Green light for sports car manufacturer’s IPO

Aston Martin has today gone public on its plans to float the company on the London Stock Exchange.

The Warwickshire-based sports car manufacturer is expected to be valued at around £5bn through its initial public offering (IPO). It is expected to publish full details of its plans shortly, but has said the free float will be at least 25% and shares will be offered to eligibile Aston Martin customers and staff.

Dr Andy Palmer, chief executive of Aston Martin

Dr Andy Palmer, Aston Martin Lagonda’s chief executive, 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.”

It is the latest milestone in the company’s Second Century Plan which has driven its turnaround.

The manufacturer, which was founded in 1913, launched the plan in response to a £50m sales fall and big losses in 2014. In 2017, it achieved pre-tax profits of £87m on record revenues of £876m.

The group “has delivered continued profitable growth” in ths first half of 2018, figures released today show, with a 14% increase in earnings.

It expects to deliver up to 6,400 vehicles this year, and has the medium-term ambition of reaching 14,000 units.

Palmer added: “As we continue to execute our Second Century Plan, combining a product offensive and expanding manufacturing footprint, we have the resources and balance sheet strength to continue delivering on our growth strategy.

“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.”

Aston Martin Lagonda is headquartered at Gaydon, where it has its principal production facility. It also has sites in Wellesbourne, where it produces special edition models, and Newport Pagnell, which produces heritage or continuation models.

In addition, the manufacturer will next year open a plant in St Athan, Wales, where it will produce SUVs.