843.6)       (987.6) 
                                                 --------  --------  ------------ 
 
 Current                                            232.5       3.0        (51.2) 
 Non-current                                      (983.5)   (846.6)       (936.4) 
                                                 --------  --------  ------------ 
                                                  (751.0)   (843.6)       (987.6) 
                                                 --------  --------  ------------ 
 

4. In 2019, GBP8.7m held in certain local bank accounts had been frozen in relation to local arbitration proceedings (30 June 2019: GBPnil). At 30 June 2020 the balance held in frozen bank accounts was GBP10.7m. The cash held in these accounts did not meet the definition of cash and cash equivalents and therefore was classified as an other financial asset.

5. At 30 June 2020 GBP70m of the GBP80m revolving credit facility was drawn down (30 June 2019: GBP70.0m, 31 December 2019: GBP70.0m). The group is party to a back-to-back loan arrangement with HSBC Bank plc, whereby Chinese Yuan to the value of GBP36.2m were deposited in a restricted account with HSBC in China in exchange for a Sterling overdraft facility with HSBC in the United Kingdom. The GBP36.2m of restricted cash is shown in the total of cash and cash equivalents above (30 June 2019: GBP37.4m, 31 December 2019: GBP36.7m). At 30 June 2020 the Group has drawn down GBP33.9m (30 June 2019: GBP36.7m, 31 December 2019: GBP36.3m) of the combined overdraft facility which is included in bank loans and overdrafts.

In 2018 the Group entered into a fixed rate loan to finance the construction of the paint shop at the new St Athan manufacturing facility. The loan matures on 31 March 2022. The quarterly repayments on the loan include an element of capital repayment and interest charge. The final payment on 31 March 2022 includes an increased capital repayment of GBP6.3m. At 30 June 2020 the amount outstanding is GBP10.7m with GBP2.9m included in current borrowings and GBP7.8m included in non-current borrowings.

6. At 30 June 2020 a repurchase liability of GBP19.5m was recognised in accruals and other payables and Net Debt. In June 2020, GBP16.2m of parts for resale, service parts and production stock were sold for GBP19.5m (gross of indirect tax) and subsequently repurchased. Under the repurchase agreement, the Group will repay GBP20m gross of indirect tax. As part of this arrangement legal title to the parts was surrendered however control remained with the Group. This repurchase arrangement will be fully settled in 2020.

At 31 December 2019 a repurchase liability of GBP38.9m including accrued interest of GBP0.2m, was recognised in accruals and other payables and Net Debt. In November 2019, GBP32.2m of parts for resale, service parts and production stock were sold for GBP38.7m (gross of indirect tax) and subsequently repurchased. This repurchase arrangement was fully settled in the 6 month period ended 30 June 2020.

7. The comparative Group Net Debt at 30 June 2019 and 31 December 2019 have been re-presented to align with the updated definition of Net debt to include current and non-current lease liabilities following the Group's adoption of IFRS 16 on 1 January 2019. There is no impact on the Group's Consolidated Income Statement, earnings per share, retained earnings or net assets. Net Debt is a non-IFRS alternative performance measure used for evaluating the performance of the Group and for further details see note 19.

   12.    Movement in net debt 
 
                                                         30 June   30 June   31 December 
                                                            2020      2019          2019 
                                                            GBPm      GBPm          GBPm 
------------------------------------------------------  --------  --------  ------------ 
 Cash and cash equivalents                                 359.4     126.9         107.9 
 Cash held not available for short-term use                 10.7         -           8.7 
 Inventory repurchase arrangement                         (19.5)         -        (38.9) 
 Lease liabilities(1)                                    (110.0)   (111.6)       (111.4) 
 Loans and other borrowings - current                    (106.8)   (113.3)       (114.8) 
 Loans and other borrowings - non-current                (884.8)   (745.6)       (839.1) 
 Net debt                                                (751.0)   (843.6)       (987.6) 
                                                        --------  --------  ------------ 
 
