213800167WOVOK5ZC7762024-01-012024-12-31213800167WOVOK5ZC7762024-01-012024-12-31astonmartinlagondaglobalholdingsplc:Adjustedmemberiso4217:GBP213800167WOVOK5ZC7762024-01-012024-12-31astonmartinlagondaglobalholdingsplc:AdjustingItemsMember213800167WOVOK5ZC7762023-01-012023-12-31astonmartinlagondaglobalholdingsplc:Adjustedmember213800167WOVOK5ZC7762023-01-012023-12-31astonmartinlagondaglobalholdingsplc:AdjustingItemsMember213800167WOVOK5ZC7762023-01-012023-12-31iso4217:GBPxbrli:shares213800167WOVOK5ZC7762023-12-31ifrs-full:IssuedCapitalMember213800167WOVOK5ZC7762023-12-31ifrs-full:SharePremiumMember213800167WOVOK5ZC7762023-12-31ifrs-full:MergerReserveMember213800167WOVOK5ZC7762023-12-31ifrs-full:CapitalRedemptionReserveMember213800167WOVOK5ZC7762023-12-31ifrs-full:CapitalReserveMember213800167WOVOK5ZC7762023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800167WOVOK5ZC7762023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800167WOVOK5ZC7762023-12-31ifrs-full:RetainedEarningsMember213800167WOVOK5ZC7762023-12-31ifrs-full:NoncontrollingInterestsMember213800167WOVOK5ZC7762023-12-31213800167WOVOK5ZC7762024-01-012024-12-31ifrs-full:IssuedCapitalMember213800167WOVOK5ZC7762024-01-012024-12-31ifrs-full:SharePremiumMember213800167WOVOK5ZC7762024-01-012024-12-31ifrs-full:MergerReserveMember213800167WOVOK5ZC7762024-01-012024-12-31ifrs-full:CapitalRedemptionReserveMember213800167WOVOK5ZC7762024-01-012024-12-31ifrs-full:CapitalReserveMember213800167WOVOK5ZC7762024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800167WOVOK5ZC7762024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800167WOVOK5ZC7762024-01-012024-12-31ifrs-full:RetainedEarningsMember213800167WOVOK5ZC7762024-01-012024-12-31ifrs-full:NoncontrollingInterestsMember213800167WOVOK5ZC7762024-12-31ifrs-full:IssuedCapitalMember213800167WOVOK5ZC7762024-12-31ifrs-full:SharePremiumMember213800167WOVOK5ZC7762024-12-31ifrs-full:MergerReserveMember213800167WOVOK5ZC7762024-12-31ifrs-full:CapitalRedemptionReserveMember213800167WOVOK5ZC7762024-12-31ifrs-full:CapitalReserveMember213800167WOVOK5ZC7762024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800167WOVOK5ZC7762024-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800167WOVOK5ZC7762024-12-31ifrs-full:RetainedEarningsMember213800167WOVOK5ZC7762024-12-31ifrs-full:NoncontrollingInterestsMember213800167WOVOK5ZC7762024-12-31213800167WOVOK5ZC7762022-12-31ifrs-full:IssuedCapitalMember213800167WOVOK5ZC7762022-12-31ifrs-full:SharePremiumMember213800167WOVOK5ZC7762022-12-31ifrs-full:MergerReserveMember213800167WOVOK5ZC7762022-12-31ifrs-full:CapitalRedemptionReserveMember213800167WOVOK5ZC7762022-12-31ifrs-full:CapitalReserveMember213800167WOVOK5ZC7762022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800167WOVOK5ZC7762022-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800167WOVOK5ZC7762022-12-31ifrs-full:RetainedEarningsMember213800167WOVOK5ZC7762022-12-31ifrs-full:NoncontrollingInterestsMember213800167WOVOK5ZC7762022-12-31213800167WOVOK5ZC7762023-01-012023-12-31ifrs-full:IssuedCapitalMember213800167WOVOK5ZC7762023-01-012023-12-31ifrs-full:SharePremiumMember213800167WOVOK5ZC7762023-01-012023-12-31ifrs-full:MergerReserveMember213800167WOVOK5ZC7762023-01-012023-12-31ifrs-full:CapitalRedemptionReserveMember213800167WOVOK5ZC7762023-01-012023-12-31ifrs-full:CapitalReserveMember213800167WOVOK5ZC7762023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800167WOVOK5ZC7762023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800167WOVOK5ZC7762023-01-012023-12-31ifrs-full:RetainedEarningsMember213800167WOVOK5ZC7762023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember
ANNUAL REPORT AND ACCOUNTS 2024
PAST. PRESENT.
FUTURE, READY.
01XCover_XIFCX_XContents_v39.indd 101XCover_XIFCX_XContents_v39.indd 1 13/03/2025 14:3213/03/2025 14:32
WELCOME
2024 was a year of intense
productlaunches.
Our reinvigorated core line-up has
improved product performance and
driven reappraisal, building on our
iconic brand’s strong identity and
the reputation of our innovative
andskilled team.
With a portfolio that is
future-ready, we’re firmly focused
on delivering excellence.
THE PATTERN IN THE BACKGROUND USED THROUGHOUT THIS REPORT
REFLECTS THE UNIQUE METHOD OF PERFORATION THAT WON THE
KING’S AWARD FOR ENTERPRISE IN INNOVATION.
SEE PAGE 15 FOR FURTHER DETAIL.
FRONT COVER: ASTON MARTIN VANQUISH
01XCover_XIFCX_XContents_v39.indd 101XCover_XIFCX_XContents_v39.indd 1 13/03/2025 14:3213/03/2025 14:32
STRATEGIC REPORT
2 At a glance
3 Business highlights
4 Executive Chairman’s Statement
8 ChiefExecutiveOfficer’s
Statement
13 In conversation with our CEO
14 Our market
16 Stakeholder engagement
20 Our Business model
22 Our Strategy
24 Key performance indicators
26 ChiefFinancialOfficer’s
Statement
28 Financial Review
32 Environmental, social
andgovernance
45 Task Force on
Climate-related Financial
Disclosures
56 Principal risks and risk
management
62 Viability Statement
63 Non-financialandsustainability
information statement
CORPORATE GOVERNANCE
66 Governance at a glance
67 Executive Chairman’s
introduction to governance
68 Board of Directors
72 Executive Committee
74 Leadership and governance
78 Board discussions during the year
82 Section 172 statement
84 Board, culture and workforce
engagement
86 Investor engagement
88 Nomination Committee Report
94 Audit and Risk Committee Report
102 Sustainability Committee Report
104 Directors’ Remuneration Report
135 Directors’ Report
141 Statement of Directors’
Responsibilities
FINANCIAL STATEMENTS
144 Independent Auditor’s Report
154 Consolidated Financial
Statements
159 Notes to the Financial Statements
210 Parent Company Statement of
Financial Position
212 Notes to the Parent Company
Financial Statements
FURTHER INFORMATION
222 Glossary
224 Shareholder information
CONTENTS
References in this report to ‘we’, ‘our’
‘the Company’, and ‘Aston Martin’
refers to Aston Martin Lagonda Global
Holdings plc and its subsidiaries.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
1
01XCover_XIFCX_XContents_v39.indd 101XCover_XIFCX_XContents_v39.indd 1 13/03/2025 14:3213/03/2025 14:32
THE
FUTURE
IS HERE.
02XProductXPorfolioXInsert_v44.indd 102XProductXPorfolioXInsert_v44.indd 1 13/03/2025 14:3213/03/2025 14:32
Eleven decades of cutting-edge innovation
and exemplary engineering have led to
thismoment.
The pinnacle of luxury sports cars.
For the drivers who want to experience
the impossible. A sensuous connection
between driver and vehicle.
02XProductXPorfolioXInsert_v44.indd 202XProductXPorfolioXInsert_v44.indd 2 13/03/2025 14:3313/03/2025 14:33
02XProductXPorfolioXInsert_v44.indd 302XProductXPorfolioXInsert_v44.indd 3 13/03/2025 14:3313/03/2025 14:33
VANQUISH
A flagship. The apex. The absolute zenith
of the Aston Martin range. Muscular,
powerful and fearfully thrilling to drive,
with a thunderous, bespoke, all-new
AstonMartin V12 engine. Vanquish is the
impregnable peak of British mastery and
adisplay of domination that justifies
itsnameplate.
ZENITH.
02XProductXPorfolioXInsert_v44.indd 402XProductXPorfolioXInsert_v44.indd 4 13/03/2025 14:3313/03/2025 14:33
All will be vanquished
Zenith – noun
the time at which something is
most powerful or successful.
5.2 litre
New 5.2 litre Twin Turbo V12
ZENITH.
02XProductXPorfolioXInsert_v44.indd 502XProductXPorfolioXInsert_v44.indd 5 13/03/2025 14:3313/03/2025 14:33
ICON.
DB12
The world’s first Super Tourer
74
years of category defining DB marvels
The DB12 is the world’s first Super
Tourer, the centrepiece of Aston
Martin’s core portfolio and the first of
its ’next generation’ of performance
cars. A car that carries the weight of
theDB lineage with power and finesse.
Itis purer, sharper and more aggressive
than other quintessential GT cars yet
fused with jaw dropping looks
synonymous with Aston Martin.
Icon – noun
a person or thing regarded as a
representative symbol or as
worthy of veneration.
02XProductXPorfolioXInsert_v44.indd 602XProductXPorfolioXInsert_v44.indd 6 13/03/2025 14:3513/03/2025 14:35
POWER.
DBX707
The supercar of SUVs
900Nm
The luxury of 900Nm
The DBX707 is a power-driven epic. The
luxury of 900Nm. A top speed of 193mph,
dispatched by the racing-grade reactions
of a wet clutch. It performs feats that an
SUV has no right to do. A true supercar
masquerading as an SUV. Commanding
and purposeful yet handsome. DBX is
theepitome of duality.
Power – noun
physical strength and force
exerted by something or
someone.
02XProductXPorfolioXInsert_v44.indd 702XProductXPorfolioXInsert_v44.indd 7 13/03/2025 14:3513/03/2025 14:35
THRILL.
VANTAGE
3.4 secs
0-60mph in 3.4 seconds
Vantage is an athlete, a thrill to drive and
outright fun to be behind the wheel of.
Itsmighty performance and prioritisation
of real-world thrills make it a considered
choice for any sports car buyer. Hands
down, it is the fastest Vantage in the
nameplate’s history. Poise, stance,
andwith a beautiful muscularity.
Thrill – noun
a sudden feeling of excitement
andpleasure.
Engineered for real drivers
02XProductXPorfolioXInsert_v44.indd 802XProductXPorfolioXInsert_v44.indd 8 13/03/2025 14:3613/03/2025 14:36
FEARLESS.
VALOUR
110
examples to celebrate 110 years
of Aston Martin
An extremely limited-edition celebratory
car commemorating 110 years of Aston
Martin. With the intention to connect
driver and machine again and bring back
feelings the road forgot. It’s a tribute to
the golden era of driving when cars were
seductive, wild, beautiful. Valour is proof
we can still dance on the edge and become
one with the very soul of a car.
Fearless – noun
possessing or displaying courage;
able to face and deal with danger
or fear without flinching.
Retro futurism at its finest
02XProductXPorfolioXInsert_v44.indd 902XProductXPorfolioXInsert_v44.indd 9 13/03/2025 14:3613/03/2025 14:36
EXTREME.
VALIANT
For your sins
The most extreme front-engine road car
ever built by Aston Martin. Road legal,
buteverything it knows is learnt from
thetrack. Twinning the fearlessness of
1970srace cars with the technology and
materials of today’s pit lane. Originating
from a personal commission from
Fernando Alonso to build a car that is a
monument to the thrill of driving. Without
a single flinch of moderation. This is vice
inthe form of a V12.
Extreme – noun
reaching a high or the highest
degree; very great.
38 units
Limited to 38 units, globally
02XProductXPorfolioXInsert_v44.indd 1002XProductXPorfolioXInsert_v44.indd 10 13/03/2025 14:3713/03/2025 14:37
IMPOSSIBLE.
VALKYRIE
Track performance on the streets
Impossible – noun
not able to occur, exist,
or be done.
1130 BHP
Era-defining 1130 BHP Valkyrie
comes as close as possible to being
a Formula One ® car without being
restricted to the track. Its rebellious
technology is directly influenced by
the sport of Formula One® with all the
Aston Martin hallmarks of cleverly
crafted luxury.
02XProductXPorfolioXInsert_v44.indd 1102XProductXPorfolioXInsert_v44.indd 11 13/03/2025 14:3713/03/2025 14:37
WE’RE
IN THE
DRIVING
SEAT.
02XProductXPorfolioXInsert_v44.indd 1202XProductXPorfolioXInsert_v44.indd 12 13/03/2025 14:3713/03/2025 14:37
STRATEGIC REPORT
AT A GLANCE
Unlocking our potential to
deliver sustainable growth
Our purpose guides us
Our purpose is to create vehicles with the ultimate technology,
precision and craftsmanship that deliver thrilling performance
and a bespoke, class-leading experience.
Our vision lights the way
Our vision is to be the world’s most desirable, ultra-luxury
Britishperformance brand, creating the most exquisitely
addictiveperformance cars.
Our values steer us
Our values are Unity, Openness, Trust, Ownership, and Courage.
Atthecore of our values is one single guiding tenet: No one builds
anAston Martin on their own.
Our strategy drives us
Our strategy is built on our key strengths of brand, product innovation,
sustainability, and our people, which are the pillars that drive our
strategy and future growth ambitions.
Our positioning in the market
andproduct portfolio
Aston Martin is an iconic, globally recognised brand, with a unique
position transcending ultra-luxury andhigh performance. For over
110years our brand has symbolised exclusivity, elegance, power,
beauty, sophistication, innovation, performance and an exceptional
standard of styling and design. Our rich and prestigious heritage
ofdelivering beautiful, awe-inspiring vehicles defines Aston Martin
assomething truly uniquewithin the automotive industry.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
2
03XAtXaXglance_BusinessXHighlights_v38.indd 203XAtXaXglance_BusinessXHighlights_v38.indd 2 13/03/2025 14:3913/03/2025 14:39
1,928
45
1,086
20
1,796
55
1,220
43
1,928
45
1,086
20
1,796
55
1,220
43
1,928
45
1,086
20
1,796
55
1,220
43
1,928
45
1,086
20
1,796
55
1,220
43
KEY
WHOLESALE VOLUME
DEALERS
2
REVENUE
£1,584m
2023: £1,633m
OPERATING LOSS
£100m
2023: £111m
TOTAL AVER AGE
SELLINGPRICE (ASP)
£245k
2023: £231k
TOTAL SCOPE 1 & 2
EMISSIONS
15,204
2023: 13,617
ADJUSTED EBITDA
£271m
2023: £306m
WHOLESALE VOLUMES
6,030
2023: 6,620
NET DEBT
£1,163m
2023: £814m
ACCIDENT FREQUENCY
RATE (AFR)
0.35
2023: 0.40
Our 2024 business highlights
Where we operate
AMERICAS
EMEA
1
APAC
UK
1 EMEA includes Europe, Middle East and Africa (excluding the UK and South Africa)
2 All dealers are third-party dealers, with the exception of one in the UK
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
3
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
03XAtXaXglance_BusinessXHighlights_v38.indd 303XAtXaXglance_BusinessXHighlights_v38.indd 3 13/03/2025 14:3913/03/2025 14:39
LAWRENCE
STROLL
EXECUTIVE CHAIRMAN
STRATEGIC REPORT
EXECUTIVE CHAIRMAN’S STATEMENT
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
4
04XChair_sXStatement_CEOXReview_v76.indd 404XChair_sXStatement_CEOXReview_v76.indd 4 13/03/2025 14:3913/03/2025 14:39
Building on the momentum of our
product and brand transformation
to deliver future success
s we reflect on 2024, it has been an
important year for Aston Martin,
characterised by significant product
milestones, that along with the
appointment of a new CEO will
underpin our future success. In
addition, we have had to address
some industry-wide and global
macroeconomic challenges while
preparing the Company for the next
stage in its transformation.
Building on the success of our DB12 launch in 2023, we are proud to
have completed our all-new core portfolio in 2024 with the
introduction of a thrilling sports car in Vantage and our V12 flagship
Vanquish. Joined by the upgraded DBX707 SUV, these models
represent the most diverse, dynamic, and desirable product range in
our segment, firmly solidifying our position as a leader in ultra-luxury,
high performance vehicles.
This period of intense product development continues with
theforthcoming launch of our first mid-engined supercar and
Plug-inHybrid Electric Vehicle (‘PHEV’), Valhalla. Bringing hypercar
performance and cutting-edge technology from Formula One® to the
road, Valhalla holds enormous potential to expand our customer base.
These innovations are a testament to the creativity, passion, and
engineering excellence of theAston Martin team, while also reinforcing
the enduring strength ofour brand.
A key moment of 2024 was the appointment of Adrian Hallmark as
CEO in September, taking over from Amedeo Felisa. I’d like to
personally pay tribute to Amedeo, recognising not just what he has
achieved at Aston Martin but throughout his long and distinguished
career at the very top of the ultra-luxury automotive industry.
Adrian is a recognised leader in the ultra-luxury automotive sector
with a proven track record of success, and the expertise and discipline
A
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
5
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
04XChair_sXStatement_CEOXReview_v76.indd 504XChair_sXStatement_CEOXReview_v76.indd 5 13/03/2025 14:3913/03/2025 14:39
STRATEGIC REPORT
EXECUTIVE CHAIRMAN’S STATEMENT CONTINUED
he brings will be invaluable as we continue the transformation
ofthe business, to deliver sustainably profitable long-term growth.
Together, we are committed to fulfilling our vision for the brand and
unlocking its global potential, particularly given the significant work
undertaken to reinvigorate our product portfolio.
From a financing perspective, we took decisive steps this year. These
actions enhance the resilience and strength of the business, whilst
ensuring we are well positioned to maximise the potential of our new
class-leading next generation models. This also enables us to continue
investing in future growth opportunities
at the required pace.
In March 2024, we completed a circa
£1.15bn refinancing of our existing senior
secured notes. This followed significant
progress made by Aston Martin over
recent years and the subsequent
upgrades from leading credit agencies,
which resulted in improved 5-year terms
on the notes. In addition, existing lenders
entered into a new super senior revolving
credit facility agreement, increasing
their binding commitments by circa
£70m to £170m. Later in the year, we
completed two private debt placings in
August and November of circa £135m
and circa £100m, respectively.
In November 2024, with the support of
our investors and strategic shareholders,
we completed a share placing of circa
£111m. Aston Martin has made material strategic progress since the
Yew Tree Consortium first invested in the Company in 2020, and the
consortium continued to demonstrate their support and confidence in
the future success of the business through a significant participation in
the placing.
With the support of Aston Martin’s strategic shareholders and the
Board, we move into 2025 under Adrian’s leadership with a truly
world-class range of new core models and the eagerly awaited launch
of Valhalla, readying Aston Martin to deliver long-term sustainable
value for all stakeholders. Our focus remains on the continued
execution of our brand and product strategy, in addition to greater
operational rigor, which will underpin progress towards our near- and
medium-term financial targets.
Of course, 2024 was not without its challenges. In September, we
revised our 2024 full year volume guidance in response largely to supply
chain disruptions and a weaker macroeconomic environment in China.
This resulted in a circa 1,000-unit reduction to our volumes in 2024,
which impacted our 2024 financial performance, particularly inQ4.
Our expectation of achieving positive free cash flow in the second half
of 2024 was also delayed due to the volume reduction, although we
continued to deliver a quarterly sequential improvement throughout
the year, with a materially improved H2 2024 performance. We remain
determined to address this key metric head-on and are committed to
demonstrate that our strategy can deliver sustainably profitable,
long-term growth, with a clear target
to achieve positive EBIT in FY 2025 and
free cash flow generation in H2 2025.
I’d like to thank my fellow Board
members for their valuable and robust
engagement and continued support
throughout the year. In December
2024, we announced that Robin
Freestone, Independent Non-
executive Director and Chair of the
Audit and Risk Committee, had taken
the decision to step down from the
Board with effect from 28 February
2025, following the Company’s 2024
full year results announcement. We
have greatly benefited from Robin’s
experience and guidance and wish him
well for the future. On 25 February
2025, we were pleased to announce
the appointment of Vicky Jarman as a
new Independent Non-executive
Director taking over from Robin as the Chair of the Audit and Risk
Committee, and joining as a member of the Nomination and
Remuneration Committees with effect from 1 March 2025.
Looking ahead, I am confident in Aston Martin’s ability to create future
value. We have a great opportunity to build on the momentum of our
product and brand transformation in recent years, which has been
further accelerated by our prominent presence in Formula One®. Our
focus remains unwavering: to create extraordinary products, inspire
our customers through unparalleled luxury experiences, and deliver
value to all our stakeholders.
Thank you for your continued trust and confidence in Aston Martin’s
future.
LAWRENCE STROLL
EXECUTIVE CHAIRMAN
“OUR FOCUS REMAINS
ON THE CONTINUED
EXECUTION OF OUR
BRAND AND PRODUCT
STRATEGY, IN ADDITION
TO GREATER
OPERATIONAL RIGOR,
WHICH WILL UNDERPIN
PROGRESS TOWARDS
OUR NEAR- AND
MEDIUM-TERM
FINANCIAL TARGETS”
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
6
04XChair_sXStatement_CEOXReview_v76.indd 604XChair_sXStatement_CEOXReview_v76.indd 6 13/03/2025 14:3913/03/2025 14:39
ASTON MARTIN AND
F1®SPONSORSHIP
Racing is an integral part of Aston Martin’s identity. Since
returning to the Formula One® grid in 2021, the marque’s
involvement has transfused F1® methods, materials
andminds from the grid to its everyday road cars.
F1® is the pinnacle of motorsport and buildsour brand
image as a performance powerhouse, producing
exquisitely addictive performance sports cars, including
the ultimate hypercar, Valkyrie and the awe-inspiring
Valhalla, which apply F1® materials and knowledge.
Aston Martin’s grid presence has not only propelled
thebrand onto the global stage, but also inspired
customers, who are now specifying more road cars
ingreen than ever before.
“BORN OUT OF RACING 112 YEARS
AGO, IT IS ONLY RIGHT THAT
ASTONMARTIN HOLDS ITS POSITION
IN THEPINNACLE OF MOTORSPORT.
THERETURN TO F1® HAS HAD
AFORMIDABLE IMPACT ONTHE
COMPANY AND, AFTER FOUR
YEARSBACK ON THE GRID,
WE’RECONTINUING TO REACH
NEWAUDIENCES”
ADRIAN HALLMARK
CHIEF EXECUTIVE OFFICER
The next few years are pivotal for the Aston Martin
Aramco F1® Team, who welcome acclaimed F1®
designer, engineer and aerodynamicist Adrian Newey
in2025 aspart of the team’s ambition to be a leading
force in the sport.
POTENTIAL.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
7
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
04XChair_sXStatement_CEOXReview_v76.indd 704XChair_sXStatement_CEOXReview_v76.indd 7 13/03/2025 14:3913/03/2025 14:39
STRATEGIC REPORT
CHIEF EXECUTIVE OFFICER’S STATEMENT
ADRIAN
HALLMARK
CHIEF EXECUTIVE OFFICER
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
8
04XChair_sXStatement_CEOXReview_v76.indd 804XChair_sXStatement_CEOXReview_v76.indd 8 13/03/2025 14:3913/03/2025 14:39
Successfully completing one
of the most diverse, dynamic
and desirable portfolios in
the ultra-luxury segment
L
ike many working within the ultra-luxury
segment, I have admired the transformation
of Aston Martin’s brand and products from
afar. Since joining as CEO on 1 September
2024, I feel honoured to now have the
opportunity to work with the Board,
Executive Management team and the
Company’s employees as we enter a new
chapter in Aston Martin’s exciting future.
The Company has launched an entirely new
and reinvigorated core range of models over an 18-month period.
This ambitious endeavour demonstrates the team’s unique drive,
talent and entrepreneurial spirit. These new models have all received
high acclaim from the world’s leading automotive journalists and
luxury media. They have praised the driveability, performance,
handling, interiors and design of the new models. Importantly, this
provides a key foundation upon which we can build a successful,
sustainably profitable future with our reinvigorated portfolio
appealing to our loyal existing customers in addition to attracting new
enthusiasts to the brand.
The new range of core models commenced with the launch of DB12 in
the second half of 2023. Showcasing our first-ever in-house bespoke
infotainment system with enhanced performance compared to
previous models, DB12 quickly received positive recognition and
became a multi-award winner including the ‘Car of the Year’ accolade
by Robb Report, who also named it the leading GT product in the
world in their 2024 ‘Best of the Best’ issue.
With the benchmark firmly set, the new Vantage was launched in
February 2024 with EVO magazine titling it the “best Aston Martin in
years”. A true sportscar that underpins everything about our brand.
Five-star reviews have also followed for the newly upgraded DBX707
luxury SUV, with its technologically advanced interior now matching
its class-leading performance and driving dynamics. As reported by
Hagerty: “The 2025 Aston Martin DBX707 is about as good as all-in-
one personal vehicles get”.
Finally, in September 2024 we launched our new V12 flagship,
Vanquish, which replaced the highly regarded and iconic DBS.
Successfully completing one of the most diverse, dynamic and
desirable portfolios in the ultra-luxury segment. We commenced, as
planned, with the first Vanquish deliveries to customers at the end of
2024, with the model proudly receiving Top Gear’s 2024 ‘Super GT of
the Year’ award.
EXCLUSIVE SPECIALS CONTINUE TO DEMONSTRATE OUR
UNIQUE MARKET POSITION
In addition to our segment-leading core portfolio, Specials continue to
play a significant role, demonstrating the Company’s ability to operate
at the very highest levels of the ultra-luxury automotive segment.
These highly sought after products are typically oversubscribed,
attracting automotive collectors and enthusiasts from all over the
world. Many automotive companies have tried to participate in this
specialist sector of the market, but few have successfully delivered
these unique programmes over a sustained period like Aston Martin
has. This was something I observed and admired from outside of
Aston Martin for decades, and now have the opportunity to shape this
strategy as we move forward.
In 2024, we delivered some incredibly unique and ultra-exclusive
Specials. The iconic Valkyrie programme, merging Formula One®
technology with a road car, pushed the boundaries of performance
with engineering to make the impossible, possible. Having broken the
track record at Silverstone for a production car, in 2025 this era-
defining hypercar will carry Aston Martin into the fight for overall
victory in a return to the world famous 24 Hours of Le Mans. Also in
2024, we completed the delivery to customers of our 110-year
anniversary Special, Valour. This was followed by Fernando Alonso’s
launch of Valiant at the 2024 Goodwood Festival of Speed. Customer
deliveries of this ultra-exclusive 38 vehicle programme commenced
at the end of 2024, with the remaining vehicles being delivered in
early 2025.
THE POWER OF OUR BRAND AND FORMULA ONE®
Bringing these phenomenal products to market aligns with the vision
previously outlined by our Executive Chairman, to be the world’s most
desirable, ultra-luxury British performance brand. We have the
potential to lead this segment thanks to our increasing brand power
and alignment with world-class products and technology.
Since joining this year, I have travelled across the UK and to several
of our other key markets. This included North America and China
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
9
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
04XChair_sXStatement_CEOXReview_v76.indd 904XChair_sXStatement_CEOXReview_v76.indd 9 13/03/2025 14:3913/03/2025 14:39
In September 2024, we, like many other global automotive peers at
the time, had to update the market on two external factors that were
impacting the Company’s performance: Industry-wide supply chain
disruptions and continued macroeconomic weakness in China. These
factors resulted in a circa 1,000-unit reduction in wholesale volume
guidance for 2024. Whilst it was unfortunate to have to make this
adjustment, it was appropriate that we took decisive action. We
experienced no further material changes in our supply chain for our
core vehicles and while below the initial expectations set by the
Company at the start of the year, we delivered broadly in line with
our revised guidance for volumes, adjusted EBITDA and liquidity.
Since becoming CEO, I’ve extensively engaged with our teams across
the business conducting operational reviews to fully understand
where we are on our transformation journey. Whilst many of my
positive reflections from outside the business have been reinforced,
there are areas that would benefit from a renewed focus on operational
excellence and s trong discipline. In doing so we can create a sus tainably
profitable business model, providing the platform from which to
deliver long-term growth. Today we are driving for improvements
across four areas I previously highlighted towards the end of 2024.
With some immediate results already, we would expect
further benefits to materialise progressively from the second half
of 2025 onwards:
ELEVATING THE CUSTOMER EXPERIENCE
ANDDRIVINGINNOVATION
Capitalising on the growing appetite for personalisation and elevated
customer experience within the luxury goods segment, our ultra-
luxury retail strategy and bespoke service, Q by Aston Martin, has
driven an increase in options revenue. In 2022, contribution to core
revenue from options was around 13%, increasing to 15% in 2023 and
to 18% in 2024. Further enhancing the sophisticated, tailored service
our customers expect, we continued to benefit from the success of our
Q New York flagship location, in addition to further investment being
made by our dealer partners around the world. Aligned with our
renewed corporate identity, the showroom in New York brings the
highest levels of Q by Aston Martin services to North America.
Customers can also utilise this intimately personal service at our UK
headquarters in Gaydon and over time we will open further Q locations
in key markets.
In parallel we continue to work with our dealer partners to optimise our
network and upgrade facilities to truly offer an ultra-luxury experience.
Whilst we made progress on this part of our strategy in 2024, I believe
we still have plenty of opportunity to advance our dealer network over
time, a proposition made easier now we have a full range of next
generation models available in the market and with further innovation
planned throughout the lifecycle of our products. In our home UK
market, Aston Martin Birmingham officially opened in October 2024 in
STRATEGIC REPORT
CHIEF EXECUTIVE OFFICER’S STATEMENT CONTINUED
tomeetwith customers and dealer partners, and to Europe where I
attended our global dealer conference. These important stakeholders
repeatedly highlighted their passion for and strength of the Aston
Martin brand. I also took note of their frustrations related to certain
delays in new model deliveries while acknowledging that to be a true
class leader in our segment we have to excel in all aspects of our
customer experience, sales and marketing channels, and that we are
actively addressing these points.
There is no doubt that awareness of the brand has been supported by
the growing profile of Formula One® and our participation in the
pinnacle of motorsport. This powerful marketing activity, which gives
our customers, suppliers and dealers unrivalled access to race
weekends, has been further elevated by the hugely successful Netflix
series, Drive to Survive. One of the most watched shows on the
streaming platform, the first episode of the 2024 season heavily
featured Aston Martin, prominently positioning our brand and
products to millions of viewers. Our association with Formula One®
goes even further with Aston Martin providing the Official FIA Safety
and Medical car of Formula 1® regularly showcasing the high-
performance credentials of our Vantage and DBX707 models. Our
racing DNA has been further underscored this year by the success of
the new Vantage GT3 race car, with teams performing in a number of
racing series around the world including the FIA World Endurance
Championship where our partner team The Heart of Racing recorded
a maiden victory at the Circuit of the America’s in September 2024.
“UNIQUE DRIVE, TALENT AND
a new landmark location, drawing design inspiration from Q New York.
A new dealership in Leeds also followed the successful opening of
Aston Martin Edinburgh. In Europe, new showrooms and boutique
locations were opened in Baden-Baden, Nürnberg, Hamburg and
Prague. Following the opening of a new landmark showroom inside
the Peninsula Tokyo Hotel earlier in 2024, our presence in Asia was
strengthened with the reopening of Aston Martin Seoul. Adding to
the opening earlier in 2024 of Aston Martin Suwon, this marked a
new era for Aston Martin in the growing South Korea market.
In May 2024, we were delighted to be among the first companies in the
world to be awarded a Royal Warrant by appointment to His Majesty
The King. The same month also saw Aston Martin honoured with The
King’s Award for Enterprise, solidifying Aston Martin’s position as a
symbol of British excellence. Awarded for innovation, this accolade
came as we continued at pace to progress the most intense phase of
product development in our history.
UNLOCKING OUR FUTURE POTENTIAL
Aston Martin has made significant progress in transforming the
business and its strategy since the Yew Tree Consortium investment in
2020, alongside our other strategic shareholders. I recognised when
joining the Company there was huge potential still to be unlocked.
This remains the case, but enhancing the performance of the business
is not without its challenges. It will require a true team effort to
overcome certain barriers and for some difficult decisions.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
10
04XChair_sXStatement_CEOXReview_v76.indd 1004XChair_sXStatement_CEOXReview_v76.indd 10 13/03/2025 14:3913/03/2025 14:39
1. Elevating awareness of our ultra-luxury brand in support
ofincreased demand generation
Having successfully completed a series of global product launch
events in 2023 and 2024, we are now focusing our investment more on
regional and local marketing efforts. Following initial delays of some
new models into certain markets, we expect these more targeted
initiatives, and in some markets near relaunch-like activations, to
stimulate demand and enhance the quality of our order book. With
our order book for core vehicles extending up to five months, I would
like for this to strengthen over time towards realistic luxury sector
benchmarks. For our core V8 vehicles this should extend to a minimum
of six months with the V12 Vanquish closer to nine months. For
Specials, these limited ultra-exclusive programmes are typically
fully allocated at launch while Valhalla orders already cover the first
full year of production.
We will leverage the benefits of building deep understandings and
strong relationships with our customers over many years, combined
with an effective Salesforce CRM to create bespoke, tailored
campaigns for our potential customer base. We are particularly
excited about boosting activities in key regions like the USA, which still
holds untapped growth potential, and in China where we have faced
challenges recently but see a mid-term upside. Further elevating our
ultra-luxury retail strategy and the Q by Aston Martin proposition will
form another core part of this strategic pillar in addition to ongoing
upgrades to our stores and dealer network.
ENTREPRENEURIAL SPIRIT.”
2. Optimising our cost base and driving
productivityenhancements
Whilst we began to make progress on the Group’s adjusted
operating expenses in FY 2024, adjusting our discretionary cost
base, we need to deliver more improvements to support future
financial performance and drive operating leverage. The business
has grown over recent years to match previous ambitions. We now
need to ensure we optimise our organisation structure to deliver
the current business plan, with a focus on maximising the value
of every vehicle sold, while driving productivity enhancements
towards established industry benchmarks. We will develop these
throughout the year ahead, with the goal of Aston Martin becoming
a sector benchmark Company over time, and in doing so, realise
high performance.
In 2025, despite inflationary and growth-related costs, we expect to
deliver benefits through greater operational discipline, focused spend
and rightsizing, which result in a continued reduction in adjusted
operating expenses in FY 2025, most notably in the second half.
Through a disciplined approach, we are committed to achieving this
all while executing on our ongoing investment plans to support the
Company’s long-term growth aspirations.
We are commencing a process to make organisational adjustments,
to ensure the business is appropriately resourced for its future plans.
This will ultimately see the departure of around 170 valued colleagues,
representing circa 5% of our global workforce. Linked directly to this
difficult but necessary action, we expect annualised operating
expenditure savings of circa £25m of which circa 50% will be realised
in FY 2025 with associated transformation costs expected to be
circa £10m.
3. Product innovation throughout the lifecycle
We will continue to ensure we offer our customers the most relevant,
exciting and compelling vehicles in the sector. Instead of simply
waiting for several years between full model refreshes, we intend to
quicken the cycle plan, updating trims and derivatives periodically to
keep the models fresh and relevant, maintaining the enviable status
they now hold. Our ongoing programme of ultra-exclusive Specials
will meet the needs of the collectors and enthusiasts who crave these
rare vehicles.
To meet our growing customer needs, we are developing an even
broader array of options to enrich the personalisation and content
opportunities our customers can invest in. Benchmarking against
other luxury brands, indicates that circa 100 relevant options are not
yet available to Aston Martin customers, including for example
titanium exhausts, carbon wheels and bespoke audio systems. Our
intention is to commence the introduction of additional options in the
second half of 2025, with the potential to further satisfy our customer’s
desires whilst simultaneously improving margins.
4. Delivering excellence in quality and product launch cycles
Our exceptional vehicles are the cornerstone of our brand. I am
passionate about delivering the highest standards and consistency
across our portfolio. We can enhance this through our relentless focus
on quality and by refining our approach to product launch cycles.
Instilling better rigour and discipline in the planning and execution of
our product launch cycles, collaboration with our supply partners
throughout the process to drive efficiencies, and always putting the
customer at the centre of what we do, is what we must focus on. In
2025, our product launch execution is firmly focused on Valhalla,
having completed the significant transformation of the core portfolio
over the last 18 months. Our confidence in the vehicle and platform
developed for Valhalla is reflected in the five years warranty and
servicing now included in the sales price.
In the past, the Company has been impacted by delays to launches,
disappointing customers and impacting on its financial performance.
Avoiding significant unnecessary costs and inefficiencies associated
with delays and accelerated project timelines is just one example of
the benefits from adopting this approach. We need to be realistic in
our planning and timing of launches, monitoring key performance
indicators throughout to ensure we meet deadlines in the future.
A significant milestone has been the investment in and roll out of our
first bespoke infotainment system which, alongside other major
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
11
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
04XChair_sXStatement_CEOXReview_v76.indd 1104XChair_sXStatement_CEOXReview_v76.indd 11 13/03/2025 14:3913/03/2025 14:39
Simultaneously, we are developing alternatives to the Internal
Combustion Engine with a blended drivetrain approach to our
portfolio between 2025 and 2030, including PHEV and Battery
ElectricVehicles (‘BEV ’), with a clear plan to have a line-up of electrified
sports cars and SUVs. In response to customer feedback and evolving
market dynamics, Aston Martin is prioritising the adoption of PHEV
technology, beginning with Valhalla, before transferring the
knowledge and technology across to our core model range. This will
pave the way for the launch of Aston Martin’s first BEV, planned for
the latter part of this decade. This phased approach reflects the
Company’s strategy to offer a diverse range of powertrain options,
including electric vehicles that will leverage our strategic partnerships
and cutting-edge high-performance technologies, ensuring an
unparalleled driving experience for customers.
We now have a full range of models that appeal to a broader and
growing customer base, that want to own a truly inspiring, driver
focused sports car, GT, SUV or V12. With a commitment to product
development and innovation throughout the lifecycle of our core
models, coupled with Valhalla and other Specials, I believe we have
the ingredients to continue to drive demand and further enhance the
quality of our order book. Progress here will also benefit from an
engaged and supportive dealer network and the success of our
ongoing marketing activities.
Volumes alone though will not define Aston Martin, with a ruthless
focus on our demand-led approach, ensuring we offer customers the
ultimate in luxury retail experience with enhanced personalisation
opportunities that allows us to maximise the value in every vehicle.
Our goal to create a sustainably profitable business model, will
be further supported through our renewed drive for operational
excellence and efficiencies across the business. This approach
will underpin progress towards our 2027/28 mid-term financial
targets, delivering sustainable positive adjusted EBIT and free cash
flowgeneration.
I’d like to thank the Board, the Executive Committee, all our employees,
dealer partners and suppliers, who have given a huge amount of time
and effort this year to shape the business and prepare it for the year
ahead. Finally, to our customers for choosing to be part of this iconic
brands history. Thank you for your commitment and loyalty. We look
forward to continuing the journey with you all.
ADRIAN HALLMARK
CHIEF EXECUTIVE OFFICER
developments to our next generation line up, now truly positions us in
the ultra-luxury high performance sector. However, we will make
further enhancements here too, benefiting from software upgrades
that ensure the user experience is constantly optimised whilst
following rigorous gateway processes and engineering protocols to
ensure the highest standards are met.
These four areas will evolve as we embark on the final phase of
our transformation, identifying further prospects and areas of
improvement, and becoming a sustainably profitable Company. Our
goal is to strengthen the position of the Company to not only better
navigate future opportunities and uncertainties but to successfully
create value for all our stakeholders as we progress towards our
mid-term financial targets.
LOOKING AHEAD TO FUTURE GROWTH IN 2025
ANDBEYOND
Having undertaken a complete portfolio transformation over the last
18 months, requiring significant efforts from across our teams, we
move into 2025 with the expectation of operating in a more stable
product environment. Importantly though, in support of our future
growth aspirations, we remain committed to ongoing incremental
product development, innovating models throughout the lifecycle to
meet the requirements of our customers. The strictly limited DB12
Goldfinger Edition demonstrated the success of this strategy with
overwhelming demand in 2024. This was followed in January 2025, by
the launch of the highly anticipated new Vantage Roadster, some
12 months after the Coupe model was unveiled. We will continue
along this path in the future.
