TIDMAML
RNS Number : 6185C
Aston Martin Lagonda Global Hld PLC
22 June 2021
22 June 2021
Aston Martin Lagonda Global Holdings plc
Commencement of legal proceedings against Nebula Project AG and
its board members, a Swiss dealer network member
Aston Martin Lagonda Global Holdings plc ("Aston Martin" or "the
Company") announces that it is filing for civil legal proceedings
against Nebula Project AG and, with the support of a group of its
customers, criminal proceedings against its board members in order
for the prosecutor to investigate any potential criminal behaviour
following the failure to pay some customer deposits for Aston
Martin Valkyrie programme orders received by Nebula Project AG to
the Company. The Company has also terminated the underlying
commercial agreement with Nebula Project AG.
Both Aston Martin and its customers have been impacted by Nebula
Project AG's and its board members' behaviour. Aston Martin is
fully committed to supporting and working with those customers
affected to ensure that they will still receive delivery of their
Valkyrie programme vehicles as scheduled, prioritising customer
relationships, despite the Company not having received all the
deposited funds. There are no other agreements like this in place
and going forward the Company will ensure that all deposits for
special vehicles are received directly by Aston Martin, not through
a third party.
In 2016, the prior management team of Aston Martin entered into
an arrangement with Nebula Project AG to underpin the development
of the Aston Martin Valkyrie and certain other mid-engine
programmes. Under the terms of this agreement Nebula Project AG was
to receive royalty payments, which could have been significant over
time, linked to production volumes of these programmes and Nebula
Project AG meeting its funding commitments. As a result of the
termination of this commercial agreement with Nebula Project AG,
Aston Martin is no longer liable for any of these potential royalty
payments.
The Company is today also terminating the dealership
arrangements it had with AF Cars AG, a company operating Aston
Martin St.Gallen in Switzerland and managed by the same board
members as Nebula Project AG, after learning that vehicles have
been sold in breach of terms of the dealership agreement. The
Company is focused on maintaining service for customers as a
priority with the four other dealers it has in Switzerland
operating as usual.
The net financial impact to Aston Martin of this extraordinary
event is expected to be positive over time, as the financial impact
of not having received all the deposited funds, is expected to be
outweighed by the benefit from the termination of the Nebula
agreement and associated potential royalty payments. However, for
the year ending 31 December 2021 it is expected to reduce both
cashflow and EBITDA by up to GBP15 million, including a provision
of up to GBP5m of trade debtors. The Company expects to book the
provision in the second quarter and for the remaining impact on
cash flow and EBITDA to arise primarily in the fourth quarter. The
Company is confident that the net negative impact for 2022 can be
managed within current expectations.
Aston Martin has performed well year-to-date during 2021,
following the successful completion of the supply to demand
rebalance for GT/Sport cars, continuing excellent progress on
Project Horizon and with good forward visibility for both GT/Sport
and DBX. Aston Martin Valkyrie is on track for first deliveries in
the second half of the year.
Other than the short term negative financial impact of this
issue, Aston Martin is on course to achieve its financial guidance
for 2021 and remains confident in achieving its medium-term targets
of c.10,000 wholesales, c.GBP2bn revenue and c.GBP500m adjusted
EBITDA by 2024/25.
The Company will provide further updates on this issue and the
legal proceedings as appropriate.
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is being
released on behalf of Aston Martin Lagonda Global Holdings plc by
Catherine Sukmonowski, Company Secretary.
Enquiries
Investors and Analysts
Charlotte Cowley Director of Investor Relations +44 (0)7771
976764
charlotte.cowley@astonmartin.com
Brandon Henderson Senior Manager, Investor Relations +44 (0)7585
326704
brandon.henderson@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
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.
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