 Movement in net debt 
 Net increase/(decrease) in cash and cash equivalents      258.0    (17.2)        (42.5) 
 Add back cash flows in respect of other components 
  of net debt: 
  New borrowings                                          (75.0)   (138.6)       (260.8) 
  Proceeds from inventory repurchase arrangement          (19.5)         -        (38.7) 
  Proceeds from existing borrowings                            -    (11.1)       (102.3) 
  Repayment of existing borrowings                          83.0         -          91.5 
  Repayment of inventory repurchase arrangement             38.7         -             - 
  Lease liability payments                                   5.8       5.2          10.9 
  Movement in cash held not available for short-term 
   use                                                       1.2         -           8.7 
  Transaction fees                                             -       0.4           4.1 
                                                        --------  --------  ------------ 
 Increase/(decrease) in net debt arising from 
  cash flows                                               292.2   (161.3)       (329.1) 
 Non-cash movements: 
  Opening lease liability upon adoption of IFRS 
   16                                                          -   (116.5)       (116.5) 
  Foreign exchange gain/(loss) on secured loan            (38.5)     (4.9)          23.7 
  Interest added to debt                                   (4.8)     (0.6)         (1.1) 
  Borrowing fee amortisation                               (3.4)     (1.7)         (6.0) 
  Lease liability interest charge                          (2.1)     (2.3)         (4.6) 
  Lease modifications                                      (2.0)         -             - 
  Unpaid transaction fees                                      -     (0.7)         (2.0) 
  Foreign exchange (loss)/gain and other                   (4.8)       3.9           7.5 
                                                        --------  --------  ------------ 
 Decrease/(increase) in net debt                           236.6   (284.1)       (428.1) 
 Net debt at beginning of the year                       (987.6)   (559.5)       (559.5) 
                                                        --------  --------  ------------ 
 Net debt at the end of the year                         (751.0)   (843.6)       (987.6) 
                                                        --------  --------  ------------ 
 

1. Net debt in the comparative periods has been re-presented to include lease liabilities - see note 11 for further detail.

   13.    Financial Instruments 

The following tables provide an analysis of financial instruments grouped into Levels 1 to 3 based on the degree to which the value is observable. There were no transfers between levels during the current and comparative periods.

 
                                    30 June 2020                30 June 2019              31 December 2019 
                              Nominal     Book     Fair   Nominal     Book     Fair   Nominal     Book     Fair 
                                Value    Value    Value     Value    Value    Value     Value    Value    Value 
 Included in assets              GBPm     GBPm     GBPm      GBPm     GBPm     GBPm      GBPm     GBPm     GBPm 
---------------------------  --------  -------  -------  --------  -------  -------  --------  -------  ------- 
 Level 2 
 Forward foreign exchange 
  contracts                         -        -        -         -        -        -         -      0.4      0.4 
 Level 3 
 Warrant equity options(1)          -      2.8      2.8         -        -        -         -        -        - 
                             --------  -------  -------  --------  -------  -------  --------  -------  ------- 
                                    -      2.8      2.8         -        -        -         -      0.4      0.4 
                             --------  -------  -------  --------  -------  -------  --------  -------  ------- 
 
                                    30 June 2020                30 June 2019              31 December 2019 
                              Nominal     Book     Fair   Nominal     Book     Fair   Nominal     Book     Fair 
                                Value    Value    Value     Value    Value    Value     Value    Value    Value 
 Included in liabilities         GBPm     GBPm     GBPm      GBPm     GBPm     GBPm      GBPm     GBPm     GBPm 
---------------------------  --------  -------  -------  --------  -------  -------  --------  -------  ------- 
 Level 1 
 GBP285m 5.75% Sterling 
  Senior Secured Notes          285.0    280.2    255.9     285.0    277.9    280.8     285.0    279.0    273.6 
 $400m 6.5% US Dollar 
  Senior Secured Notes          322.9    322.9    285.8     315.4    315.4    312.9     301.6    301.6    288.0 
 $190m 6.5% US Dollar 
  Senior Secured Notes          153.4    149.1    139.4     149.8    141.6    148.3     143.3    137.2    133.8 
 $150m 12.0% US Dollar 
  Senior Secured Notes          121.1    124.7    125.4         -        -        -     113.1    112.1    122.1 
 Level 2 
 Forward foreign exchange 
  contracts                         -     15.0     15.0         -     13.9     13.9         -      8.9      8.9 
                                882.4    891.9    821.5     750.2    748.8    755.9     843.0    838.8    826.4 
                             --------  -------  -------  --------  -------  -------  --------  -------  ------- 
 

