Cash concerns for Aston Martin; F1 plan still go03/31/2020
Aston Martin has expressed concerns over cash during the next 12 months, but new investor Lawrence Stroll is confident that their plans to enter Formula 1 will still go ahead.
The luxury British carmaker is due to become a fully fledged works team in Formula 1 again from 2021 with Stroll’s consortium funding and overseeing the transition from the current Racing Point outfit.
But Aston Martin say they do not have ‘sufficient working capital’ to be operational for the next 12 months, citing the extraordinary times we find ourselves in as reason for the ongoing financial uncertainty.
A company statement said: “Taking into account the proceeds of the capital raise, the Company is of the opinion that the Group does not have sufficient working capital to meet its requirements for 12 months following the publication of the Original Prospectus.
“This is due to the increased impact, since the Company published the First Supplementary Prospectus on 13 March, of COVID-19 and the ongoing and unquantifiable uncertainty it has created and continues to create.”
But Stroll, who is due to be named executive chairman of Aston Martin within the next month after his sizeable investment, says the funds injected by his consortium will give the company the stability it needs.
“I, and my co-investors in the consortium, continue to believe passionately in the future of Aston Martin Lagonda,” Stroll said after the meeting.
“This is most clearly demonstrated by our investment of £262m which underpins the financial security of the company. This is a very significant capital raise of £536m – due to be made by my consortium and other shareholders at a very challenging time.
“This gives the necessary stability to reset the business for its long-term future. We have a clear plan to make this happen, including Aston Martin entering an F1 works team next season and I look forward to working with the Management team to deliver this programme.”
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