Aston Martin to float on London Stock Exchange

Aston Martin has confirmed plans to float on the London Stock Exchange in a move that could value the group at £5 billion.

The carmaker associated with James Bond posted strong results on Wednesday, revealing half-year profits of £42 million and an eight percent rise in revenue.

Chief executive, Andy Palmer said: “Today’s announcement represents a key milestone in the history of the company, which is reporting strong financial results and increased global demand for its award-winning sports cars.”

“Today’s results show that we have continued to deliver sustainable growth, margins and value for our shareholders whilst launching three new models and variants in the first half of the year,” he added.

Founded in 1913, Aston Martin exports 25 percent of its car to the European Union although it is not concerned with the effects of Brexit. 

“We can demonstrate that Brexit is not a major effect for us,” said Palmer. “If there is a tariff into Europe, it’s countered by a tariff into the UK for our competitors so you might lose a little bit of market share in the EU but you pick it up in the UK,” he added.

As part of the restructuring, the luxury car maker will open a new factory at St Athan, in Wales, in 2019.

Laith Khalaf, a senior analyst at Hargreaves Lansdown said: “There are few people who wouldn’t want an Aston Martin on their drive, and even fewer who can afford one.”

“However this stock market float allows investors to buy into a little of the glamour of Aston Martin, without getting a second mortgage,” he added.

The group will initially float around 25 percent of the company.

 

More articles ―