1. On 31 March 2020 Aston Martin Lagonda Limited, an indirect subsidiary of the Company, entered into an agreement which included warrant options for subscription in equity shares in Racing Point UK Limited. The warrant options have been recorded as an embedded option derivative asset at GBP2.9m on initial recognition. The fair value movement in the options for the period to 30 June 2020 was GBP0.1m and is recognised within the Income Statement in administrative expenses.

The fair value of the warrant equity option above has been established by applying the proportion of equity represented by the derivative to an assessment of the enterprise value of Racing Point UK Limited, which is then adjusted to reflect marketability and control commensurate with the size of the investment. The enterprise value has been estimated using a blend of measures including an income-based approach and a market based approach. Due to the size of the potential investment, as a proportion of the equity of Racing Point UK Limited, there are no plausible sensitivities which would give rise to a material variation in the carrying value of the derivative.

There is a further fair value embedded derivative in the agreement in respect of an additional economic interest in the equity of Racing Point UK Limited which has been assessed as having a carrying value of GBPnil at both inception and the period end. The movement in the value of this derivative has been estimated using the same method as the warrant equity option disclosed above.

The forward currency contracts are carried at fair value based on pricing models and discounted cash flow techniques derived from assumptions provided by third party banks. The Sterling Senior Secured Notes are all valued at amortised cost. The fair value of these Senior Secured Notes at the current and comparative period ends are determined by reference to the quoted price on The International Stock Exchange Authority in St. Peter Port, Guernsey. For all other receivables and payables, the carrying amount is deemed to reflect the fair value.

Under IFRS 7, such assets and liabilities are classified by the way in which their fair value is calculated. The interest bearing loans and borrowings are considered to be level 1 liabilities. Forward foreign exchange contracts are considered to be level 2 assets and liabilities. Warrant equity options are considered to be level 3 assets and liabilities.

IFRS 7 defines each level as follows:

   --          level 1 assets and liabilities have inputs observable through quoted prices; 

-- level 2 assets and liabilities have inputs observable, other than quoted prices, either directly (i.e. as prices) or indirectly (i.e. derived from prices); or

-- level 3 assets and liabilities as those with inputs not based on observable market data.

   14.    Provisions 
 
                        30 June   30 June   31 December 
                           2020      2019          2019 
                           GBPm      GBPm          GBPm 
---------------------  --------  --------  ------------ 
 Warranty provision        26.6      19.9          28.2 
 Restructuring costs       12.1         -             - 
                       --------  --------  ------------ 
                           38.7      19.9          28.2 
                       --------  --------  ------------ 
 
 Current                   24.2       7.9          12.0 
 Non-current               14.5      12.0          16.2 
                       --------  --------  ------------ 
                           38.7      19.9          28.2 
                       --------  --------  ------------ 
 

The Group announced in June 2020 that it would shortly launch a consultation process on proposals to reduce employee numbers reflecting lower than originally planned production volumes. The total estimated staff restructuring costs are GBP12.0m, in addition to other directly attributable costs of GBP0.1m. These costs were fully provided for in the current reporting period and are expected to be fully utilised over the next 12 months.