One of our most eagerly awaited launches will take place later in 2025,
with Valhalla, our first mid-engined PHEV. This groundbreaking
supercar is a great demonstration of a collaborative approach to
development with our engineers and designers working with
Aston Martin Performance Technologies who have provided tools,
learnings and expertise from Formula One®. Given we are marrying
new technologies in an Aston Martin for the first time, this has been
a complex project. I have been heavily involved in overseeing
its progress since joining, and will continue to closely monitor the
programme, with initial customer deliveries due to commence in the
second half of 2025. Already sold out for the first year’s production,
and exclusively limited to 999 units to be delivered over circa two and
a half years, we expect Valhalla to make a significant contribution to
our financial performance, supporting our target of generating
positive free cash flow in the second half of 2025.
“WE EXPECT VALHALLA
TOMAKE A SIGNIFICANT
CONTRIBUTION TO OUR
FINANCIAL PERFORMANCE”
STRATEGIC REPORT
CHIEF EXECUTIVE OFFICER’S STATEMENT CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
12
04XChair_sXStatement_CEOXReview_v76.indd 1204XChair_sXStatement_CEOXReview_v76.indd 12 13/03/2025 14:4013/03/2025 14:40
Q: Adrian, welcome to Aston Martin. Having
joined the business in September 2024, what
has your initial experience been, and what
haveyou learned about the brand so far?
It’s been a busy few months for me, with the privilege of meeting with
hundreds of colleagues across the business. I’ve also engaged in
roundtable discussions with more than 100 customers around the
world and had individual meetings with over 50 of our dealers. These
interactions have deepened my understanding of the Company and
helped highlight where I believe we can turn our high potential into
sustained high performance. The good news is that everyone says the
same thing. There’s a deep affinity for our brand, to a level that perhaps
I didn’t previously appreciate, along with excitement and high acclaim
for the new product portfolio brought to market over the last 18
months. It is an honour to be leading this iconic brand at a pivotal
moment in its 112-year history. With the significant investments made
and ongoing evolution of the portfolio, we need to maximise our
returns. My focus is on ensuring that we build on the brand’s
legacy while addressing some of the challenges that have previously
held the Company back and drive forward to a more successful and
sustainably profitable future.
Q: Aston Martin commences 2025 with a fully
reinvigorated core product line-up available in
showrooms. How much potential do you see in
these models?
This is undoubtedly the strongest product portfolio in Aston Martin’s
history, and in my opinion, gives us an opportunity to catch up and
even gain an advantage on the competition. As someone who was
recently on the outside of the business, you can see that the strength
and awareness of the brand has increased over recent years. In a short
space of time, the brand has gone from having a line-up of front
engine sportscars that had been in the market for some time, to a full
range of new models that appeal across our customer segments.
Each model has its own unique positioning within the portfolio,
andclear points of difference to peers in the segment. In addition, we
have the eagerly awaited launch of Valhalla, our first mid-engined
PHEV, with initial customer deliveries commencing in the second half
of2025.
Having undertaken a huge amount of product development and new
launches over the last couple of years, we will now enter a more stable
product environment. The task is to efficiently introduce these new
models to the market. I am also excited about continuing to innovate
throughout the product life cycle and introduce a greater choice of
options, with a talented team who have demonstrated their ability to
bring a large number of new cars to market in a short period of time.
Q: You’ve had a long career in the automotive
industry. How do you plan to leverage your
experience to lead Aston Martin into its next
phase of growth?
I’ve had the privilege of working with a range of brands, from large-
scale volume manufacturers to luxury companies. This breadth of
experience has given me a deep understanding of the industry, but my
first few months here have been invaluable to get beneath the surface of
this business. We have a lot to do. We won’t define the Company based
purely on volume, but instead focus on maximising the value inevery
vehicle we sell. The clear mission from my point of view, is to create a
sustainably profitable business model, and to do that we need to drive
operational excellence and strong discipline. I plan to use my insight to
not only steer Aston Martin through the uncertainties of today’s market
but to position it for long-term sustainable growth. Strong leadership, a
clear vision and strategy, and empowering the talented people within
the Company are key to driving success. My goal is to guide Aston
Martin into a future where it is a clear market leader, that’s able to deliver
the exceptional experience its customers seek and the sustainable
financial performance our shareholders expect.
Q: As a new leader, how important is the team
and culture at Aston Martin to your strategy
forthe Company?
As in any organisation that I’ve worked in, the team and the culture are
absolutely fundamental to our success. Aston Martin’s people are its
greatest asset, and the Company has recognised this and is going
through a formal programme to make Aston Martin a certified Great
Place to Work®. However, there have been tough times for this
business. This has also recently been the case for some of our valued
colleagues as we took the difficult but necessary decision, as part of
our ongoing transformation, to adjust our organisation to ensure it’s
appropriately resourced for our future plans.
We have made holistic improvements to the way we
work and the environment we work in. This includes
investment to upgrade our offices, new catering for
employees, agreement of a new pay deal to support
colleagues with the cost of living and provided employee
share ownership to name a few. My role is to inspire and
support the team, ensuring that we are aligned in terms
of vision and strategy. This is even more important
as we continue our transformation towards creating
a sustainably profitable Company. Together, we can
shape a future that builds on our strong foundations,
better positioned to navigate certain challenges,
whileembracing the opportunities that lie ahead.
STRATEGIC REPORT
IN CONVERSATION WITH OUR CEO
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
13
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
04XChair_sXStatement_CEOXReview_v76.indd 1304XChair_sXStatement_CEOXReview_v76.indd 13 13/03/2025 14:4013/03/2025 14:40
THE GLOBAL
LUXURY MARKET
Sustainable long-term growth in
demand for luxury goods globally
as the world’s Ultra High Net
Worth Individual (UHNWI)
population isexpected to
increase by 28% between 2023
and 2028*
HOW WE ARE RESPONDING
Operating as an ultra-luxury
brand with a demand-led
strategy
Appealing to ultra-luxury
customers through investment
in our brand and international
marketing, events, sponsorship
and customer journey in
partnership with our dealer
network
Enhancing our core portfolio
and creating limited-edition,
low volume Specials to cater
for our most exclusive
customers
MARKET
EXPANSION
Increasing opportunities both
regionally and demographically
to expand brand presence and
market share for ultra-luxury high
performance vehicles
HOW WE ARE RESPONDING
Launched a fully reinvigorated
core portfolio with aligned
brand strategy to give Aston
Martin significant presence in
the ultra-luxury high
performance market segments
Connecting with dealers and
customers through targeted
events and strategic expansion
of dealerships
Continuing to grow our brand
awareness and desirability
through the global platform
ofFormula One® and leading
Netflix documentary series,
Drive to Survive
Aligning our global strategy
through our Global Dealer
Conference – the first in
fiveyears
PERSONALISATION
AND
CUSTOMISATION
Growing demand for unique and
bespoke personalised products
amongst ultra-luxury consumers
HOW WE ARE RESPONDING
Expanding our Q by Aston
Martin offering – our ultimate
bespoke personalisation
service
Developing an even broader
array of options to enrich the
personalisation and content
opportunities our customers
Opening landmark state-of-
the-art showroom within the
prestigious Peninsula Tokyo
Hotel, in one of the luxury
capitals of the world, with
future plans to open further
flagship locations following
success of Q New York
Expanding and upgrading our
network of global dealers
Launching limited-edition
Specials for our most
distinguished customers with
additional bespoke options
Enhancing our award-winning
online configurator
GEOPOLITICAL AND
MACROECONOMIC
ENVIRONMENT
Continued global political and
economic uncertainty in an era of
inflationary pressures, higher
interest rates and tariffs
HOW WE ARE RESPONDING
Enhanced liquidity through
refinancing and share and
private debt placings to
support growth and
investment, whilst continuing
to focus on future net leverage
reduction
Working in close partnership
with key suppliers to identify
supply chain improvements
and recovery strategies
Supporting our colleagues
with the higher cost of living
through pay rises and
industry-leading employee
wellbeing initiatives
Working collaboratively with
government to support trade
goals and economic success
Being an active voice through
our participation in industry
groups
Positioned to address demand for
ultra-luxury high performance
STRATEGIC REPORT
OUR MARKET
* 2024 Knight Frank Wealth Report
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
14
05XOurXMarket_OurXStakeholders_v64.indd 1405XOurXMarket_OurXStakeholders_v64.indd 14 13/03/2025 14:4013/03/2025 14:40
VEHICLE
ELECTRIFICATION
Transition away from the internal
combustion engine (ICE) to a
range of technologies that use
electricity to propel vehicles
HOW WE ARE RESPONDING
Developing alternatives to the
ICE with a blended drivetrain
approach between 2025 and
2030, including PHEV and BEV,
with a clear plan to have a
line-up of electrified sports
cars and SUVs
Working with Lucid Group Inc
(Lucid) through our strategic
supplier agreement to supply
select powertrain components
for initial and future BEV
models
Investing in new electrification
skills across our business
Preparing for our first
mid-engined PHEV, Valhalla,
with deliveries to commence in
H2 2025
SUSTAINABILITY
The need for businesses to act
responsibly and ethically,
benefitting the planet, people
and wider society
HOW WE ARE RESPONDING
Continuing our Racing. Green.
sustainability strategy with
ambitious commitments to
become a world-leading
sustainable luxury automotive
business
Joined Drive Sustainability, an
international initiative to
improve the social, ethical, and
environmental performance of
automotive supply chains
Launched our Community
Investment Policy
Recognising that our people
are our greatest asset,
introduced a formal
programme to make Aston
Martin a certified Great Place
to Work®
KING’S AWARD
A significant achievement was announced in 2024
whenAston Martin was proudly honoured with the
most prestigious business accolade in the UK, the
King’s Award for Enterprise. We received the
recognition for our unique approach to combining
handcraft with the latest technology in the creation
ofour bespoke leatherinteriors.
Aston Martin was recognised for creating and
patenting an innovative perforating and quilting
technique that produces decorative finishes and
promotes the cooling function in our ultra-luxury
leather seats. The pattern in the background used
throughout this report reflects the unique method of
perforation that won the King’s Award for Enterprise
ininnovation.
“AS A COMPANY WITH A
COMMITMENT TO INNOVATION,
WEARE INCREDIBLY PROUD TO
BEHONOURED WITH THIS KING’S
AWARD FOR ENTERPRISE, WHICH
CELEBRATES BOTH THE INGENUITY
OF OUR CRAFTSPEOPLE AND THE
QUALITY OF ASTON MARTIN’S
BESPOKE INTERIORS”
LAWRENCE STROLL, EXECUTIVE CHAIRMAN
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
15
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
05XOurXMarket_OurXStakeholders_v64.indd 1505XOurXMarket_OurXStakeholders_v64.indd 15 13/03/2025 14:4113/03/2025 14:41
STRATEGIC REPORT
STAKEHOLDER ENGAGEMENT
Engaging our
stakeholders
We believe that stakeholder engagement is essential to deliver a sustainable
business, and we consistently engage with our stakeholders throughout our
business at all levels of the organisation. Stakeholder engagement is a
two-way process. By establishing and maintaining effective relationships
with our stakeholders, we can respond to their changing needs and priorities
and keep them updated on our strategy, challenges and successes.
A summary of who our key stakeholders are, what matters to them, how
we engage with them and the outcome of our engagement is set out on
the following pages and is reinforced throughout this Report. Engagement
at Board level is highlighted with the B symbol.
Our Section 172 statement which sets out how the Board has taken into
account the interests of the Company’s stakeholders in its decision-making
is set out on pages 82-83.
TWO-WAY ENGAGEMENT WITH 
OUR STAKEHOLDERS ALLOWS THEM
TO UNDERSTAND OUR BUSINESS
ANDUS TO UNDERSTAND THEIR
PRIORITIES SO THAT WE CAN
RESPOND TO THEM.
STRATEGIC REPORT
STAKEHOLDER ENGAGEMENT
CUSTOMERS AND ENTHUSIASTS
Customers and enthusiasts are key to our brand and
our business success. Their emotional connection
with the brand enables us to build a strong and loyal
customer community
WHAT MATTERS TO THEM?
Quality and safety of products
Car design and performance
Brand strength
Exclusivity and scarcity
Ultra-luxury customer experience
Cost of ownership
Environmental commitment
Sense of community
HOW WE ENGAGED IN 2024
Bespoke customer communications and customer relationship
management strategy
Investment in ultra-luxury customer journey
Innovative and engaging content across our website and social
media channels
Major brand campaigns, including launch of the new Vantage at
Silverstone and world premiere of Vanquish during the Venice
International Film Festival
Aston Martin’s luxury customer magazine
Launch of new programme of bespoke customer events and
Aston Martin experiences
Dealership events
Customer rallies and community gatherings
Formula One® hospitality and endurance racing programmes
Executives actively meeting customers at leading luxury automotive
events such as Goodwood Festival of Speed B
Global communications strategy, driving coverage across
automotive and lifestyle media
Continuing to open flagship luxury locations, including a new
landmark showroom inside the Tokyo Peninsula Hotel
Dedicated customer contact strategy to engage and support
early adopters to next-generation sports cars
OUTCOMES OF ENGAGEMENT
110% increase in customer event attendance, driven by global
programme of launch events for new Vantage and Vanquish
30% year-on-year increase in car configurations on our award-
winning configurator
77% increase in new car sales via the configurator in 2024
2.2 million increase in social media following globally
Successful delivery of Specials and limited-edition programmes
in2024, including DB12 Goldfinger Edition
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
16
05XOurXMarket_OurXStakeholders_v64.indd 1605XOurXMarket_OurXStakeholders_v64.indd 16 13/03/2025 14:4113/03/2025 14:41
DEALER NETWORK
Our third-party dealerships are the direct contact point
between our brand and our customers. They enable us
to maintain control over our brand positioning and
luxury customer service in a cost-effective way
WHAT MATTERS TO THEM?
Brand awareness and strength
Company support
Demand and supply management to ensure exclusive desirability
Programmes to identify and generate sales opportunities
Increasing customer satisfaction and retention targeting
ultra-luxury segment
Ultra-luxury quality product and product life cycle management
Return on investment
HOW WE ENGAGED IN 2024
CEO and Board engagement to strengthen dealer relationships
and support demand-driven strategy B
Attendance (physical or virtual) at local dealer conferences held
during the year B
CEO and CFO visit to dealerships in US and China B
Rollout of dealer network programmes and systems to monitor
performance aligned to growth opportunities across all sales and
after sales areas
Implementation of Dealer Operating and new Corporate Identity
standards to drive dealers to consistent ultra-luxury behaviour
Maximisation of launch activities to fully support ultra-luxury
brand positioning, to deliver a customer order bank
Development of in-house training team to carry out in-dealer
product training
Continued development of digital platforms, supporting increased
engagement and elevated brand representation
OUTCOMES OF ENGAGEMENT
Higher levels of dealer engagement and satisfaction
Increased brand awareness driving greater level of customer enquiries
Increased enquiries from ultra-luxury automotive groups wishing
torepresent Aston Martin
Dealers aligned to the Company’s strategy
Strengthening and alignment of central and regional
seniormanagement, supporting closer dealer relationship
andcommunications
SUPPLIERS AND PARTNERSHIPS
Supplier relationships are fundamental to our business
and offer us a source of technical expertise and brand
enhancement whilst allowing partners to showcase
innovative products for long-term benefit
WHAT MATTERS TO THEM?
Responsible procurement with a focus on trust and ethics
Development of strong, lasting relationships
Commitment to transparency and open dialogue
Reliability in fulfilling agreements
Continuous operational improvement and enhanced
financialperformance
Maintaining competitive advantages
Building capabilities and expertise within the partnership
Leveraging design and technical know-how
HOW WE ENGAGED IN 2024
‘Supplier Relationship Management’ programme launch
Sponsorship of Aston Martin Aramco Formula One® Team to
provide a direct global marketing platform targeting key
customers and enhancing the brand B
Cross-functional team working closely with suppliers to mitigate
potential risks to production and resolve issues
Collaboration with suppliers to deliver innovation
and economic improvement
Supplier New Programme event to engage stakeholders to
support a smooth vehicle launch
Implementation of a leading automotive sustainability platform
collating validated sustainability and governance data from
suppliers
OUTCOMES OF ENGAGEMENT
Best-in-class technologies introduced into our new product
range through engagement with state-of-the-art supply base
Strategically embedding Environmental, Social and Governance
(‘ESG’) into Procurement processes enhancing risk identification
andenabling collaboration with all suppliers to strengthen their
sustainability performance and scoring
Improved Responsible Procurement Policy to redefine standards
and minimum expectations to suppliers
Strong relationships with strategic partners Mercedes-Benz AG
andLucid to support long-term strategic roadmap
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
17
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
05XOurXMarket_OurXStakeholders_v64.indd 1705XOurXMarket_OurXStakeholders_v64.indd 17 13/03/2025 14:4113/03/2025 14:41
STRATEGIC REPORT
STAKEHOLDER ENGAGEMENT
EQUITY AND DEBT INVESTORS
Continued access to capital is vital to the long-term
performance of our business. Our focus is to ensure
investors understand our strategy and performance,
and for us to understand their priorities
WHAT MATTERS TO THEM?
Consistent delivery of the Company’s strategy
Financial performance relative to expectations
That the Company demonstrates it is a responsible and effective
steward of capital
Sustainability
Governance and transparency
Confidence in the leadership team
Stability and predictability
HOW WE ENGAGED IN 2024
Webcasts, presentations and meetings hosted by the Executive
Directors and executive management team, and the Investor
Relations team B
Focused investor relations programme delivered both remotely
andin person including conferences, quarterly results and trading
update roadshows and debt-focused conferences B
Hosted investor event with the Executive Chairman at Q New York,
showcasing the bespoke Q services and latest models B
Hosted Silverstone track event for investors and analysts to meet new
Chief Executive Officer and experience the all-new range of core models
Retail shareholders engaged via direct communications, our
website, press activities, Annual Reports, PrimaryBid retail trading
platform and Annual General Meeting (‘AGM’) B
Credit rating agencies engaged with including meetings with the
Executive Chairman, Chief Financial Officer and Investor Relations
team B
Hosted investors at the Gaydon Head Office to showcase the
factory operations and meet with Executive Committee members
For more information see Investor Engagement on page 86
OUTCOMES OF ENGAGEMENT
In February, following upgrades from leading credit agencies,
successfully completed a £1.15bn refinancing exercise to further
strengthen the Company’s financial position and support its
long-term growth
In August, successfully completed a c. £135m equivalent private
debt placement, providing Aston Martin with additional liquidity
In November, received strong support from the Company’s existing
shareholders for a c. £111m share placing to support future growth and
enhance liquidity, including retail shareholder participation raising gross
proceeds of c. £1m. In addition, a successful £100m private debt issuance
was completed, underpinned by strong support from bond holders
OUR PEOPLE
Our people are the key to our success.
Ourperformance depends on their passion,
knowledge, experience and creativity
WHAT MATTERS TO THEM?
Personal development and career opportunities
Health and safety
Engagement
Feeling listened to and valued
Reward and benefits
Equity, Diversity and Inclusion
Environmental and social responsibility
HOW WE ENGAGED IN 2024
C-Suite roundtables with employees B
Employee Town Halls B
Independent Non-executive Directors gathered views
oftheworkforce and reported back to the Board B
Employee engagement survey
Consultation on employee benefits
Trade union business update
Health and safety review
Listening sessions to support our culture and deep dive
engagement topics B
Aston Martin internal communications platform and
AMPeoplenewsletter
Enhancing profile of Aston Martin’s Inclusion Network
Local health and safety committees
Local trade union meetings
OUTCOMES OF ENGAGEMENT
New performance management process, SPARK, implemented
Continued focus on mental health through mental health training
and mental health first aiders
Improved peer recognition programme following its success
in2023
Supported our colleagues with the higher cost of living through
payrises approved by the Remuneration Committee and agreed
with the trade union for 2024 and 2025 B
Continued our jorney to become a Great Place to Work
®
Established an EDI governance structure that operates across
ourbusiness and brings together both a coroproate and
employeeled approach
Inclusion Network day where network chairs and partners
visitedeach site in the UK to enhance the ‘I am Inclusion’
networksengagement
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
18
05XOurXMarket_OurXStakeholders_v64.indd 1805XOurXMarket_OurXStakeholders_v64.indd 18 13/03/2025 14:4113/03/2025 14:41
LOCAL COMMUNITIES AND NGOS
We aim to build positive relationships with local
communities and Non-Governmental Organisations
(‘NGOs’) interested in our business
WHAT MATTERS TO THEM?
Trust and ethics
Safety
Sustainability and non-financial performance including
theenvironmental impact of our products
Career opportunities for members of the local community
Local operational impact
HOW WE ENGAGED IN 2024
Outreach programmes with local schools, including initiatives to
promote Science, Technology, Engineering and Mathematics and
careers in the automotive industry
Philanthropic activities to contribute social and societal benefits
Hosted jointly with DHL and Silverstone Museum a roundtable
onbarriers to young people joining the automotive industry
Meetings, focus groups, site visits and dialogue with Non-
Governmental Organisations including organisations representing
industry, social and environmental interests
Participation in local community forums
Hosted a reception celebrating the King’s Award for Enterprise
winners across Warwickshire at our HQ in Gaydon
OUTCOMES OF ENGAGEMENT
Awarded the King’s Award for Enterprise in the Innovation category
Granted a Royal Warrant by appointment to His Majesty The King
59 visits to local schools, colleges and universities
Engagement on a range of matters including new opportunities for
trade and growth, industry challenges, and Aston Martin’s
contribution to local economies and communities
Input into updated sustainability strategy
Over £6,500 raised by employees for our partner charities
GOVERNMENT AND REGULATORS
Public policy and regulation impacts our business. We
aim to engage constructively and consistently through
various channels. Transparency and political neutrality
are at the heart of our engagement
WHAT MATTERS TO THEM?
Compliance with regulations and the law
Sustainable operations
Employment and economic impacts
Contribution to achieving public policy objectives
Advancing the UKs innovation and technology capabilities
HOW WE ENGAGED IN 2024
Engaged governments, industry associations, and other
stakeholders globally, to share our specific business priorities and
challenges to be considered in forming new policies with a potential
impact on Aston Martin
Welcomed numerous senior politicians and government officials
toGaydon, St Athan and Newport Pagnell
Participated at the National Apprenticeship Week events at the
UKParliament with our Early Careers representatives
OUTCOMES OF ENGAGEMENT
Identified public policy-related risks and opportunities, drafting
internal reports for our Executive Committee on geopolitical
developments
Supported the UK government at key annual events abroad
suchasthe King’s Birthday Party in Washington DC
Collaborated with the UK Government’s GREAT campaign
increasing brand awareness globally
Participated in panels for relevant industry associations and
charitable foundations raising the profile of Aston Martin within
thesector
Included in a video produced by HM Treasury highlighting the
opportunities for apprenticeships across sectors
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
19
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
05XOurXMarket_OurXStakeholders_v64.indd 1905XOurXMarket_OurXStakeholders_v64.indd 19 13/03/2025 14:4113/03/2025 14:41
STRATEGIC REPORT
OUR BUSINESS MODEL
1.
Product portfolio
Performance-driven product
portfolio, covering a wide
segment of the ultra-luxury
high performance market
Clear product advantage and
desirability utilising the
finest high quality materials,
enhanced through our Q by
Aston Martin personalisation
service, driving average
selling price, options revenue
and margins
Fully reinvigorated core
product portfolio comprised
of front-engine sports cars
synonymous with timeless
styling, assertive driving
dynamics and exhilarating
performance, and upgraded
DBX707, the supercar of SUVs
with an all-new technically
advanced interior to match
itsuncompromising
performance representing the
very pinnacle of its segment
Exclusive limited edition
Specials, which are typically
oversubscribed and are
highlysought after amongst
the global community of
automotive collectors
andenthusiasts
Delivering our net zero
ambition as we transition
toICE alternatives with a
blended drivetrain approach
between 2025 and 2030,
integrating a whole life cycle
approach built on a
transparent and traceable
supply chain
2.
Engineering
In-house engineering
expertise with well-
established teams for Product
Development, Innovation &
Advanced Technology,
Vehicle Engineering, ICE
Powertrain, ePowertrain,
Software & Electronics
Technology, Value
Engineering and Project
Management & Planning
Teams work in a cross-
functional structure to
encourage collaboration,
greater efficiency and foster
cutting-edge innovation with
astrong focus on design
Optimised development
processes to maximise cross
carline component sharing
and drive sustainability,
thereby reducing complexity,
improving quality and
delivering engineering
efficiencies
Focused on integrating
sustainable innovation in
newmaterials incorporating
cutting-edge technology,
whilst maximising resource
efficiency and building a
circular economy
Network of strategic
partners to co-develop
world-class technology and
vehicle systems, enhance
quality and deliver technical
excellence, whilst building all
our vehicles in the UK
3.
Operational
excellence
Quality and procurement
organisations transformed
and strengthened with highly
experienced management
hires complementing a vastly
experienced team
Building trust in our brand
bydelivering the highest
standards of governance
andintegrity which defines
everything we do
Culture of continuous
improvement embedded,
enhancing efficiency, cost
andquality, including the
utilisation of a pilot line and
additional quality inspection
points throughout the
buildprocess
Supplier strategy to develop
strategic and sustainable
partnerships to improve
supply chain resilience,
qualityand performance
Elevating sustainability in our
brand through collaborations
with suppliers, our dealerships
and partners, delivering
innovative solutions and
integrating sustainability
along our value chain
Creating a sustainably profitable business
model to deliver future success
WHAT WE PUT IN
OUR
STRATEGIC
PILLARS
1. OUR ICONIC
BRAND
2. OUR RELENTLESS
PURSUIT OF
INNOVATION
3. OUR PROMISE,
RACING. GREEN.
4. OUR WORLD
CLASS TALENT
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
20
06XOurXBusinessXModel_OurXStrategy_v62.indd 2006XOurXBusinessXModel_OurXStrategy_v62.indd 20 13/03/2025 14:4113/03/2025 14:41
4.
Go-to-market
Intensity. Driven. brand
identity positions the brand at
the crosshairs of ultra-luxury
and high performance;
supported by strategic
marketing initiatives intended
to drive new levels of brand
awareness, attract new
customers, increase loyalty
and exclusivity, and build a
stronger community
Building on strong retail
distribution, and an
ultra-luxury blend of physical
and digital customer
experience
Experienced dealer partners
with knowledge of the
ultra-luxury segment in all key
growth markets globally, with
the consistent application of
our corporate identity aligned
to ultra-luxury environment
and product portfolio
Leveraging a demand-driven
business model that
strengthens our order book,
supports stronger pricing
dynamics and controls
inventory
5.
“ No one builds
anAston Martin
ontheir own”
Building a performance
driven, ultra-luxury focused
workforce, culture and
mindset, harnessing agility,
efficiency and speed
supported by a Company-
wide performance bonus
approach, incorporating key
financial and quality targets
A culture characterised
byequity, diversity and
inclusion, with our people
andlocal communities
integral to delivering our
sustainability vision
Strengthening workforce
skills, knowledge and
capability through ongoing
investment in our people
andtraining supporting a just
transition as we transition
toICE alternatives
Embedding a health and
safety mindset as a core
priority, cultivating a culture
of safety and wellbeing
Creating a fulfilling and
rewarding experience that
attracts and retains talent,
unlocking the potential of our
people to grow and deliver
excellence with passion,
fostering passion within our
corporate DNA
Unlocking our
futurepotential
Our business is focused on delivering sustainably
profitable growth and value for our stakeholders
while staying true to our purpose to create vehicles
withthe ultimate technology, precision and
craftsmanship that deliver thrilling performance
and a bespoke, class-leading experience.
We seek to achieve this while deepening the
integration of sustainability into our business,
improving our performance and driving action
through our three core pillars: tackling climate
change, creating a better environment and
investing inpeople.
READ MORE ON OUR SUSTAINABILITY STRATEGY ON PAGES 32-55
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
21
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
06XOurXBusinessXModel_OurXStrategy_v62.indd 2106XOurXBusinessXModel_OurXStrategy_v62.indd 21 13/03/2025 14:4213/03/2025 14:42
Four pillars that help support
deliveryofourstrategy
STRATEGIC REPORT
OUR STRATEGY
1. OUR ICONIC BRAND
Underpinned by a strong and loyal customer base,
andunique position transcending ultra-luxury and
highperformance, we have a clear vision to become
theworld’s most desirable ultra-luxury British
performance brand
ACHIEVEMENTS THIS YEAR
Enhanced brand presence and ultra-luxury customer experience with
opening of landmark showroom within internationally acclaimed luxury hotel,
The Peninsula Tokyo, new UK dealerships, two openings in SouthKorea
110% increase in attendance of customers at Aston Martin events in 2024
compared to 2023, including global launch events for new Vantage,
Vanquish and Valiant, in addition to driving experiences, loyalty and brand
events and hosting at the Formula One Paddock Club
Awarded Royal Warrant by appointment to His Majesty The King
Connected with dealers and customers globally through significant
presence at the world’s most prestigious luxury and automotive events
Continued to grow our brand awareness and desirability through the
globalplatform of Formula One® and leading Netflix documentary series,
Driveto Survive
Award-winning digital configurator drove a 30% uplift in digital leads
andopportunities in 2024
Launched virtual reality configurator experience, first seen in hospitality at the
British Grand Prix at Silverstone bringing leading technology to our
ultra-luxury experiences
Successfully launched new brand licensing and design collaborations further
expanding the impact of our brand globally, including the first BOSS x Aston
Martin capsule collection, Aston Martin Residences Miami completing our
brand’s first real estate project, and ‘The Astera, Interiors by Aston Martin’
bringing ultra-luxury interior design to the United Arab Emirates
British sporting legend, Sir Mark Cavendish became the first person to take
on the new role of Global High Performance ambassador at Aston Martin
Capitalised on Aston Martin’s unique historic milestones including DB12
Goldfinger Edition to celebrate 60 years of iconic James Bond partnership
FOCUS FOR 2025+
Leverage the benefits of building deep understanding and strong
relationships with our customers over many years, combined with an
effective Salesforce CRM to create bespoke, tailored campaigns for our
potential customer base
Further elevate our ultra-luixury retail strategy and Q by Aston Martin
proposition, whilst enriching personalisation and content opportunities
Return to 24 Hours of Le Mans with partner team Heart of Racing, with two
Valkyrie AMR-LMH hypercars in 2025
Drive maximum brand value and commercial benefit from our unique
association with Formula One®
LINK TO KPIs:
1
2
3
4
5
6
7
8
9
LINK TO RISKS:
1
2
4
5
7
8
11
2. OUR RELENTLESS PURSUIT
OFINNOVATION
Create a breathtaking and comprehensive core
portfolio across front-engine and SUV, enhanced
byastrategically aligned Specials programme,
including our first mid-engined PHEV
ACHIEVEMENTS THIS YEAR
Successfully completed the launch of our entirely new and reinvigorated
core range of models to media acclaim, with Aston Martin’s first-ever
in-house, bespoke infotainment system across the range
Launched ultra-exclusive, track-focused, road-legal extreme Valiant
special edition developed through bespoke service, Q by Aston Martin
Delivered iconic Valkyrie programme, merging Formula One® technology
with a road car
Completed delivery to customers of our 110 year anniversary special,
Valour, honouring our unique tradition of superlative special edition
front-engined sports cars
Honoured with a King’s Award for Enterprise, recognising our unique
approach to combining handcraft with the latest technology
Continued to leverage benefits from our strategic supply agreement
withLucid and strategic cooperation agreement with Mercedes-Benz AG
Invested in electrification skills across our business that will be used to
electrify our model range with a blended drivetrain approach between
2025 and 2030 including PHEV and BEV, as well as the use of alternative
sustainable materials within vehicles
Advanced the development of Aston Martin’s landmark mid-engined
hybrid supercar, Valhalla, using Formula One® methodologies, experience
and technologies
Being an active voice through our participation in industry groups such as
the Society of Motor Manufacturers and Traders and Walpole, the official
sector body for UK luxury
Partner team, The Heart of Racing, recorded a maiden victory at the
Circuitof the Americas with the new Vantage GT3 car
FOCUS FOR 2025+
Drive innovation and deliver products that create desire and excitement,
progressing our vision to have a world-class portfolio of models in the
most significant luxury growth segments
Relentless focus on quality and instill better rigour and discipline in the
planning and execution of our product launch cycles
Commence production of our first mid-engined PHEV, Valhalla, in 2025
Optimise product development processes to maximise cross-carline
component sharing, reduce complexity and drive engineering efficiencies
Continue work with our strong network of strategic partners to
co-develop world-class technology and vehicle systems, enhance quality,
and maximise supply chain resilience, with efficiencies
LINK TO KPIs:
1
2
3
4
5
6
7
LINK TO RISKS:
1
2
3
4
5
6
8
9
10
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
22
06XOurXBusinessXModel_OurXStrategy_v62.indd 2206XOurXBusinessXModel_OurXStrategy_v62.indd 22 13/03/2025 14:4213/03/2025 14:42
3. OUR PROMISE,
RACING. GREEN.
Deepen the integration of sustainability into our
business and improve our performance through
ourRacing. Green. strategy
ACHIEVEMENTS THIS YEAR
Joined Drive Sustainability, an international initiative to improve the social,
ethical, and environmental performance of automotive supply chains
Updated Responsible Procurement Policy setting out higher expectations
of sustainability practice for our supplier base
Launched Community Investment Policy
Submitted our net zero targets to the Science-Based Targets initiative
(SBTi) for validation
ISO14001:2015 environmental management standard certification
achieved for our St Athan manufacturing site
Reviewed and updated Racing. Green. strategy, taking account of inputs
from customers, supply chain partners, employees, shareholders and
other stakeholders
Joined Taskforce for Nature-related Financial Disclosures (TNFD) Forum
On track to acheive ISO50001 certification at key manufacturing sites
in2025
Used a specialist contractor at our Gaydon and St Athan sites, to manage
our waste activities from on-site monitoring, segregation and
management through to waste disposal
FOCUS FOR 2025+
Deliver key activities against our net zero plan including a focus on
renewable electricity generation and efficiency in our own operations,
working with our supply chain and other partners to reduce wider value
chain impacts
Embed a risk-based approach to identify and assess climate-related risks
and opportunities
New goals aligned with the latest climate science through overarching
decarbonisation strategy, including commitment to reduce absolute
Scope 1, 2 and 3 greenhouse gas emissions by 42% by 2030, and by 90%
by2050 from a 2022 base year
Safeguard biodiversity and water in our operations and beyond
Continue to build our sustainability approach into our wider design portfolio
Continue our focus on human rights delivering and implementing an action
plan linked to our main risks to ensure robust human rights management
practices are in place
LINK TO KPIs:
8
9
LINK TO RISKS:
1
2
3
4
5
7
9
10
12
4. OUR WORLD-CLASS TALENT
Attract and retain a talented and skilful team with
experience and understanding of the ultra-luxury
automotive sector, focused on building a collaborative
and cross-functional way ofworking
ACHIEVEMENTS THIS YEAR
Continued our journey to become a Great Place To Work®, putting people
at the centre of everything we do
Implemented new performance management process called SPARK, which
reflects the Company’s values in its approach and is designed to facilitate
regular conversations between colleagues and their line management to
support both personal and professional development
Expanded our early careers programmes, with graduates recruited more
than double 2023, and apprentice recruitment up more than 30%
Enhanced our ability to identify safety-related risks by working with employees
to develop new safety training tailored to their operational environments
Started employee Mental Health First Aiders programme, including training
15employees to become Mental Heatlh First Aiders providing an additional
layer of support for our colleagues
Celebrated over 50 colleagues who have 25 or more years of service, with
our 2024 Long Service lunch
Supported our colleagues with the higher cost of living through pay rises
approved by the Remuneration Committee and agreed with the trade union
for 2024 and 2025
Named in Financial Times Top 500 UK employers
Established an EDI governance structure that operates across our business
and brings together both a corporate and employee led approach
Reconfigured approach to recruitment through Hiring Manager training
covering our Company values and exploring the impact ofbias
Held Inclusion Network Day where network chairs and partners visited each
site in the UK to enhance the ‘I am Inclusion’ network’s engagement
FOCUS FOR 2025+
Strengthen workforce skills, knowledge and capability and foster
engineering excellence and passion within our corporate DNA
Continue working towards our ambition to achieve zero accidents across
our business
Increase the culture of inclusion leveraging the Aston Martin values, building
awareness through education and measuring through qualitative data
Improve colleague alignment by becoming a Great Place to Work®
Continue working to achieve 30% of women in leadership positions by
2030, aligned with industry commitment
Continue building a workplace and culture where all our people feel
connected to Aston Martin’s purpose, where they have a voice and can
develop to reach their full potential
LINK TO KPIs:
8
9
LINK TO RISKS:
3
4
6
7
9
10
OUR KEY PERFORMANCE INDICATORS
1
Revenue
2
Wholesale volumes
3
Operating profit/(loss)
4
Adjusted EBITDA
5
Net Debt
6
Net Debt to adjusted EBITDA
7
Free cash flow
8
Quality
9
Health & Safety Accident Frequency Rate
PRINCIPAL RISKS AND UNCERTAINTIES
1
Macroeconomic and geopolitical instability
2
Brand/reputational damage
3
Technological advancement
4
Climate change
5
Liquidity
6
Compliance with laws and regulations
7
Talent acquisition and retention
8
Quality
9
Programme delivery
10
Achieving financial and cost-reduction targets
11
Cyber security and IT resilience
12
Supply chain disruption
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
23
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
06XOurXBusinessXModel_OurXStrategy_v62.indd 2306XOurXBusinessXModel_OurXStrategy_v62.indd 23 13/03/2025 14:4213/03/2025 14:42
STRATEGIC REPORT
KEY PERFORMANCE INDICATORS
REVENUE
£m
WHOLESALE VOLUMES
Units
OPERATING PROFIT/(LOSS)
£m
ADJUSTED EBITDA
£m
NET DEBT
£m
NET DEBT TO ADJUSTED
EBITDA “ADJUSTED
LEVERAGE”
FREE CASH FLOW
£m
QUALITY – CUSTOMER
PERCEPTION AUDIT (CPA)
QUALITY SCORE
HEALTH & SAFETY –
ACCIDENT FREQUENCY
RATE
(AFR)
DESCRIPTION
Revenue measures the
appeal of our brands and our
ability to build and sustain
brand equity and increase
market share through
product expansion
DEFINITION
Revenue is defined in note2
to the Financial Statements
REMUNERATION LINKAGE
None
TARGET
The Company expects to
generate revenue of
c.£2.5bn by 2027/28
DESCRIPTION
This measures sales from the
Company to its dealers and
direct customers
DEFINITION
Number of vehicles,
including Specials, sold by
the Company to its dealers
and direct customers
REMUNERATION LINKAGE
Represents 10% of the Group
scorecard of performance
measures forthe annual
bonus for 2024. In 2025 this
measure will not be included
in the annual bonus
scorecard
TARGET
Mid single-digit % growth
in2025 with continued focus
on value
DESCRIPTION
Operating profit/(loss)
measures our actual,
reported operating
profitability
DEFINITION
Net revenue, less Cost
ofSales, less all other
operational expenses
(Seenote 4 to the
FinancialStatements)
REMUNERATION LINKAGE
None
TARGET
Not applicable
DESCRIPTION
This measures our underlying
operating profitability,
stripping out the impact
ofadjusting items from
operating profit/(loss) and
interest, tax, depreciation
and amortisation
DEFINITION
Adjusted EBITDA is defined
in note 34 to the Financial
Statements
REMUNERATION LINKAGE
Represents 50% of the Group
scorecard of performance
measures forthe annual
bonus for 2024. In 2025 the
KPI will be replaced by
Adjusted EBIT which will
represent 50% of the Group
scorecard
TARGET
The Company expects to
generate c.£400m adjusted
EBIT by 2027/28
DESCRIPTION
Net debt measures the
amount of total indebtedness
at the Company, net of any
cash and cash equivalents
DEFINITION
Total value of all current and
non-current borrowings,
inventory repurchase
arrangements and lease
liabilities, less cash and cash
equivalents and cash not
available for short-term use
(See note 34 to the Financial
Statements)
REMUNERATION LINKAGE
None
TARGET
Not applicable
DESCRIPTION
Adjusted leverage measures
our indebtedness compared
to one year’s worth of
profitability
DEFINITION
Net debt divided by adjusted
EBITDA over the last
12months (See note 34 to
the Financial Statements)
REMUNERATION LINKAGE
None
TARGET
Below 1.0x in 2027/28
DESCRIPTION
This measures the generation
and usage of cash, including
the impact of all investment
and financing decisions
DEFINITION
Cash inflow/(outflow) from
operating activities plus the
cash used in investing
activities (excluding interest
received) plus interest paid
inthe year, less interest
received (Seenote 34 to
theFinancial Statements)
REMUNERATION LINKAGE
Represents 20% of the Group
scorecard of performance
measures in the annual
bonus. For 2025, free cash
flow will represent 30% of
the Group scorecard
TARGET
The Company expects to be
free cash flow positive inH2
2025 and sustainably positive
thereafter
DESCRIPTION
This is an internal measure
ofthe quality of each
completed car at the end
ofthe production line
DEFINITION
The CPA score is determined
through the audit of each
carat the point that it has
completed all the production
processes and is intercepted
as it would be handed over
tothe outbound transport
company
REMUNERATION LINKAGE
Quality measures, including
CPA score, represent 15%
ofthe Group scorecard of
measures for the annual bonus
TARGET
Ambition for continuous
year-on-year improvement
inCPA scores for GT/ sports
cars and DBX
* Significant progress made
butstretching target level
notfully achieved.
