Aston Martin - comment

Q1 was as weak as the guidance given in the FY results. We are not changing our FY forecasts yet but will update after the 0830 analyst webcast. Volumes were in line with our expectations, but a lower number of SUVs and Specials vs a higher number of Sport/GT deliveries meant that revenue was below our forecast (£234m vs £251m). If we add back the £15m customer service investment, the gross margin was 34% (vs 38% forecast). The lower gross margins fed into a lower-than-expected EBITDA. OCF was -£31m (vs -£70m forecast, the difference largely down to the lower EBITDA and a strong working capital performance (-£21m vs -£102m). £50m of the difference was driven by higher deposits for the Valhalla.