   15.    Pension Scheme 

The net liability for defined benefit obligations of GBP36.8m at 31 December 2019 has increased to a net liability of GBP57.8m at 30 June 2020. The movement of GBP21.0m comprises a net actuarial loss of GBP22.2m in addition to a charge to the Income Statement of GBP4.7m less contributions of GBP5.9m.

The net actuarial loss is primarily caused by a decrease in the discount rate reflecting the reduction in corporate bond yields during the period. At 30 June 2020, no adjustment has been made under IFRIC 14 to the net pension asset as the reduction in discount rate moved the pension deficit over and above the discounted value of the future deficit reduction contributions.

   16.    Share capital 
 
                            30 June 2020         30 June 2019          31 December 
                                                                              2019 
                           Number   GBPm        Number   GBPm        Number   GBPm 
-----------------  --------------  -----  ------------  -----  ------------  ----- 
 Ordinary shares    1,824,014,450   16.5   228,002,890    2.1   228,002,890    2.1 
                   --------------  -----  ------------  -----  ------------  ----- 
 

Movement in Ordinary shares:

During the 6 month period ended 30 June 2020 the Company issued ordinary shares to improve liquidity, provide flexibility in executing its strategy to operate as a true luxury company and help build the appropriate capital structure for the longer term.

 
                                                          Share      Share     Merger 
                                                        Capital    Premium    Reserve 
                                              Number       GBPm       GBPm       GBPm 
------------------------------------  --------------  ---------  ---------  --------- 
 Opening balance at 1 January 2020       228,002,890        2.1      352.3          - 
 
 Private placing(1)                       76,000,000        0.7      170.3          - 
 Rights issue(2)                       1,216,011,560       10.9      353.8 
 Non-pre-emptive placing and retail 
  offer(3)                               304,000,000        2.8          -      149.3 
                                       1,596,011,560       14.4      524.1      149.3 
 Transaction costs arising on the 
  issuance of ordinary shares                      -          -     (25.1)      (5.3) 
                                      --------------  ---------  ---------  --------- 
 Net movement during the period        1,596,011,560       14.4      499.0      144.0 
 
 Balance at 30 June 2020               1,824,014,450       16.5      851.3      144.0 
                                      --------------  ---------  ---------  --------- 
 

1. On 31 March 2020 the Company issued 76.0m ordinary shares by way of a private placing. The shares were issued at 225p raising gross proceeds of GBP171.0m, with GBP0.7m recognised as share capital and the remaining GBP170.3m recognised as share premium.

2. On 1 April 2020 the Company issued 1,216.0m ordinary shares by way of a rights issue. The shares were issued at 30p raising gross proceeds of GBP364.7m, with GBP10.9m recognised as share capital and the remaining GBP353.8m recognised as share premium.

3. On 26 June 2020 the Company issued 304m ordinary shares through a non-pre-emptive placing and retail offer. The shares were issued at 50p raising gross proceeds of GBP152.1m, with GBP2.8m recognised as share capital and the remaining GBP149.3m recognised as merger reserve. At 30 June 2020 GBP5.3m of proceeds were still to be received by the Company. The merger reserve is used where more than 90% of the shares in a subsidiary are acquired and the consideration includes the issue of new shares by the Company, thereby attracting merger relief under the Companies Act 2006.

   17.    Related party transactions 

During the 6 month period ended 30 June 2020, an agreement was signed with the previous CEO, a Director of the Group at the time, for the purchase of a vehicle at an expected discount of approximately GBP0.3m, in line with the employee purchases policy then in effect. This vehicle sale is not expected to complete in 2020 or materially affect the financial position and performance of the Group.

There have been no other related party transactions in the 6 month period to 30 June 2020 that have materially affected the financial position or performance of the Group.

   18.    Post balance sheet events 

After the balance sheet date, the Group has arranged further Senior Secured Notes of $68.0m at 12% which mature in April 2022 and a GBP20.0m Coronavirus Large Business Interruption Loan Scheme (CLBILS) which matures in January 2022, whilst also entering into a new wholesale finance facility with a term of August 2021.