** One of two targets achieved
*** Stretching targets not
achieved
DESCRIPTION
The AFR is the number of
accidents per 100 workers
and measures work-related
recordable injuries or
illnesses (as defined by the
Occupational Health and
Safety Administration
(OHSA))
DEFINITION
The AFR measure is
calculated by the number
ofwork-related recordable
injuries or illnesses (defined
by the OHSA definition)
divided by the number of
hours worked over a
12-month period ending
on31 December each year
REMUNERATION LINKAGE
Health and safety represents
5% of the Group scorecard of
measures for the annual
bonus
TARGET
Ambition for continuous
year-on-year reduction
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
2024 performance reflects our transition
toan all-new model portfolio, positioning
the Company for future success
FINANCIAL
1,632.8
1,583.9
1,381 .5
2022 2023 2024
6,620
6,030
6,412
2022 2023 2024
(111.2)
(99.5)
(141.8)
2022 2023 2024
305.9
271.0
190.2
2022 2023 2024
OUR
STRATEGIC
PILLARS
1. OUR ICONIC
BRAND
2. OUR RELENTLESS
PURSUIT OF
INNOVATION
3. OUR PROMISE,
RACING. GREEN.
4. OUR WORLD
CLASS TALENT
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
24
07XCFOXStatement_FinancialXReview_KPIs_v58.indd 2407XCFOXStatement_FinancialXReview_KPIs_v58.indd 24 13/03/2025 14:4213/03/2025 14:42
REVENUE
£m
WHOLESALE VOLUMES
Units
OPERATING PROFIT/(LOSS)
£m
ADJUSTED EBITDA
£m
NET DEBT
£m
NET DEBT TO ADJUSTED
EBITDA “ADJUSTED
LEVERAGE”
FREE CASH FLOW
£m
QUALITY – CUSTOMER
PERCEPTION AUDIT (CPA)
QUALITY SCORE
HEALTH & SAFETY –
ACCIDENT FREQUENCY
RATE
(AFR)
DESCRIPTION
Revenue measures the
appeal of our brands and our
ability to build and sustain
brand equity and increase
market share through
product expansion
DEFINITION
Revenue is defined in note2
to the Financial Statements
REMUNERATION LINKAGE
None
TARGET
The Company expects to
generate revenue of
c.£2.5bn by 2027/28
DESCRIPTION
This measures sales from the
Company to its dealers and
direct customers
DEFINITION
Number of vehicles,
including Specials, sold by
the Company to its dealers
and direct customers
REMUNERATION LINKAGE
Represents 10% of the Group
scorecard of performance
measures forthe annual
bonus for 2024. In 2025 this
measure will not be included
in the annual bonus
scorecard
TARGET
Mid single-digit % growth
in2025 with continued focus
on value
DESCRIPTION
Operating profit/(loss)
measures our actual,
reported operating
profitability
DEFINITION
Net revenue, less Cost
ofSales, less all other
operational expenses
(Seenote 4 to the
FinancialStatements)
REMUNERATION LINKAGE
None
TARGET
Not applicable
DESCRIPTION
This measures our underlying
operating profitability,
stripping out the impact
ofadjusting items from
operating profit/(loss) and
interest, tax, depreciation
and amortisation
DEFINITION
Adjusted EBITDA is defined
in note 34 to the Financial
Statements
REMUNERATION LINKAGE
Represents 50% of the Group
scorecard of performance
measures forthe annual
bonus for 2024. In 2025 the
KPI will be replaced by
Adjusted EBIT which will
represent 50% of the Group
scorecard
TARGET
The Company expects to
generate c.£400m adjusted
EBIT by 2027/28
DESCRIPTION
Net debt measures the
amount of total indebtedness
at the Company, net of any
cash and cash equivalents
DEFINITION
Total value of all current and
non-current borrowings,
inventory repurchase
arrangements and lease
liabilities, less cash and cash
equivalents and cash not
available for short-term use
(See note 34 to the Financial
Statements)
REMUNERATION LINKAGE
None
TARGET
Not applicable
DESCRIPTION
Adjusted leverage measures
our indebtedness compared
to one year’s worth of
profitability
DEFINITION
Net debt divided by adjusted
EBITDA over the last
12months (See note 34 to
the Financial Statements)
REMUNERATION LINKAGE
None
TARGET
Below 1.0x in 2027/28
DESCRIPTION
This measures the generation
and usage of cash, including
the impact of all investment
and financing decisions
DEFINITION
Cash inflow/(outflow) from
operating activities plus the
cash used in investing
activities (excluding interest
received) plus interest paid
inthe year, less interest
received (Seenote 34 to
theFinancial Statements)
REMUNERATION LINKAGE
Represents 20% of the Group
scorecard of performance
measures in the annual
bonus. For 2025, free cash
flow will represent 30% of
the Group scorecard
TARGET
The Company expects to be
free cash flow positive inH2
2025 and sustainably positive
thereafter
DESCRIPTION
This is an internal measure
ofthe quality of each
completed car at the end
ofthe production line
DEFINITION
The CPA score is determined
through the audit of each
carat the point that it has
completed all the production
processes and is intercepted
as it would be handed over
tothe outbound transport
company
REMUNERATION LINKAGE
Quality measures, including
CPA score, represent 15%
ofthe Group scorecard of
measures for the annual bonus
TARGET
Ambition for continuous
year-on-year improvement
inCPA scores for GT/ sports
cars and DBX
* Significant progress made
butstretching target level
notfully achieved.
** One of two targets achieved
*** Stretching targets not
achieved
DESCRIPTION
The AFR is the number of
accidents per 100 workers
and measures work-related
recordable injuries or
illnesses (as defined by the
Occupational Health and
Safety Administration
(OHSA))
DEFINITION
The AFR measure is
calculated by the number
ofwork-related recordable
injuries or illnesses (defined
by the OHSA definition)
divided by the number of
hours worked over a
12-month period ending
on31 December each year
REMUNERATION LINKAGE
Health and safety represents
5% of the Group scorecard of
measures for the annual
bonus
TARGET
Ambition for continuous
year-on-year reduction
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
NON FINANCIAL
814.3
1,162.7
765.5
2022 2023 2024
2.7
4.3
4.0
2022 2023 2024
(360.0)
(391.6)
(298.8)
2022 2023 2024
** ****
2022 2023 2024
0.40
0.35
0.53
2022 2023 2024
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
25
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
07XCFOXStatement_FinancialXReview_KPIs_v58.indd 2507XCFOXStatement_FinancialXReview_KPIs_v58.indd 25 13/03/2025 14:4213/03/2025 14:42
DOUG
LAFFERTY
CHIEF FINANCIAL OFFICER
STRATEGIC REPORT
CHIEF FINANCIAL OFFICER’S STATEMENT
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
26
07XCFOXStatement_FinancialXReview_KPIs_v58.indd 2607XCFOXStatement_FinancialXReview_KPIs_v58.indd 26 13/03/2025 14:4213/03/2025 14:42
Positioning the Company to deliver on
itsstrategy with our focus on disciplined
execution, continued business
transformation and costoptimisation
s we fully transitioned to our new
core model range, 2024 was a year
marked by a number of product
launches. As a result of the transition,
our overall financial performance
reflected the significant delivery of
wholesale volumes in the second
half of the year. However, like many
of our peers, we did encounter
disruptions during the year in the
form of supply chain challenges and macroeconomic weakness,
particularly in China. These dynamics ultimately disrupted our ability
to meet our initial targets for the year, but despite this we still achieved
meaningful sequential performance improvement in the second half
of the year.
In addition to managing the operations of the business, we also
undertook financing activities to both refinance our debt and improve
our liquidity position, ending the year with total liquidity of £514m to
support the continued execution of our strategy.
I would like to thank all the teams that have supported the business
through this year, and I look forward to moving into 2025 with a renewed
focus on operational execution and continued business transformation.
Of course, we remain alert to industry-wide risk factors that present
an element of uncertainty but our focus is, and must be, on creating
asustainably profitable business for all of ourstakeholders.
£m FY 2024 FY 2023 Change Q4 2024 Q4 2023 Change
Total wholesale
volumes
1
6,030 6,620 (9%) 2,391 2,222 8%
Revenue 1,583.9 1,632.8 (3%) 589.3 593.3 (1%)
Gross profit 583.9 639.2 (9%) 207.0 268.4 (23%)
Gross margin (%) 36.9% 39.1% (220 bps) 35.1% 45.2% (1,010 bps)
Adjusted EBITDA
2
271.0 305.9 (11%) 158.1 174.8 (10%)
Adjusted EBIT
2
(82.8) (79.7) (4%) 38.7 55.4 (30%)
Operating
(loss)/profit
(99.5) (111. 2) 11% 33.3 34.1 (2%)
(Loss)/profit
before tax
(289.1) (239.8) (21%) (60.2) 20.0 (401%)
Net debt
2
(1,162.7) (814.3) (43%)(1,162.7) (814.3) (43%)
1 Number of vehicles including Specials
2 Alternative Performance Measures are defined in note 34 of the
financialstatements
A
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
27
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
07XCFOXStatement_FinancialXReview_KPIs_v58.indd 2707XCFOXStatement_FinancialXReview_KPIs_v58.indd 27 13/03/2025 14:4213/03/2025 14:42
STRATEGIC REPORT
FINANCIAL REVIEW
2024 FULL YEAR FINANCIAL SUMMARY
Delivered significant H2 2024 wholesale volume growth, up 10%
compared to H2 2023, reflecting the planned timing of new model
launches. This supported strong growth in financial performance
in H2 2024 compared with H1 2024, despite the revision to volumes
impacting Q4 2024:
• FY 2024 wholesale volumes decreased 9% to 6,030 (FY 2023:
6,620) impacted by the timing of new model launches, supply
chain disruptions and weaker macroeconomic environment
in China
• Q4 2024 wholesale volumes increased 8% to 2,391 (Q4 2023:
2,222) reflecting deliveries from the entirely new core product
range for the first time
FY 2024 revenue decreased 3% to £1,584m (FY 2023: £1,633m)
reflecting the lower year on year volumes and FX headwinds as
sterling strengthened against major currencies in FY 2024
compared to FY 2023. There was significant improvement in H2
2024 compared to H1 2024:
• Record total ASP reflects significant contribution from Valkyrie,
Valour and Valiant Specials:
•
FY 2024 total ASP of £245k, up 6% (FY 2023: £231k) driven by
a higher year-on-year number of Specials
•
Q4 2024 total ASP of £236k, down 7% (Q4 2023: £255k)
reflecting fewer Specials year-on-year
• Core ASP declined, partly due to material FX headwinds, but
included positive contribution from the new model range and
options growth:
•
FY 2024 core ASP of £177k, down 6% (FY 2023: £188k) while
contribution to core revenue from options increased 310 basis
points to 18% (FY 2023: 15%)
•
Q4 2024 core ASP of £175k, down 11% (Q4 2023: £196k)
reflecting a shift in the mix of models with significantly higher
Vantage volumes compared to the prior year period due to
the timing of new model launches
FY 2024 gross profit decreased 9% to £584m (FY 2023: £639m)
and gross margin decreased by 220 basis points to 37% (FY 2023:
39%); reflecting impact of portfolio transition, phasing of product
mix and volume, and FX headwinds, partially offset by increase in
Specials volume:
• Q4 2024 gross profit decreased by 23% to £207m (Q4 2023:
£268m) and gross margin at 35% (Q4 2023: 45%) reflecting mix
of core vehicles and fewer Specials
FY 2024 adjusted EBITDA
2
decreased 11% to £271m, in line with
revised guidance following volume revision (FY 2023: £306m);
adjusted EBITDA margin of 17% (FY 2023: 19%), reflecting lower
core volumes during portfolio transition period:
• FY 2024 adjusted operating expenses (excluding D&A)
decreased £20m to £313m with Q4 2024 being £45m lower
thanQ4 2023
FY 2024 adjusted EBIT loss of £83m was broadly flat compared
with the prior year (FY 2023: loss £80m) despite the impact of
gross profit, largely reflecting a decrease in D&A of 8% to £354m
(FY 2023: £386m); H2 2024 adjusted EBIT increased 143%
year-on-year to £17m (H2 2023: £7m)
FY 2024 operating loss decreased by 11% to £100m (FY 2023:
£111m l oss)
FY 2024 free cash outflow
2
of £392m (FY 2023: £360m outflow)
included Q4 2024 free cash inflow of £2m (Q4 2023: £63m
outflow) with:
• Net cash inflow from operating activities of £124m (FY 2023:
£146m cash inflow)
• Net cash interest paid of £115m (FY 2023: £109m)
• Broadly flat capital expenditure of £401m (FY 2023: £397m)
• Working capital outflow of £118m (FY 2023: £86m outflow),
primarily due to the unwinding of customer deposits (£178m
outflow in FY 2024 compared with £66m outflow in 2023) on
delivery of Specials, and a decrease in payables due to the earlier
timing of payments in 2024. Inventories remained broadly flat,
with a decrease in receivables following strong collections in
Q42024
Year-end liquidity (cash and available facilities) of £514m
(31December 2023: £393m), in line with guidance, including
FY2024 financing activities
Net debt at 31 December 2024 of £1,163m (31 December 2023:
£814m) primarily reflecting higher gross debt following FY 2024
financing activities and translational impact of foreign exchange
movements; adjusted net leverage ratio2 of 4.3x (31 December
2023: 2.7x); remain committed to deleveraging over the
medium-term
2024 FINANCIAL REVIEW
Wholesale volume summary
Number of vehicles FY 2024 FY 2023 Change Q4 2024 Q4 2023 Change
Total wholesale 6,030 6,620 (9%) 2,391 2,222 8%
Core (excluding
Specials)
5,812 6,469 (10%) 2,331 2,139 9%
By region:
UK 1,086 1,141 (5%) 422 367 15%
Americas 1,928 2,037 (5%) 816 620 32%
EMEA ex. UK 1,796 1,994 (10%) 695 727 (4%)
APAC 1,220 1,448 (16%) 458 508 (10%)
By model:
Sport/GT 3,925 3,530 11% 1,509 1,440 5%
SUV 1,887 2,939 (36%) 822 699 18%
Specials 218 151 44% 60 83 (28%)
Note: Sport/GT includes Vantage, DB11, DB12, DBS and Vanquish
“CONTRIBUTION TO COREREVENUE
FROM OPTIONS INCREASED
310BASISPOINTS TO18%”
2 Alternative Performance Measures are defined in note 34 of the
financial statements
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
28
07XCFOXStatement_FinancialXReview_KPIs_v58.indd 2807XCFOXStatement_FinancialXReview_KPIs_v58.indd 28 13/03/2025 14:4213/03/2025 14:42
Aston Martin’s performance in FY 2024 reflects the Company’s
transition to an all-new model portfolio which positions the Company
well for future success. Product transformation continued throughout
the year as prior models were ramped down in preparation for the
launch of the new Vantage, upgraded DBX707 and V12 Vanquish. As
guided, the year was one of two halves, with H2 2024 wholesale volumes
of 4 ,032 b e nefit ing from th e r a mp up o f the new m odel s, w i thwhol esal e
volumes up 10% compared to the prior year period (H22023: 3,666),
and increasing 102% sequentially compared with H12024 (1,998).
FY 2024 wholesale volumes overall were down 9% at 6,030
(FY2023:6,620):
Sport/GT wholesales of 3,925 increased 11% (FY 2023: 3,530), with
DB12 wholesales throughout the year supported by new Vantage
and Vanquish wholesales in H2 2024.
SUV wholesales of 1,887 decreased by 36% (FY 2023: 2,939),
reflecting, as reported, a strategic transitional ramp down in prior
model volumes in H1 2024 ahead of the ramp up of upgraded
DBX707 wholesales in H2 2024. This resulted in H2 2024 volumes
being broadly in line with the prior year period (H2 2024: 1,380;
H22023: 1,392).
Specials wholesales of 218 (FY 2023: 151), reflect the Valkyrie and
Valour programmes in addition to the initial customer deliveries
ofValiant.
In addition to the new model launches, in September 2024 the
Company announced that industry-wide supply chain disruptions and
continued macroeconomic weakness in China were impacting
performance. These factors resulted in a circa 1,000-unit reduction in
wholesale volume guidance for 2024, mostly impacting Q4 2024.
Despite the reduction, Q4 2024 wholesale volumes of 2,391 increased
8% compared to the prior year period (Q4 2023: 2,222).
Aston Martin’s volumes across geographies remained well balanced.
In line with the overall performance, wholesale volumes across all
regions were down compared to FY 2023 due to the product portfolio
transition. The Americas and EMEA, excluding UK, were the largest
regions in FY 2024, collectively representing 62% of total wholesales.
While China remains a market with significant long-term growth
opportunities, the trend there continued with volumes decreasing by
49% compared with FY 2023, driven by a combination of market
dynamics and the timing of new model deliveries commencing only
towards the end of the year. FY 2024 wholesale volumes in APAC,
excluding China, were up 2%. In Q4 2024, while UK and Americas
volumes increased compared with Q4 2023, APAC and EMEA,
excluding UK, both decreased due to the market dynamics and timing
of new model arrivals into market, respectively.
Revenue and ASP summary
£m FY 2024 FY 2023 Change Q4 2024 Q4 2023 Change
Sale of vehicles 1,477.9 1,531.9 (4%) 564.5 566.6 (0%)
Total ASP (£k) 245 231 6% 236 255 (7%)
Core ASP (£k) 177 188 (6%) 175 196 (11%)
Sale of parts 84.4 80.0 6% 19.8 20.7 (4%)
Servicing of vehicles 11.0 9.8 12% 2.2 2.9 (24%)
Brand and
motorsport
10.6 11.1 (5%) 2.8 3.1 (10%)
Total revenue 1,583.9 1,632.8 (3%) 589.3 593.3 (1%)
FY 2024 revenue decreased by 3% to £1,584m (FY 2023: £1,633m).
This reflected the volume impact of the planned portfolio transition,
which resulted in H2 2024 revenue of £981m increasing 3% compared
with the prior year period (H2 2023: £955m). In addition, FY 2024
revenue was impacted by foreign exchange headwinds as sterling
strengthened against major currencies compared to the prior year:
FY 2024 total ASP: Increased 6% reflecting the richer mix resulting
from deliveries of Specials including the Aston Martin Valkyrie
Spider, Valour and Valiant limited edition models.
• Total ASP in Q4 2024 (£236k) increased sequentially by 6%
compared with total ASP in Q3 2024 (£222k), benefiting from
higher deliveries of Specials. Compared with Q4 2023, total ASP
in Q4 2024 decreased by 7%, reflecting lower volume of Specials
and the impact of foreign exchange headwinds.
FY 2024 Core ASP: Decreased 6% due to material FX headwinds,
asoutlined above, partially offset by positive contribution from
new model range and options growth, in addition to the prior year
period mix benefitting from the contribution of V12 Vantage and
DBS 770 Ultimate:
• Continued strong demand for product personalisation drove
anincrease in contribution to core revenue from options, up
310basis points to 18% compared to the prior year (FY 2023:
15%), reflecting the launch period of new models.
• Core ASP in Q4 2024 (£175k) decreased by 11% compared
withQ4 2023 (£196k), due to the shift in mix of models with
significantly higher Vantage volumes compared to the prior
yearperiod due to the timing of new model launches.
“IN SEPTEMBER 2024 THE
COMPANY ANNOUNCED THAT
INDUSTRY-WIDE SUPPLY CHAIN
DISPRUPTIONS AND CONTINUED
MACROECONOMIC WEAKNESS IN
CHINA WERE IMPACTING
PERFORMANCE”
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
29
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
07XCFOXStatement_FinancialXReview_KPIs_v58.indd 2907XCFOXStatement_FinancialXReview_KPIs_v58.indd 29 13/03/2025 14:4213/03/2025 14:42
STRATEGIC REPORT
FINANCIAL REVIEW CONTINUED
Income statement summary
£m FY 2024 FY 2023 Q4 2024 Q4 2023
Revenue 1,583.9 1,632.8 589.3 593.3
Cost of sales (1,000.0) (993.6) (382.3) (324.9)
Gross profit 583.9 639.2 207.0 268.4
Gross margin % 36.9% 39.1% 35.1% 45.2%
Adjusted operating expenses (666.7) (718.9) (168.3) (213.0)
of which depreciation & amortisation 353.8 385.6 119. 4 119 .4
Adjusted EBIT
2
(82.8) (79.7) 38.7 55.4
Adjusting operating items (16.7) (31.5) (5.4) (21.3)
Operating loss (99.5) (111. 2) 33.3 34.1
Net financing expense (189.6) (128.6) (93.5) (14.1)
of which adjusting financing (expense)/
income
(16 .9) (36.5) 2.3 (8.2)
Loss before tax (289.1) (239.8) (60.2) 20.0
Tax (charge)/credit (34.4) 13.0 (43.6) 13.2
(Loss)/profit for the period (323.5) (226.8) (103.8) 33.2
Adjusted EBITDA
2
271.0 305.9 158.1 174.8
Adjusted EBITDA margin 17.1% 18.7% 26.8% 29.5%
Adjusted loss before tax (255.5) (171.8) (57.1) 49.5
EPS (pence) (38.9) (30.5)
Adjusted EPS (pence) (34.8) (21.4)
2 Alternative Performance Measures are defined in note 34 of the
financial statements
The lower revenue and volumes in FY 2024, were reflected in gross
profit of £584m, decreasing 9% (FY 2023: £639m). In line with revised
guidance, this resulted in a gross margin of 37% (FY 2023: 39%).
Benefits from the ongoing portfolio transformation to next generation
models and strong volumes of high margin Specials were offset by
higher manufacturing, logistics and other costs largely associated
with the expected volume ramp up in production in H2 2024. These
planned cost increases were absorbed by fewer core vehicles in Q4
2024 than originally planned earlier in the year, following the volume
reduction announced in September 2024. In addition, fewer Specials
and the mix, including the slight shortfall in Valiant deliveries, and the
phasing of core product mix impacted Q4 2024. This resulted in Q4
2024 gross profit decreasing 23%, with a gross margin of 35%
compared with 45% in Q4 2023. The Company continues to target
over 40% gross margin from current and future models, aligned with
the Company’s ultra-luxury strategy.
FY 2024 adjusted EBITDA was in line with revised guidance at £271m
(FY 2023: £306m) decreasing by 11%, with adjusted EBITDA margin
declining to 17% (FY 2023: 19%). This was primarily due to the lower
core volumes during the portfolio transition period, partially offset
by adjusted operating expenses (excluding D&A) decreasing by 6%
and a higher number of Specials.
Adjusted EBIT was broadly flat in FY 2024 at £(83)m (FY 2023: £(80)m)
with depreciation and amortisation decreasing to £354m (FY 2023:
£386m).
FY 2024 adjusted net financing costs of £173m (FY 2023: £92m),
increased primarily due to the year-on-year impact of US dollar debt
revaluations. The £17m net adjusting finance charge (FY 2023: £37m)
was due to redemption premiums associated with the refinancing
of the senior secured notes, partially offset by gains on financial
instruments recognised through the income statement.
The adjusted loss before ta x increased to £256m (F Y 2023: £172mloss),
reflecting the increased adjusted net finance costs.
On a reported basis, FY 2024 operating loss of £100m decreased
by11`% (FY 2023: £111m loss) primarily due to reduced adjusting legal
expenses, which was offset by the increase in net finance expenses
resulting in an increased loss before tax of £290m (FY 2023:
£240mloss).
The weighted average share count at 31 December 2024 was 832
million (31 December 2023: 748m), following the placing of new
ordinary shares in November. 20 million shares in relation to the
warrants remain outstanding and are exercisable until 2027, giving an
adjusted EPS of (34.8)p (FY 2023: (21.4)p).
Cash flow and net debt summary
£m FY 2024 FY 2023 Q4 2024 Q4 2023
Cash generated from operating
activities
123.9 145.9 175.3 114 . 5
Cash used in investing activities
(excl.interest)
(400.6) (396.9) (100.6) (121.9)
Net cash interest paid (114.9) (109.0) (72.5) (55.8)
Free cash (outflow)/inflow (391.6) (360.0) 2.2 (63.2)
Cash inflow/(outflow) from financing
activities and other investing activities
(excl. interest)
2
356.5 182.2 193.1 (80.6)
(Decrease)/increase in net cash (35.1) (177.8) 195.3 (143.8)
Effect of exchange rates on cash
andcash equivalents
2.3 (13.1) 7.4 ( 7.6)
Cash balance 359.6 392.4 359.6 392.4
Available facilities 154.1 0.4 154.1 0.4
Total cash and available facilities
(“liquidity”)
513.7 392.8 513.7 392.8
2 Alternative Performance Measures are defined in note 34 of the
financial statements
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
30
07XCFOXStatement_FinancialXReview_KPIs_v58.indd 3007XCFOXStatement_FinancialXReview_KPIs_v58.indd 30 13/03/2025 14:4213/03/2025 14:42
Net cash inflow from operating activities was £124m in FY 2024
(FY2023: £146m inflow). The year-on-year movement was primarily
driven by a £35m decrease in adjusted EBITDA, as explained above,
and a working capital outflow of £118m (FY 2023: £86m outflow). The
largest drivers of working capital outflow were:
£178m decrease (FY 2023: £66m decrease) in deposits held, due
tothe increased volume of Specials delivered compared to the
prior year period, a trend that is expected to normalise in FY 2025
following the completion of the recent Specials programmes
andahead of Valhalla deliveries commencing in H2 2025;
£13m increase in inventories (FY 2023: £12m decrease) as
preparations for a significant Q4 2024 production ramp up were
impacted by the change to volume guidance and a £34m decrease
in payables (FY 2023: £51m increase);
which were partially offset by a decrease in receivables of £107m
(FY 2023: £82m increase) following strong collections in Q4 2024
Capital expenditure of £401m was broadly in line with the prior year
period (FY 2023: £397m). Investment is focused on the future product
pipeline, including the next generation of models and development of
the Company’s electrification programme. Accelerated spend related
to preparation for the launch of Valhalla in 2025, resulted in FY 2024
capital expenditure ahead of guidance.
Free cash outflow of £392m in FY 2024 (FY 2023: £360m outflow), was
primarily due to the decrease in cash inflow from operating activities,
as detailed above, and marginal increases to capital expenditure and
net cash interest paid. As guided, free cash flow improved sequentially
throughout the year, with Q4 2024 free cash inflow of £2m. This was
supported in Q4 2024 by strong volumes and a positive working
capital inflow of £24m, despite a £55m deposit unwind related to the
high volume of Specials delivered, partially offset by net cash interest
paid of £73m.
£m 31 Dec-24 31 Dec-23
Loan notes (1,378.9) (980.3)
Inventory financing (38.4) (39.7)
Bank loans and overdrafts (8.4) (89.4)
Lease liabilities (IFRS 16) (96.6) (97.3)
Gross debt (1,522.3) (1,206.7)
Cash balance 359.6 392.4
Net debt (1,162.7) (814.3)
Compared with 31 December 2023, gross debt increased to £1,522m
(31 December 2023: £1,207m) as a result of the refinancing and private
debt placing in FY 2024 and the translation impact related to
year-on-year movements in exchange rates on dollar-denominated
debt. In March 2024, following upgrades from leading credit agencies,
the Group priced on improved terms senior secured notes of $960m at
10.000% and £400m at 10.375% due in 2029. Concurrently, existing
lenders entered into a new super senior revolving credit facility
agreement, increasing their binding commitments by circa £70m to
£170m. In addition, circa £135m and circa £100m of private debt
placings were completed in August and November 2024, respectively.
Together with the circa £111m equity placing in November 2024, these
financing activities provide the Company with the liquidity to continue
delivering on its growth strategy.
In line with guidance, total cash and available facilities was £514m
on 31 December 2024 increased compared to 31 December 2023
(£393m), reflecting the financing activities in FY 2024, as
mentionedabove.
Net debt of £1,163m at 31 December 2024 increased from £814m as at
31 December 2023 primarily due to the higher gross debt and a
marginal decrease in the cash balance and the translation impact
related to year-on-year movements in exchange rates. The adjusted
net leverage ratio of 4.3x (31 December 2023: 2.7x; 31 December
2022: 4.0x) reflects the EBITDA performance during the portfolio
transition period in FY 2024 and impact of the Q4 2024 volume
guidance revision, in addition to the increase in net debt. Through
disciplined strategic delivery and profitable growth in the future, the
Group expects to deleverage in line with its medium-term target.
DOUG LAFFERTY
CHIEF FINANCIAL OFFICER
“TOTAL CASH AND AVAILABLE
FACILITIES WAS £514M,
REFLECTING THE REFINANCING
ACTIVITIES IN FY 2024”
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
31
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
07XCFOXStatement_FinancialXReview_KPIs_v58.indd 3107XCFOXStatement_FinancialXReview_KPIs_v58.indd 31 13/03/2025 14:4213/03/2025 14:42
STRATEGIC REPORT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
2024 highlights
26%
increase in training hours
compared to 2023
100%
renewable electricity powering
manufacting sites
12.5%
improvement in Accident Frequency
Rate compared with 2023
59
visits to schools,
colleges and universities
16%
reduction in water consumption
at manufacturing sites per car
produced compared with 2022
87.46
Biodiversity Index Score
for Gaydon compared
with 86.99 in 2023
Launch
of our Community
Investment Policy
Net zero
targets submitted to the
Science Based Targets
initiative forvalidation
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
32
08XESG_TCFD_v94.indd 3208XESG_TCFD_v94.indd 32 13/03/2025 14:4413/03/2025 14:44
TACKLING CLIMATE CHANGE CREATING A BETTER ENVIRONMENT
INVESTING IN PEOPLE
RESPONSIBLE BUSINESS
OUR SUSTAINBILITY STRATEGY: RACING. GREEN.
2024 targets and goals
Our sustainability strategy, Racing. Green., outlines our vision to become a
world-leading sustainable ultra-luxury automotive business. The strategy is
based on a clear understanding of the priorities of our customers, employees
and wider stakeholders and represents an integrated approach focused on
three key pillars: ‘Tackling climate change’, ‘Creating a better environment’,
and ‘Investing in people’. Each pillar includes clear targets, supported by
our commitment to operate as a ‘Responsible business’. Our strategy is
illustrated in the diagram below.
Following consultation with stakeholders, our targets have now evolved
from those originally published in 2022, reflecting changes within our
business strategy and the wider global operating environment and
knowledge and data gained from the first two years of our Racing. Green.
programme. Our new targets were approved by the Board in December
2024. In our 2024 Sustainability Report, we have included a performance
update against the goals, targets and commitments of our previous strategy.
Reduce absolute Scope 1, 2
and3 GHG emissions 42% by
2030, from a 2022 base year
Reduce absolute Scope 1, 2
and3 GHG emissions 90% by
2050, from a 2022 base year
Improve biodiversity year-on-year
atour manufacturing sites
(measured by Biodiversity Index Score)
30% reduction in water consumption
percar by 2030
Zero waste to landfill
Reduce the amount of waste per car
builtby 3% each year
Zero accidents in our business
Aim for women in 30% of
leadership positions by 2030
Improve workplace
engagement and culture,
andsecure accreditation as a
Great Place to Work® by 2025
In line with international best practice on business ethics, 100% of
employees to complete Aston Martin’s annual Code of Conduct training
OUR VISION
To become a world-leading sustainable ultra-luxury automotive business
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
33
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 3308XESG_TCFD_v94.indd 33 13/03/2025 14:4413/03/2025 14:44
FOCUS.
STRATEGIC REPORT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
STRATEGIC REPORT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
Tackling
climate change
We recognise the urgent need to
decarbonise in line with the science, which
aims to limit global warming to within
1.5°C above pre-industrial levels. Our aim
is to integrate a climate approach focused
on mitigation, adaptation and resilience in
our own operations and our value chain.
TO ACHIEVE THIS WE WILL:
Deliver our Net Zero plan encompassing the full life cycle
of our vehicles and our whole value chain
Embed a risk-based approach to identify and assess
climate related risks and opportunities
KEY ACTIVITY IN 2024:
New Company-wide emission reduction targets set in line with
science-based net zero and submitted to SBTi for validation
Refined Scope 3 baseline for 2022 and created full report
of 2023 data across all relevant Scope 3 categories
Updated our climate scenario risks based on a full review
of our modelling
On track to achieve ISO 50001 certification at main
manufacturing sites in 2025
UN SUSTAINABLE DEVELOPMENT GOALS
2024 HIGHLIGHTS
100% renewable
Electricity powering all manufacturing sites
Net zero
Science-based targets submitted to SBTi for validation
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
34
08XESG_TCFD_v94.indd 3408XESG_TCFD_v94.indd 34 13/03/2025 14:4413/03/2025 14:44
OUR TARGETS
REDUCING GREENHOUSE GAS EMISSIONS
Reduce absolute Scope 1, 2 and 3
greenhouse gas emissions 42%
by 2030, from a 2022 base year
Reduce absolute Scope 1, 2 and 3
greenhouse gas emissions 90%
by 2050, from a 2022 base year
90%
BY 2050
42%
BY 2030
We have set ambitious near-term and longer-term net zero
Greenhouse Gas (‘GHG’) emission reduction targets aligned with
the Paris Agreement that we have submitted to the SBTi for
validation. These targets replace our previous emissions and energy
reduction goals. The targets are supported within our business by
robust action plans, and we will continue to monitor and report
our progress annually, including continuing to report through CDP
(formerly the Carrbon Disclosure Project) ensuring transparency for
our stakeholders.
OUR EMISSIONS
Our emissions footprint is calculated and broken down into three
categories based on the GHG protocol:
SCOPE 1: Direct emissions from sources that are owned or controlled
by Aston Martin. We are focused on minimising emissions from
our own operations. The leading source of our Scope 1 emissions
is natural gas, which we utilise for both our heating and our
paint operations.
SCOPE 2: Indirect emissions from the consumption of purchased
energy. Our Scope 2 emissions are minimal, according to the
market-based accounting method, due to our ongoing commitment
to procuring 100% renewable electricity backed by Renewable
Energy Guarantees of Origin at our manufacturing sites.
SCOPE 3: Other indirect emissions that occur in the Company’s value
chain, both upstream and downstream. Our Scope 3 emissions
represent more than 99% of our total emissions. These emissions
predominantly result from the use of our sold products (57% of total
emissions) and from our purchased goods and services.
To achieve our ambition of reducing our emissions in our own
operations (Scope 1 and 2) by 42% by 2030, from a 2022 baseline, we
have developed an overarching decarbonisation strategy. We will
continue to refine and develop this strategy through 2025 and beyond
as needed. Our 2024 Scope 1 and 2 emissions have broadly stayed
the same since 2022.
The largest contributor to our Scope 3 emissions is from the use of the
cars sold in the reporting year. We anticipate that as our transition
to PHEV and then BEV kicks in towards 2030, emissions will decrease
at the pace needed to meet our targets. Purchased goods and services
and capital goods account for around 38% of our Scope 3 emissions.
We will engage further with suppliers who can provide product-level
carbon footprints, which we plan to integrate into our Scope 3
footprint. We have yet to disclose our 2024 Scope 3 emissions because
of the significant data requirements and time needed to secure this
data from the wider value chain. More information can be found in
our 2024 Sustainability Report.
CLIMATE RISKS AND OPPORTUNITIES
We continue to advance our understanding of climate-related risks
and opportunities, developing our climate-related scenarios and
integrating them within our Enterprise Risk Management process.
In 2021, Aston Martin undertook its first climate risk scenario analysis
and we have reported annually in line with TCFD requirements. This
year, in line with best practice, we have undertaken a refresh of our
climate risk scenarios and developed our focus on physical risks.
Key areas of focus in our refresh have included:
Identifying physical and transition risks and opportunities
Understanding our business strategy resilience within a range
of plausible futures through qualitative scenario analysis
Financial quantification pilots on two transition risks
The outcomes from this work and a fuller explanation of our
climaterisks and opportunities are included on pages 45–50 in our
TCFD report.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
35
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 3508XESG_TCFD_v94.indd 35 13/03/2025 14:4413/03/2025 14:44
IMPROVE.
KEY ACTIVITY IN 2024
Scoping Life Cycle Assessment project delivered
Achieving ISO 14001:2015 certification at St Athan
Employee engagement activities and communications focused
on sustainability
Embedding sustainability elements in our ‘Corporate Identity’
forDealerships
UN SUSTAINABLE DEVELOPMENT GOALS
Creating a better
environment
We recognise that alongside climate change
we have wider responsibilities to protect
the environment. Our aim is to maximise
resource efficiency and deliver net positive
biodiversity at our two main manufacturing
sites. We are working to better understand
the life cycle impacts of our vehicles and
operations.
As a responsible business we are committed to addressing
challenges in the natural world including a range of interconnected
environmental issues, such as climate change, biodiversity loss,
habitat destruction and deforestation.
TO ACHIEVE THIS WE WILL:
Prioritise operational efficiency, make circularity integral
toour vehicle design process and wider design processes,
minimise resource use, maximise recyclability and reduce waste
Safeguard biodiversity and water in our operations and beyond
2024 HIGHLIGHTS
16%
Reduction in water consumption per car compared to 2022
87.46
Biodiversity Index Score for Gaydon compared with 86.99
in 2023
£6m
Government-funded innovation project supporting
the development of lightweight, sustainable aluminium
castings approved
STRATEGIC REPORT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
36
08XESG_TCFD_v94.indd 3608XESG_TCFD_v94.indd 36 13/03/2025 14:4513/03/2025 14:45
OUR TARGETS
Reduce the amount of
waste per car built by
3% each year
30% reduction in
water consumption
per car by 2030
Improve biodiversity year-on-year
at our manufacturing sites
(measured by Biodiversity Index Score)
Zero waste to landfill
3% 30%
0
OPERATIONAL EFFICIENCY
Aston Martin’s updated sustainability strategy focuses on minimising
our impacts on the natural world. This includes eliminating and
minimising pollution, waste and use of resources in all our operations
to reduce the environmental impact from our products along
their life cycle.
ENVIRONMENT MANAGEMENT
Our Environmental Policy sets out our commitment to the protection
of the environment, and to ensure we fulfil our environmental
compliance obligations.
We have achieved ISO 14001:2015 at our Gaydon and St Athan sites
and the Company is working towards ISO 50001 (energy management)
as part of our overall approach to environmental management at
ourmain manufacturing facilities. We aim to have a Stage 1 ISO 50001
audit early in 2025 and will proceed towards full certification later in
the year.
WASTE
We aim to minimise waste and target zero waste to landfill. We
continue to build a clearer view of where and why waste is generated
across our value chain. In 2024, we saw a 27% increase in waste levels
at our manufacturing sites per car built compared to 2023. As a result,
we engaged specialist consultants to map our waste streams in greater
detail, improving waste management and reduction planning.
At our Gaydon and St Athan sites we use a specialist contractor to
manage our waste activities from on-site monitoring, segregation and
management through to waste disposal. This contractor also
undertakes relevant training as needed with Aston Martin staff. In
2024, we sent no waste to landfill from our UK sites, however we have
identified a small volume of waste from Newport Pagnell where the
consignment note does not categorise final waste destination as non-
landfill at the point of reporting. See page 53 for our 2024 waste data.
AIR QUALITY
Air quality is a material topic because of the potentially negative
impact of air pollutants from paint and solvents used in vehicle
production.
We operate several processes under permit to the relevant
localauthority, predominately linked to our paint operations, which
set air quality requirements for particulate matter, Volatile Organic
Compounds (‘VOCs’), Carbon Monoxide (‘CO’) and Nitrous Oxides
(‘NOx’).
We actively manage our operations to ensure we remain in compliance
with permits and to minimise any pollutants. We engage an external
third party to undertake monitoring on our behalf and in line with
the Monitoring Certification Scheme for Equipment, a certification
scheme for environmental monitoring personnel, organisations and
equipment in the UK.
WATER
Our main water demand is in our manufacturing processes at our
StAthan and Gaydon sites, although our operations are not regarded
as water intensive. We have continued to improve the monitoring of
water usage during 2024 and upgraded sanitary fixtures to improve
water efficiency as part of the refurbishment of Gaydon.
To ensure we continue to take ownership of our own water resource
management, we have set a target in our updated Racing. Green.
strategy to reduce total water consumption by 30% per car by 2030
against a 2022 baseline. We are currently making good progress
towards this target, having delivered an overall reduction of 16%
against the baseline. See page 53 for our 2024 water data.