   19.    Alternative performance measures 

In the reporting of financial information, the Directors have adopted various Alternative Performance Measures ("APMs"). APMs should be considered in addition to IFRS measurements. The Directors believe that these APMs assist in providing useful information on the underlying performance of the Group, enhance the comparability of information between reporting periods, and are used internally by the Directors to measure the Group's performance.

The key APMs that the Group focuses on are as follows:

i) Adjusted loss before tax (EBT) is the loss before tax and adjusting items (note 5) as shown in the Consolidated Income Statement.

   ii)      Adjusted operating loss (EBIT) is operating (loss)/profit before adjusting items. 

iii) Adjusted EBITDA removes depreciation, (profit)/loss on sale of non-current assets and amortisation from adjusted EBIT.

iv) Adjusted Earnings Per Share is loss after income tax before adjusting items as shown in the Consolidated Income Statement, divided by the weighted average number of ordinary shares in issue during the reporting period.

v) Net Debt is current and non-current borrowings in addition to inventory financing arrangements and lease liabilities, less cash and cash equivalents, and cash held not available for short-term use as shown in the Consolidated Statement of Financial Position (the definition of this APM has been updated since 31 December 2019 - see note 11).

vi) Adjusted leverage is represented by the ratio of Net Debt, to the last 12 months ("LTM") adjusted EBITDA (this APM definition has been updated since 31 December 2019 - see note 11).

vii) Free cashflow is represented by net cash (outflow)/inflow from operating activities plus the net cash used in investing activities plus interest paid in the period.

Income statement

 
                                                       6 months      12 months 
                                                          ended          ended 
                                           6 months     30 June    31 December 
                                              ended        2019           2019 
                                            30 June    restated       restated 
                                               2020         (1)            (1) 
                                               GBPm        GBPm           GBPm 
----------------------------------------  ---------  ----------  ------------- 
 Loss before tax                            (227.4)      (80.0)        (119.6) 
 Adjusting operating expenses                  13.8         2.5           42.1 
 Adjusting finance expenses                       -         6.6            6.6 
                                          ---------  ----------  ------------- 
 Adjusted loss before tax (EBT)             (213.6)      (70.9)         (70.9) 
 Adjusted finance income                      (1.6)       (3.2)         (16.3) 
 Adjusted finance expense                      69.7        37.7           77.3 
                                          ---------  ----------  ------------- 
 Adjusted operating loss (EBIT)             (145.5)      (36.4)          (9.9) 
 Reported depreciation                         22.7        24.7           42.7 
 Reported amortisation                         33.8        32.5           85.2 
 Loss on disposal of non-current assets           -           -            0.9 
                                          ---------  ----------  ------------- 
 Adjusted EBITDA                             (89.0)        20.8          118.9 
                                          ---------  ----------  ------------- 
 

8. The comparative periods have been restated to reflect a correction of an error - see note 2 for further detail.

Earnings per share

 
                                                                 6 months      12 months 
                                                                    ended          ended 
                                                     6 months     30 June    31 December 
                                                        ended        2019           2019 
                                                      30 June    restated       restated 
                                                         2020       (1,2)          (1,2) 
                                                         GBPm        GBPm           GBPm 
--------------------------------------------------  ---------  ----------  ------------- 
 Adjusted earnings per ordinary share 
 Loss available for equity holders (GBPm)             (200.3)      (63.8)        (126.4) 
 Adjusting items 
  Adjusting items before tax (GBPm)                      13.8         9.1           48.7 
  Tax on adjusting items (GBPm)                         (3.6)       (1.4)          (8.8) 
                                                    ---------  ----------  ------------- 
 Adjusted earnings (GBPm)                             (190.1)      (56.1)         (86.5) 
 Basic weighted average number of ordinary shares 
  (million)                                           1,203.0       870.4          870.4 
 Adjusted earnings per ordinary share (pence)         (15.8p)      (6.4p)         (9.9p) 
                                                    ---------  ----------  ------------- 
 
 Adjusted diluted earnings per ordinary share 
 Adjusted earnings (GBPm)                             (190.1)      (56.1)         (86.5) 
 Diluted weighted average number of ordinary 
  shares (million)                                    1,203.0       870.4          870.4 
 Adjusted diluted earnings per ordinary share 
  (pence)                                             (15.8p)      (6.4p)         (9.9p) 
                                                    ---------  ----------  ------------- 
 
 

9. The weighted average number of ordinary shares in both comparative periods have been restated to reflect the bonus element of the rights issue completed on 1 April 2020.