BIODIVERSITY
Our operational biodiversity approach is focused on our main sites at
Gaydon and St Athan. Together these sites have around 16.4 hectares
of green space which provides a variety of habitats, including areas of
species rich grassland, hedgerows, mature trees, drainage ditches and
disturbed ground, all of which have high wildlife values.
We strive to improve the biodiversity on site and to minimise ecological
impacts, carrying out specialist risk assessments prior to undertaking
activities that may impact biodiversity on our sites. We have seen an
improvement in our Biodiversity Index Score, with an increase of 0.47
and 1.62 for Gaydon and St Athan respectively, compared to 2023.
Action taken in 2024 included: monitoring protected species;
wildflower seeding; thinning woodland areas; clearing ground
scrub from newt habitats; and creating insect habitats.
SUSTAINABLE DESIGN
Sustainability is a key focus for our design teams, reviewing our
products for sustainable attributes such as recyclability, supply chain
traceability, carbon and wider environmental impacts.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
37
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 3708XESG_TCFD_v94.indd 37 13/03/2025 14:4513/03/2025 14:45
DRIVE.
Investing
inpeople
Our aim is to provide a safe, diverse,
equitable and inclusive workplace, where
our colleagues are supported to meet
their goals and aspirations and can make
positive, lasting impact by collaborating
with our local and international
communities to support wider society.
Our People Strategy has been developed to accelerate progress
towards a world-class employee experience. We deliver our
strategy through four pillars: Organisation Capability, Culture,
People and Talent Development and HR Service Delivery to the
Company. Our approach to our values and promoting a diverse
andinclusive workforce applies across all these pillars.
TO ACHIEVE THIS WE WILL:
Create an environment that enables a positive work-life
experience, valuing safety, health and mental wellbeing
Provide purposeful employment for all our employees in
adiverse and inclusive workplace
Build skills that support long-term employability and our
transition to electrification
Maintain social investment in our communities to support
sustainable development aligned with local needs
2024 HIGHLIGHTS
86%
Of employees feel proud to work for Aston Martin
26%
Increase in training hours compared to 2023
12.5%
Improvement in Accident Frequency Rate compared with 2023
KEY ACTIVITY IN 2024
Developed and launched Community Investment Policy
Launch of new employee engagement platform
Increased employee-led EDI activity and awareness
All employee engagement on safe working practices
UN SUSTAINABLE DEVELOPMENT GOALS
STRATEGIC REPORT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
38
08XESG_TCFD_v94.indd 3808XESG_TCFD_v94.indd 38 13/03/2025 14:4513/03/2025 14:45
OUR TARGETS
Improve workplace engagement
and culture, and secure accreditation
as a Great Place to Work® by 2025
Zero accidents in our business
0
CULTURE, SAFETY, HEALTH AND WELLBEING
People are at the heart of our business and the communities we operate in
globally. Our updated sustainability strategy continues our commitment
to a workplace and wider society where people are empowered.
We want to ensure our employees feel they have a safe and great place
to come to work every day. We are targeting zero accidents and aim to
be recognised as a Great Place to Work® by 2025.
HEALTH AND WELLBEING
Fundamental to our culture is taking care of ourselves and each other,
providing a working environment that values health and wellbeing.
We have developed different initiatives to promote health and
wellbeing amongst our colleagues.
The Company engages a third-party occupational health services
provider to deliver a broad range of services, including health testing,
referrals and driver medicals.
Our focus on mental health includes delivering training on mental health
awareness and stress management, and access to mental health tools
such as cognitive behavioural therapy, proven mindfulness exercises and
relation techniques via an employee app. In 2024, 15 employees
volunteered to become Mental Health First Aiders, providing an
additional layer of support for our colleagues. Colleagues also arranged
a series of wellbeing walks and hosted lunch and learn events.
We offer an extensive range of wellbeing benefits across the Company,
including healthcare provision, on-site health assessments, discounted
gym membership and a free, confidential helpline offering access
tocounselling.
PERFORMANCE, REWARDS, AND BENEFITS
Our aim is to foster a culture where everybody feels valued, motivated
and rewarded to achieve their best work. The philosophy and
principles that apply to remuneration at the Company are applied
consistently throughout the organisation.
To continue our journey to become a Great Place To Work® we are
putting people at the heart of our culture and ways of working. We are
making sure our people have a voice, are empowered, supporting
their continued development and growth.
To support this approach, in 2024 we implemented a new performance
management process called SPARK, which reflects the Company’s
values. The process facilitates regular conversations between
colleagues and their line management to support both personal and
professional development. It also promotes the opportunity for
upwards feedback to line managers on their effectiveness.
It’s important to recognise the hard work of our employees. As well as
annual programmes such as our Peer Recognition Programme and Long
Service lunches, we also host special one-off events for our employees.
To mark the launch of the new Vanquish, we held a food festival lunch at
our Gaydon site overseen by TV chef and award-winning restaurateur,
Dipna Anand, alongside a showcase of our core portfolio of vehicles.
The 2024 Values Peer Recognition Programme received an incredible
259 individual and 29 team nominations, each recognising the
outstanding work of our Aston Martin colleagues aligned with our
Company values. At our 2024 Long Service lunch, we celebrated over
50 colleagues who have 25 or more years of service, who together,
represented an astounding 1,800 years of combined service.
OUR VALUES
Our values set the tone for how we do things and the culture
wewant to establish. This is supported by our Code of Conduct.
We have rolled out values training to 2,800 people across our
business since 2023. Our values are:
UNITY
OPENNESS
TRUST
OWNERSHIP
COURAGE
At the core of our values is one single guiding tenet:
NO ONE BUILDS AN
ASTON MARTIN ON THEIR OWN
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
39
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 3908XESG_TCFD_v94.indd 39 13/03/2025 14:4513/03/2025 14:45
OUR TARGET
AIM FOR WOMEN IN 30% OF LEADERSHIP
POSITIONS BY2030
30%
STRATEGIC REPORT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
genderreassignment, marriage and civil partnership, pregnancy and
maternity, race, sex and sexual orientation, identity or expression,
orany other characteristic protected by law.
We have six dedicated strands within our network which focus on
different areas of equity, diversity, and inclusion. The strands are I AM
Gender, I AM Pride, I AM Ability, I AM Embraced, I AM Well and I AM
Armed Forces. These strands have been voted for by our employees
to ensure we represent the demographics at Aston Martin. Each strand
has a chair and co-chair, and the overarching space is sponsored by an
executive sponsor. Both sponsors and chairs are nominated and voted
for by employees.
All employees are eligible to participate in the Company-wide annual
bonus, based on performance, and all eligible employees were again
awarded free shares in 2024, through the ‘Aston Martin Sharing
Success.’ share plan, which gives everyone the chance to share in the
future success of the Company. We have upgraded our grading system
to enable us to better manage and monitor pay versus external
benchmarks and undertake internal consistency checks with the aim
of reducing potential bias.
We are committed to protecting and enhancing the welfare of
our employees. We offer an extensive range of benefits including
a competitive pension scheme, enhanced parental leave policies,
access to car schemes, cycle to work and access to schemes that
benefit our employees and their families, such as mortgage advice
andlife assurance.
FREEDOM OF ASSOCIATION
ANDCOLLECTIVEBARGAINING
We respect the rights of our employees to form and join trade unions
and take part in collective bargaining. We also support employees’
rights to associate with any group they wish, including joining or
leaving groups such as trade unions that represent employees’
interests and needs.
Our relationship and engagement with the trade union, is important to
our colleagues and Aston Martin as a business. The trade union and
our employee trade union representatives actively engage on issues
including pay negotiations, contractual changes, individual concerns,
policy development, ways of working, and business updates.
Approximately two thirds of our employees are covered by collective
bargaining agreements. At the start of 2024, we agreed a two-year
pay deal with the trade union, covering pay and terms for 2024
and 2025. To promote a positive work-life balance, the agreement
also included a commmitment to reduce contractual hours of
manufacturing technicians in 2025.
Aston Martin complies with the relevant notice periods required
tonotify employees and trade unions of operational changes across
our locations.
EMPLOYEE ENGAGEMENT
In 2024, we continued to engage our workforce through a variety of
channels including employee surveys. Employee surveys enable
management to gain insights into employee concerns, strengths and
areas for improvement. Employees are also encouraged to offer
feedback through regular forums and town hall meetings.
We launched our new employee engagement platform in 2024
on Workvivo which can be assessed on both app and desktop
to make it more accessible for production staff. Our staff are
encouragedto develop content to support collaboration.
EQUITY, DIVERSITY AND INCLUSION
Our Equity, Diversity and Inclusion Strategy is embedded in our
values. It focuses on achieving a workplace and culture where our
people feel connected to Aston Martin’s purpose, that they have a
voice, are listened to and will receive equal opportunity to develop
and reach their full potential irrespective of their age, disability,
GENDER DIVERSITY
We recognise that women are underrepresented in the automotive
industry. As a result, we continue to seek ways to support women into
our business. We are actively working to improve our representation
across the business and have adopted a target that aligns with
the industry commitment to achieve 30% women in the workforce
by2030.
In 2024, women occupied 17% of leadership roles and the proportion
of women in the workforce was around 16%, both figures remaining
broadly level compared with 2023.
On International Women’s Day we launched a month-long programme
of events to promote inclusion and to recognise the achievements
and contributions of women. The programme included an
interactive session featuring board members Anne Stevens and Jean
Tomlin, and Company Secretary, Liz Miles. Other events focusing
on gender equality included a celebration of International Women
in Engineering Day and our newly formed collective ‘Women of
Aston Martin’.
Alongside this, we have reconfigured our approach to recruitment.
Our hiring manager training covers our Company values and explores
the impact of bias. By incorporating values into the recruitment
process, we aim to bring in values-led individuals who contribute
positively to our culture.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
40
08XESG_TCFD_v94.indd 4008XESG_TCFD_v94.indd 40 13/03/2025 14:4513/03/2025 14:45
Our focus is on initiatives related to:
Investing in people – in particular, causes that champion education,
Science, Technology, Engineering and Mathematics (‘STEM’) skills,
and social inclusion
Creating a better environment
Tackling climate change
Innovation and design
Following the launch of the Policy we have been rolling out the
elements and will continue this into 2025.
BUILDING PARTNERSHIPS
Partnerships with charities are a key enabler in supporting us to achieve
our overarching business aims and ambition, be this linked to building
our talent pipeline through STEM, social mobility or wider
environmental outcomes. We have a long-standing partnership with
The King’s Trust (formerly The Prince’s Trust), a youth charity that
helps vulnerable young people aged 11 to 30 to access employment,
education and training. In 2024, we hosted a roundtable with The
King’s Trust and DHL on challenges to entering the automotive
industry for young people.
GENDER PAY GAP
The difference between men and women’s average pay (expressed as
a percentage of the men’s pay) was a mean pay gap of 12.0% and a
median pay gap of 4.8% in 2024, favouring men. These have changed
slightly compared to 2023 (mean pay gap of 10.3% and median pay
gap of 5.2%, also favouring men). Our mean pay gap is largely due to
the make-up of the senior team (which includes significantly more
men) and working patterns, particularly in Production roles, where
shifts (that more men than women choose to work) command a shift
premium and overtime payments. We are working to improve gender
equality which will contribute to narrowing the gap, with the ultimate
aim to close it completely.
COMMUNITIES
We engage with communities in multiple ways to maximise our
positive impact, going beyond our economic contribution through
supporting jobs both directly and indirectly. In addition to our
partnerships with local schools and colleges, Aston Martin supports
local charities and projects.
In 2024, we launched our Community Investment Policy which
covers both philanthropic giving and how we engage with
communityorganisations to deliver strategic outcomes. As a result of
benchmarking and feedback from colleagues, the policy has been
established to cover the following elements:
Employee charity partner
Employee matched funding
Community Grant scheme (small-scale funding under £1,000)
Global corporate charity partner and regional charity partner
TO CELEBRATE WOMEN AT ASTON MARTIN,
EMPLOYEES WERE RECOGNISED AND AWARDED
ASILVERSTONE RACE DAY EXPERIENCE.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
41
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 4108XESG_TCFD_v94.indd 41 13/03/2025 14:4513/03/2025 14:45
DELIVER.
Responsible
business
Underpinning the three pillars of our
updated sustainability strategy is our
commitment to delivering the highest
standards by conducting business in a
responsible, ethical and sustainable way.
This includes aiming to manage sustainability through effective
governance, risk management, compliance, and transparent and
robust reporting, and building robust processes across the value
chain based on respect for human rights.
TO ACHIEVE THIS WE WILL:
Ensure that sustainability is embedded into daily
decision-making through our policies, standards
andmanagement systems
Identify, prevent and mitigate potential human rights
risks across our value chain, working closely with
our supply chain
2024 HIGHLIGHTS
100
Top strategic suppliers engaged through new Supplier Assurance
Questionnaire and platform
81%
Of colleagues undertaken Code of Conduct training
KEY ACTIVITY IN 2024
Code of Conduct employee engagement programme
developed and rolled out
Human rights gap analysis undertaken and short and long-
term planning implemented
Supplier sustainability engagement further developed and key
activities launched
UN SUSTAINABLE DEVELOPMENT GOALS
STRATEGIC REPORT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
42
08XESG_TCFD_v94.indd 4208XESG_TCFD_v94.indd 42 13/03/2025 14:4613/03/2025 14:46
OUR TARGET
In line with international best practice
onbusiness ethics, 100% of employees
tocomplete Aston Martin’s annual Code
of Conduct training
100%
EMBEDDING SUSTAINABILITY PRINCIPLES AND
ENSURINGCOMPLIANCE
Delivering the highest standards defines everything we do. We are
striving to meet international best practice standards, and operating
in a heavily regulated sector, work hard towards ensuring compliance
with legal obligations in areas from anti-slavery to vehicle safety.
The Company has implemented several policies that are designed to
ensure high ethical standards, robust compliance and best practice
across its operations. These policies are aligned with the Company’s
values and strategic sustainability goals, and cover areas ranging from
procurement to human rights and modern slavery. During 2024, we
also updated or reviewed the following compliance policies:
Health and Safety (updated)
Responsible Procurement (updated)
Anti-Bribery, Corruption and Fraud (reviewed)
Conflicts of Interest (reviewed)
Confidential Reporting (reviewed)
Failure to Prevent Facilitation of Tax Evasion (reviewed)
We have subject matter experts in the Company who are focused on
ensuring compliance with laws and regulations governing all aspects
of the business, including vehicle safety.
CODE OF CONDUCT
Our Code of Conduct (‘the Code’) reflects our values in action,
particularly in areas with ethical or legal considerations, marking what
we stand for and what we expect from each other. Outlining the key
policies and behaviours that everyone should follow, the Code is
intended to guide the way that the business and our people operate.
The launch of the Code in 2023 has been supported by an employee
engagement programme throughout 2024 and the launch of specific
Code of Conduct training. 81% of employees have completed the
training at the end of our first launch. Because of the importance we
place on the Code of Conduct sitting at the core of our business, we
have included it as a key performance indicator in our Racing. Green.
strategy.
Our Code applies to everyone working for and with Aston Martin,
including our Board, employees, temporary colleagues, and
contractors. We also expect third-parties working with the Company,
such as joint venture partners and suppliers, to respect the standards
and behaviours outlined in the Code. The Internal Audit team
investigate possible violations of the Group Framework Policies as
and when they are reported and conducts periodic audits across
thebusiness.
HUMAN RIGHTS
Respect for human rights is essential to the foundations of our business
and collaboration across our supply chain. In our 2024 materiality
assessment, labour and human rights risks in the supply chain
(including land rights) was identified as a material topic due to risks
including poor working conditions and forced labour from critical raw
material and mineral sourcing. We are committed to strengthening
our governance systems to prevent human rights violations across our
value chain and recognise that our human rights approach needs to be
embedded in all relevant practices and policies. We annually report
against the ten principles of the United Nations Global Compact
(‘UNGC’) and publish a Modern Slavery Statement according to the
UK Modern Slavery Act.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
43
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 4308XESG_TCFD_v94.indd 43 13/03/2025 14:4613/03/2025 14:46
STRATEGIC REPORT
ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONTINUED
HUMAN RIGHTS DUE DILIGENCE
To develop our approach to human rights due diligence (‘HRDD’), we
worked with a specialist human rights consultancy to undertake a
maturity assessment to help us align our HRDD with international
frameworks and emerging legislation. This assessment included
engagement with colleagues through interviews, analysis of processes
and a review of documents. The assessment identified strengths and
improvement areas across our value chain and based on this priority
areas for action.
We are developing an action plan linked to the main identified risksthat
we will implement through 2025 and beyond, including developing
the relevant KPIs, building on existing processes and actions to ensure
robust human rights management practices are in place, ensuring
consistency across our global operations and monitoring and tracking
of effectiveness of HRDD.
To support our employees in understanding the relevance of human
rights to them, we made available a training module from the UNGC
on human rights to all colleagues.
MODERN SLAVERY
Modern slavery, together with its components of forced labour and
human trafficking, is a worldwide issue estimated to affect millions of
people. This issue can affect people of all ages, genders and ethnicities.
Our Anti-Slavery and Human Trafficking Policy provides employees,
contractors and other business partners with direction on our
approach and the measures we have in place to prevent acts of
modern slavery and human trafficking in the business and supply
chain. In 2024, we launched new training on Modern Slavery, focused
on our Procurement function as a high-risk area in relation to modern
slavery. A copy of our 2023 Modern Slavery Act Statement can be
found on our website at www.astonmartin.com/corporate.
ANTI-BRIBERY AND CORRUPTION
We have a zero-tolerance approach to bribery and corruption. To
ensure the Company and its employees conduct business in an ethical
and transparent way, we have policies in place covering topics such as
Anti-Bribery, Corruption and Fraud, and on Gifts and Hospitality, plus
measures to support staff in speaking up confidentially about any
matters where they have concerns, using mechanisms such as our
confidential reporting system. We train our staff on bribery prevention.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
44
08XESG_TCFD_v94.indd 4408XESG_TCFD_v94.indd 44 13/03/2025 14:4613/03/2025 14:46
Task Force on Climate-Related
FinancialDisclosures
OVERVIEW
Aston Martin’s Task Force on Climate-Related Financial Disclosures (‘TCFD’)
statement has been produced to meet the requirements of the UK’s
Mandatory Climate-Related Financial Disclosures Regulations, UK Listing
Rule 6.6.6(8) and the TCFD Recommendations and Recommended
Disclosures set out in Implementing the Recommendations of the Task Force
on Climate-Related Financial Disclosures published in October 2021.
This statement details the risks and opportunities that could result from
climate change, the potential impact on Aston Martin and the action we are
taking to respond. We have also integrated climate related disclosures
throughout this report including in our ‘Tackling climate change’ update on
pages 34 and 35. A detailed breakdown of our emissions can be found on
page 52.
We have structured our statement in-line with the four key thematic TCFD
pillars:
Governance
Strategy
Risk management
Metrics and targets
In meeting the requirements of the UK Listing Rules 6.6.6(8) we have
concluded that we are aligned with two of the four recommendations and
nine of the eleven recommended disclosures. For further information see
the table on page 51.
GOVERNANCE OF CLIMATE-RELATED RISKS
Aston Martin is committed to doing business in an ethical and transparent
manner, supported throughout our organisation by strong corporate
governance. In 2021, the Board of Directors (‘the Board’) established a Board
Sustainability Committee (‘the Committee’) to oversee and monitor the
delivery of our sustainability strategy Racing. Green. The Committee also
provides wider strategic guidance and challenges our senior leader’s
assessment and management of climate-related risks and opportunities, as
well as other environment and sustainability matters. The Committee is
chaired by Anne Stevens, an Independent Non-executive Director, and
formally met four times in 2024, as well as holding a deep dive meeting
focused on net zero. The Committee reports to the Board following each
meeting including strategic recommendations. In 2024, recommendations
included the approval and external validation of net zero targets and the
approval of the refreshed Racing. Green. strategy and targets.
Other relevant topics on the Committee’s agenda during 2024 included:
Environmental performance review including energy data
Net zero targets and SBTi submission
Working group updates
Climate risks review
EMS management and progress
Sustainable procurement update
More information on the Committee can be found on page 102.
In 2024, the Committee received updates from ten dedicated Sustainability
Working Groups (‘SWGs’) focused on areas ranging from energy
management to development of a sustainable supply chain. The role of
these groups was to develop and execute credible action plans to achieve
clear targets in their respective areas. The frequency of meetings of the
SWGs varied depending on the governance structure for the topic within the
Company. The approach to working groups will evolve in 2025 alongside
our refreshed Sustainability Strategy as indicated on page 33.
The Sustainability Committee’s terms of reference were updated in 2024.
The updated terms strengthen the role of the Committee to keep under
review climate risks and climate related issues to ensure that they are
considered in relation to external developments and changes in the
sustainability strategy as well as monitoring Company performance in
achieving its net zero targets.
We also have a specialist Corporate Sustainability Team (‘CST’) who report
directly to the Chief Financial Officer. The CST supports the SWGs and
wider business functions in developing relevant sustainability strategies
including how to address climate change whilst also driving external
advocacy and partnerships. In other key areas of the Company, such as
procurement and facilities, we have dedicated experts who are focused on
the sustainability agenda including climate-related matters. Their activities
include developing relevant policies and procedures including responsible
sourcing and metric definitions linked to the SWG deliverables.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
45
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 4508XESG_TCFD_v94.indd 45 13/03/2025 14:4613/03/2025 14:46
SUSTAINBILITY GOVERNANCE FRAMEWORK
The CST is also responsible for managing the Company’s sustainability
materiality assessment process. The outcome of the materiality process is
considered against the risks identified through our climate scenario analysis
process and reviewed by the Enterprise Risk Team to ensure consistency and
continuity across Functions. A full description of our materiality process is
included in the 2024 Sustainability Report (pages 10 and 11) and indicates
that climate mitigation is ranked as a material topic.
Climate-related risks that are deemed significant are reviewed by the
company’s Risk Management Committee and managed using our business-
wide enterprise risk management procedures. Climate-related risks are also
incorporated into the corporate risk register where appropriate. Risks
identified as significant are then assigned to functional Risk Champions who
are responsible for developing appropriate risk mitigation plans. Each
Company department maintains a risk register which is reviewed twice a
year by the Company’s Risk Management Committee. The Audit and Risk
Committee provides oversight of the corporate climate-related reporting
and other identified risks.
BOARD SUSTAINABILITY
COMMITTEE
Sustainability Committee oversees and
monitors on behalf of the Board
the implementation of the
Company’s sustainability strategy
EXECUTIVE
COMMITTEE
ASTON MARTIN
GLOBAL HOLDINGS PLC
CORPORATE SUSTAINBILITY TEAM
BOARD AUDIT AND RISK
COMMITTEE
In addition to formal and transparent
arrangements for reviewing elements
of ESG that fall under the Committee’s
Terms of Reference, the Committee
reviews the governance and assurance
arrangements for climate-related
financial disclosures, including
the disclosures made in connection
with the TCFD.
RISK MANAGEMENT
COMMITTEE
Key sustainability issues are listed
on the Company risk register
andreviewed quarterly by the
Risk Management Committee.
Management structures and
systems, which inform Company strategy
and link with Racing.Green., including:
Quality Committee,
EDI Executive Council,
Programme and Cycle Plan.
WORKING GROUPS
NET ZERO
ENERGY AND ENVIRONMENT
(MANUFACTURING)
SAFETY HUMAN RIGHTS
STRATEGIC REPORT
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
46
08XESG_TCFD_v94.indd 4608XESG_TCFD_v94.indd 46 13/03/2025 14:4613/03/2025 14:46
CLIMATE-RELATED STRATEGY
Wider-industry action
We recognise that the automotive industry is having to rapidly respond to
regulatory, customer and stakeholder demands resulting from the need to
address climate change. Some of the industry solutions being implemented
include shifting to the production of more fuel-efficient vehicles, the use
of cleaner fuels and a move towards electrified powertrains amongst
otheralternatives.
Aston Martin’s strategy
In line with the recommendations of the TCFD we categorise climate-related
risks and opportunities as follows:
Physical risks: Relating to the physical impacts of climate change over
time (e.g. increased rainfall, sea level rise, prolonged drought, increased
frequency and severity of extreme weather events)
Transition risks: Relating to the transition to a lower carbon economy over
time (e.g. policy, legal, technology and market changes to address mitigation
and adaptation requirements related to climate change)
Opportunities: Climate change presents opportunities in several areas
including resource efficiency, transition to renewable energy sources, new
products and services, new markets and customer groups.
The potential impacts of climate change are considered in developing our
overall business strategy and supported by our Racing. Green. strategy
which incorporates both short and long-term environmental targets, which
were updated in 2024. During 2024, we also refreshed our climate risk
scenarios, identified climate risks were reviewed with key internal subject
matter experts to ensure they accurately reflected business operations,
financial implications and wider global influences and trends. In the short-to-
medium-term (the next five years) we face transition risks arising from
changing policy and regulations, changing consumer preferences and
accelerated technology change as the move to electrification and other
non-carbon solutions intensifies. Physical risks, whilst still significant in the
short-to-medium term, become more relevant in the longer-term (beyond
five years) with the potential impact of more severe and frequent weather
events on our supply chain and distribution network. Through 2025, the
identified risks will be further embedded within our Enterprise Risk
Management Framework and System (’ERMFS’) ensuring appropriate
mitigation plans are in place and the outcome of financial modeling is
reflected in updated risk profiles.
Reflecting the increasing growth of climate policy and resulting legislation
we continue to focus on understanding, minimising and mitigating our
emissions impact across our value chain. In 2023, we established the baseline
inventory for our Scope 3 emissions and took steps to further refine this data
in 2024. We have now developed and submitted net zero emissions targets
to the SBTi for validation. These are linked to plans for reducing our own
emissions as well as those across our value chain. The full details of our
Scope 3 emissions and our targets towards tackling climate change are
included on pages 34 and 35 and through our wider environmental focus on
pages 36 and 37. Our net zero targets will drive key mitigation actions to
address the following transition risks:
Increased prevalence of anti-ICE policies
Access to financing
Divergent customer attitudes
Cost on carbon imposed
Our full set of our key material climate risks are included in the following
paragraphs. For detail on the time horizons, scenarios, and rationale for
selection, refer to the risk management section of this statement.
PHYSICAL
Risks arise across warming scenarios 1.5°C and 4°C.
As the frequency and severity of extreme weather events increases, so does
the potential impact of these on our business. This includes an impact
through increased delays in delivery of our vehicles to the dealer network
through distribution chain disruption, and also disruption in the supply chain
which may be further exacerbated by our reliance on single source vendors.
Risk Time horizon
and impact
Risk type TCFD risk
classification
Potential
financial
impact
Supply chain
disruption
– directdamage
to suppliers
S H
Upstream Acute
Increased
costs
Decreased
revenue
L H
Supply chain
disruption
– disruption
to supplier
logistics
S M
Upstream Acute
L M
Distribution
disruption
S
Lo
Downstream Acute/
Chronic
L M
Disruption
tobusiness
due to asset
andsite access
damage
S M
Operations Acute
L M
Time horizon:
S
Short
L
Long
Impact:
Lo
Low
M
Moderate
H
High
V
Very high
Categorisation key – Impact:
Very high – The potential effects on impacted assets may be long-term
(months or permanent), likely to have a significant impact on the asset’s
finances, severe due to a fundamental link between the asset’s function and
the characteristics of the climate hazard, extensive social and health impact,
national or international reputational impact.
High – The potential effects on impacted assets may be long-term (to last
for months), are likely to have a high financial significance to the operation of
the assets, extensive social and health impact, national or international
reputational impact.
Moderate – The potential effects on impacted assets may be medium-term
(to last for weeks), are likely to have a moderate financial significance to the
operations of those assets, minor to medium social and health impact, local
reputational damage.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
47
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 4708XESG_TCFD_v94.indd 47 13/03/2025 14:4613/03/2025 14:46
OPPORTUNITIES
Opportunities arise across warming scenarios 1.5°C and 4°C.
Climate change also presents opportunities for Aston Martin such as
securing operational cost efficiencies through the reduction and more
efficient use of materials, resources and reduced waste as well as building
the Company’s reputation with a strong environment, social and governance
narrative. The climate risk scenarios identify the unique opportunities that
the move to electrification presents Aston Martin as a small volume
manufacturer, aligning our offering with customer attitudes and demand.
Providing a diverse range of powertrain options as we develop alternatives
to the internal combustion engine, including PHEV and BEV, will leverage our
strategic partnerships and cutting-edge high performance technologies to
provide an unparalleled driving experience.
Opportunity Time horizon Opportunity type Potential Financial
Impact
Divergent
customer
attitudes
L
Operations,
downstream
Increased
revenue
EV technology
development
S L
Operations,
downstream
Increased
revenue
Time horizon:
S
Short
L
Long
RISK MANAGEMENT
The Board is ultimately responsible for ensuring that the Company has an
ERMFS implemented across the business to facilitate delivery of our strategic
objectives. For further information on this, refer to the Risk and Viability
Report and the Audit and Risk Committee Report (pages 62, 94–103). The
report outlines how risks and opportunities, including those specifically
related to climate change, are identified, assessed and managed through the
deployment of the Aston Martin ERMFS.
As part of our annual risk assessment activity, we have considered how the
impact of climate change affects our existing corporate risks, as well as
identified any new and emerging climate-related risks and opportunities.
We also engage with external risk management networks to develop a
broader understanding of the global impact of climate change.
The review and update to our climate scenario analysis and related risks in
2024 was led by our Sustainability and Risk Teams and included significant
input from internal stakeholders to ensure climate risks were understood
and their relevance to business functions considered.
Low – The potential effects on impacted assets may be short-term (to last
for days), are not likely to be significant to the operations of those assets,
minimal social and health impact, limited reputational impact.
TRANSITIONAL
Risks arise across warming scenarios 1.5°C and 4°C.
As we transition to a lower carbon economy our technological advancements
and ability to remain competitive will need to keep pace with the change.
This links with the potential need to create a more diverse product portfolio
that is price competitive and manages to convert a traditional ICE customer
base to an electrified Aston Martin proposition. As regulations move to
mitigate and adapt to the challenges of climate change, the need to respond
and innovate quickly will become key, as well as the ability to adopt to the
potential emergence of carbon markets and taxes. Brand and reputation
damage as a result of not keeping pace with these changes, and association
with potentially unethical supply chain activities represent core risks in this
changing landscape.
Risk Time horizon
and impact
Risk type TCFD risk
classification
Potential
Financial
Impact
Increased
prevalence of
anti-ICE policies
S H
Operations,
Downstream
Policy and
legal
Decreased
revenue
Increased
costs
L V
Policy changes
being
unpredictable
andvolatile
S V
Operations,
Downstream
Market and
legal
Decreased
revenue
Increased
costs
L V
EV technology
development
S H
Operations Technology Decreased
revenue
Increased
costs
L
V
Divergent
customer
attitudes
S
M
Operations,
Downstream
Reputation
and market
Decreased
revenue
L
H
Disruption in
supply chain
caused by
increasingly
prevalent climate
policies
S M
Upstream Market and
legal
Increased
costs
L H
Cost on carbon
imposed
S H
Upstream,
Operations,
Downstream
Policy and
legal
Increased
costs
L
H
Time horizon:
S
Short
L
Long
Impact:
Lo
Low
M
Moderate
H
High
V
Very high
STRATEGIC REPORT
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
48
08XESG_TCFD_v94.indd 4808XESG_TCFD_v94.indd 48 13/03/2025 14:4613/03/2025 14:46
Key inputs into the model included the physical geographical footprint of
the Company; supply chain and global dealer network; historical and
predicted sales volumes by market; Scope 1, 2 as well as available Scope 3
GHG emissions data; and vehicle material content. We used the
Representative Concentration Pathways (‘RCP’s) as our framework for
modelling different emissions pathways and the associated impact on the
climate. To explore the associated market and customer trends underpinning
our commercial resilience, we also considered different socioeconomic
futures, known as the Shared Socioeconomic Pathways (‘SSP’s).
A ranking process was utilised, starting with the development of a ‘long list’
of climate risks and opportunities. The top climate risks and opportunities
were then shortlisted to be explored through scenario analysis. The short-
listing process involved workshops with internal subject matter experts to
gain their insight and note any historic risks.
SCENARIO PATHWAYS
Scenario Steady path to sustainability Fossil-fuelled global growth
SSP/RCP SSP 1/RCP 2.6 SSP 5/RCP 8.5
Description Globally coordinated efforts to reduce emissions to net-zero
by 2050 and avert the worst effects of climate change
Global collaboration focused on protecting the population from a
changing climate (as opposed to reducing human-induced climate change)
Societal response Proactive Reactive
Global dynamics Open, collaborative, global Open, collaborative, global
Temperature rise 1.5°C 4°C
Likelihood Low Medium
* SSP – Shared Socioeconomic Pathway, RCP – Representative Concentration Pathway
Scenarios, hazards and indicators were identified and the exposure ratings as
used in the ERMFS were applied. Two key risks were identified for further
detailed financial modelling. The financial modelling will be utilised in 2025
to clarify and help integrate climate-related risks into business strategy
planning activity.
When considering climate-related risks and opportunities we assess their
potential impact over three time horizons, short-term (covering the years up
to 2030), medium-term (up to 2040), and long-term (up to 2050). We have
reported here the short and long-term time horizons; as in all but one case
the medium-term mirrored the short-term impact. As detailed in the
Governance section of this statement, all risks included within the corporate
risk register are assigned a Risk Owner responsible for performing periodic
likelihood and impact risk assessments and developing formal documented
risk management plans.
A summary of the key significant risks and opportunities which have been
assessed and incorporated within the scenario analysis has been presented
on pages 47–49. A summary of key mitigating activities that have been taken
or are planned to be taken to manage the significant climate-related risks
are disclosed in the table on page 50.
We further categorise climate-related risks and opportunities using the
TCFD recommended classifications, considering both transition risks and
physical risks:
Transition Risks Physical Risks
Policy and legal risk
Technology risk
Market risk
Reputation risk
Acute
Chronic
Our key risks are grouped according to these categories. Our transition risks
represent the material risks identified within the short and medium-term for
our company, however, we continue to be aware of the risks posed by the
growing impact of physical risks over the longer-term. These are highlighted
in the table on page 50, where a risk sits across more than one TCFD
classification it is only included once.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
49
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 4908XESG_TCFD_v94.indd 49 13/03/2025 14:4613/03/2025 14:46
Transition risks:
Policy
Increased prevalence of anti-ICE
policies, cost on carbon imposed.
Horizon scanning future policy direction and contribution to public policy development and responding
toconsultations
Research and development investment to develop lower fleet emissions portfolio
Maintenance of small volume derogation status exemptions where available
Establishment of emissions-pooling agreements with third parties to manage exposure to carbon pricing
Consideration of forward purchasing of carbon offsets to manage exposure to increased pricing and reduced capacity
Consideration of increasing carbon policy on tailpipe emissions in business plan
Technology
Electric vehicle technology development
Research and development investment in EV technology
Improving energy efficiency in our manufacturing plants
Selection of a strategic partner to provide access to EV powertrain technology
Investment in use of alternative sustainable materials within vehicles
Market
Disruption in supply change caused
by increasingly prevalent climate
policies. Policy changes being
unpredictable and volatile.
Ensuring our Racing. Green. sustainability strategy remains relevant and aligned with stakeholder attitudes and
expectations
Continued focus on building circularity into our business model including waste and resource use actions and targets
Working with our supply chain partners to address emissions, waste and resource use outside of our immediate
operational control
Development of electrified powertrain options within the product portfolio and increased use of sustainable materials
to meet customers’ evolving requirements
Supplier strategy implemented to develop strategic and sustainable partnerships to improve supply chain resilience
Strategic co-operation agreements in place with various suppliers providing access to new powertrain technology
Reputation
Divergent customer attitudes (inability
to create a credible sustainability
proposition as we manage the transition
from ICE to EV, or brand damage caused
by activist activity).
Implementation of our Racing. Green. sustainability strategy to respond proactively to climate change
Transparent disclosure of our GHG emissions through publication of our Sustainability Report
Communication of actions already taken to address climate change
Development and implementation of credible plans to achieve our emission reduction targets aligned to net zero
by2030 and 2050
Clear strategy to electrify our product portfolio and increase use of sustainable materials (including green aluminum)
Monitoring global market trends to target areas for future growth
Expanded dealer network and improved training to ensure delivery of luxury customer experience
Physical risks:
Acute
Supplier strategy implemented to develop strategic and sustainable partnerships to improve supply chain resilience
Supply chain and logistics transformation project underway
Cross functional risk reviews with key departments to identify current supply issues and actions to resolve
Chronic
Business plan developed taking account of climate risks
Supply chain and logistics transformation project underway
METRICS AND TARGETS
Our sustainability strategy Racing. Green. incorporates a number of climate-
related metrics and targets which demonstrate the Company’s commitment
to tackling climate change in the short-, medium- and longer-term as well as
assessing and managing these risks.
We engage with our stakeholders and monitor developments from
regulatory and governance bodies to provide input into our materiality
assessment for climate-related disclosure purposes. The targets and
metrics disclosed have been identified by the Sustainability Committee as
being those that have a material impact on our business due to their nature,
size or complexity. Our Scope 1, 2 and 3 metrics as well as energy
consumption data are included on page 52 of this report and form part of
this TCFD statement. Progress against these targets is reported quarterly to
the Sustainability Committee through a detailed KPI report.
In summary, our total Scope 1 and 2 emissions during 2024 amounted to
15,735.06 tCO
2
e, reflecting the 16% increase in total energy use. To provide
greater clarity over our actions and the results of energy saving and efficiency
measures, we use GHG emissions per unit (tCO
2
e per car manufactured) as
ametric for a normalising our emissions data. This emission intensity metric
similarly showed a slight increase compared with 2023 and is shown on
page52.
We are committed to the SBTi Net-Zero Standard, and in 2023 developed
our full Scope 3 inventory which we continued to refine in 2024 as we
developed near and long-term Company-wide emissions reduction targets
in line with the standard. In September, we submitted these targets to the
SBTi for validation.
We continually review our processes and continue to strengthen our data
collection methods, working across our value chain, and seek to obtain
external assurance to validate a number of our reportable metrics as
outlined in our Sustainability Report.
STRATEGIC REPORT
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
50
08XESG_TCFD_v94.indd 5008XESG_TCFD_v94.indd 50 13/03/2025 14:4613/03/2025 14:46
Disclosure level
F
Full
P
Partial
O
Omitted
Pillar Recommended disclosures and
disclosure level
Response Disclosure locations
Governance
Disclose the organisation’s
governance around
climate-related risks
and opportunities.
a) Describe the Board’s
oversight of climate-related
risks and opportunities.
F
The Board is responsible for climate ambition, strategy and risk and
has established the Sustainability Committee to oversee delivery
ofthe Group’s Racing. Green. strategy.
Sustainability Report
– Pages 65–66, Pages
54–56
b) Describe management’s
role in assessing and
managing climate-related
risks and opportunities.
F
The Executive Committee members are responsible for managing
risks and opportunities within their functions by deploying the
ERMFS. They are supported by Functional Risk Champions who
attend the Risk Management Committee on a quarterly basis.
TheHead of Government Affairs and Sustainability holds
management responsibility for the Sustainability Committee.
Sustainability Report
– Page 66, Pages
54–56
Strategy
Disclose the actual and
potential impacts of
climate-related risks and
opportunities on the
organisation’s businesses,
strategy, and financial
planning where such
information is material.
a) Describe the climate-
related risks and
opportunities the
organisation has identified
over the short-, medium-,
andlong-term.
F
We face multiple climate-related risks, primarily arising from the
transition to a low-carbon economy and the need for us to address
technological, legal, market and reputational risks. Physical risks
pose a lesser threat to our direct operations, whilst we do recognise
their potential impact on our supply chain.
Sustainability Report
– Pages 67–69
b) Describe the impact of
climate-related risks and
opportunities on the
organisation’s businesses,
strategy, and financial
planning.
F
We are investing in electrification of our product portfolio to
mitigate the technological and regulatory risks associated with
transition to a low carbon economy together with investment in
sustainable materials. We are also investing in our manufacturing
facilities to drive increased energy efficiency and reduced waste.
Sustainability Report
– Pages 65–70
c) Describe the resilience of
the organisation’s strategy,
taking into consideration
different climate-related
scenarios, including a 2°C or
lower scenario.
P
Our business plan takes into account planned investment and
capital expenditure to electrify our powertrains and capital
projects to reduce carbon emissions from within our facilities and
operations. Disclosures regarding the resilience of our strategy in
each of the warming scenarios will be further enhanced in 2025.
Sustainability Report
– Pages 65–70
Risk Management
Disclose how the
organisation identifies,
assesses, and manages
climate-related risks.
a) Describe the organisation’s
processes for identifying and
assessing climate-related
risks.
F
Our ERMFS is used to identify, assess and manage all types of risks
across the business. This includes specific consideration of both
transitional and physical climate-related risks.
Sustainability Report
– Pages 67–70, Pages
54–56
b) Describe the organisation’s
processes for managing
climate-related risks.
F
Climate change and the need for the business to transition its
product portfolio to electrified powertrains over the medium-term
and reduce our carbon footprint is a principal Company risk.
Refer to the Principal Risk summary table within this Annual Report.
Sustainability Report
– Pages 67–70, Pages
54–55
c) Describe how processes for
identifying, assessing, and
managing climate-related
risks are integrated into the
organisation’s overall risk
management.
F
Climate-related risks are considered and managed within
ourERMFS.
Sustainability Report
– Pages 65–70, Pages
54–56
Metrics and Targets
Disclose the metrics and
targets used to assess and
manage relevant climate-
related risks and
opportunities where such
information is material.
a) Disclose the metrics used
by the organisation to assess
climate-related risks and
opportunities in line with its
strategy and risk
management process.
P
We have identified and disclosed a wide range of climate-related
metrics in order to manage our exposure to climate risks and
opportunities. Disclosures regarding the financial quantification
ofthe risks and opportunities identified wll be further enhanced
in2025.
Sustainability Report
– Pages 18, 19, 54, 57
b) Disclose Scope 1, Scope 2,
and, if appropriate, Scope 3
GHG emissions, and the
related risks.
F
We have disclosed our Scope 1, 2 and 3 emissions. Sustainability Report
– Pages 18, 19, 54, 57
c) Describe the targets used
by the organisation to
manage climate-related risks
and opportunities and
performance against targets.
F
We have set ambitious near-and long-term net zero GHG emission
reduction targets aligned with the Paris Agreement.
Sustainability Report
– Pages 18, 19, 54, 57
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
51
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 5108XESG_TCFD_v94.indd 51 13/03/2025 14:4613/03/2025 14:46
Methodology and scope can be found on pages 211-214. Selected performance data (highlighted with ^) is subject to limited assurance by ERM CVS.
Performance data
TACKLING CLIMATE CHANGE
TOTAL GREENHOUSE GAS EMISSIONS (tCO
2
e)
2022 2023 2024
Scope 1 GHG emissions 8,831.22 7,327.74 8,574.81^
Scope 2 GHG emissions – location-based 6, 011.58 6,289.76 7,160.25^
Scope 2 GHG emissions – market-based 251.63 178.38 599.49^
Scope 3 GHG emissions 1,089,275* 1,145,621* –
Total UK Scope 1 & 2 – location-based 14,779.22 13,416.81 15,204.15^
Total Rest of World Scope 1 & 2 – location-based 182.37 200.68 530.90^
Total GHG Emissions Scope 1 & 2 – location-based 14,842.80 13,617.49 15,735.06
* In 2024, we refined our Scope 3 baseline for 2022 and created full report of 2023 data across all relevant Scope 3 categories, 2024 data is not disclosed because of the
significant data requirements and time needed to secure this data from the wider value chain.
GREENHOUSE GAS EMISSIONS PER UNIT (tCO
2
e)
2022 2023 2024
Manufactured Volume (units) 6,404 6,587 6,442
Total Scope 1 emissions per unit 1.38* 1.11 1.33^
Total Scope 2 emissions per unit 0.94* 0.95 1.11^
* Figure restated following further data review.
TOTAL ENERGY CONSUMPTION WITHIN ORGANISATION (MWh)
2022 2023 2024
Electricity 30,764.90 30,073.08 33,645.15
Natural gas 40,518.26 32,255.10 38,806.84
Diesel 530.81 512.86 378.35
Petrol 4,717.14 5,121.31 5,489.07
LPG 371.28 367.50 381.98
Propane – – 0.66
Total UK energy consumption 76,313.45 67,658.44 77,079. 51^
Total Rest of World energy consumption 588.95 671.41 1,622.54^
Total 76,902.39 68,329.85 78,702.04^
Total renewable energy consumption* – 29,708.21 32,432.54
* Figure included in electricity consumption.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
52
08XESG_TCFD_v94.indd 5208XESG_TCFD_v94.indd 52 13/03/2025 14:4613/03/2025 14:46
CREATING A BETTER ENVIRONMENT
WATER (m3)
2022 2023 2024
Water consumption 66,279.99 66,004.90 51,428.79^
BIODIVERSITY
2022 2023 2024
Biodiversity Metric for Gaydon 88.87 86.99* 87. 46
Biodiversity Metric for St Athan – 86.21* 87.83
* Due to a change in DEFRA’s Biodiversity Net Gain assessment framework, used to calculate our Biodiversity Metric, we have restated our score for Gaydon and St Athan in 2023
based on the updated score. Both sites continue to see a year-on-year improvement since the baseline assessment.
WASTE (TONNES)*
2022 2023** 2024
Total 2,830.97 2,824.62 3,478.34^
UK Operations – non-hazardous
Recycled 1,201.89 1,480.08 1,948.70^
Reused – – 0.00^
Recovered – waste to energy 468.14 571.62 662.89^
Incineration – not recovered 0.54 4.63 1.05^
Treatment – 0.00 10.84^
Landfill – 0.00 0.00^
UK Operations – hazardous
Recycled 189.55 192.35 152.39^
Reused – – 1.30^
Recovered – waste to energy 504.74 465.01 428.69^
Incineration – not recovered 0.85 0.00 0.00^
Treatment 0.50 31.14 196.98^
Landfill – 0.00 0.00^
Newport Pagnell
Recycled – – 5.72^
Recovery – – 43.95^
Non-landfill – – 25.83^
Landfill – 0.09 –
* In 2024, we changed our reporting format for waste and therefore previous year’s data does not fully align with the 2024 breakdown. For 2024, waste data is reported
separately for Newport Pagnell and ‘UK Operations’, which covers all other remaining UK sites, excluding HPL, to account for the differences in Newport Pagnell’s waste
management provider. See methodology (page 211) for further information on waste data.
* * Waste data for all sites covered under UK Operations restated following further data review.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
53
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 5308XESG_TCFD_v94.indd 53 13/03/2025 14:4613/03/2025 14:46
STRATEGIC REPORT
PERFORMANCE DATA CONTINUED
INVESTING IN PEOPLE
EMPLOYEES BY GENDER (AS AT 31 DECEMBER 2024)
^
Male Female % Female
Senior management team 10^ 0^ 0.0^
Senior leadership team 78^ 12^ 13.3^
Other leadership 322^ 72^ 18.3^
Other employees 2,115^ 397^ 15.8^
Total 2,525^ 481^ 16.0^
EMPLOYEES BY REGION (AS AT 31 DECEMBER 2024)^
Male Female % Female
Asia Pacific 30^ 15^ 33.3^
EMEA 89^ 9^ 9.2^
UK 2,367^ 447^ 15.9^
Americas 39^ 10^ 20.4^
Total 2,525^ 481^ 16.0^
AVERAGE EMPLOYEE TENURE BY GENDER^
Male Female
Average employee tenure (years) 6.80^ 5.29^
AVERAGE EMPLOYEE TURNOVER BY GENDER^
Male Female Company
Average employee turnover (%) 9.03^ 13.10^ 9.68^
NEWLY-HIRED EMPLOYEES^
Male Female
Newly-hired employees 393^ 82^
Note: Data by gender and region is shown for 3,006 permanent Company employees only
GENDER PAY GAP
2023 2024
Mean Gender Pay Gap favouring men (%) 10.3 12.0
Median Gender Pay Gap favouring men (%) 5.2 4.8
COLLECTIVE BARGAINING
Company
Employees covered by collective bargaining agreements (%) 71.7
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
54
08XESG_TCFD_v94.indd 5408XESG_TCFD_v94.indd 54 13/03/2025 14:4613/03/2025 14:46
APPRENTICES
2022 2023 2024
New apprentices recruited 20 19 25
Apprentices completed training 43 4* 0*
* Apprentices are hired periodically based on business requirement and complete a four-year programme. The fall in number for 2023 and 2024 is due to a recruitment pause
during Covid-19 pandemic.
GR ADUATES
2022 2023 2024
New graduate trainees recruited 23 12 30
Students joined on industrial placements 13 6 14
STEM
2022 2023 2024
Visits to schools, colleges and universities 20 54 59
TRAINING – ASTON MARTIN EMPLOYEES
2022 2023 2024
Hours of training delivered 19,646 23,515 29,743^
Hours of initial EV-related instructor-led training delivered 3,344 2,377 2,880
TRAINING – ASTON MARTIN DEALERSHIPS
2022 2023 2024
Dealer employees trained in classroom courses 1,689 1,979 1,389
HEALTH & SAFETY
2022 2023 2024
Accident Frequency Rate (‘AFR’) 0.53 accidents per 100 workers 0.40 accidents per 100 workers 0.35 accidents per 100 workers^
Lost Time Accidents (‘LTA’s) 9 LTAs with a total of 185 days lost 10 LTAs with a total of 292 days lost 13 LTAs with a total of 133 days lost
Reporting of Injuries, Diseases and
Dangerous Occurrences (‘RIDDOR’) 9 7 5^
RESPONSIBLE BUSINESS
TRAINING – CODE OF CONDUCT
2024
Employees completing Code of Conduct training (%) 81^
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
55
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
08XESG_TCFD_v94.indd 5508XESG_TCFD_v94.indd 55 13/03/2025 14:4613/03/2025 14:46
STRATEGIC REPORT
PRINCIPAL RISKS AND RISK MANAGEMENT
Risk management
RISK GOVERNANCE
We deploy our Enterprise Risk Management Framework and System
(‘ERMFS’) to manage risks and provide the Board, the Audit and Risk
Committee and the Executive Committee with a robust assessment
of our principal and emerging risks. The Board is ultimately
responsible for oversight of our risk management and internal
control systems and determines our risk appetite.
The Board has delegated its responsibility for monitoring the
effectiveness of the Group’s risk management and internal control
systems to the Audit and Risk Committee. The Committee fulfils this
responsibility by directing and reviewing the work of executive
management and the key governance functions within the Group,
including the Internal Audit & Risk Management team (‘IA&RM’)
and the Risk Management Committee. The Chair of the Audit and
Risk Committee updates the Board on the Committee’s activities
inthis regard as appropriate.
HOW WE MANAGE RISK
Our IA&RM team maintains the ERMFS and coordinates risk
management activities across the Group, leveraging a network
of functional Risk Champions embedded within management (our
first line of defence). Each principal risk has a risk mitigation plan
incorporating management’s assessment of gross, net and target
risk together with an assessment of the effectiveness of mitigating
controls and activities currently implemented, and those which need
to be implemented in order to reduce the risk to the target level
commensurate with the Group’s risk appetite. These plans are
updated periodically with any changes being incorporated into the
corporate risk register.
THE KEY ELEMENTS AND ACTIVITIES SUPPORTING
OUR ERMFS INCLUDE
Annual review and approval of the ERMFS and Risk
ManagementPolicy
Bi-annual review of principal risks to assess the Gross, Net and
Target risks for potential impact and likelihood
Maintenance of corporate and functional risk registers
Undertaking top-down/bottom-up risk assessments including
horizon scanning to identify emerging risks
Creating formal risk mitigation plans for all principal risks
Provision of independent and objective assurance by the Internal
Audit team over the effectiveness of principal risk mitigation plans
to the Audit and Risk Committee
CHANGES TO ASTON MARTIN’S RISK PROFILE
The most significant changes to the Group’s principal and emerging
risks in the year were:
Macroeconomic uncertainty and geopolitical instability – risk
increasing reflecting the significant volatility in relationships
between major economies, growing economic instability, political
tension and increased trade protectionism measures being
implemented or considered by major markets
Quality – inclusion of quality as a principal risk given the
importance of Aston Martin maintaining its high quality standards
through the new vehicle launch process to protect the Company’s
brand and reputation and support its ultra-luxury high
performance market positioning
Impairment of capitalised development costs – risk no longer
recognised as a principal risk as the likelihood of impairment has
reduced following the successful delivery of major programmes
in the year and increased underlying vehicle profitability for the
current product portfolio
Digitalisation and the use of generative artificial intelligence
– identified as an emerging risk due to its increasing impact on the
automotive industry
THE RISK MANAGEMENT
COMMITTEE MET FOUR TIMES
DURING THE YEAR TO REVIEW
AND REASSESS THE COMPANY’S
PRINCIPAL RISKS AND IDENTIFY
EMERGING RISKS TO CONSIDER
FOR INCLUSION IN THE
CORPORATE RISK REGISTER.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
56
09XRiskXManagement_v65.indd 5609XRiskXManagement_v65.indd 56 13/03/2025 14:4713/03/2025 14:47
RISK APPETITE
The Board determines the amount of risk the Group is willing to accept
in pursuit of the Group’s strategic objectives. Willingness to tolerate
risk varies dependent on the type of risk and may change over time. In
assessing risks and opportunities, we prioritise the interests and safety
of our customers and employees and seek to protect the long-term
value and reputation of the brand, while maximising commercial
benefits to support responsible and sustained growth.
Risk category Risk appetite
Compliance Zero tolerance
Financial Low tolerance
Climate change Low tolerance
Strategic Moderate tolerance
Operational Moderate tolerance
OUR PRINCIPAL RISKS
Our risk management system is designed to identify a broad range of
risks and uncertainties which could adversely impact the profitability
or prospects of the Group. Our principal and emerging risks are those
which could have the most significant effect on the achievement of our
strategic objectives, our financial performance and our long-term
sustainability.
The following pages set out the Group’s principal risks, how they align
to our strategy, example risk factors and the primary mitigating
actions implemented to manage the risks during the year ended
31 December 2024. Principal risks evolve over time as some risks
assume greater importance and others may become less significant.
We categorise principal risks within one of the following categories:
Strategic, Operational, Compliance, Climate Change and Financial,
and link each risk to one or more of our strategic pillars that underpin
our business plan.
INTERNAL AUDIT & RISK MANAGEMENT
Coordinate deployment of the ERMFS across
theGroup
Maintain the corporate risk register
Present Board, Audit and Risk Committee and
Executive Committee risk status updates
Provide resources and training to support risk
management activities and support Functional
RiskChampions
Independently evaluate the design and operating
effectiveness ofprincipal risk mitigation plans on
arotational basis
FUNCTIONAL RISK CHAMPIONS
AND RISK OWNERS
Responsible for risk management
at a functional level
Maintain functional (bottom-up) risk registers
andmanage and develop risk mitigation plans
forprincipal risks
Champion adherence to ERMFS principles
andguidance within their functions
Consider emerging risks and escalate to the
RiskManagement Committee as appropriate
BOARD & AUDIT &
RISK COMMITTEE
The Board has
delegated oversight of
the ERMFS to the Audit
and Risk Committee
The Board has ultimate
responsibility for
establishing a
framework of prudent
and effective controls
which enable risk to be
assessed and managed
Determine
riskappetite
Review effectiveness
ofrisk mitigation plans
and assurance activity
Monitor status of risk
management activity
and reporting
Review outputs
ofprincipal
riskmitigation
planreviews
RISK MANAGEMENT GOVERNANCE
RISK MANAGEMENT
COMMITTEE
Identifies and
assessesnew and
emerging risks
Performs deep dive
reviews of risk
mitigation plans
Meets quarterly and
reports to the Audit
and Risk Committee
and Executive
Committee
Representation from
key functions across
the business
Ensures risks are
managed in
accordance with
theBoard’s defined
risk appetite
Champions effective
risk management
andcontrol across
thebusiness
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
57
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
09XRiskXManagement_v65.indd 5709XRiskXManagement_v65.indd 57 13/03/2025 14:4713/03/2025 14:47
STRATEGIC REPORT
PRINCIPAL RISKS AND RISK MANAGEMENT CONTINUED
STRATEGIC RISKS CLIMATE CHANGE RISKS
Macroeconomic and
geopolitical instability
Brand/reputational
damage
Technological
advancement
Climate change
RISK DESCRIPTION
Exposure to multiple political and
economic factors could impact
customer demand or affect the
markets in which we operate.
Our brand and reputation are critical in
securing demand for our vehicles and
in developing additional revenue
streams.
It is essential to maintain pace with
technological development to meet
evolving customer expectations,
remain competitive and stay ahead of
regulatory requirements.
The impact of climate change could
significantly impact demand for our
vehicles, our ability to sell within certain
markets or have financial consequences
through increased carbon pricing, taxes
and other regulatory restrictions on ICE
vehicles.
Risk movement Risk appetite
MODERATE
Risk movement Risk appetite
LOW
Risk movement Risk appetite
LOW
Risk movement Risk appetite
LOW
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
POTENTIAL IMPACT ON BUSINESS
Global economic slowdown
reducing demand for vehicles
Unfavourable movement in
exchange rates increasing input
costs or affecting price
competitiveness
Adverse economic global
conditions could adversely impact
our dealer network or supply
chain
Commodity price increases and
other inflationary pressure
Fragmented policy-making in
relation to banning of ICE and
transition to EV powertrains
Proliferation of anti-ICE policies
and actions
Product recall or quality issues
could impact customer confidence
and result in reduced demand
Late delivery of new models/
variants could impact customer
confidence and loyalty and delay
sales
Dealer network may not be effective
in raising, maintaining and
promoting brand awareness
Inadequate dealer training in new
products and technologies could
impair the customer experience
A slower transition to alternative
powertrain vehicles could affect the
Group’s ability to target new
customer groups
The Group is reliant on strategic
partnerships with third parties to
support development of new and
emerging technologies
Competitors may have better
access to funding and Intellectual
Property to develop new
technology faster and be first to
market
Changing and more stringent
regulations may make current
technology obsolete and increase
the risk of future non-compliance
Failure to incorporate new
technology into vehicles may affect
our ability to remain competitive
Transition risks
Policy – anti-ICE legislation aimed at
reducing tailpipe emissions or the
loss of small volume derogation
status could lead to increased
carbon taxes and import tariffs
Market – customer preferences may
be significantly influenced by policy
changes resulting in a move towards
non-ICE powertrain options faster
than anticipated
Technology – Electric vehicle
technology development is rapidly
evolving with new products
increasing competition within the
market.
Reputation – inability to create a
credible sustainability proposition as
we manage the transition from ICE to
EV powertrains, or brand damage
caused by activist activity
Physical risks
Increased frequency/severity of
extreme weather events causing
supply chain or outbound logistics
disruption
Potential increased insurance costs
as more claims are made due to
climate-related physical damage/
business disruption
RISK MITIGATION
Regular operational and financial
reviews of the business
£1.15bn refinancing completed on
new five-year terms
Revolving Credit Facility increased
to £170m
Business plan reset taking account
of headwinds arising from the
macroeconomic environment
Monitoring global market trends
to target areas for future growth
Routine monitoring of dealer
stock levels to support
build-to-order strategy
Dealer network development
strategy to target growth in
emerging markets
Standardised embedded quality
procedures (e.g., 300 Call
Procedure, Customer Perception
Audit, Parts Approval Process) to
maintain focus on vehicle quality
Expanded dealer network and
improved training to ensure
delivery of a luxury customer
experience
Regional marketing plans
developed quarterly to drive sales
pipeline
Fixed marketing investment
programme to drive increased
brand awareness and salience,
including sponsorship of the Aston
Martin Aramco Formula One® Team
Quality-led production ramp up for
new vehicle programmes
Strategic arrangements with key
partners including Mercedes-Benz
AG and Lucid
Development of commodity
strategy plans
Investment in Electrical Engineering
team
Sports car portfolio bolstered by
launch of new Vantage and
Vanquish in 2024
Valhalla programme to deliver first
series production mid-engine
supercar and first plug-in hybrid on
track for production in 2025
Establishment of Connected Car
team to develop stronger customer
proposition for in-car technology
Creation of an Innovation and
Advanced Technology group with
dedicated budget and process to
advance innovative technology in
advance of programme
requirements
Progress on activities supporting our
Racing. Green. sustainability strategy
and ongoing oversight by the Board
Sustainability Committee
Strategic cooperation agreements in
place with various suppliers
providing access to new powertrain
technology
Investment in R&D to develop PHEV
and BEV powertrain capabilities to
support delivery of electrified
powertrains
Forward purchase/pooling of carbon
credits to reduce exposure to
carbon-related financial penalties
and taxes and carbon offsetting
Sourcing of 100% renewable
electricity for our manufacturing
operations
Establishment of revised
sustainability targets including (1) a
42% reduction in GHG emissions by
2030 and (2) achievement of net
zero by 2050
LEGEND
OUR PROMISE, RACING. GREEN. 
OUR WORLD CLASS TALENT
Increasing
Decreasing
Stable/no movementOUR ICONIC BRAND 
OUR RELENTLESS PURSUIT OF INNOVATION
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
58
09XRiskXManagement_v65.indd 5809XRiskXManagement_v65.indd 58 13/03/2025 14:4713/03/2025 14:47
FINANCIAL RISKS COMPLIANCE RISKS OPERATIONAL RISKS
Liquidity Compliance with laws
andregulations
Talent acquisition
and retention
Quality
RISK DESCRIPTION
The Group may not be able to generate
sufficient cash to fund its capital
expenditure, service its debt or sustain
its operations.
Non-compliance with local laws or
regulations could damage our
corporate reputation and subject the
Group to significant financial penalties
and/or trading sanctions/restrictions.
We may fail to retain, engage and
develop a productive workforce or
develop key talent.
Poor quality could damage our brand
and reputation and adversely affect our
ability to generate demand or achieve
our financial targets.
Risk movement Risk appetite
LOW
Risk movement Risk appetite
ZERO
Risk movement Risk appetite
MODERATE
Risk movement Risk appetite
LOW
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
POTENTIAL IMPACT ON BUSINESS
Significant leverage levels may
inhibit our ability to raise additional
capital
Significant debt servicing
requirements reduce cash available
to support other operational needs
Liquidity restrictions could impact
planned R&D investment
Delays in payment to suppliers to
manage short-term cash
requirements could result in supply
chain disruption
Non-compliance with product
regulations (including emissions,
noise, connected car security etc.)
could inhibit the Group’s ability to
sell in certain markets
Non-compliance with corporate
conduct laws and regulations
(including data protection laws,
supply chain laws, human rights laws
etc.) could result in financial
penalties and/or brand/
reputationaldamage
An inability to keep up with the
increase in and complexity of
legislation requiring supply chain
due diligence and or reporting,
could inhibit the Group’s ability to
sell in certain markets
Inability to build the necessary
leadership capabilities and
behaviours to drive organisational
success
Failure to engage or equip our teams
to deliver our strategy effectively or
address critical capability gaps
Challenges in filling key open
positions may inhibit our ability to
deliver our product portfolio with
the right quality and on time, as well
as hindering innovation to remain
competitive within the market
Product recall or quality issues could
impact customer confidence and
result in reduced demand
Poor quality can result in increased
warranty , recall and rework costs
Poor quality can increase the risk of
defects that could lead to safety
hazards for drivers, passengers and
other road users
Failing to meet industry standards or
safety regulations can result in fines,
sanctions or potential bans on
selling products
RISK MITIGATION
£1.15bn refinancing completed in
March on new five-year terms
Revolving Credit Facility increased
to £170m
c.£135m and c.£100m private debt
placings in August and November
2024, respectively
c.£110m equity placing in
November 2024
Wholesale financing facilities
implemented to facilitate faster
cash collection
New products targeting minimum
contribution levels of 40% to drive
profit and cash generation
Regular management review of cash
and working capital balances
Increased average selling price
reflects significant contribution
from Specials and increased levels
of vehicle personalisation
Monthly Treasury Committee
New transformation programme to
support delivery of future cost
savings and efficiencies
Procedures are in place to obtain
Vehicle Type Approval and
homologation for all new
production vehicles from the
appropriate vehicle certification
agencies to ensure that vehicles
meet the required performance
standards for the markets they are
sold in
Processes in place to track and
monitor compliance with emissions
reduction targets and other
regulatory standards
Corporate policies define our
standards of behaviour in relation to
key compliance areas (including
anti-bribery and corruption, data
protection, responsible
procurement, health and safety,
anti-slavery and human trafficking,
and environment)
Refreshed campaign to promote
Speak Up, our confidential reporting
system, overseen by the Audit and
Risk Committee, which enables the
reporting of any suspected breach
of policy or misconduct
Conduct of due diligence and
monitoring of suppliers, including
enhanced information requirements
in higher risk areas
Remuneration Committee oversight
of senior leadership remuneration to
ensure it is aligned to the strategy
and appropriate for staff retention
Regular review of talent and
resource risks leveraging succession
plans and employee engagement
survey results
Benchmarking of bonus and
remuneration packages to drive
employee performance, align
behaviours with the organisational
goals and remain attractive to
external candidates in a competitive
UK job market
Embedding Company values; Unity,
Openness, Trust, Ownership and
Courage, emphasising that “No one
builds an Aston Martin on their own”
Talent review exercise undertaken
for senior management and above
population
Company-wide performance bonus
scheme to drive performance,
embedding key finance and quality
measures and targets
Great Place To Work® survey
undertaken to measure and enhance
organisational culture
Standardised embedded quality
procedures (e.g., 300 Call
Procedure, Customer Perception
Audit, Parts Approval Process) to
maintain focus on vehicle quality
Quality-led production ramp up for
new vehicle programmes managed
through the Product Creation
Delivery System
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
59
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
09XRiskXManagement_v65.indd 5909XRiskXManagement_v65.indd 59 13/03/2025 14:4713/03/2025 14:47
OPERATIONAL RISKS
Programme delivery Achieving financial and
cost‑reduction targets
Cyber security
and IT resilience
Supply chain
disruption
RISK DESCRIPTION
Failure to implement major
programmes on time, within budget
and to the right technical specification
and quality could jeopardise delivery
of our strategy and have significant
adverse financial and reputational
consequences.
The Group’s size and low-volume,
demand-led strategy may inhibit its
ability to deliver targeted cost
reductions or work within budget
constraints while delivering the
planned vehicle programme.
Breach of cyber security could result in
a system outage, impacting core
operations and/or result in a major data
loss leading to reputational damage
and financial loss.
Supply chain disruption could result in
production stoppages, delays, quality
issues and increased costs.
Risk movement Risk appetite
MODERATE
Risk movement Risk appetite
LOW
Risk movement Risk appetite
LOW
Risk movement Risk appetite
LOW
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
LINK TO STRATEGY:
POTENTIAL IMPACT ON BUSINESS
Delays in new product launch can
undermine Aston Martin’s
competitiveness and result in
reduced sales
Inability to manage third-party
delivery in line with programme
timelines and milestones can result
in increased costs and/or reduced
revenue from delayed sales
Failure to adhere to the “Mission”
programme delivery governance
framework could result in delayed
launch of vehicles or unforeseen
quality issues
Delays in new Enterprise Resource
Planning (‘ERP’) system go-live
dates could expose Aston Martin to
increased risk of IT failure and
resultant disruption to production
and engineering activities
High levels of complexity across car
lines can drive increased
engineering requirements with
associated increased resource and
cash requirements
Inflationary pressure on key input
costs (e.g., raw materials,
commodities, energy, labour) makes
achievement of targeted reductions
more challenging
Instability in the supply base due to
economic volatility may reduce
opportunities to identify cost
savings
Ultra-luxury positioning demands
the necessary marketing spend to
generate brand and product
awareness to build desirability and
create future demand
Increased logistics costs associated
with disruption due to conflict (e.g.,
Red Sea shipping route disruption)
can lead to unforeseen inflationary
pressures
Cyber-attack resulting in disruption
to operational services, possible
data loss and related business
outages
Legacy systems reaching end of life
may no longer be supported and
become more susceptible to breach
Insufficient investment in systems
and resource leads to limited
protection with critical
vulnerabilities not being addressed
in a timely manner
Suppliers may be unable to meet
delivery schedules due to being in
financial distress
Unforeseen supplier failures, or
disruption, can lead to production
stoppages caused by delays in
sourcing parts
Raw material shortages (including
semi-conductors) due to increased
demand and global supply chain
issues could impact Aston Martin’s
ability to meet planned production
volumes
Disruption caused by ongoing
global conflicts (e.g., Russia/
Ukraine, Gaza/Israel, Red Sea
activity) can result in longer lead
times and increased freight costs
RISK MITIGATION
Deployment of an established
programme delivery methodology
and regular Product Committee
status reporting and oversight
Enhanced focus on R&D financial
forecasting for all capital
expenditure
Addition of innovation team to
create new technologies to an
appropriate Technology/
Manufacturing Readiness Level
New model pilot production line
established in Gaydon to facilitate
new product development
Establishment of New Model
Quality and Quality Business
Planning teams to improve quality
management activity
Development of commodity
strategy with strategic suppliers to
drive resilience and cost efficiency
across platforms
Increased focus on supply chain risk
analysis and proactive risk
management
Targeted marketing activity with
support from key external agencies
to ensure the necessary return on
investment is obtained from
marketing spend
Budget and business planning
activity reassessed in consideration
of current inflationary headwinds
New transformation programme to
support delivery of future cost
savings and efficiencies
Project continuing to deliver a new
ERP system through 2025 to
transition away from end-of-life
legacy systems and drive efficiency
within the IT infrastructure
Enhanced IT general controls for
access management, network
access controls, remote access (e.g.,
multi-factor authentication) and
password management
24/7 vulnerability monitoring using
security tools including Darktrace,
SentinelOne and cyber incident
response procedures
Further investment in Information
Security team to mature cyber
security control framework
Benchmarking of cyber security
controls against the National
Institute of Standards & Technology
(‘NIST’) governance framework
Cross-functional weekly risk reviews
with key departments to identify
current supply issues and actions to
resolve
Supplier scorecards and
performance metrics developed to
drive improvement and encourage
best practice
Internal Customs team established
to manage and mitigate procedural/
policy changes
Periodic due diligence performed on
key suppliers including Dun &
Bradstreet financial health checks
Supplier strategy implemented to
develop strategic and sustainable
partnerships to improve supply
chain resilience
Supply chain and logistics
transformation project
STRATEGIC REPORT
PRINCIPAL RISKS AND RISK MANAGEMENT CONTINUED
LEGEND
OUR PROMISE, RACING. GREEN. 
OUR WORLD CLASS TALENT
Increasing
Decreasing
Stable/no movementOUR ICONIC BRAND 
OUR RELENTLESS PURSUIT OF INNOVATION
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
60
09XRiskXManagement_v65.indd 6009XRiskXManagement_v65.indd 60 13/03/2025 14:4713/03/2025 14:47
RISK MANAGEMENT ACTIVITIES IN 2024 AND PLANS
FOR2025
Identification of risks
We identify and manage risk using a top-down/bottom-up approach.
Top-down – Identification, assessment, prioritisation, mitigation,
monitoring and reporting of the Group’s principal risks. Overseen
by the Audit and Risk Committee and the Risk Management
Committee.
Bottom-up – Identification, assessment, prioritisation, mitigation
and monitoring of lower level risk across operational and
functional areas.
The corp orate a nd f un c tiona l risk regi ste r s ar e ma int ained andupdate d
to reflect changes in the business and the external environment. These
continue to be periodically reviewed by the Risk Management
Committee. The updated corporate risk register is reviewed and
formally re-evaluated at the half and full year to identify any changes
required to the disclosed principal risks. These changes and the
summary of principal and emerging risks are then presented to the
Audit and Risk Committee for review and approval.
Risk management system
The Aston Martin ERMFS continues to be deployed across the Group.
This was subject to its annual review and approved by the Executive
Committee and the Audit and Risk Committee in July 2024. The Risk
Management Committee met four times during 2024.
Management actions and deep dives
The IA&RM team incorporates independent validation reviews of the
principal risk mitigation plans within its annual Audit Plan, the purpose
being to provide independent assurance to management, the Audit
and Risk Committee and the Board on the effectiveness and adequacy
of management actions to mitigate risks down to an acceptable level.
The team works with functional Risk Champions to maintain formal
risk mitigation plans to clearly articulate the nature and extent of
the principal risks and their associated mitigating actions. These are
used to provide the Board and Audit and Risk Committee with
management self-assessments on the effectiveness of risk mitigation
plans and activities.
During 2024 the following key risk management activities have
been undertaken:
Four Risk Management Committee meetings with focus on the
following areas:
• Maturation of principal risk mitigation plans
• Deep dive review of evolving geopolitical risks
• Deep dive review of potential risks and opportunities associated
with generative artificial intelligence on the Group
• EV transformation update
• Emerging risks and horizon scanning
• Fraud risk assessment
Development of an enhanced methodology and management
forum to review, assess and manage supply chain risks
Group Incident, Crisis Management and Business Continuity Plan
update with support from specialist third-party consultants
Climate change risk assessment and scenario analysis undertaken
with support from specialist third-party consultants
Internal audit of the Programme Delivery risk mitigation plan and
product creation governance framework (‘Mission’)
Executive Committee review and agreement of the Group’s
principal and emerging risks
Annual review of ERMFS and Risk Management Policy
The following principal risk mitigation plan reviews have been
included within the 2025 Internal Audit plan:
Technological advancement
Macroeconomic and geopolitical instability
Non-compliance with laws and regulations
THE TEAM WORKS WITH
FUNCTIONAL RISK CHAMPIONS
TO MAINTAIN FORMAL RISK
MITIGATION PLANS TO CLEARLY
ARTICULATE THE NATURE AND
EXTENT OF THE PRINCIPAL RISKS
AND THEIR ASSOCIATED
MITIGATING ACTIONS.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
61
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
09XRiskXManagement_v65.indd 6109XRiskXManagement_v65.indd 61 13/03/2025 14:4713/03/2025 14:47
STRATEGIC REPORT
VIABILITY STATEMENT
VIABILITY STATEMENT
The Directors have carried out a robust review of the principal risks of
the Group, which are set out on pages 58–60, identifying the nature and
potential impact of those risks on the viability of the Group, together
with the likelihood of them materialising.
This analysis has then been used to carry out an assessment of the
ability of the Group to continue in operation and meet its obligations.
The assessment covers the five-year period from January 2025 to
December 2029. This was considered appropriate by the Directors
because it aligns with the business plan and the Group’s normal
planning horizon and is indicative of the investment and development
cycle of new products in the luxury car market. The assessment includes
the costs anticipated in relation to our strategy and our viewsof the
impact of climate change (see note 1 to the Financial Statements).
Inevitably, the degree of certainty decreases over thisperiod.
The assessment process consisted of stress testing the base case in
thebusiness plan for scenarios designed to reflect the potential impact
of the principal risks materialising in a compound scenario, including
thefollowing:
A severe but plausible reduction in sales volumes as a result of
factorssuch as a material reduction in the size of the luxury market
due to external factors (such as delayed product launches, a decrease
in demand from High Net Worth Individuals, increased direct and
indirect taxation and changes in consumer habits away from
luxuryvehicles)
Incremental fixed and variable costs
Incremental working capital requirements such as increased
inventory during product launches, reduced deposit inflows
or increased deposit outflows
The impact of strengthening sterling:dollar exchange rates
In the event of one or more risks occurring which have a particularly
severe effect on the Group, the assessment assumed that all
appropriate actions would be taken in a timely manner by management
to mitigate as far as possible the impact of the risks. Potential mitigating
actions include constraining capital spending, seeking additional
funding and/or a number of other adjustments to operations in the
normal course of business.
In all scenarios it is assumed that any borrowings that mature in the
review period will be renewed or replaced with facilities of similar size.
The projections show that, even in stressed conditions, the Group
should be able to refinance these facilities on commercially acceptable
terms, assuming that debt markets continue to operate as currently.
In addition, we have assumed that no additional legislative action will
be taken that impacts the sale of our products within the Viability
Statement timeframe.
The Directors have assessed the viability of the Group over the
five-year period to 31 December 2029 and, based on this assessment
and the assumptions stated above, the Directors have a reasonable
expectation that the Group will be able to continue in operation and
meet its liabilities as they fall due over the period to 31 December 2029.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
62
09XRiskXManagement_v65.indd 6209XRiskXManagement_v65.indd 62 13/03/2025 14:4713/03/2025 14:47
NON-FINANCIAL AND SUSTAINABILITY INFORMATION STATEMENT
Non-financial and sustainability
information statement
This section of the Strategic Report constitutes the Non-Financial and
Sustainability Information Statement of the Company, produced to
comply with sections 414CA and 414CB of the Companies Act 2006.
The information listed in the table below is incorporated by cross
references to other areas of the Annual Report, Sustainability Report
and the Company website where further information can be
found. The majority of policies can be found on our website:
www.astonmartin.com/corporate.
The policies mentioned below form part of the Company’s Group
policies which are brought together in our Code of Conduct and act
as the strategic link between our purpose and values and how we
manage our day-to-day business.
Reporting requirements Policies and standards which govern our approach Where material information can be found
Climate-related
financial disclosures
TCFD report, pages 45–51
Principal risks and risk management, pages 56–61
Tackling climate change, pages 34–35
Performance data, page 52
Environmental Matters Environmental Policy
Code of Conduct
Creating a better environment, pages 36–37
Stakeholder engagement, pages 16–19
TCFD report, pages 45–51
Sustainability Report www.astonmartin.com/corporate
Employees Diversity and Inclusion Policy
Group Health and Safety Policy
Confidential Reporting Policy
Gender Pay Gap Report
Code of Conduct
Investing in people and opportunity, pages 38–41
Audit and Risk Committee Report, pages 94–101
Directors’ Remuneration Report, pages 104–134
www.astonmartin.com/corporate
www.astonmartin.com/corporate
Anti-Bribery and Corruption Anti-Bribery and Corruption Policy
Group Conflicts of Interest Policy
Hospitality and Gifts Policy
Anti-Money Laundering Policy
Code of Conduct
Responsible business, page 44
Audit and Risk Committee Report, pages 94–101
www.astonmartin.com/corporate
Responsible business, pages 43 and 98
Human Rights Anti-Slavery and Human Trafficking Policy
Modern Slavery Statement
Code of Conduct
www.astonmartin.com/corporate
Responsible business, page 44
Responsible business, pages 43 and 98
Stakeholders Data Protection Policy
Code of Conduct
Stakeholder engagement, pages 16–19
s.172 Statement, pages 82–83
www.astonmartin.com/corporate
Social Environmental Policy
Code of Conduct
Creating a better environment, pages 36–37
Stakeholder engagement, pages 16–19
Non-Financial Key
Performance Indicators
Key performance indicators, pages 24–25
Strategic Report, pages 1–63
Principal Risks Principal risks and risk management, pages 56–61
Business model, pages 20–21
Business Model Business model, pages 20–21
The Strategic Report was approved by the Board and signed on its
behalf by:
ADRIAN HALLMARK
CHIEF EXECUTIVE OFFICER
25 February 2025
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
63
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
09XRiskXManagement_v65.indd 6309XRiskXManagement_v65.indd 63 13/03/2025 14:4713/03/2025 14:47
CORPORATE GOVERNANCE
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
64
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 6410XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 64 13/03/2025 14:4813/03/2025 14:48
66 Governance at a glance
67 Executive Chairman’s introduction
togovernance
68 Board of Directors
72 Executive Committee
74 Leadership and governance
78 Board discussions during the year
82 Section 172 statement
84 Board, culture and workforce
engagement
86 Investor engagement
88 Nomination Committee Report
94 Audit and Risk Committee Report
102 Sustainability Committee Report
104 Directors’ Remuneration Report
135 Directors’ Report
141 Statement of Directors’ Responsibilities
Corporate
governance
LEADING.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
65
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 6510XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 65 13/03/2025 14:4813/03/2025 14:48
GOVERNANCE
GOVERNANCE AT A GLANCE
Governance
at a glance
BOARD NATIONALITY STATISTICS
British 8
American 4
Canadian 1
Chinese 1
Italian 1
Saudi Arabian 1
BOARD GENDER STATISTICS
27%
of our total Board is female (2023: 27%)
OUR BOARD COMPOSITION
Shareholder Representative
Directors (including the
Executive Chairman) 7
Independent
Non-executive Directors 6
Executive Directors 3
BOARD SECTOR EXPERIENCE
Luxury brand 6
Finance/banking 4
Automotive 3
Marketing/commercial 3
Engineering 2
Legal 1
Human resources 1
OUR MAJOR SHAREHOLDERS %
Yew Tree Consortium* 27.67
Geely* 15.22
Public
Investment Fund* 15.01
Mercedes-Benz* 8.15
Lucerne Capital
Management** 3.08
Lucid 3.03
50%
of Board positions which are
notshareholder nominated
areheld by women
67%
of our Independent Non-executive
Directors are women
Governance is essential to building a
successful business that is sustainable for
the longer-term. Aston Martin is committed
to ensuring and maintaining high standards
of corporate governance to enhance
performance and strengthen stakeholder
confidence.