10. The comparative periods loss available to equity holders have been restated to reflect the correction of an error - see note 2 for further details.

Net debt

 
                                                                       30 June   31 December 
                                                                          2019          2019 
                                                           30 June    restated      restated 
                                                              2020         (1)           (1) 
                                                              GBPm        GBPm          GBPm 
--------------------------------------------------------  --------  ----------  ------------ 
 Opening cash and cash equivalents                           107.9       144.6         144.6 
  Cash (outflow)/inflow from operating activities          (179.4)        20.8          19.4 
  Cash outflow from investing activities                   (159.9)     (159.0)       (305.2) 
  Cash inflow from financing activities                      597.3       121.0         243.3 
  Effect of exchange rates on cash and cash equivalents      (6.5)       (0.5)           5.8 
                                                          --------  ----------  ------------ 
 Cash and cash equivalents at the end of the 
  period                                                     359.4       126.9         107.9 
 Cash held not available for short-term use                   10.7           -           8.7 
 Inventory repurchase arrangement                           (19.5)           -        (38.9) 
 Lease liabilities                                         (110.0)     (111.6)       (111.4) 
 Borrowings                                                (991.6)     (858.9)       (953.9) 
                                                          --------  ----------  ------------ 
 Net Debt                                                  (751.0)     (843.6)       (987.6) 
 
 Adjusted LTM EBITDA                                           9.1       158.5         118.9 
 Adjusted leverage                                           82.5x        5.3x          8.3x 
                                                          --------  ----------  ------------ 
 

1. The comparative periods adjusted LTM EBITDA and adjusted leverage have been restated for the correction of an error in addition to the re-presentation of Net debt to include lease liabilities - see note 2 and 11 respectively for further details.

Free Cashflow

 
                                                         30 June   30 June   31 December 
                                                            2020      2019          2019 
                                                            GBPm      GBPm          GBPm 
------------------------------------------------------  --------  --------  ------------ 
  Net cash (outflow)/inflow from operating activities    (179.4)      20.8          19.4 
  Net cash used in investing activities                  (159.9)   (159.0)       (305.2) 
  Interest paid                                           (31.3)    (23.1)        (52.0) 
 Free cashflow                                           (370.6)   (161.3)       (337.8) 
                                                        --------  --------  ------------ 
 

RESPONSIBILITY STATEMENT

The Interim consolidated financial information has been prepared in accordance with IAS 34 adopted by the European Union. We confirm that to the best of our knowledge that the Interim Management Report includes a fair review of the information required by:

(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

By order of the Board

Lawrence Stroll Ken Gregor

Executive Chairman Chief Financial Officer

29 July 2020 29 July 2020

Independent review report to Aston Martin Lagonda Global Holdings plc

Introduction

We have been engaged by the Company to review the condensed set of Financial Statements in the Interim Report for the 6 month period ended 30 June 2020 which comprises the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes 1 to 19. We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of Financial Statements.

This report is made solely to the company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

Directors' Responsibilities

The Interim Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Interim Report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1, the Annual Financial Statements of the Group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of Financial Statements included in this Interim Report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Interim Report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of Financial Statements in the Interim Report for 6 month period ended 30 June 2020 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

Ernst & Young LLP

Birmingham

29 July 2020

[1] Due to timing of retail share sales not closing before 30 June

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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July 29, 2020 02:00 ET (06:00 GMT)

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