All data is shown as at 31 December 2024.
Natalie Massenet has dual British and American nationality.
Some members of the Board have sector experience in morethan onecategory.
* Denotes a major shareholder withBoard representation inaccordance with
the respective Relationship Agreement enteredinto between the Company
and that shareholder.
** The Company was notified on 6 February 2025 that Lucerne’s holding had
fallen to 2.63%.
2024
2023
50%
50%
2024
2023
67%
67%
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
66
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 6610XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 66 13/03/2025 14:4813/03/2025 14:48
GOVERNANCE
EXECUTIVE CHAIRMAN’S INTRODUCTION TO GOVERNANCE
DEAR SHAREHOLDER
I am pleased to introduce the Governance section of this year’s Annual
Report and Accounts. In this section we provide detail on the Board’s
roles and responsibilities, an overview of the activities of the Board and
our Committees over the year and our compliance with the UK
Corporate Governance Code. Our commitment to effective corporate
governance supports the decisions we make to create long-term
sustainable value for the benefit of all our stakeholders. Good
governance also provides a platform for us to achieve cultural change
and act in line with our values.
BOARD CHANGES
At the beginning of September, we welcomed Adrian Hallmark as our
new Chief Executive Officer. Adrian is one of the highest calibre leaders
not just in our segment, but in the entire global automotive industry.
We are very fortunate to have Adrian’s experience in both the ultra-
luxury and British manufacturing sectors, and we look forward to
progressing our strategy under his leadership in the year ahead.
In December, Robin Freestone, the Chairman of our Audit and Risk
Committee, informed us of his decision to step down from the Board
with effect from 28 February 2025, following the Company’s 2024 full
year results announcement. On behalf of the Board, I would like to
thank Robin for his significant contribution as Independent Non-
executive Director, Chair of our Audit and Risk Committee and
member of our Nomination and Remuneration Committees for the
past four years. The Board has greatly benefited from Robin’s
experience and guidance, and we wish him well for the future.
As announced on 25 February 2025, Vicky Jarman will be joining the
Board as an Independent Non-executive Director effective 1 March
2025 and will chair our Audit and Risk Committee. Vicky has significant
financial, commercial and non-executive experience and I look
forward to working with her in the years to come.
BOARD INDEPENDENCE
The composition of our Board is unique. We have seven Shareholder
Representative Directors on the Board and as a result, we do not
currently meet the independence requirements of the UK Corporate
Governance Code. However, I am comfortable that this does not
present a governance issue. Our Shareholder Representative Directors
are diverse and act independently of one another and all our
Independent Non-executive Directors are highly experienced. To
comply with the independence requirements of the Code would make
our Board unwieldy and we need to maintain the Board at such a size to
continue to promote effective discussion and decision-making.
BOARD DIVERSITY
Recognising the unique composition of our Board, our Board Diversity
Policy states that we seek to achieve and maintain 40% of Board
positions which are not subject to shareholder appointments to be
held by women. That percentage is currently 50% (rising to 63% upon
the appointment of Vicky Jarman). Of our total Board positions, 27%
are held by women (rising to 33% upon the appointment of Vicky
Jarman). The Board is committed to achieving and maintaining
diversity at Board level and throughout the business and will continue
to monitor the progress being made.
THE BOARD’S ROLE IN CULTURE
As a Board, we must be satisfied that our purpose, values and strategy
are aligned with our culture. The Board has a responsibility to act with
integrity, lead by example and promote the culture that we aspire to at
Aston Martin. More information on the Board and its role in culture and
workforce engagement can be found on pages 84–85.
BOARD EVALUATION
Due to the arrival of our new Chief Executive Officer in September, the
Board concluded that there would be no value in undertaking an
external Board evaluation this year. Instead, we once again carried out
an internal evaluation with the support of a third-party provider which
assisted with the questionnaires and the analysis of the results and
provided external benchmark data. More information on our Board
evaluation is set out on pages 92–93.
REMUNERATION POLICY REVIEW
We will be seeking shareholder approval for our new Remuneration
Policy at our 2025 Annual General Meeting. With a new Chief Executive
Officer in post, it has been an ideal time to review and develop our new
Policy. Details of the changes proposed, and our consultation process
which included engagement with shareholders, are set out in the
Remuneration Committee Report on pages 104–134.
I would like to thank all the members of the Board for their significant
efforts and valuable contributions during the year.
Yours sincerely,
LAWRENCE STROLL
EXECUTIVE CHAIRMAN
25 February 2025
LAWRENCE
STROLL
EXECUTIVE CHAIRMAN
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
67
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 6710XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 67 13/03/2025 14:4813/03/2025 14:48
GOVERNANCE
BOARD OF DIRECTORS
Leading from the front
LAWRENCE STROLL
EXECUTIVE CHAIRMAN
N
R
W
APPOINTED: 2020
NATIONALITY: Canadian
SKILLS AND RELEVANT
EXPERIENCE
Lawrence joined the Company as
Executive Chairman after leading
the Yew Tree Consortium
investment in the Company in
April 2020. He has a long career
of acquiring and building luxury
brands including Polo Ralph
Lauren, Tommy Hilfiger and
Michael Kors and brings his
wealth of leadership and
executive experience to the
Board. Lawrence is also an active
investor in the automotive and
motorsport sectors, leading a
consortium to acquire the Force
India Formula One® team in 2018,
which was subsequently
rebranded as the Aston Martin
Aramco Formula One® Team.
Lawrence is a shareholder
representative of the Yew Tree
Consortium.
EXTERNAL APPOINTMENTS
Co-owner Aston Martin
Aramco Formula One® Team
AMR GP Services Limited
(Director)
AMR GP Limited (Director)
AMR Performance Group
Limited (Director)
ADRIAN HALLMARK
CHIEF EXECUTIVE OFFICER
APPOINTED: 2024
NATIONALITY: British
SKILLS AND RELEVANT
EXPERIENCE
Adrian Hallmark joined Aston
Martin in September 2024 as
Chief Executive Officer. Directly
prior to joining Aston Martin,
Adrian was Chairman and Chief
Executive Officer at Bentley
Motors, a position he held since
2018. For almost 30 years Adrian
has had extensive Global and
Divisional Board-level
experience as CEO, Chief
Strategy Officer and Chief
Commercial roles in the luxury
automotive sector, including 10
years at Porsche GB, 14 years at
Bentley and 7 years at Jaguar
Land Rover.
Adrian studied Materials
Technology and Mechanical
Engineering and holds an
honorary Doctorate degree in
Engineering from the University
of Wolverhampton.
EXTERNAL APPOINTMENTS
None
DOUG LAFFERTY
CHIEF FINANCIAL OFFICER
W
APPOINTED: 2022
NATIONALITY: British
SKILLS AND RELEVANT
EXPERIENCE
Doug was appointed Chief
Financial Officer in May 2022.
Prior to joining Aston Martin,
Doug was the Chief Financial
Officer of FTSE 250-listed fuel
retailer Vivo Energy plc. He
previously spent three years as
Chief Financial Officer for
Williams Grand Prix Holdings plc
and 16 years in a wide range of
senior finance and leadership
roles at British American
Tobacco.
Doug is a member of CIMA and
holds a BSc Hons in Management
Studies from Royal Holloway,
University of London.
EXTERNAL APPOINTMENTS
None
Chair
Observer
A
Audit and Risk Committee
N
Nomination Committee
R
Remuneration Committee
S
Sustainability Committee
W
Warrant Share Committee
EXECUTIVE DIRECTORSKEY
OTHER DIRECTORS SERVING
DURING THE YEAR
Amedeo Felisa, Chief Executive
Officer, stepped down from the
Board on 1 September 2024.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
68
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 6810XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 68 13/03/2025 14:4813/03/2025 14:48
SIR NIGEL BOARDMAN
SENIOR INDEPENDENT
NON-EXECUTIVE DIRECTOR
A
N
S
APPOINTED: 2022
NATIONALITY: British
SKILLS AND RELEVANT
EXPERIENCE
Sir Nigel joined the Board in
October 2022 and became
Senior Independent Non-
executive Director in May 2023.
Sir Nigel was partner at the law
firm Slaughter and May from
1982 until 2019 specialising in
mergers and acquisitions and
corporate advisory and remained
a consultant at the firm until
2022.
Sir Nigel was awarded a
Knighthood in the Queen’s
Birthday Honours List in June
2022 for services to the legal
profession.
Sir Nigel is Chair of Help for
Heroes, a military veterans
charity, is Trustee and Chair
designate of The Medical
College of Saint Bartholomew’s
Hospital Trust, is Trustee
Emeritus and member of the
audit committee for the British
Museum and is Vice Chair of the
London Philharmonic Orchestra.
EXTERNAL APPOINTMENTS
Arbuthnot Latham (Chair)
Arbuthnot Banking Group
(Non-executive Director)
Mile Group Unlimited (Chair)
Glyde Group Unlimited (Chair)
ROBIN FREESTONE
INDEPENDENT NON-EXECUTIVE
DIRECTOR
A
N
R
APPOINTED: 2021 *
NATIONALITY: British
SKILLS AND RELEVANT
EXPERIENCE
Robin is a qualified chartered
accountant, with significant
financial, management, business
transformation and
diversification experience within
leading UK-listed global
businesses. Previously, Robin
held a number of senior
executive finance roles in the
industrial sector (1985-2004)
with ICI plc, Amersham
International plc and Henkel Ltd
where he was the Chief Financial
Officer. He subsequently joined
the publishing company Pearson
plc in 2004, the last nine years of
which he served as its Chief
Financial Officer.
Robin has wide non-executive
director experience and was
previously a Non-executive
Director at eChem Limited, Chair
of the 100 Group and Senior
Independent Director and Chair
of the Audit Committee of Cable
& Wireless Communications plc.
Robin holds a BA in Economics
from Manchester University.
* Robin will step down from the
Board on 28 February 2025.
EXTERNAL APPOINTMENTS
Capri Holdings Limited
(LeadDirector)
DAME NATALIE MASSENET, DBE
INDEPENDENT NON-EXECUTIVE
DIRECTOR
R
APPOINTED: 2021
NATIONALITY: British/American
SKILLS AND RELEVANT
EXPERIENCE
Natalie brings her wealth of
luxury retail sales, marketing and
commercial experience to the
Board. Natalie is the co-founder
and managing partner of
Imaginary Ventures, a capital
firm focusing on innovations at
the intersection of retail and
technology.
Previously, Natalie revolutionised
luxury retail when she founded
Net-a-Porter in 1999, and
subsequently, The Outnet and Mr
Porter, growing the group of
brands into one of the world’s
most influential fashion
businesses. Natalie has also held
several non-executive and
advisory positions as a Director
of NuOrder Inc (2021), a Director
and Co-Chairman of Farfetch Inc
(2017-2020) and the Chairman of
British Fashion Council
(2012-2017).
In 2016, Natalie was made Dame
Commander of the British Empire
in recognition of her
contributions to the UK fashion
and retail industry.
EXTERNAL APPOINTMENTS
Imaginary Ventures
(ManagingPartner)
EON Group Holdings Inc
(Non-executive Director)
MARIGAY MCKEE, MBE
INDEPENDENT NON-EXECUTIVE
DIRECTOR
S
N
APPOINTED: 2021
NATIONALITY: British
SKILLS AND RELEVANT
EXPERIENCE
Marigay has extensive retail
sales, marketing and luxury
brand experience. In 2018,
Marigay co-founded Fernbrook
Capital LLC, a venture fund
based in New York and Los
Angeles, specialising in
consumer tech. Marigay started
her career at Estée Lauder in
Europe, and then joined Harrods
in 1999 as Head of its beauty
department. In her 14 years at
Harrods, she spent the last six
years as Chief Merchant Officer
where she developed and
executed a strategic vision to
make Harrods the gold standard
for the exclusive launch of luxury
and premium brands. In 2013,
Marigay joined Saks Fifth Avenue
in New York as its President,
rebuilding Saks’ luxury launch
platform for new, emerging and
international brands.
In the 2022 Queen’s New Year
Honours List, Marigay was
awarded an MBE in recognition
of her services to British retail
overseas.
EXTERNAL APPOINTMENTS
Fernbrook Capital LLC
(Director)
EShopWorld (Advisory
Council Member)
The Webster (Board Member)
INDEPENDENT NON-EXECUTIVE DIRECTORS
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
69
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 6910XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 69 13/03/2025 14:4913/03/2025 14:49
DR. ANNE STEVENS
INDEPENDENT NON-
EXECUTIVE DIRECTOR
A
N
R
S
APPOINTED: 2021
NATIONALITY: American
SKILLS AND RELEVANT
EXPERIENCE
Anne brings to the Board
significant operational,
commercial and transformational
experience in global businesses.
Anne is an engineer and started
her career in the chemical
industry with Exxon Corporation
before moving to automotive
withthe Ford Motor Company
(1990-2006). During her 16-year
tenure at Ford, Anne held a
number of senior positions,
culminating in her being the
ChiefOperating Officer for the
Americas. On retiring from Ford,
Anne joined Carpenter
Technology Corporation
(2006-2009) as its Chairman,
President and Chief Executive
Officer. Anne has extensive
non-executive director
experience and has previously
served as Chairman, CEO and
Principal of SA IT (2011-2014) and
as a Non-executive Director on
the board of XL Group and
Lockheed Martin, before joining
GKN plc as a Non-executive
Director where she was briefly
CEO during the hostile takeover
by Melrose plc in 2018. Anne
received a BS in Materials and
Mechanical Engineering from
Drexel University in 1980 and was
elected to the National Academy
of Engineering in 2004.
EXTERNAL APPOINTMENTS
Harbour Energy plc
(Non-executive Director and
Remuneration Committee Chair)
JEAN TOMLIN, OBE
INDEPENDENT NON-EXECUTIVE
DIRECTOR, WORKFORCE
ENGAGEMENT DIRECTOR
N
S
APPOINTED: 2023
NATIONALITY: British
SKILLS AND RELEVANT
EXPERIENCE
Jean joined the Board in October
2023 as an Independent
Non-executive Director. She is
the founder and CEO of Chanzo
Limited, a firm that provides
consulting, operational delivery
and international recruitment
services to major event and sport
sectors.
Jean served as a Non-executive
Director on the Sainsburys plc
Board and an Independent Board
Director at Hakluyt & Company
Ltd. In addition, Jean was
Director of Human Resources for
the London Organising
Committee of the Olympic and
Paralympic Games from 2006 to
March 2013.
Jean was also the Group HR
Director at Marks & Spencer plc
and prior to that she spent
15years at Prudential plc and
9years at Ford Motor Company
in various Human Resources
management positions.
EXTERNAL APPOINTMENTS
Chanzo Limited (CEO)
Capri Holdings Limited
(Non-executive Director)
FRANZ REINER
NON-EXECUTIVE DIRECTOR,
REPRESENTATIVE
OFMERCEDES-BENZ AG
A
N
R
APPOINTED: 2021
NATIONALITY: American
SKILLS AND RELEVANT
EXPERIENCE
Franz has been the CEO of
Mercedes-Benz Mobility AG
since June 2019. The company
finances and leases every second
vehicle delivered by Mercedes-
Benz. Under his management,
Mercedes-Benz Mobility has
established itself viable for the
future with its three core financial
services activities, fleet
management and digital mobility
solutions. Since joining the
company in 1992, the industrial
engineer has held various
positions, including Head of Sales
& Marketing and Member of the
Board of Management for the
private and corporate customer
business of Mercedes-Benz Bank.
In 2009, Franz was appointed to
the Management Board of
Mercedes-Benz Mobility –
initially responsible for the
Americas region, and from 2011
for the Europe region.
EXTERNAL APPOINTMENTS
Mercedes-Benz Mobility AG
(CEO and Chairman of the
Board)
VfB Stuttgart 1983 AG
(Supervisory Board Member)
Mercedes-Benz Leasing
Deutschland GmbH
(Supervisory Board member)
The Mobility House AG (Board
Member)
INDEPENDENT NON-EXECUTIVE DIRECTORS CONTINUED SHAREHOLDER REPRESENTATIVE DIRECTORS
GOVERNANCE
BOARD OF DIRECTORS CONTINUED
MICHAEL DE PICCIOTTO
NON-EXECUTIVE DIRECTOR,
REPRESENTATIVE OF THE
YEWTREE CONSORTIUM
A
W
APPOINTED: 2020
NATIONALITY: Italian
SKILLS AND RELEVANT
EXPERIENCE
Michael is a prominent investor and
businessman who has extensive
experience in investments,
management and finance.
Michael started his career at RBC
Dominion Securities, a global
Canadian investment bank before
joining Union Bancaire Privée (UBP),
a family-owned Swiss private bank
in London and Geneva where he
worked for 27 years until 2015.
During his tenure at UBP, Michael
held a number of senior leadership
positions including responsibility
for UBP’s global financial activities.
He also served as a long-standing
member of the Executive Board of
UBP and in 1996 created and led
the UHNW division of the bank.
In March 2016, Michael became
alarge shareholder and the
Vice-Chairman of the Supervisory
Board of Engel & Volkërs AG, a
Hamburg-based leading global
real estate group, which was sold
in August 2021 to the investment
fund Permira.
In 2018, Michael joined a consortium
of investors to buy out what would
become the Aston Martin F1®
Team, and in 2020, joined the Yew
Tree Consortium in the acquisition
of its stake in Aston Martin.
Michael studied at the Ecole des
Hautes Etudes Commerciales at
the University of Lausanne.
EXTERNAL APPOINTMENTS
AMR GP Holdings Limited
(Director)
AMR Performance Group
Limited (Director)
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
70
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 7010XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 70 13/03/2025 14:4913/03/2025 14:49
AHMED AL-SUBAEY
NON-EXECUTIVE DIRECTOR:
REPRESENTATIVE OF THE
PUBLICINVESTMENT FUND
APPOINTED: 2022
NATIONALITY: Saudi
SKILLS AND RELEVANT
EXPERIENCE
Ahmed joined the Board as
Representative Non-executive
Director of the Public Investment
Fund in November 2022.
Ahmed is Chief Executive Officer
of Bahri, the National Shipping
Company of Saudi Arabia, which
is listed on the Saudi Stock
Exchange. He was previously the
CEO of S-Oil in South Korea and
has held various leading roles in
Saudi Aramco, most recently
Vice President for Marketing,
Sales and Supply Planning.
Ahmed holds a BSc and Masters
degree in electrical engineering
from the University of Arizona
and an executive MBA from
Stanford University.
EXTERNAL APPOINTMENTS
Bahri (CEO)
SCOTT ROBERTSON
NON-EXECUTIVE DIRECTOR:
REPRESENTATIVE OF THE
PUBLICINVESTMENT FUND
A
N
R
APPOINTED: 2022
NATIONALITY: American
SKILLS AND RELEVANT
EXPERIENCE
Scott joined the Board as
Representative Non-executive
Director of the Public Investment
Fund in November 2022.
He is a Senior Director and the
Head of Public Investments in the
International Investments
Division at the Public Investment
Fund (PIF) of the Kingdom of
Saudi Arabia.
Prior to joining the Public
Investment Fund in 2018, Scott
worked in various investment
positions at Soros Fund
Management, Paulson & Co. and
Stonepeak Partners. Scott holds
a Bachelor of Arts in Economics
from Cornell University, where
he graduated Phi Beta Kappa.
EXTERNAL APPOINTMENTS
Public Investment Fund
(Senior Director)
DANIEL LI
NON-EXECUTIVE DIRECTOR:
REPRESENTATIVE OF GEELY
A
N
APPOINTED: 2023
NATIONALITY: Chinese
SKILLS AND RELEVANT
EXPERIENCE
Daniel joined the Board as
Representative Non-executive
Director of Geely in July 2023.
Daniel is currently Executive
Director and Vice Chairman of
Geely Automobile Holdings Co.
Limited. As part of Daniel’s
executive role within the Geely
Group, Daniel is also a member
of the Board of Volvo Car AB,
Polestar Automotive Holdings
UK PLC, Lotus Technology Inc.
and ZEEKR Intelligent
Technology Holding Limited.
Daniel originally joined Geely in
2011 as Vice President and Chief
Financial Officer.
EXTERNAL APPOINTMENTS
YTO International Express and
Supply Chain Technology
Limited (Independent
Non-executive Director)
CYRUS JILLA
NON-EXECUTIVE DIRECTOR:
REPRESENTATIVE OF
ERNESTOBERTARELLI
APPOINTED: 2023
NATIONALITY: British
SKILLS AND RELEVANT
EXPERIENCE
Cyrus joined the Board in
October 2023 representing
Ernesto Bertarelli, a significant
member of the Yew Tree
Consortium.
Cyrus is Group Managing Partner
at B-FLEXION, a private
investment firm, overseeing their
portfolio of operating businesses
and investment partnerships.
Prior to joining B-FLEXION, Cyrus
was, most recently, a President
and Officer at Fidelity
International Limited (FIL), where
he had primary responsibility for
FIL’s proprietary investments.
EXTERNAL APPOINTMENTS
B-FLEXION (Group Managing
Partner)
SHAREHOLDER REPRESENTATIVE DIRECTORS CONTINUED
COMPANY SECRETARY
Chair
Observer
A
Audit and Risk Committee
N
Nomination Committee
R
Remuneration Committee
S
Sustainability Committee
W
Warrant Share Committee
LIZ MILES
COMPANY SECRETARY
APPOINTED: 2022
NATIONALITY: British
SKILLS AND RELEVANT
EXPERIENCE
Liz joined Aston Martin as Company
Secretary in June 2022. Liz is a solicitor
and company secretary with
significant experience of listed
company governance and compliance.
Prior to joining Aston Martin, Liz was
Company Secretary at Landsec, a
FTSE 100 property investment and
development company, having
previously worked at Vodafone Group
Plc in a variety of legal and company
secretariat roles and prior to that in
private practice at Linklaters. Liz is a
Fellow of the Chartered Governance
Institute.
The Company Secretary provides
advice and support to the Board, its
Committees and the Chairman, and is
responsible for corporate governance
across the Group.
The appointment and removal of the
Company Secretary is a matter for the
Board as a whole.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
71
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 7110XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 71 13/03/2025 14:4913/03/2025 14:49
GOVERNANCE
EXECUTIVE COMMITTEE
ROBERTO FEDELI
GROUP CHIEF TECHNOLOGY
OFFICER
APPOINTED: 2022
NATIONALITY: Italian
Roberto is Group Chief
Technology Officer at Aston
Martin, leading the engineering
team, having joined the Company
in June 2022.
Roberto is a proven leader in the
luxury high performance sports
cars sector. He is considered the
creator of Ferrari LaFerrari, the
Italian company’s first hybrid
supercar as well as some of its
most iconic models during his
26-year tenure.
Roberto brings his extensive
knowledge, passion for
innovation and his most recent
experiences in the
implementation of electrification
technologies during his time
atBMW.
Roberto holds a Master’s degree
in Aerospace.
MAREK REICHMAN
CHIEF CREATIVE OFFICER
APPOINTED: 2005
NATIONALITY: British
Marek joined Aston Martin in
2005 and is the Chief Creative
Officer responsible for all design
developments for the Company.
During his professional career he
has held design roles at Ford,
BMW, Land Rover, Rover Cars
and Nissan and Chief Designer
for the reinvention of Rolls-Royce
Motor Cars. Prior to joining Aston
Martin, he was Design Director at
Ford North America.
Marek holds a BA in Industrial
Design from Teesside University
and an MDes in Vehicle Design
from the Royal College of Art,
London. In 2011, Marek received
an honorary doctorate from
Teesside University.
GIORGIO LASAGNI
CHIEF PROCUREMENT OFFICER
APPOINTED: 2023
NATIONALITY: Italian
Giorgio joined Aston Martin in
January 2023 to lead the
procurement function. Giorgio
has extensive experience of
procurement and supply chain
management and strategy.
Giorgio joined Aston Martin from
Zoppas Industries S.p.A, an
Italian heating element company
where he was Global Purchasing
and Supplier Development
Director and redesigned the
purchasing and supplier
development functions. Prior to
that Giorgio was at Robur S.p.A,
and Candy Hoover Group S.p.A,
holding a number of Business
Unit Director and procurement
positions.
Giorgio spent just under eight
years of his career at Ferrari
S.p.A, holding a variety of roles
including Purchasing and
Supplier Development Director
and Ferrari & Maserati Engine
Manufacturing Director.
Giorgio holds a Master’s degree
in Architecture from the
Politecnico of Milan.
VINCENZO REGAZZONI
CHIEF INDUSTRIAL OFFICER
APPOINTED: 2023
NATIONALITY: Italian
Vincenzo is Chief Industrial
Officer of Aston Martin and was
appointed in 2023 to oversee all
manufacturing operations.
Working as an advisor to Aston
Martin prior to his appointment,
Vincenzo has more than two
decades of experience in the low
volume, ultra-luxury automotive
segment, including his most
recent position as Chief
Manufacturing Officer of Ferrari.
Our Executive Committee is made up of our Executive Chairman, Chief Executive Officer, Chief Financial Officer
(details of whom are set out on page 68) and the Chief roles set out above.
EXECUTIVE COMMITTEE
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
72
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 7210XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 72 13/03/2025 14:5013/03/2025 14:50
MICHAEL MARECKI
GENERAL COUNSEL
APPOINTED: 2007
NATIONALITY: American
Michael joined Aston Martin in
July 2007 and is the General
Counsel. Michael is responsible
for all legal and regulatory
matters for the Company.
Prior to his current position,
Michael worked for the Ford
Motor Company Inc (1988-2007),
latterly as the Assistant General
Counsel, Environment and
Safety.
Michael holds a Juris Doctor
from Georgetown University Law
Center and a Bachelor of Arts
from Fordham University.
SIMON SMITH
CHIEF PEOPLE OFFICER
APPOINTED: 2022
NATIONALITY: British
Simon joined Aston Martin in
April 2022 as Chief People
Officer.
Simon has extensive HR
experience across the
engineering and manufacturing
sector, starting his career with
Peugeot and spending a
significant part of his career at
both Alstom and Rolls-Royce.
More recently Simon has held
transformation and strategy
leading HR roles at Johnson
Matthey and Legal and General
Modular Homes.
Simon is a fellow of the CIPD, is
aqualified Executive Coach and
holds a BA Hons in Politics and
International Relations from
Lancaster University.
OTHER MEMBERS OF THE EXECUTIVE COMMITTEE
SERVINGDURING THE YEAR
EXECUTIVE COMMITTEE CONTINUED
MICHAEL STRAUGHAN, OBE
EXECUTIVECONSULTANT
TO THE CEO
Michael retired on
31December2024 having been
on the Executive Committee
since 2020.
JOLYON NASH
CHIEF COMMERCIAL OFFICER
Jolyon joined Aston Martin in
Febuary 2025, taking on the
executive leadership role
previously held by Marco
Mattiacci.
Jolyon has a strong reputation
and a wealth of experience within
the luxury and high performance
automotive industry. He spent
seven years as Executive
Director, Global Sales and
Marketing at McLaren, and prior
to that almost five years as a
member of the Board of
Management at Rolls-Royce
Motor Cars, as Director of Sales
and Marketing.
MARCO MATTIACCI
CHIEF GLOBAL BRAND AND
COMMERCIAL OFFICER
Marco left the Company on
31December 2024 having served
four years on the Executive
Committee.
GARRY DRYBURGH
CHIEF TRANSFORMATION
OFFICER
Garry joined Aston Martin in
February 2025 taking on the new
executive role of Chief
Transformation Officer.
Garry holds responsibility for
identifying priority areas for
improvement and working
collaboratively with all functions
to gather their input and create a
clear long-term plan to drive
transformation in the business.
Garry is an experienced leader of
transformation projects in large
industrial companies. He
previously served as Chief
Transformation Officer of Capita
and AMEC Foster Wheeler,
having built his career as a leader
within the offshore and onshore
energy industry.
INCOMING EXECUTIVES
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
73
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
10XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 7310XGovernanceXDivider_GovernanceXOverview_BoD_v97.indd 73 13/03/2025 14:5013/03/2025 14:50
independence requirement with the overall size of the Board in order
to ensure that effective discussion and decision-making is facilitated.
The Board is comprised of 15 Directors and the Board has concluded,
upon recommendation of the Nomination Committee, that to add
further Independent Non-executive Directors could negatively
impact the Board’s effectiveness. The Board is confident that the
independent decision-making of the Board is not impacted by its
Board composition as the Shareholder Representatives are diverse
and act independently of one another, and the Independent Non-
executive Directors are all highly skilled and experienced. The
composition of all the Board Committees is compliant with the
independence requirements of the Code.
Code provision 21 recommends that the chair should consider having
a regular externally facilitated board evaluation. In FTSE 350
companies this should happen at least every three years.
The Board evaluation was due to be externally facilitated in 2021 but
with the extensive number of Board changes over the past three years,
each year it has been discussed by the Nomination Committee and
determined that an external evaluation would be of limited benefit
given the circumstances at the time of evaluation. A rigorous internal
evaluation was carried out for 2022, 2023 and 2024 with the assistance
of a third-party survey which provided a platform for more meaningful
analysis of results. Further details can be found on pages 92–93. During
2025, the Board will take a decision, upon the recommendation of the
Nomination Committee, as to the best method of Board evaluation for
2025, taking all relevant factors at the time into account.
EFFECTIVE BOARD AND ITS ROLE
The Board is composed of highly skilled professionals who bring a
range of skills, perspectives and corporate experience to the Board.
The Directors and their biographies and skills and experience are set
out on pages 68–71. Details of the changes to the Board during 2024
are set out on page 67. At the date of this Report the Board comprised
15 members: the Executive Chairman, the Chief Executive Officer, the
Chief Financial Officer and 12 Non-executive Directors, of whom six
are considered independent for the purposes of the Code.
The Directors are appointed by the Board and are subject to annual
re-election by shareholders. The Company’s significant shareholder
groups, in line with the respective Relationship Agreements, have
nominated Directors who have been appointed to the Board; further
details of these arrangements are set out on page 138 of the Directors’
Report. The Board is satisfied that there is a sufficient balance between
Executive and Non-executive Directors on the Board to ensure that no
one individual has unfettered decision-making powers and that
Directors are able to discharge their duties and responsibilities.
GOVERNANCE FRAMEWORK
The Company’s corporate governance framework is set out on
page 76 and provides an overview of the roles of the Board, its
Committees and members of the Executive Committee, which
provides clear lines of accountability and responsibility. The Board
and its Committees have established terms of reference that set out
specific responsibilities and matters for approval. The terms of
reference are available for review on the Company’s website at
www.astonmartin.com/corporate. Reports from each of these
Committees are provided in this governance report.
GOVERNANCE
LEADERSHIP AND GOVERNANCE
Leadership and governance
OVERVIEW
This Report sets out the Board’s corporate governance structures and
work from 1 January 2024 to 31 December 2024. Together with the
Directors’ Remuneration Report on pages 104–134, it includes details
of how the Company has applied and complied with the principles and
provisions of the 2018 UK Corporate Governance Code (the ‘Code’).
The Code is published by the Financial Reporting Council (‘FRC’) and
further information can be found on its website (www.frc.org.uk). The
Code is supported by the FRC’s Guidance on Board Effectiveness,
which the Board uses to support its approach to governance and
decision-making.
COMPLIANCE WITH THE UK CORPORATE
GOVERNANCECODE
The Code requires companies to describe in their annual report how
they have applied the main principles of the Code and also any areas
where companies do not comply with the Code provisions. The
Directors consider that the Company has been compliant with the
Code provisions as applied during the year ended 31 December 2024,
other than the exceptions as set out below.
Code provision 9 recommends that the chair should be independent
on appointment.
Lawrence Stroll assumed the position of Executive Chairman in April
2020 and was not independent on appointment ashe is a member of
the Yew Tree Consortium, a major shareholder. His appointment was a
condition of the Yew Tree Consortium’s investment in the Company
and was in accordance with the Relationship Agreement entered into
between the Company and the Yew Tree Consortium. The Nomination
Committee and the Board consider that Lawrence Stroll has
demonstrated objective judgement throughout his tenure and him
continuing in the role of Executive Chairman for the foreseeable future
is in the best interests of the Group and its stakeholders in order to
utilise his proven leadership qualities and his significant experience in
building luxury brands. He has offered himself for re-election every
year since his appointment and shareholders have overwhelmingly
voted in favour of his re-election. In the Board’s opinion, the Company’s
governance checks and balances are strong and effective:
The Executive Chairman is subject to challenge from the
Company’s Senior Independent Director, the Executive Directors
and the Independent Non-executive Directors; and
There is a clear division between the responsibilities of the
Executive Chairman, the Senior Independent Director, the
Executive Directors and the Independent Non-executive Directors,
which ensures accountability and oversight
Code provision 11 recommends that at least half the Board, excluding
the Chair, should be independent.
Excluding the Chair, 43% of the Board is independent which falls below
the recommended threshold of the Code. The composition of the
Board is impacted by the rights of the significant shareholders under
their respective Relationship Agreements (for further details, see
page 138 of the Directors’ Report). The Board needs to balance the
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
74
11XLeadershipX_XGovernance_v91.indd 7411XLeadershipX_XGovernance_v91.indd 74 13/03/2025 14:5013/03/2025 14:50
Additional, unscheduled Board meetings often are needed to be
called upon short notice to request approval for transactions or
unanticipated events and it is understood that in these situations, not
all members of the Board will be available to attend. Directors who are
unable to attend are invited to provide comments to the Executive
Chairman in advance of the meeting and following the meeting the
Company Secretary updates any Directors unable to attend.
A total of 13 Board meetings were held during the year: six
scheduled and seven unscheduled. Attendance is set out below.
Lawrence Stroll
1
8/13
Amedeo Felisa
2
6/6
Doug Lafferty
3
12/13
Ahmed Al-Subaey
4
11/13
Sir Nigel Boardman 13/13
Michael de Picciotto
5
13/13
Robin Freestone
6
9/13
Cyrus Jilla
7
11/13
Daniel Li
8
4/13
Natalie Massenet
9
9/13
Marigay McKee
10
12/13
Franz Reiner
11
11/13
Scott Robertson
12
11/13
Anne Stevens 13/13
Jean Tomlin 13/13
New Directors
Adrian Hallmark
13
7/7
1 Lawrence Stroll was recused from voting at one meeting due to a conflict of
interest. Lawrence was absent from five of the unscheduled meetings due to a
conflicting schedule. Sir Nigel Boardman, Senior Independent Director chaired
these meetings in Lawrence’s absence.
2 Amedeo Felisa stepped down from the Board on 1 September 2024.
3 Doug Lafferty missed one additional meeting which was convened at short
notice to discuss the revised ESG targets. Doug had been fully involved in the
preparations for this meeting and confirmed his support for the proposal
ahead of the meeting.
4 Ahmed Al-Subaey was unable to attend two of the unscheduled Board
meetings due to a conflicting schedule. Ahmed was recused from voting at
three meetings due to conflicts of interest.
5 Michael de Picciotto was recused from voting at four meetings due to
conflicts of interest.
6 Robin Freestone was absent from three unscheduled meetings and one
scheduled meeting due to a conflicting schedule.
7 Cyrus Jilla was absent from two unscheduled meetings due to a conflicting
schedule.
8 Daniel Li attended three scheduled meetings and one unscheduled meeting.
As Daniel is a Shareholder Representative Director appointed by Geely, this
does not cause the Company governance concerns.
9 Natalie Massenet missed four unscheduled meetings due to a conflicting
schedule.
10 Marigay McKee missed one unscheduled meeting due to a conflicting schedule.
11 Franz Reiner missed two unscheduled meetings due to a conflicting schedule.
12 Scott Robertson missed two unscheduled meetings due to a conflicting
schedule.
13 Adrian Hallmark joined the Board on 1 September 2024.
An agenda and accompanying pack of detailed papers are circulated
to the Board in advance of each Board meeting. All Directors are able
to request additional information on any of the items to be discussed.
Additionally, Directors have access to the advice and services of the
Company Secretary and independent and professional advice at the
Company’s expense should they determine that this is necessary to
discharge their duties.
All Board and Committee meetings are minuted and formally
approved at the next meeting. Board minutes contain details of the
Directors’ decision-making processes and any follow-up actions or
concerns raised by the Directors. The Executive Chairman works
closely with the Company Secretary to plan and schedule Board and
Committee meetings and to make quality information available in a
timely fashion.
Should it be deemed appropriate, the Board can provide its approval
unanimously by email. In this situation, the Board is always offered a
call with management before providing its approval should it have any
questions or points for discussion.
TRANSACTION COMMITTEES OF THE BOARD
For practical reasons, if it deems appropriate, the Board delegates
authority for final approval of certain transactions to a Transaction
Committee meeting which is typically comprised of the Chief
Executive Officer, the Chief Financial Officer, the Senior Independent
Non-executive Director and one other Non-executive Director,
depending on the nature of the transaction. During 2024, one
Transaction Committee was held in March in relation to the refinancing
and three Transaction Committee meetings were held in November in
relation to the equity and debt placing.
THE BOARD’S TERMS OF REFERENCE STATE THAT IT
MUST CONSIDER AND APPROVE THE FOLLOWING:
The Group’s strategic aims, objectives and commercial strategy
Review of performance relative to the Group’s business plans
and budgets
Major changes to the Group’s corporate structure,
includingacquisitions and disposals
The system of internal controls and Risk Management Policy
Major changes to the capital structure including tax and
treasury management
Major changes to accounting policies or practices
Financial statements and the Group dividend policy including
anyrecommendation of a final dividend
The Group’s corporate governance and compliance
arrangements
The Group’s risk appetite
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
75
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
11XLeadershipX_XGovernance_v91.indd 7511XLeadershipX_XGovernance_v91.indd 75 14/03/2025 16:5314/03/2025 16:53
GOVERNANCE
LEADERSHIP AND GOVERNANCE CONTINUED
GOVERNANCE STRUCTURE
THE BOARD
The role of the Board is to promote the long-term success of the Company, generating value for shareholders and contributing to wider
society by providing effective leadership and direction to the business as a whole. It sets the Group’s strategy and ESG strategy, having
regard to stakeholders, while maintaining a balanced approach to risk within a framework of effective controls. It has also established
the Company’s purpose and values and monitors culture to ensure alignment. It sets the tone and approach to corporate governance
and is responsible for the overall financial performance of the Group.
BOARD COMMITTEES
Nomination
Committee
Reviews Board
composition and
diversity, proposes new
Board appointments
and reviews succession
planning and talent
development.
Audit and Risk
Committee
Oversees the Group’s
financial reporting and
reviews the integrity of
the Group’s Financial
Statements, the
adequacy and
effectiveness of the
Group’s systems of
internal control and risk
management, and
maintains the
relationship with the
External Auditor.
Warrant Share
Committee
Responsible for
approval of the
allotment and the issue
of Warrant Shares
inaccordance with the
terms of the Warrant
Instrument. The
Warrant Share
Committee meets as
required. No warrants
were exercised during
2024.
Remuneration
Committee
Determines the
Directors’ Remuneration
Policy and sets
remuneration for the
Executive Chairman,
Executive Directors and
Group Executive
Committee taking into
account wider Group
remuneration policies.
Approves performance-
linked pay schemes and
share incentive plans.
Sustainability
Committee
Monitors the
Company’s ESG
strategy and broader
stakeholder
engagement on
behalfof the Board.
EXECUTIVE COMMITTEE
The Board delegates the execution of the Company strategy and the day-to-day running of the business to the Executive Committee.
The Executive Committee meets weekly to discuss operations and in addition, meets monthly with the Executive Chairman to discuss
performance and strategy.
DISCLOSURE COMMITTEE
The Board delegates responsibility for the final approval of its financial
results disclosures and Annual Report to the Disclosure Committee.
The Disclosure Committee is also responsible for the identification
and disclosure of inside information. The Disclosure Committee is
chaired by the Chief Financial Officer with the Chief Executive Officer,
General Counsel, Company Secretary, Head of Investor Relations,
Director of Internal Audit & Risk, Director of Group Financial Control
and the Director of Financial Planning & Analysis as members of
theCommittee.
INDEPENDENCE OF THE BOARD
The Board has identified which Directors are considered to be
independent on pages 69–70. As at 31 December 2024, 43% of the
Board (excluding the Chair) are Independent Non-executive Directors.
The Independent Non-executive Directors play an important role
in ensuring that no individual or group dominates the Board’s
decision-making. The Board has reconfirmed that the Independent
Non-executive Directors remain independent from executive
management and free from any business or other relationship which
could materially interfere with the exercise of their judgement. For
further information on independence of the Board please refer to
page 90 in the Nomination Committee Report.
RELATIONSHIP AGREEMENTS
The Company has four groups of significant shareholders, the Yew
Tree Consortium, Mercedes-Benz AG, the Public Investment Fund.
and Geely. The relationships between the Company andeach of these
significant shareholder groups are governed by separate Relationship
Agreements. The purpose of these Relationship Agreements is to
ensure that the Company can carry on its business independently and
for the benefit of shareholders as a whole.
Each of the Relationship Agreements provides that each significant
shareholder group is entitled to nominate Director(s) to the Board
and the Nomination Committee and an observer to each of the
Remuneration and Audit and Risk Committees subject to the size of
its interest in the voting rights of the Company. The Relationship
Agreements also provide that the Company will not take any action in
relation to certain significant matters without the prior approval of at
least two-thirds of members of the Board present and entitled to vote.
Further information on the Relationship Agreements is set out in the
Directors’ Report on page 138.
Conflicts of interest and related party transactions are monitored
closely by the Company Secretary in consultation with external
counsel. The Shareholder Representative Directors were recused
from voting on Board decisions on a number of ocassions due to
conflicts of interest.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
76
11XLeadershipX_XGovernance_v91.indd 7611XLeadershipX_XGovernance_v91.indd 76 13/03/2025 14:5013/03/2025 14:50
DIVISION OF RESPONSIBILITIES
There is clear division between Executive and Non-executive responsibilities which ensures accountability and oversight. The roles of Executive
Chairman and Chief Executive Officer are separately held and their responsibilities are well defined, set out in writing and regularly reviewed by
theBoard.
EXECUTIVE CHAIRMAN CHIEF EXECUTIVE OFFICER
The Executive Chairman, Lawrence Stroll, is responsible for leading
and managing the business of the Board, primarily focused on
strategy, performance, value creation and accountability, setting
and sustaining the culture and purpose ofthe Company and
ensuring the Board’s overall effectiveness, governance and Director
succession planning. He also ensures the effective communication
between the Board, management, shareholders and the Company’s
wider stakeholders.
The Executive Chairman works collaboratively with the
Chief Executive Officer, Adrian Hallmark, in constructively
challenging and helping to develop proposals on strategy, setting
the Board agenda and ensuring that any actions agreed by the
Board are effectively implemented.
The Chief Executive Officer, Adrian Hallmark, is responsible for
developing, implementing and delivering the agreed strategy
andfor the operational and strategic management of the
Company. He is also responsible for supporting Directors’
induction into the business by providing the necessary
resources for developing and updating their knowledge and
capabilities concerning the Company, including access to
Company operations and members of the workforce.
CHIEF FINANCIAL OFFICER SENIOR INDEPENDENT DIRECTOR
The Chief Financial Officer, Doug Lafferty, is a member of the
Executive Committee team and reports to the Chief Executive
Officer. His role is to lead the financial management, risk, investor
relations and internal control teams and to oversee theCompany’s
relationship with the investment community.
The Senior Independent Director, Sir Nigel Boardman, supports
theExecutive Chairman in his role and leads the Non-executive
Directors. The Senior Independent Director is also available as
an additional point of contact for shareholders.
WORKFORCE NON-EXECUTIVE DIRECTOR COMPANY SECRETARY
The designated Non-executive Director gathering the views ofthe
workforce during the year was Jean Tomlin. Views are gathered by
attendance at key employee and business events, reviewing the
outcome of employee surveys and monitoring the effectiveness
and outcomes of employee engagement programmes.
Observations are reported back to the Board and actioned by
management as appropriate.
The Company Secretary, Liz Miles, acts as secretary to the
Board andeach of the Committees. She is responsible for
supporting the Executive Chairman and the Board in delivering
the Company’s corporate governance agenda.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
77
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
11XLeadershipX_XGovernance_v91.indd 7711XLeadershipX_XGovernance_v91.indd 77 13/03/2025 14:5013/03/2025 14:50
GOVERNANCE
BOARD DISCUSSIONS DURING THE YEAR
FEB
Full year financial results
The Board approved the preliminary results
announcement and the 2023 Annual Report and
Accounts, including the going concern and
viability analysis.
MAR
Refinancing
The Board discussed and approved the £1.15bn refinancing
exercise to further strengthen the Company’s financial
position and support its long-term growth. The Executive
Chairman and Chief Financial Officer engaged with investors
and credit rating agencies as part of this process and reported
back to the Board on the outcome of this engagement.
MAR
New Chief Executive
Officer
The Board approved and announced the
appointment of ultra-luxury automotive leader
Adrian Hallmark as the new Chief Executive
Officer, to commence the role in autumn 2024.
2024
The Board met during the year for six scheduled Board meetings,
including a Board Strategy Day and an additional seven unscheduled
meetings. The seven unscheduled Board meetings were convened to
discuss the March refinancing, the September trading update, the
November capital raise and the revised ESG targets.
At every Board meeting the Board receives a report from the CEO
providing an update on brand, marketing, communications and sales,
operations, procurement, engineering and people. The CFO also
provides a report at every meeting on the latest financial performance.
The Chairs of the Committees update the Board on significant matters
discussed at their Committees. The Board’s key activities during the
year are set out over the next two pages. The Company’s Section 172
Statement can be found on pages 82–83. Board attendance for 2024 is
set out on page 75.
Board
activities
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
78
11XLeadershipX_XGovernance_v91.indd 7811XLeadershipX_XGovernance_v91.indd 78 13/03/2025 14:5013/03/2025 14:50
MAY
Board Strategy Day
The Board met in Gaydon for a full day of strategic
discussions with management on brand and product,
design, product development and innovation,
procurement, engineering operations, people and the
creation of shareholder value. The Board also had a tour
of the Design Studio. The Board hugely benefited from
this in-person meeting and the opportunity to engage
directly with other members of management and
employees. The Board of Directors received photo
frames (image left) made by the Trim Team at Gaydon,
using off cuts of the leather we use for our interiors.
MAY
Board visit to suppliers in
Italyand the Imola GrandPrix
The Board visited Italy to meet with two key
suppliersto enhance their understanding of the
supply chain. An informal two-day trip to the Imola
Grand Prix followed, along witha Board dinner
whichfacilitated informal discussion time for
Boardmembers.
APRIL
Q1 financial results
The Board approved the Q1 results announcement
and discussed plans for the Annual General Meeting.
MAY
Annual General Meeting
The Company held its first electronic Annual General
Meeting with members of the Board joining the meeting
virtually from all round the world.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
79
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
11XLeadershipX_XGovernance_v91.indd 7911XLeadershipX_XGovernance_v91.indd 79 13/03/2025 14:5013/03/2025 14:50
GOVERNANCE
BOARD DISCUSSIONS DURING THE YEAR CONTINUED
AUG
Private debt placing
Following on from the refinancing exercise in March, the
Board approved the placing of secured notes totalling
c. £135m. The net proceeds from the offering were used to
repay borrowings under the existing revolving credit facility,
to pay fees and expenses and for general corporate purposes.
JUL
Half year financial results
The Board approved the half year financial results
announcement, highlighting the previously
announced planned refinancing to strengthen
thefinancial position, increase liquidity and
supportgrowth.
JUNE
Approval of Modern
Slavery Statement
The Board approved the Company’s 2023
Modern Slavery Statement.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
80
11XLeadershipX_XGovernance_v91.indd 8011XLeadershipX_XGovernance_v91.indd 80 13/03/2025 14:5113/03/2025 14:51
OCT
Q3 financial results
The Board approved the Q3 financial results
announcement.
SEP
Trading update
The Company announced that industry-wide
supply chain disruptions and continued
macroeconomic weakness in China were
impacting performance. These factors resulted in
a circa 1,000-unit reduction in wholesale volume
guidance for 2024.
2024
SEP
Chief Executive Officer
commences role
Further to the announcement in March, Adrian
Hallmark commenced his role as Chief Executive
Officer on 1 September 2024. During Adrian’s
first month of tenure, he held introductory
meetings with all members of the Board.
DEC
Governance and
preparations for year end
The Board met for a Board meeting in person in
London to discuss key governance topics and
held an informal dinner with the new CEO.
The Board meeting was focused on discussing
business performance as the year end
approached.
The Board reviewed and approved revised
Committee Terms of Reference and Matters
Reserved for the Board and discussed the annual
Board and Committee effectiveness evaluation.
The Board also approved revised Racing.Green.
(sustainability) targets.
NOV
Equity and debt placing
The Board approved an equity and private debt placing
totalling circa £210m to provide Aston Martin with increased
financial resilience and strength as the Company maximises
the potential of its reinvigorated core portfolio of class-
leading next generation models. The financing will support
capital investments related to the Company’s electrification
strategy and to repay borrowings. The Shareholder
Representatives on the Board were recused from voting due
to the underlying shareholders’ participation in the placing.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
81
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
11XLeadershipX_XGovernance_v91.indd 8111XLeadershipX_XGovernance_v91.indd 81 13/03/2025 14:5113/03/2025 14:51
GOVERNANCE
SECTION 172 STATEMENT
Further information on how Section 172(1) has been applied by the Directors can be found throughout the Report on the pages referenced below.
SECTION 172 MATTERS
The Board is pleased to provide a statement that supports Section 172
of the Companies Act 2006. This requires that Directors promote the
success of the Company for the benefit of the members as a whole,
taking into account the interests of the Company’s stakeholders in its
decision-making. A description of the Company’s key stakeholders,
what mat ters to them and how the Group, including the Board engages
with them, is set out on pages 16–19. Some of the key decisions that
the Board made during the year and how it took the interests of
stakeholders into account in making those decisions are set out on the
following pages.
The Board recognises that there will sometimes be competing
priorities and interests between the stakeholder groups but aims to
assess and balance those interests to make decisions which are
conducive to the stategy and long-term success of the business, in line
with the Company’s reputation for high standards of business conduct
and the Company’s values.
Key Board
decisions and
stakeholder
engagement
KEY STAKEHOLDERS
1
Customers and enthusiasts
2
Dealer network
3
Our people
4
Investors
5
Suppliers and other partnerships
6
Government and regulators
7
Local communities and Non-Governmental Organisations
REFINANCING
Section 172 matters A, B, C, E, F
Stakeholders considered
3
4
PRINCIPAL DECISION
In March the Board approved a £1.15bn refinancing exercise to
further strengthen the Company’s financial position and support
its long-term growth.
CONSIDERING OUR STAKEHOLDERS
Investors: The Board considered the transaction to be in the best
interests of shareholders as a whole for the creation of long-term
value. Additionally, the upgraded credit ratings which the
Company received were expected to attract a broader investor
base and improved five-year terms on the Senior Secured Notes.
Employees: The Board considered the impact of the refinancing
on the Aston Martin Lagonda Limited Pension Scheme and
considered the analysis prepared by PwC and concluded that
there was no detrimental impact on the pension scheme
covenants or security structure and that the refinancing could
beviewed as covenant enhancing for the Pension Scheme.
OUTCOME
The Group successfully priced $960 million of 10.000% and
£400m of 10.375% Senior Secured Notes due 2029. In addition,
existing lenders entered into a new Revolving Credit Facility
agreement, increasing commitments by c. £70m to £170m,
providing the Group with additional liquidity as it continues to
accelerate its growth strategy.
THE STRONG DEMAND FROM THE GLOBAL
CREDIT MARKETS FOR OUR NEW FIVE-YEAR
US DOLLAR AND POUND STERLING NOTES
OUTLINES CONTINUED CONFIDENCE IN OUR
BUSINESS STRATEGY.
A. The likely consequences of any decision in the long term
Executive Chairman’s Statement 4
CEO Statement 8
Our strategy 22
Business model 20
Key Performance Indicators 24
Principal risks and risk management 56
Board discussions during the year 78
Viability Statement and Going Concern 62
B. The interests of the Company’s employees
Stakeholder engagement – Our People 18
Our strategy 22
Investing in people and opportunity 38
Confidential Reporting 101
Our Board, culture and workforce engagement 84
Remuneration Committee Report 104
C. The need to foster the Company’s business relationships
withsuppliers, customers and others
Our business model 20
Our strategy 22
Stakeholder engagement 16
D. The impact of the Company’s operations on the
community and the environment
Tackling climate change 34
Creating a better environment 36
TCFD 45
Stakeholder engagement 19
E. The desirability of the Company maintaining a reputation
for high standards of business conduct
Leadership and governance – division of responsibilities 74
Principal risks and risk management 56
Audit and Risk Committee Report 94
Directors’ Report 135
F. The need to act fairly as between members of the Company
Investor engagement 86
Leadership and governance 74
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
82
11XLeadershipX_XGovernance_v91.indd 8211XLeadershipX_XGovernance_v91.indd 82 13/03/2025 14:5113/03/2025 14:51
EQUITY AND PRIVATE
DEBT PLACING
Section 172 matters A, B, C, D, E, F
Stakeholders considered
1
4
5
PRINCIPAL DECISION
In November the Board approved an equity and private debt
placing to support future growth and enhance liquidity by
c.£210m.
CONSIDERING OUR STAKEHOLDERS
Customers: The capital raise provided the Company with
increased financial resilience and strength as it maximises the
potential of its fully reinvigorated core portfolio of class-leading
next generation models. The financing allows for continual
product innovation as the requirements and desires of our
customers evolve.
Investors: Underpinned by the Yew Tree Consortium, strategic
shareholders subscribed for the majority of the equity placing.
The participation in the placing by the Yew Tree Consortium
constituted a notifiable related party transaction under the UK
Listing Rules. Accordingly, the Board (comprised for these
purposes of Independent Directors) confirmed that it considered
that the Yew Tree Consortium’s participation in the placing was
fair and reasonable as far as shareholders of the Company were
concerned. The placing was a non-pre-emptive issue of ordinary
shares to institutional investors. The Company also undertook a
concurrent retail offer on the PrimaryBid platform to allow retail
shareholders to also participate.
Suppliers and partnerships: Raising additional financing provides
a platform for capital investments with parners related to the
Company’s electrification strategy and overall future cycle plan.
OUTCOME
The net proceeds from the equity and private debt placing
provided Aston Martin with increased financial resilience and
strength as the Company maximises the potential of its fully
reinvigorated core portfolio of class-leading next generation
models. The Company ended the year with total liquidity of
over£500m.
The Company continues to invest in future growth opportunities
and the proceeds of the financing are also expected to be used to
support capital investments related to the Company’s
electrification strategy, to repay the borrowings under its existing
super senior Revolving Credit Facility, to pay fees and expenses
and for general corporate purposes.
WITH THIS FINANCING SUCCESSFULLY
SECURED, WEARE NOW WELL POSITIONED
FOR GROWTH, UNDERPINNED BY THE
STRENGTH OF OUR BRAND AND THE
WORLD-CLASS PRODUCT PORTFOLIO
WEHAVE BROUGHT TO MARKET.
APPOINTMENT OF NEW
CHIEF EXECUTIVE OFFICER
Section 172 matters A, B, C, E
Stakeholders considered
1
2
3
4
PRINCIPAL DECISION
In March the Board approved the appointment of Adrian Hallmark
as its new Chief Executive Officer.
CONSIDERING OUR STAKEHOLDERS
Customers: Crucial to the Company’s long-term success is
aCEOwho has experience and understanding of the luxury
automotive sector, our customers and our brand.
Our People: Having experienced leadership changes over the
past five years, a key attribute of the new CEO was someone
whocould promote our desired culture, in line with our values,
lead by example, and inspire and motivate the workforce over
thecoming years.
Investors: Our investors wanted leadership stability and someone
with significant experience of the sector, with a presence and voice
in the investor and automotive media community.
Dealer network: Our dealers need Aston martin to be led by a
CEO focused on demand and supply management and someone
who understand the luxury automotive segment.
OUTCOME
Adrian Hallmark’s appointment as Chief Executive Officer took
effect on 1 September 2024 and was extremely well received by
employees and the investor community. Since joining, he has
embarked on a significant round of internal and external
engagements including overseas tours to meet dealer partners,
suppliers, customers and investors.
IN ADRIAN HALLMARK, WE ARE ATTRACTING
ONE OFTHE HIGHEST CALIBRE LEADERS NOT
JUST IN OUR SEGMENT, BUT IN THE ENTIRE
GLOBAL AUTOMOTIVE INDUSTRY. ADRIAN
BRINGS TO ASTON MARTIN UNRIVALLED
EXPERIENCE IN BOTH THE ULTRA-LUXURY
AND BRITISH MANUFACTURING SECTORS.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
83
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
11XLeadershipX_XGovernance_v91.indd 8311XLeadershipX_XGovernance_v91.indd 83 13/03/2025 14:5113/03/2025 14:51
GOVERNANCE
THE BOARD, CULTURE AND WORKFORCE ENGAGEMENT
The Board is responsible for ensuring that our culture is aligned with
our purpose and our values. The Board monitors culture by reviewing
and discussing results of employee surveys, the outputs of confidential
reporting, employee attrition rates and through direct employee
engagement. Some of the Board and employee engagement intiatives
carried out during the year are set out on the following pages.
The output of employee engagement is reported and discussed
atBoard meetings.
Culture is particularly important during times of change, including
new leadership. Therefore, the Board will continue to carefully monitor
culture within the business in the year ahead. The right culture,
embedded throughout the business is essential to support the
successful delivery of our strategy. Our values and our Code of
Conduct help to embed our culture, promoting what we believe in,
how we behave and engage with others and the working environment
that we want to create.
More information about our values and our people can be found
onpages 38–41.
The Board, culture and
workforce engagement
INTERNATIONAL
WOMEN’S DAY
In support of International Women’s Day in March, Non-executive Director Anne
Stevens, our Workforce Non-executive Director Jean Tomlin, and Company
Secretary Liz Miles, took part in an insightful panel discussion regarding their
experiences during their careers as female senior leaders within their areas
of speciality. With 80 attendees, this session delved into thought-provoking
questions submitted by colleagues, on the panel’s experiences of different working
cultures and their challenges and tips for success. A networking event followed
which enabled further discussion with the panel in a more informal setting to
share experiences and thoughts on the working culture at Aston Martin through
a female lens.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
84
11XLeadershipX_XGovernance_v91.indd 8411XLeadershipX_XGovernance_v91.indd 84 13/03/2025 14:5113/03/2025 14:51
CHIEF EXECUTIVE OFFICER
ROUNDTABLES
Incoming Chief Executive Officer Adrian Hallmark held a series of
roundtable events to speak with several hundred employees at all
levels, from all departments to hear directly from employees what
working life islike at Aston Martin which helped direct Adrian’s initial focus
and priorities, and culminated in a Town Hall event for all employees in
December, summarising his first 100 days, setting his priorities and
confirming the importance of listening to and collaborating with the
workforce going forward.
WORKFORCE NON-EXECUTIVE
DIRECTOR JEAN TOMLIN
VISITS ST ATHAN
Designated Workforce NED Jean Tomlin visited the Company’s
factory in St Athan, Wales to learn about production and assembly
and, through open forums, met a variety of senior leaders,
members of the HR team, line operatives and apprentices to
understand views, culture and ways of working.
NON-EXECUTIVE
DIRECTOR FOCUS ON
EARLY CAREERS AND
WOMEN IN AUTOMOTIVE
After first attending a supplier visit in Warwick to learn more about
the leather production process, Independent Non-executive
Director Marigay McKee held two employee workshops at
Gaydon. The first focused on meeting female representatives
from the Early Careers intake, while the second was a discussion
with representatives of the female workforce across all levels of
the Company. Both sessions involved interactive two-way
engagement. Marigay was interested to hear views on career
progression at Aston Martin and the challenges and opportunities
that the females within our business experience.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
85
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
11XLeadershipX_XGovernance_v91.indd 8511XLeadershipX_XGovernance_v91.indd 85 13/03/2025 14:5113/03/2025 14:51
GEOGRAPHIC DISPERSION %
North America 37.7
Asia 32.0
Europe (ex UK) 18.9
UK 11. 3
Rest of World 0.1
SHAREHOLDER TYPES %
Corporate stakeholders 52.5
Foreign institutions 30.7
Domestic institutions 5.9
Domestic brokers 5.0
Foreign brokers 3.9
Hedge funds 1.6
Employees etc. 0.3
Private stakeholders/
investors 0.1
GOVERNANCE
INVESTOR ENGAGEMENT
SHAREHOLDER ENGAGEMENT
The Board is committed to maintaining good communications with
existing and potential shareholders. Shareholders play a valuable
role in safeguarding the Group’s governance through, for example,
the annual re-election of Directors, monitoring and rewarding their
performance and engagement and constructive dialogue with the
Board. The Group aims to be as transparent as possible with the
information it provides to investors and welcomes face-to-face
interaction, as well as virtual meetings and conferences.
The Board’s primary contact with existing and prospective equity
and debt investors, credit rating agencies and equity research
professionals is through the Head of Investor Relations. The Executive
Chairman, Chief Executive Officer and Chief Financial Officer
provide regular engagement support together with other executive
management team members. The Head of Investor Relations was a
regular Boardattendee to provide feedback on market matters and
shareholder engagement activities, which are set out for 2024 in the
table opposite.
There is a regular programme of meetings with major institutional
shareholders and debt investors to consider the Group’s performance
and prospects. The Group’s investor reach is global, and the Company
liaised with investors in the UK, USA, Belgium, Brazil, Canada,
Denmark, France, Germany, Hong Kong, Israel, Italy, the Netherlands,
Japan, Oman, Saudi Arabia, Singapore, Spain, Switzerland, Taiwan,
Australia, and South Africa during the last financial year.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
86
11XLeadershipX_XGovernance_v91.indd 8611XLeadershipX_XGovernance_v91.indd 86 13/03/2025 14:5113/03/2025 14:51
MAIN METHODS OF ENGAGEMENT WITH SHAREHOLDERS IN 2024
Shareholder consultation
The Chief Executive Officer and Chief Financial Officer met a large
number of shareholders after each quarterly set offinancial results
andthe trading update. The Executive Chairman has also engaged
withinstitutional shareholders to discuss the Company’s refinancing,
performance and Board governance matters and communicated their
views to the Board. The Company also ensures opportunities for direct
feedback from investors to management and the Investor Relations
function, which is then shared through the investor relations reports
atevery Board meeting, including details prepared by QuantiFire,
aservice provider that independently collects feedback on Aston
Martin’s behalf from investors and analysts. The Company will always
seek to engage with shareholders when considering material changes
to either our Board, strategy or remuneration policies, with the latter
being a focus area for the Company at the end of 2024.
Investor meetings and events
The Company held almost 560 investor meetings with 365 individual
existing and potential equity and debt investors, sell-side analysts and
credit rating agencies. These were a blend of physical and virtual
meetings, with some including visits to the Company’s Gaydon
Headquarters which allowed opportunities for a tour of the
manufacturing facilities, and an event at Q New York.
The Investor Relations team and Chief Financial Officer hosted two
informal dinners for sell-side and equity sales attendees following
fulland half year results to both discuss Company performance and
receive feedback.
The Company also hosted investors and analysts on a track day at
Silverstone’s Stowe Circuit to fully demonstrate the capabilities of
itsnewrange of core models, as well as at key motorsport events
throughout the year, showcasing the successful impact of its Formula
One® brand sponsorship. These meetings and events were attended
byacombination of the Executive Chairman, Chief Executive Officer,
Chief Financial Officer and Investor Relations team and some members
of the executive management team.
Investor presentations
The Group hosted virtual webcasts for its results and took questions
from investors and analysts ensuring an open dialogue with the market.
In addition, investor roadshows were held following all reported results,
in addition to investor meetings during the refinancing in March and
following the private share placing and debt issuance in November.
Investor conferences
The Investor Relations team presented to investors at seven
conferences during 2024, with the Chief Financial Officer attending six
and the Executive Chairman attending one of them, leading group and
one-on-one meetings about the Company. At two of these conferences
investors were able to see some of the Company’s new models, with
vehicles and product specialists hosted at the locations.
General meetings
The AGM provides an opportunity for private shareholders in particular
to question the Directors and the Chairs of each of the Board
Committees. Information on the 2025 AGM is on page 224. The Notice
ofAGM is issued at least 20 working days in advance of the AGM date,
toprovide shareholders with the appropriate time to consider matters,
as set out in the FRC’s Guidance on Board Effectiveness.
Annual Report
The Company’s Annual Report is available to all shareholders. Through
our electronic communication initiatives, we look to make our Annual
Report as accessible as possible. Shareholders can opt to receive a hard
copy in the post or view electronically through our website.
Corporate website
The corporate website, www.astonmartin.com/corporate, has a
dedicated Investors section which includes our Annual Reports and
results presentations (which are made to analysts and investors at the
time of the interim and full year results), along with all results and other
regulatory announcements, as well as further information for investors
including our financial calendar for the upcoming year.
Senior Independent Director
If shareholders have any concerns, which the normal channels of
communication to the Chief Executive Officer, Chief Financial Officer
orExecutive Chairman have failed to resolve, or for which contact is
inappropriate, then our Senior Independent Director is available to
address them.
THE GROUP AIMS TO BE AS TRANSPARENT AS
POSSIBLE WITH THE INFORMATION IT PROVIDES
TO INVESTORS AND WELCOMES FACE-TO-FACE
INTERACTION, AS WELL AS VIRTUAL MEETINGS
AND CONFERENCES.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
87
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
11XLeadershipX_XGovernance_v91.indd 8711XLeadershipX_XGovernance_v91.indd 87 13/03/2025 14:5113/03/2025 14:51
GOVERNANCE
NOMINATION COMMITTEE REPORT
DEAR SHAREHOLDER
On behalf of the Nomination Committee I am pleased to present
theCommittee’s Report for the year ended 31 December 2024. The
Report details the role of the Committee and describes how
theCommittee has carried out its responsibilities during the year.
BOARD COMPOSITION AND APPOINTMENTS
At the start of the year, the Committee oversaw the process for the
appointment of Adrian Hallmark as our new Chief Executive Officer,
approving his appointment for recommendation to the Board.
The Committee recommended the appointment of Jean Tomlin to the
Sustainability Committee and also as our Designated Workforce
Non-executive Director. Jean’s expertise in people and culture made
her an appropriate and strong addition to both these roles.
At the end of the year, the Committee agreed a search process for a
new Independent Non-executive Director to replace Robin Freestone
as our Chair of the Audit and Risk Committee. The search resulted in
the Committee recommending to the Board for approval the
appointment of Vicky Jarman who will join the Board on 1 March 2025.
In addition to chairing the Audit and Risk Committee, Vicky will be
amember of the Nomination and Remuneration Committees.
As we reported in our 2023 Annual Report, the Committee believes
that meeting the independence requirements of the UK Corporate
Governance Code needs to be balanced with managing the size of
theBoard so that it does not become unwieldy and hinder effective
debate and decision-making. The Board does not therefore currently
meet the independence requirements of the Code due to the
seven Shareholder Representative Board members. However,
the Committee continues to be satisfied that the Shareholder
Representatives act independently of one another and of management
and the powers of decision-making are unfettered.
DIVERSITY
The Board remains committed to increasing and maintaining diversity in
the broadest sense, not just gender and ethnicity, but also experience,
skills and professional background, and on this basis our Board is very
diverse. This is important as diversity at Board level sets the tone for
diversity throughout the business.
In terms of gender diversity, our Board Diversity Policy reflects the unique
composition of our Board and sets the Company target to achieve
andmaintain that at least 40% of members of the Board who are not
Shareholder Representatives are female. Currently 50% of our Board,
excluding Shareholder Representatives, are female which is above
our target. 27% of the whole Board (Executive Directors, Shareholder
Representative Directors and Independent Directors) are female. This will
rise to 63% and 33% respectively upon the appointment of Vicky Jarman.
LOOKING AHEAD
In 2025, the Committee will continue to focus on succession planning,
the talent pipeline and diversity, and welcomes Vicky Jarman to the
Board and the Committee.
LAWRENCE STROLL
CHAIR, NOMINATION COMMITTEE
25 February 2025
Nomination Committee Report
LAWRENCE
STROLL
CHAIR, NOMINATION COMMITTEE
2024 OVERVIEW
Appointment of Adrian Hallmark as new Chief Executive
Officer
Appointment of Jean Tomlin to the Sustainability
Committee
Appointment of Jean Tomlin as Designated Workforce
Non-executive Director
Succession of Chair of Audit and Risk Committee
Nomination Committee membership
Committee members Meeting attendance
Lawrence Stroll (Chair) 3/3
Sir Nigel Boardman 3/3
Robin Freestone 3/3
Marigay McKee 3/3
Jean Tomlin 3/3
Anne Stevens 3/3
Franz Reiner 3/3
Scott Robertson 3/3
Daniel Li 0/3
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
88
12XNOMXCommittee_v50.indd 8812XNOMXCommittee_v50.indd 88 13/03/2025 14:5213/03/2025 14:52
ROLE AND RESPONSIBILITIES OF THE COMMITTEE
The Committee’s role is to provide oversight of the leadership needs
of the business, both Executive and Non-executive, with a view to
ensuring the continued ability of the Company to compete effectively
in the marketplace, to implement the strategy and achieve the
Company’s objectives. The Committee takes into account the
challenges and opportunities facing the Company and the skills,
experience and knowledge required for the future.
KEY RESPONSIBILITIES
Reviewing the structure, size and composition of the Board
and its Committees to ensure they have the proper balance of
skills, experience, independence, and diversity, and making
recommendations to the Board on any changes required to
meet current and future needs
Succession planning for Directors and senior executives and
ensuring that plans and processes are in place for the orderly
succession of Directors, Executive Committee members and
other key members of the senior management team
Overseeing the development of a diverse talent pipeline for
succession, considering the challenges and opportunities
facing the Company and the skills, experience and knowledge
required of the Board in the future
Identifying and nominating candidates to fill Board vacancies
for approval by the Board and ensuring that the procedure for
appointing Directors is formal, rigorous, transparent,
objective, merit-based and has regard for diversity
Reviewing the Non-executive Directors’ time commitment,
independence and external appointments, and the annual
performance evaluation results relating to the composition
ofthe Board
Keeping under review potential conflicts of interests of
Directors disclosed to the Company and reviewing annually
any conflict declarations by the Directors and any conflict
authorisations granted by the Board
Making recommendations for the re-election by shareholders
of each Director having due regard to their performance,
ability and contribution to the Board in light of their skills,
experience and knowledge
COMMITTEE MEMBERSHIP AND COMMITTEE MEETINGS
The Committee currently consists of the Executive Chairman,
Lawrence Stroll who is Chair of the Committee, and five Independent
Non-executive Directors: Robin Freestone (to be replaced by Vicky
Jarman on 1 March 2025), Anne Stevens, Sir Nigel Boardman, Marigay
McKee and Jean Tomlin. In addition, the Relationship Agreements with
the significant shareholder groups (see page 138) provide that each
may appoint a Director to the Committee. Franz Reiner represents
Mercedes-Benz AG, Scott Robertson represents the Public Investment
Fund and Daniel Li represents Geely. The Executive Chairman
represents the Yew Tree Consortium. Attendance at each meeting
comprises the Committee members, the Company Secretary who is
secretary to the Committee and, at the request of the Committee, the
Chief Executive Officer, General Counsel, Chief People Officer,
Director of Reward, and other members of the senior management
team and external advisors who may be invited to attend all or part of
any meeting, as and when appropriate. The Committee meets at least
twice a year and has formal terms of reference which can be viewed on
the Company’s website, www.astonmartin.com/corporate.
The Committee met three times during 2024. The Committee
members‘ attendance for the period is set out on page 88. Committee
meetings usually take place prior to a Board meeting. The activities of
the Committee and any matters of particular relevance were reported
by the Committee Chair to the subsequent Board meeting.
KEY ACTIVITIES OF THE COMMITTEE DURING THE YEAR
Considered and recommended to the Board for its approval
the appointment of Adrian Hallmark as Chief Executive Officer
Considered and recommended to the Board for its approval
the appointment of Jean Tomlin as a member of the
Sustainability Committee and as the Designated Workforce
Non-executive Director
Agreed process for the search for a new Independent
Non-executive Director and Chair of the Audit and Risk
Committee*
Reviewed the size, structure and composition of the Board
and the Executive Committee with respect to the needs of
thebusiness
Discussed executive succession
Discussed Board independence
* the process for the search for the Chair of the Audit and Risk Committee
will be reported on in the 2025 Annual Report.
Appointment of new Chief Executive Officer
The Company engaged Savannah Group, an external search company
with no connection to the Company or individual Directors to lead the
search for the appointment of a new Chief Executive Officer.
The search criteria was focused on candidates who demonstrated:
the ability to drive execution of current strategy, to deliver
enhanced performance and growth with the vision to evolve a
long-term strategy that addresses the changing nature of the
sector
sector experience in automotive (ideally ultra-luxury, high
performance vehicles and low volume manufacturing), or adjacent
industries encompassing advanced engineering/technology R&D
and precision manufacturing
a strong reputation for effective management of a diverse range of
stakeholders, including strategic partners, investors, suppliers,
dealers and customers.
Following discussion with the Executive Chairman and other members
of the Nomination Committee and Executive Committee, Savannah
Group conducted a comprehensive global mapping against a detailed
brief that identified 175 potential candidates covering sectors
including automotive, aerospace and defence, and other industrial
engineering and manufacturing businesses of comparable scale and
complexity. Further screening refined the initial candidate pool to a
long list of 24, who were interviewed andassessed by Savannah Group
under NDA. This led to a final vetted shortlistof eight candidates from
which the Executive Chairman interviewed five. The Nomination
Committee was kept appraised and consultedthroughout the process
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
89
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
12XNOMXCommittee_v50.indd 8912XNOMXCommittee_v50.indd 89 13/03/2025 14:5213/03/2025 14:52
GOVERNANCE
NOMINATION COMMITTEE REPORT CONTINUED
and ultimately made a formal recommendation to the Board to
appoint Adrian Hallmark.
Board independence and conflicts of interest
The independence, effectiveness and commitment of each of the
Independent Non-executive Directors has been reviewed by the
Committee. The Committee is satisfied with the contributions and
time commitment of all the Non-executive Directors during the year.
The Committee will always discuss the additional commitments of all
Directors (including the Chairman) before recommending their
approval to the Board. It considers potential conflict issues as part of
that assessment. This process is supported by an annual conflicts
review by the Committee whereby the Committee reviews the
Directors’ conflicts of interest register and seeks confirmation from
each Director of any changes or updates to their position. No new
conflicts were declared during the year. The Committee is confident
that each of the Independent Non-executive Directors remains
independent and will be in a position to discharge their duties and
responsibilities in the coming year.
As reported in the 2023 Annual Report, ensuring that the Board is
kept at a manageable size so as to continue to facilitate effective
discussion and decision-making needs to be balanced with the
benefits that independence of the Board as a whole brings. The
Committee notes that the Shareholder Representative Directors
actindependently of one another so there is no dominant collective
voice in the boardroom. The Board has a high calibre of experienced
Independent Non-executive Directors who ensure effective
independent challenge and debate at Board meetings. Therefore,
despite not being in compliance with the independence requirements
of the Code, the Committee is comfortable that the Board operates
with sufficient independence of thought and power.
The composition of the Committee meets the independence
requirements of the Code, as does the Audit and Risk Committee and
the Remuneration Committee.
Overboarding
The Board follows the Institutional Shareholder Services (ISS) proxy
voting guidelines on overboarding and accordingly deems all its
Independent Non-executive Directors to be within these guidelines.
The Board appreciates that other proxy bodies and institutional
investors impose more stringent guidelines than ISS and that each
individual’s portfolio of appointments must be considered on a case-
by-case basis, which the Board duly does before approving any
appointments and then, on an annual basis, to assess whether each
member of the Board is able to continue contributing effectively. The
Board was not asked to approve any additional significant external
appointments for any of our Directors during the year.
Election and re-election of Directors
The elec tion, in accordance with the Company’s Ar ticles of Association,
of Adrian Hallmark and Vicky Jarman will be proposed for shareholder
approval at the Annual General Meeting in May 2025. All the other
Directors, with the exception of Robin Freestone who will step down
from the Board at the end of February 2025, will stand for re-election
at the Annual General Meeting in May 2025 with the support of the
Board. The Board considers all Director s to be effective and committed
to their roles and to have sufficient time to perform their duties.
Director induction and training
Following appointment, all Directors receive a comprehensive and
tailored induction programme which is designed through discussion
with the Chair and the Company Secretary having regard to existing
expertise and any prospective Board Committee roles. The induction
includes but is not limited to face-to-face meetings with Board
members and the Executive Committee as appropriate, briefings on
the Company’s strategy, investor relations, Board and Company
policies, processes and procedures and training on the role of a
director of a listed company.
Cyrus Jilla spent a day in Gaydon as part of his induction. Cyrus had a
tour of the Design Studio and the factory, and spent time with the CEO,
CFO and other members of senior management.
Details of the induction for Vicky Jarman will be reported on in the
2025 Annual Report.
All new Directors are also provided with access to the Company
electronic Board paper system which provides easy and immediate
access to all key governance documents, including Board and
Committee papers, and terms of reference. Where appropriate, new
Directors also meet with institutional investors, the Company’s
External and Internal Auditors and remuneration consultants.
Continuing training and education opportunities are available to all
Directors to support the fulfilment of their individual duties or
collective Board roles and to develop their understanding of the
business. The arrangements are overseen by the Company Secretary
and can be internally or externally facilitated. Directors are also
encouraged to participate in seminars and events hosted by external
organisations in different sectors to keep abreast of societal trends,
expectations and issues with a view to developing broader
perspectives and insights and developing wider debate within
Boarddiscussions.
SUCCESSION PLANNING
The Board has a duty to ensure the long-term success of the Company,
which includes ensuring that it has a steady supply of talent for
executive positions and established succession plans for Board
positions. Throughout the year the Committee has reviewed and
assessed the composition of the Board and its aggregate skills,
experience and knowledge and the current and future needs of the
Board as new appointments to the Board have been made.
The Committee will continue to consider the Group’s succession
planning on a regular basis to ensure that any further changes to the
Board are proactively planned and coordinated. The Committee
monitors the development of the Executive Committee’s direct
reports team to ensure that there is a diverse supply of senior
executives in the talent pipeline. The Committee intends to focus
more on Executive Committee succession planning in the year ahead.
As at 31 December 2024, the Executive Committee consisted of the
three Executive Directors and eight other Chief roles. Further
information on the Executive Committee is on page76.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
90
12XNOMXCommittee_v50.indd 9012XNOMXCommittee_v50.indd 90 13/03/2025 14:5213/03/2025 14:52
DIVERSITY AND INCLUSION
The Board acknowledges that the Board’s perspective and approach
can be greatly enhanced through diversity of gender, social and ethnic
backgrounds, cognitive and personal strengths, tenure and relevant
experience. There is also a recognition that to deliver the Company’s
strategy, it is important to promote a high performing culture,
characterised by a diverse and inclusive workforce. Diversity and
inclusion bring new ideas and fresh perspectives which will position us
to achieve our strategy and long-term growth.
The Committee considers diversity, in its widest sense (and not limited
to gender), during Board composition reviews and the development
of recruitment specifications in connection with the appointment of
new Board members. The Committee notes the Listing Rule targets on
diversity being (i) at least 40% of the Board should be women; (ii) at
least one of the senior Board positions (the Chair, Chief Executive
Officer, Senior Independent Director and/or Chief Financial Officer)
should be a woman; and (iii) at least one member of the Board should
be from a minority ethnic background.
Taking each target in turn:
(i) We do not meet the requirement that 40% of the Board are women.
Our Board currently stands at 27% female (to rise to 33% on 1 March
2025 with the appointment of Vicky Jarman). The composition of
our Board is unique, with seven Shareholder Representative
Directors appointed. Therefore, we state in our Board Diversity
Policy that we seek to maintain as a minimum, that 40% of Board
members not subject to significant shareholder appointments are
women, provided this is consistent with the prevailing skills and
diversity requirements of the Company as and when seeking to
appoint a new Director. Consequently, under our Board Diversity
Policy, as at the date of this Report, there are four women out of
eight relevant Board members (being the two Executive Directors
and six Independent Non-executive Directors), thereby comprising
50%. This percentage will rise to 63% upon the appointment of
Vicky Jarman on 1 March 2025. Upon Vicky’s appointment, five out
of our six Independent Non-executive Directors are female.
(ii) None of our senior Board positions are filled by women. When the
vacancy for a Chief Executive Officer, Chief Financial Officer, Chair
or Senior Independent Director arises, a diverse search is always
undertaken and a selection made on all relevant criteria.
(iii) We exceed the requirement that at least one Director should be
from a minority ethnic background. Our Board is diverse in
background and includes Chinese and Saudi Arabian Directors.
The Board will continue to promote diversity at Board and Executive
Committee level and throughout the business. The Company
acknowledges that it needs to improve diversity at leadership level
and this will be a continued focus for the Committee. For gender
balance of senior management and their direct reports, please see
page 54. The Committee monitors the talent pipeline to ensure we
have a diverse succession pool of talent being developed and
importantly maintained at all levels of the business. Maintaining a
diverse workforce is as important as diverse recruitment and the
Committee will focus on overseeing the work being carried out by the
business to achieve this.
COMMITTEE PERFORMANCE EVALUATION
The Committee was evaluated as part of the internal effectiveness
review of the Board and its Committees (details of which can be found
on pages 92–93).
The Committee also reviewed its own performance and was satisfied
that it continued to perform effectively and was rated highly by
themembers. A key continued focus for the Committee for the year
ahead is succession planning at Executive Committee level and the
talentpipeline.
BOARD AND EXECUTIVE MANAGEMENT DIVERSITY
Prepared in accordance with UK Listing Rule 6.6.6R(10) as at 31 December 2024
Gender identity or sex
1
Number
of Board
members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
2
Percentage of
executive
management
Men 11 73% 4 8 100%
Women 4 27% 0 0 –
Other categories – – – – –
Not specified/prefer not to say – – – – –
Ethnic background
Number
of Board
members
Percentage
of the Board
Number of senior
positions on the
Board (CEO, CFO,
SID and Chair)
Number in
executive
management
2
Percentage of
executive
management
White British or other White (including minority-white groups) 12 80% 4 6 100%
Mixed/Multiple Ethnic Groups – – – – –
Asian/Asian British 1 6.7% – – –
Black/African/Caribbean/Black British 1 6.7% – – –
Other ethnic group, including Arab 1 6.7% – – –
Not specific/prefer not to say – – – – –
Notes:
1 The data reported is on the basis of gender identity
2 Excludes Executive Directors
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
91
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
12XNOMXCommittee_v50.indd 9112XNOMXCommittee_v50.indd 91 13/03/2025 14:5213/03/2025 14:52
GOVERNANCE
NOMINATION COMMITTEE REPORT CONTINUED
AREAS OF EXCELLENCE IDENTIFIED FROM
2024EVALUATION
Stakeholder matters are incorporated in each Board meeting
The Board is quick to respond to changing business conditions
Overall, it was the collective view of the Directors that the Board is
effective in discharging its responsibilities, operating with an open
culture that allows challenge and debate.
AREAS IDENTIFIED FROM THE EVALUATION WHICH
COULD ENHANCE THE BOARD’S EFFECTIVENESS
IN2025
Discussion topics
Continued focus on the customer, quality and execution
Interaction with the business
More opportunity to engage with senior management
Board interaction
Extend the meeting time for in-person Board meetings to allow
for extended discussion with the new CEO
These suggestions will be addressed in the year ahead and
progress made will be reported in the 2025 report.
The Board recognises the importance of continually monitoring and
improving its performance. The annual performance evaluation
provides the opportunity for the Board to reflect on the effectiveness
of its activities, the quality of its decision-making, the contribution of
individual members of the Board and how it operates as a whole. This
is assessed annually through the Board and Committee evaluations.
Given the arrival of the new Chief Executive Officer in September, the
Board took the decision that an external evaluation for 2024 would be
unlikely to provide any benefit. Therefore, the Board agreed to once
again carry out a rigorous internal evaluation, using BoardClic, a third-
party platform to assist with the provision of the questionnaire and
analysis of results. The benefit of using this third-party platform was
that it enabled the data to be broken down between Executive
Directors, Independent Non-executive Directors and Shareholder
Representative Directors so that alignment between the three groups
of directors could be assessed. It also enabled the results to be
benchmarked against the results of other FTSE companies. Using the
same survey for three years has allowed a comparison of results year-
on-year which has provided additional value.
The conclusions of the evaluation were very positive, concluding that
the Board is highly effective and there is alignment between the views
of the Shareholder Representative Directors, Independent Directors
and Executive Directors.
“THE BOARD IS LARGE BUT WELL
BALANCED AND WELLCHAIRED”
INDEPENDENT NON-EXECUTIVE DIRECTOR
Board and Committee evaluations
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
92
12XNOMXCommittee_v50.indd 9212XNOMXCommittee_v50.indd 92 13/03/2025 14:5213/03/2025 14:52
OUTPUTS OF THE 2023 BOARD EVALUATION AND PROGRESS MADE
The output of last year’s internal evaluation and progress made is set out below.
BOARD EVALUATION OUTPUT 2023
Balance of strategy and
operational discussions
Carefully monitor the balance
of time spent at the Board
discussing operational
matters as opposed to
strategic matters
Succession planning
More focus on succession
planning for key roles in the
management team
Governance
The provision of more concise
and timely Board papers
should facilitate more
effective and focused
discussion at Board meetings.
This is particularly important
given the size of the Board to
ensure that there is sufficient
time for all Board members
toengage in discussion
anddebate
Board interaction
It is appreciated by the
members of the Board that
asthe Board has grown in size,
it is more challenging to hold
meetings in person. However,
the Board would welcome
more in-person interaction,
both in formal meetings and
informally in the year ahead
PROGRESS MADE DURING 2024
The Board held a strategy day
in May to discuss strategy for
all aspects of the business.
Progression on execution
ofstrategy is discussed at
every Board meeting and the
balance between strategic
and operational discussions
atBoard meetings is
monitored closely
Succession planning this year
focused on the search for a
new CEO. The Nomination
Committee and the Board
willbe focused on Executive
Committee succession
planning and the talent
pipeline in the year ahead
A Board protocols document
was approved by the Board
and rolled out to all those
preparing papers for Board
and Committees. The
protocols cover the Board’s
expectation on the timing
ofsubmission of papers,
thecontent of papers and
meeting etiquette
As a result, the Board now has
more time to read papers and
prepare for meetings and
there has been more focused
discussion in the Boardroom
The Board met in December
for an additional in-person
meeting, as well as the
Strategy Day in May. A Board
dinner with the new CEO was
held the evening before the
December meeting and the
Board was grateful for the
opportunity to engage
outside of the Boardroom.
UK based Non-executive
Directors are now invited to
join the Executive Directors
inperson, even when the
meeting is held primarily
byZoom
BOARD COMMITTEES
Each Board Committee was confirmed as providing effective support
to the Board. Each Committee carried out its own effectiveness review,
details of which can be found in the Committee Reports.
“ THE BOARD BENEFITS FROM
INDEPENDENT NON-EXECS WHO
CAN PROVIDE STRONG STRATEGIC
AND OPERATIONAL CHALLENGE
TOHELP DEVELOP AND SUPPORT
MANAGEMENT’SPLANS”
NON-EXECUTIVE DIRECTOR
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
93
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
12XNOMXCommittee_v50.indd 9312XNOMXCommittee_v50.indd 93 13/03/2025 14:5213/03/2025 14:52
GOVERNANCE
AUDIT AND RISK COMMITTEE REPORT
Audit and Risk Committee Report
ROBIN
FREESTONE
CHAIR, AUDIT AND RISK COMMITTEE
2024 OVERVIEW
Review and assessment of full year and half year
financialreporting
Review of TCFD report
Monitoring of internal audit findings
andremediationplans
Oversight of risk management
Overview of compliance activities
Monitoring confidential reporting, investigations
andprocedures
Review of progress of ERP implementation
Monitoring cyber and information security strategy
Audit and Risk Committee membership
Committee members Meeting attendance
Robin Freestone (Chair) 4/4
Sir Nigel Boardman 4/4
Anne Stevens 4/4
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
94
DEAR SHAREHOLDER
On behalf of the Audit and Risk Committee, I am pleased to present the
Committee’s Report for the year ended 31 December 2024. This Report
details the role of the Committee and describes how the Committee has
carried out its responsibilities during the year and provided assurance
on the integrity of the 2024 Annual Report and Accounts.
FINANCIAL REPORTING
The Committee monitors the integrity of the Company’s reporting
processes and financial management, reviewing and discussing in
detail the half year and full year financial results and the conclusions
of the External Auditor. The Committee reviews and discusses the
critical accounting judgements made and sources of estimation
uncertainty when applying the Group’s significant accounting policies,
the going concern and viability analysis and any other significant
matters which impact financial reporting.
RISK MANAGEMENT
On behalf of the Board, the Committee oversees the process by which
risk s are identified, assessed and manage d. The Commit te e co nsid ered
the principal risks included in the Group’s corporate risk register as the
basis for its activity during the year and leverages the three lines of
defence model and assurance mapping to monitor how the Company
manages these risks and obtains assurance over its principal risks.
TASK FORCE ON CLIMATE-RELATED FINANCIAL
DISCLOSURES (‘TCFD’)
Our TCFD report which is largely consistent with the recommendations
of the TCFD and the climate regulations required by the Non Financial
and Sustainability Information Statement, can be found on pages
45-51, and the statement of compliance is on page 63.
INTERNAL AUDIT
This year, the Internal Audit plan incorporated audits including the
annual budgeting and forecasting procedures, vehicle programme
delivery governance, Aston Martin Europe key financial controls and
payroll procedures and controls. The Committee reviews all Internal
Audit findings and monitors the implementation of remediation
actions that are identified.
AUDIT AND FINANCIAL REPORTING REFORM
The Committee has monitored the proposals of the Financial Reporting
Council (‘FRC’) for audit reform including its publication of the updated
UK Corporate Governance Code (the ‘Code’) in January 2024. The
Committee received updates at meetings on the Company’s progress
to design, implement, embed and test internal controls across finance
and IT operations in preparation for the new financial reporting regime.
I would like to thank the members of the Committee, the management
team, Internal Audit and our External Auditor for their continued
commitment and support throughout the year. As announced in
December, I will be stepping down from the Board on 28 February
2025. It has been a pleasure to Chair the Audit and Risk Committee
since 2021 and I wish my successor Vicky Jarman all the very best for
leading the Committee going forward.
ROBIN FREESTONE
CHAIR, AUDIT AND RISK COMMITTEE
25 February 2025
13XAuditX_XRiskXCommitteeXReport_v53.indd 9413XAuditX_XRiskXCommitteeXReport_v53.indd 94 13/03/2025 14:5213/03/2025 14:52
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
95
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
COMMITTEE MEMBERSHIP AND COMMITTEE MEETINGS
During the year, the Committee comprised three Independent
Non-executive Directors: Robin Freestone as Chair of the Committee,
Anne Stevens and Sir Nigel Boardman. The Committee therefore met
the composition requirements of the Code throughout the year.
In accordance with the Relationship Agreements with the significant
shareholder groups (see page 138), each may appoint an observer of
the Committee with no voting rights. Michael de Picciotto, Franz
Reiner, Scott Robertson and Daniel Li currently serve as observers.
The Committee meets at least three times a year at appropriate
intervals in the financial reporting and audit cycle and otherwise as
required. The Committee has formal terms of reference which can be
viewed on the Company’s website, www.astonmartin.com/corporate.
The terms of reference are consistent with the guidance published by
the FRC “Minimum Standards for Audit Committees”.
This year the Committee met four times. The Committee members’
attendance for the period is set out on page 94. The activities of the
Committee and any matters of particular relevance were reported by
the Committee Chair to the subsequent Board meeting. There is time
made available at the end of each meeting for private sessions for the
Committee to discuss matters with the External Auditor and the
Director of Internal Audit & Risk without members of management
being present.
Attendees at each meeting comprise the Committee members, the
observers and the Company Secretary who is secretary to the
Committee. The Chief Executive Officer, the Chief Financial Officer,
the General Counsel, the Director of Internal Audit & Risk, the Head of
Compliance, the External Auditor, Ernst & Young LLP (‘EY’), and other
senior members of the finance team also routinely attend meetings
upon invitation by the Chairman.
The Code stipulates that the Committee, as a whole, shall have
competence relevant to the sector in which the Company operates. All
Committee members have past employment experience of financial
reporting and/or international business or engineering and collectively
have a broad range of exper tise that enables them to provide oversight
of both financial and risk matters, and to advise the Board accordingly.
As such the Board is satisfied that the Committee, as a whole, has the
competence relevant to the business sector. At least one Committee
member should have recent and relevant financial experience. Robin
Freestone met this requirement having previously held the position of
Chief Financial Officer of Pearson plc and as a qualified chartered
accountant and Robin’s successor Vicky Jarman also meets this
criteria. Details of the Committee members’ experience can be found
in their biographies on pages 69–70.
KEY RESPONSIBILITIES OF THE COMMITTEE
Reviewing and assessing the integrity of the Group’s financial
and narrative statements, formal announcements of the
Group’s performance, and significant financial reporting
issues and judgements which they may contain and
recommending these for approval by the Board
Advising the Board on whether the Annual Report and Accounts,
taken as a whole is fair, balanced and understandable and
provides the information necessary for shareholders to assess
the Company’s performance, business model and strategy
Ensuring compliance with accounting standards and policies,
and reviewing and challenging the application of such
standards and policies and, if unsatisfied, reporting its views
to the Board
Reviewing for approval by the Board the Company’s going
concern and viability statements and providing advice to the
Board on how the Company’s prospects have been assessed,
taking into account the Company’s position and principal risks
Receiving and reviewing reports from the Company’s External
Auditor, monitoring its effectiveness and independence and
making recommendations to the Board in respect of its
remuneration and appointment
Overseeing policies on the engagement of the External
Auditor for the supply of non-audit services and assessing
whether non-audit services have a direct or a material effect
on the audited financial statements
Reviewing the Group’s internal financial, operational and
compliance controls and Enterprise Risk Management
Framework and System and considering Group policies for
identifying, assessing and managing risks and arrangements
for employees to raise concerns about possible improprieties
using the “Speak Up” Confidential Reporting process, while
ensuring appropriate safeguards are in place
Reviewing and approving the annual Internal Audit plan and
discussing the findings of any internal audits, investigations
and management’s response
KEY ACTIVITIES OF THE COMMITTEE DURING THE YEAR
Financial reporting
Considered and reviewed the UK Corporate Governance
Code requirements relating to year-end matters including,
among others, the review of the Group’s accounting policies,
key accounting estimates, significant financial reporting
matters, principal risks, going concern and viability, the
effectiveness of the Group’s risk management and internal
control systems and “fair, balanced and understandable”
reporting in the 2023 Annual Report
Reviewed the half year accounts, including the material
judgements and estimates
Received and considered reports from the External Auditor
on the full year audit and half year review
Reviewed the Financial Statements, announcements and other
financial reporting matters including the approval of the
interim results announcement, trading updates and the review
of the 2023 Annual Report
13XAuditX_XRiskXCommitteeXReport_v53.indd 9513XAuditX_XRiskXCommitteeXReport_v53.indd 95 13/03/2025 14:5213/03/2025 14:52
GOVERNANCE
AUDIT AND RISK COMMITTEE REPORT CONTINUED
Financial reporting and significant financial judgements
andestimates
One of the Committee’s principal responsibilities is to review and
report to the Board on the clarity and accuracy of the Group’s Financial
Statements, including the Annual Report and the Interim Results
Statement. The Annual Report seeks to provide the information
necessary to enable an assessment of the Company’s position and
performance, business model and strategy. The Committee assists
the Board with the effective discharge of its responsibilities for
financial reporting, and for ensuring that appropriate accounting
policies have been adopted and that management has made
appropriate estimates and judgements. In preparing the Financial
Statements for the period, there were a number of areas requiring the
exercise of a high degree of estimation. These areas have been
discussed with the External Auditor to ensure the Group reaches
appropriate conclusions and provides the required level of disclosure.
The significant issues considered by the Committee in respect of the
Annual Report are set out on page 97.
Management are responsible for establishing and maintaining
adequate internal controls over financial reporting. These are
designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of Financial Statements
for external reporting purposes. The financial reporting internal
control system covers the financial reporting process and the Group’s
process for preparing consolidated accounts. It includes policies and
procedures which require the following:
The maintenance of records that, in reasonable detail, accurately
and fairly reflect transactions including the acquisition and disposal
of assets
Reasonable assurance that transactions are recorded as necessary
to permit preparation of Financial Statements in accordance with
UK adopted International Financial Reporting Standards
Reasonable assurance regarding the prevention or timely
detection of unauthorised use of the Group’s assets
There are also specific disclosure controls and procedures around
theapproval of the Group’s Financial Statements.
Fair, balanced and understandable
The Board recognises its duty to ensure that the Annual Report and
Accounts, taken as a whole, are fair, balanced and understandable
and provides the information necessary for shareholders to assess
theGroup’s position and performance, business model and strategy.
The Committee undertook a review and reported to the Board on its
assessment. The key elements of the assurance framework which
supports the assessment by the Committee were:
The process by which the Annual Report and Accounts were
prepared, including detailed project planning and a
comprehensive review process
Review of the drafting and verification processes for the Annual
Report and Accounts by the Disclosure Committee
Comprehensive reviews undertaken by the Executive Directors,
members of the Executive Committee and other members of
senior management comprising the Annual Report and Accounts
drafting team to consider content accuracy, regulatory
compliance, messaging and balance
External audit
Assessed the External Auditor’s independence, objectivity
andeffectiveness
Considered and recommended to the Board the reappointment
ofthe External Auditor
Considered External Auditor fees and their terms of engagement
Reviewed the Non-Audit Services Policy
Reviewed the External Auditor non-audit services and fees
Risk management and internal controls
Monitored the Company’s corporate risk register, including
theidentification and assessment of the Group’s principal
andemerging risks and movement in such exposures
Reviewed the effectiveness of the Group’s Enterprise Risk
Management Framework and System and internal controls
Considered management responses, and their timeliness, to
auditfindings and recommendations for control improvements
Reviewed the risk management and internal controls disclosures
inthe half year accounts and Annual Report
Reviewed and approved the updated Confidential Reporting
Policy, including an analysis of investigations undertaken during
theyear
Reviewed the compliance risk management controls and strategy
Received reports related to the implementation of the new ERP
system and reviewed the key challenges and risks associated with
the project
Received regular reports on the Business Assurance control
implementation and assurance programme and plans to address
the requirements of the updated UK Corporate Governance Code
Reviewed the Annual Fraud Risk Assessment and related fraud
prevention and detection control activities
Received updates on material litigation
Internal Audit
Approved the annual Internal Audit plan and approach for 2025,
including its alignment to the principal risks, emerging areas of risk,
coverage across the Group and continuing review of the Group’s
processes and controls
Monitored and reviewed the effectiveness and independence
ofthe Internal Audit function including consideration of Internal
Auditreports, and the implementation of Internal Audit
recommendations
Provided oversight of delivery of the 2024 Internal Audit plan,
reviewing Internal Audit reports and findings issued during the
year and the status of implementation of recommended
correctiveactions
Other areas
Reviewed and recommended to the Board for approval the revised
Committee terms of reference
Reviewed the results of the evaluation of the effectiveness
oftheCommittee
Approved TCFD disclosures for the Annual Report
Received an update on tax matters for the Group and reviewed
andrecommended to the Board approval of the Group’s annual
taxstrategy and publication on the Company website
Received a treasury update
Received a pension strategy update
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
96
13XAuditX_XRiskXCommitteeXReport_v53.indd 9613XAuditX_XRiskXCommitteeXReport_v53.indd 96 13/03/2025 14:5213/03/2025 14:52
The review of the Annual Report and Accounts by the Audit
andRisk Committee placing reliance on the experience of the
Committee members
Reports prepared by senior management regarding critical
accounting judgements, estimates and key financial areas; and
Discussions with, and reports prepared by, the External Auditor
The Committee received confirmation from management that
the assurance framework had been adhered to for the preparation
of the 2024 Annual Report and Accounts. The Committee provided
a recommendation to the Board that the fair, balanced and
understandable statement could be given on behalf of the Directors.
The Board’s confirmation is set out on page 141.
SIGNIFICANT MATTERS FOR THE YEAR ENDED
31DECEMBER 2024 ANDHOW THE COMMITTEE
ADDRESSED THESE MATTERS
Impairment of finite life intangible assets
The Committee considered the Group’s process in determining
whether any asset, covered within the scope of IAS 36 Impairment
of Assets, requires impairment. The Committee considered whether
there were any indicators of impairment of assets with a finite life
and concluded that the assumptions made, conclusions reached
and disclosures given were appropriate.
Recognition and measurement of deferred tax assets
The Committee considered the forecasts and operational updates
presented by management that indicated the capability of the
Group to generate future taxable profits to recover the deferred tax
asset (DTA) recognised of £126.4m. The Committee considered the
period over which forecasts are used to determine the extent of
deferred tax recognised and considered the expiration period of
any losses. Consideration was also given to the key components of
the forecast that impact DTA recognition, being volume forecasts,
estimation of future costs and timing of new models. Sensitivity
analysis in support of these estimates was presented highlighting
the impact of alternate assumptions both in terms of the amount
recognised and the period of recognition required. The forecasts
utilised are considered realistic, reasonable and achievable. The
Committee concluded that the recognition of the deferred tax asset
and the disclosures given were appropriate.
Going concern and viability statement reporting
The Committee discussed the Group’s considerations in assessing
the appropriateness of adopting the going concern basis of
accounting and considered the financial statement disclosures in
respect of adopting the going concern basis in preparing the
financial information. The Committee concluded that adopting the
going concern basis and the disclosures given were appropriate.
The Committee discussed the key assumptions used in evaluating
the long-term viability of the Group, the time period for the Viability
Statement and the stress and reverse stress testing used as a basis
for conducting the overall assessment. The Committee concluded
that the assumptions made and the wording included in the viability
statement were appropriate.
OTHER MATTERS
At the November 2024 and February 2025 meetings, the Committee
also considered management’s papers on the following subjects
and concluded that the assumptions made and the approaches
adopted were appropriate:
the Group’s revenue recognition policies;
accounting for defined benefit pension obligations;
recognition and measurement of the Group’s warranty provision;
recognition and measurement of adjusting items;
accounting for the financing and capital arrangements;
accounting for the partial disposal of AMR GP Investment
andextension to the sponsorship arrangement; and
impairment of the Parent Company investment in subsidiaries.
Committee’s oversight of external audit
The Committee oversees the work undertaken by EY. EY was appointed
as External Auditor with effect from 24 April 2019, following an audit
tender process. Shareholders approved EY’s re-appointment at the
Company’s Annual General Meeting on 8 May 2024. The Committee’s
responsibilities include making a recommendation on the appointment,
re-appointment, removal and remuneration of the External Auditor.
The Committee assesses the qualifications, expertise, resources and
independence of the External Auditor and the effectiveness of the
audit process. The Committee Chair also has regular contact with the
external audit partner outside of Committee meetings without the
presence of management. During the period the Committee approved
the External Audit plan, the proposed audit fee and terms of
engagement of EY for FY 2024. It has reviewed the audit process and
the quality of the audit delivery and the quality and experience of the
audit partner engaged in the audit, and has also considered the extent
and nature of challenge demonstrated by the External Auditor in its
work and interactions with management. The Committee has
considered the objectivity of the External Auditor including the nature
of other work undertaken for the Group as set out below.
Independence and re-appointment of the External Auditor
The Committee reviewed the independence and objectivity of the
External Auditor during the year and confirmed that it considers EY to
remain independent. The Committee also considers that the Company
has complied with the Statutory Audit Services for Large Companies
Market Investigation (Mandatory Use of Competitive Tender
Processes and Audit Committee Responsibilities) Order 2014 for 2024.
The External Auditor is required to rotate the audit engagement
partner every five years. The previous engagement partner, Simon
O’Neill, began his appointment at the commencement of the 2019
financial year and therefore a new audit engagement partner, William
Binns, was appointed with effect from the 2024 financial year. The
external audit contract must be put out to tender at least every ten
years. The Committee concluded that given EY’s capabilities, its
relationship with the Company and the effectiveness of the external
audit, it was in the best interests of the Company and shareholders to
continue with EY and it did not currently anticipate any reason to
tender the contract before a tender process is required in 2028.
Basedon the Committee’s recommendation, the Board is proposing
that EY be re-appointed to office at the Annual General Meeting on
7May2025.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
97
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
13XAuditX_XRiskXCommitteeXReport_v53.indd 9713XAuditX_XRiskXCommitteeXReport_v53.indd 97 13/03/2025 14:5213/03/2025 14:52
GOVERNANCE
AUDIT AND RISK COMMITTEE REPORT CONTINUED
material misstatement or loss. This process complies with the
Guidance on Risk Management, Internal Control and Related Financial
and Business Reporting issued by the FRC. It also accords with the
provisions of the Code. Details of the Group’s risk management
process and the management and mitigation of principal risks
together with the Group’s Viability Statement can be found on
pages56-62.
The Board, through the Committee, has carried out a robust
assessment of the principal risks facing the Group and agreed the
nature and extent of the principal risks it is willing to accept in
delivering the Group’s strategy. It has considered the effectiveness
ofthe system of internal controls in operation across the Group for
the period covered by the Annual Report and up to the date of its
approval by the Board. This review covered the material controls,
including financial, operational and compliance controls and risk
management arrangements.
Control environment – internal control framework
The internal control framework is built upon established entity-level
controls. The Group defines its processes and ways of working
through documented standards and procedures which guide the way
the Group operates, based on a set of Group Framework Policies,
which establish the core principles of conduct of the Group and its
employees. These Group Framework Policies address a number of
topics including compliance laws; quality; responsible procurement;
equity, diversity and inclusion; IT and cyber-security; intellectual
property; conflicts of interest and confidential reporting.
On joining the Group all employees are provided with the Group
Framework Policies and are asked to confirm that they have read and
understood them. Focused training is then provided on these topics at
regular intervals, on a targeted basis.
The Group Framework Policies are supplemented by functional
policies, procedures and standards which move away from principles
to address specific actions and requirements. These are added to and
enhanced as laws change and practice evolves.
There are established procedures for the delegation of authority to
ensure that decisions are made at an appropriate level within the
business dependent on either the magnitude or nature of the decision.
In particular, access to the Company IT systems and applications is
provided subject to formal access provisioning processes with the
objective being to limit access, as appropriate, to enable an individual
to perform their role and to enforce appropriate segregation of duties
within business processes.
The Company maintained its ISO 9001 accreditation for its quality
management system which ensures that policies, standards and
procedures are appropriate for the business, and that they are
reviewed on a regular basis and made available to applicable
employees and contractors through the Group intranet.
Code of Conduct
The Group Code of Conduct was developed in collaboration with
colleagues across the business and approved by the Executive
Committee. It applies to all companies within the Group and to all
Non-audit services
The Committee recognises that the independence of the External
Auditor is an essential part of the audit framework and the assurance
that it provides. The Committee adopted a policy which sets out
a framework for determining whether it is appropriate to engage
the Group’s auditors for permissible non-audit services and for
pre-approving non-audit fees. The overall objective of the policy is to
ensure that the provision of non-audit services does not impair the
External Auditor’s independence or objectivity. This includes, but is
not limited to, assessing:
any threats to independence and objectivity resulting from
theprovision of such services;
any safeguards in place to eliminate or reduce these threats
toalevel where they would not compromise the Auditor’s
independence and objectivity;
the nature of the non-audit services; and
whether the skills and experience of the audit firm make
it the most suitable supplier of the non-audit service.
The total value of non-audit services that can be billed by the External
Auditor is restricted by a cap set at 70% of the average audit fees for
the preceding three years, which produced a cap for the 2024 financial
year of c. £500,000.
The approval of the Committee must be obtained before the External
Auditor is engaged to provide any permitted non-audit services. For
permitted non-audit services that are clearly trivial, the Committee
has pre-approved the use of the External Auditor for cumulative
amounts totalling less than £200,000 on the approval of the Chief
Financial Officer and Chair of the Committee.
During FY 2024 the following permitted audit-related services have
been approved in accordance with this policy:
Review of the Company’s interim financial statements for the
period ended 30 June 2024 – £65,000
In granting approval for these services, the Chief Financial Officer and
Chair of the Committee considered the nature and level of non-audit
services provided by the External Auditor and were satisfied that the
objectivity and independence of the External Auditor was not
compromised by the non-audit work undertaken during the year.
Details of the fees paid to the External Auditor during the financial year
can be found in note 4 to the Financial Statements.
Internal controls and risk management
The Board is ultimately responsible for the Group’s system of internal
controls and risk management and it discharges its duties in this area
by determining the nature and extent of the principal risks it is willing
to accept in pursuit of the Group’s strategic objectives (the Board’s
risk appetite); and challenging management’s implementation of
effective systems of risk identification, assessment and mitigation.
The Committee is responsible for reviewing the effectiveness of the
Group’s internal control framework and risk management
arrangements. The system of internal controls is designed to manage
rather than eliminate the risk of not achieving business objectives and
can only provide reasonable and not absolute assurance against
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
98
13XAuditX_XRiskXCommitteeXReport_v53.indd 9813XAuditX_XRiskXCommitteeXReport_v53.indd 98 13/03/2025 14:5213/03/2025 14:52
directors, employees, temporary workers and contractors. Mandatory
annual eLearning on the Code was introduced for all employees
in2024.
The Code and the Group Framework Policies referenced within it are
the foundation of the Company’s governance model, but the Code
also sets the tone of the Company’s expectations of high ethical
standards in all business conduct. Building on the Company’s values to
address expected behaviours in specific areas, the Code of Conduct
sets out a decision-tree to help colleagues make the right choices,
even where there is not a policy to provide guidance. This is an
important part of our mission to drive a culture defined by integrity,
which the Company sees as equal to its drive for high performance.
Compliance
Led by our Corporate Compliance team, reporting to the Executive
Committee and the Audit and Risk Committee, the Company is
engaged in an ongoing programme to enhance our compliance
management system. In 2024, we have prioritised enhancing the
compliance management framework, conducting risk assessments,
and improving controls and monitoring. This includes developing
a new system for reporting and monitoring of potential conflicts
ofinterest.
During 2024, the Company carried out an updated bribery and
corruption risk assessment, with the support of external consultants,
applying the Company’s Enterprise Risk Management Framework.
The aim of this work was to identify those business activities or areas
which represent a higher inherent risk that bribery or corruption could
occur as a result of the nature of the activity, the way it is conducted,
who is involved and where the activity takes place; to review the
measures in place to manage those risks; and identify areas for
improvement. An action plan is being implemented throughout 2025
to address any opportunities for improvement in the control
framework and measures the Company takes to manage these risks.
This bribery and corruption risk review preceded the start of a wide-
ranging fraud risk assessment project, which leads into a detailed risk
assessment to identify those areas where there is a higher inherent risk
that fraud could be carried out by the Company. This project aims to
identify those areas of higher risk, review the controls in place and
identify opportunities for improvement in order to ensure the
Company’s compliance with the new UK “failure to prevent fraud”
offence under the Economic Crime and Corporate Transparency Act
2023, which comes into force in September 2025.
Enterprise Risk Management Framework and System
The Group continues to strengthen the control environment by
embedding the Enterprise Risk Management Framework and System
which is supported by Risk Champions within each function.
Asummary of the key risk management activities undertaken by the
Group is included on pages 56-61. The Internal Audit & Risk
Management function is responsible for administering the Enterprise
Risk Management Framework and System and for providing
independent assurance to the Board, the Committee and
seniormanagement.
CODE OF CONDUCT:
HIGH INTEGRITY. HIGHPERFORMANCE
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
99
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
13XAuditX_XRiskXCommitteeXReport_v53.indd 9913XAuditX_XRiskXCommitteeXReport_v53.indd 99 13/03/2025 14:5213/03/2025 14:52
GOVERNANCE
AUDIT AND RISK COMMITTEE REPORT CONTINUED
Internal Audit
The Internal Audit & Risk Management function provides independent,
objective assurance and advice to the Board, the Committee and
senior management on whether the existing control and governance
frameworks are operating effectively to meet the Group’s strategic
objectives and to help the Company identify and mitigate any potential
control weaknesses and identify any emerging risks.
The Director of Internal Audit & Risk reports to the Chief Financial
Officer with an independent reporting line to the Committee Chair.
The Director provides regular reports to the Committee on the
function’s activities, which detail significant audit findings, progress of,
and any changes to, the Internal Audit plan and updates on agreed
management actions to remediate control weaknesses. Where
appropriate, the Director will provide a deep dive into an issue where
either the Committee has requested more information, or the Director
considers it pertinent.
DURING THE YEAR, 12 INTERNAL
AUDITS WERE CARRIED OUT
INCLUDING ANNUAL BUDGETING
AND FORECASTING PROCEDURES,
VEHICLE PROGRAMME DELIVERY
GOVERNANCE, ASTON MARTIN
EUROPE KEY FINANCIAL
CONTROLS AND PAYROLL
PROCEDURES AND CONTROLS.
The Committee assesses the effectiveness of the Internal Audit & Risk
Management function on an annual basis. To ensure that it is meeting
its objectives, the Internal Audit & Risk Management function has an
annual work plan comprising risk-based cyclical audits, reviews of risk
mitigation plans and assessments of emerging risks and business
change activity, together with work mandated for compliance
purposes. At the November 2024 Committee meeting the Internal
Audit plan for 2025 was approved by the Committee and the
Committee will monitor progress against the plan in the coming year,
as well as whether the plan remains focused on the evolving key risks
facing the business. Such reviews will consider any changes to risk
registers, current hot topics and emerging risks in the industry as well
as changes based on engagement with the business.
The findings and recommendations raised during the audits were
discussed by the Committee and remediation actions were agreed
where required.
The Group uses a three lines of defence assurance model with the
objective of embedding effective risk management and control
throughout the business and providing assurance to the Board and
the Committee of the effectiveness of internal controls and risk
management across the organisation. This comprises the following:
FIRST LINE OF DEFENCE
Functional management who are responsible for embedding
risk management and internal control systems into their
business processes.
SECOND LINE OF DEFENCE
Functions which oversee or specialise in risk management and
compliance-related activity. They monitor and facilitate the
implementation of effective risk management and control
activities by the first line. These functions include Business
Assurance, Quality Audit, Security, IT, Health and Safety,
Environmental and Corporate Compliance and the risk
management activities performed by the Internal Audit &
Risk Management team.
THIRD LINE OF DEFENCE
Functions which provide independent objective assurance to
the Board, Audit and Risk Committee and senior management
regarding the effectiveness of the first and second lines of
defence. This includes Internal Audit & Risk Management and
the External Auditor and other external providers of assurance
including those which provide assurance over dealer adherence
to operating standards and assurance over data within our
Sustainability Report.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
100
13XAuditX_XRiskXCommitteeXReport_v53.indd 10013XAuditX_XRiskXCommitteeXReport_v53.indd 100 13/03/2025 14:5213/03/2025 14:52
Confidential reporting – Speak Up
The Group has established procedures to ensure there are appropriate
mechanisms for employees and other stakeholders to report any
concerns regarding suspected wrongdoing or misconduct. The
Confidential Repor ting Policy set s ou t the procedures and mechanisms
for raising concerns in strict confidence. This policy is reviewed
annually and is made available to all employees on joining the business.
It is included within the Code of Conduct and the details are
published on the Group intranet and employee noticeboards. The
systems for confidential reporting are promoted in all compliance
eLearning programmes.
Any concerns raised under this policy are managed by the
DirectorofInternal Audit & Risk and investigated with support from
HumanResources and/or Compliance teams depending on the nature
of the concern.
Multiple options have been provided to enable the workforce to
“Speak Up” and raise concerns, including through their line manager,
senior management and through a third-party managed confidential
reporting system. This system enables web, telephone and mobile
app-based reporting of concerns confidentially, even anonymously if
desired, which is available throughout the year and across the globe.
An employee survey was conducted in 2024 to give the Company a
better understanding of staff awareness of the options available for
speaking up, their willingness to speak up and any barriers to doing so.
When asked the question whether they would be prepared to speak
up if they saw something wrong, 89% of respondents said they would.
However, there is still more to do to increase awareness of reporting
options and to address some of the perceived barriers to speaking up.
An action plan has been agreed to tackle these issues, with a primary
focus on communications and how we communicate around
speakingup.
The investigation reports are received and reviewed by the Chief
Executive Officer, the Chief Financial Officer, the General Counsel, the
Chief People Officer and the Chair of the Committee. The investigation
outcomes, significant findings and status are reported to the
Committee on a regular basis, with all significant matters being
reported directly to the Board. During the year, 36 new reports were
submitted via the confidential reporting facilities. The Committee
monitored and assessed the outcome of the resulting investigations.
Committee performance evaluation
The Committee was evaluated as part of the internal effectiveness
review of the Board and its Committees (details of which can be found
on pages 92-93) which concluded that it continued to perform
effectively and was rated highly by all the members. There were no
specific areas flagged for improvement.
MULTIPLE OPTIONS HAVE
BEENPROVIDED TO ENABLE
THEWORKFORCE TO “SPEAK UP”
AND RAISE CONCERNS. 
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
101
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
13XAuditX_XRiskXCommitteeXReport_v53.indd 10113XAuditX_XRiskXCommitteeXReport_v53.indd 101 13/03/2025 14:5213/03/2025 14:52
GOVERNANCE
SUSTAINABILITY COMMITTEE REPORT
DEAR SHAREHOLDER
On behalf of the Sustainability Committee, I am pleased to present
the Committee’s Report for the year ended 31 December 2024.
TheCommittee continues to oversee the evolution and execution of
Aston Martin’s sustainability strategy, Racing. Green., offering
guidance, challenge and support.
During 2024, Aston Martin continued to strengthen its commitment to
sustainability. The Company made advances in understanding its
wider environmental and societal impacts through improved data
gathering and analysis as well as gaining further insights into the
expectations of its stakeholders. These actions have shaped the
update to the Company’s sustainability strategy, Racing. Green. and
put the Company in a stronger position to take action to continue to
improve its sustainability performance.
A key element of the updated Racing. Green. strategy is climate
change. In 2024 Aston Martin submitted net zero targets to the
Science-Based Targets initiative for validation. Our approach was
founded on a thorough investigation of the Company’s Scope 1, 2
and 3 emissions data and plans. The Committee was fully engaged
in evaluating relevant data, operational insights and discussing the
proposed decarbonisation strategy.
Sustainability and circularity principles are now starting to be
incorporated more formally into the Company’s product design and
development process, and there has been an intensified focus on the
wider value chain. An updated Responsible Procurement Policy has
bee n int rodu ced t o set c lea r e xpec t ati ons to sup plie r s fo r sustai nab ilit y.
There is more to do, but Aston Martin is clear on the way forward.
Success will depend on many factors including global macroeconomic
and geopolitical headwinds, volatility and uncertainty. However, we
remain resolute and continue on a journey into the future with
sustainability increasingly at the heart of what we do.
DR. ANNE STEVENS
CHAIR, SUSTAINABILITY COMMITTEE
25 February 2025
Sustainability Committee Report
DR. ANNE
STEVENS
CHAIR, SUSTAINABILITY COMMITTEE
2024 OVERVIEW
Deep dive on net zero
Review and approval of revised Racing. Green. targets
Climate risk review
Review of responsible supply chain approach
Deep dive discussion on gender diversity target
Sustainability Committee membership
Committee members Meeting attendance
Anne Stevens (Chair) 4/4
Marigay McKee 3/4
Sir Nigel Boardman 3/4
Jean Tomlin 4/4
“ASTON MARTIN HAS SUBMITTED
NET ZERO TARGETS TO THE
SCIENCE-BASED TARGETS
INITIATIVE FOR VALIDATION”
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
102
14XSustainabilityXCommitteeXReport_v41.indd 10214XSustainabilityXCommitteeXReport_v41.indd 102 13/03/2025 14:5213/03/2025 14:52
COMMITTEE MEMBERSHIP AND COMMITTEE MEETINGS
The Committee currently comprises four Independent Non-executive
Directors: Anne Stevens who is Chair of the Committee,
Sir Nigel Boardman, Marigay McKee and Jean Tomlin. Jean joined
the Committee at the beginning of 2024, bringing a wealth of
experience particularly around people to further strengthen the
Committee’swork.
The Chief Financial Officer, Chief Executive Officer, Chief People
Officer, General Counsel and Chief Industrial Officer attend the
Committee meetings along with the Head of Government Affairs and
Sustainability, the Director of Internal Audit and Risk, the Head of
Compliance and the Head of Investor Relations.
The Committee meets at least twice a year and has formal terms of
reference which can be viewed on the Company’s website,
www.astonmartin.com/corporate. This year the Committee met four
times for formal meetings and additionally for two separate deep dive
sessions on the net zero and gender diversity targets. The Committee
members’ attendance for the period is set out on page 102. The activities
of the Committee and any matters of particular relevance were
reported by the Committee Chair to the subsequent Board meeting.
KEY RESPONSIBILITIES OF THE COMMITTEE
The Board Sustainability Committee ensures that the Directors
provide oversight, challenge and support for the Company’s
sustainability strategy and aims to understand the actions required for
the Company to achieve its sustainability targets and develop relevant
and reliable reporting metrics, in line with the growing body of
standards in this area.
The Company’s sustainability strategy focuses on three strategic
pillars: Tackling climate change; Creating a better environment; and
Investing in people. The Committee reviewed and approved for
recommendation to the Board revised Racing. Green. targets under
these three pillars.
Senior subject matter experts covering all areas of activity, including
safety, equity, diversity and inclusion, and environmental
management, join the meetings to provide the Committee with
information about performance and activity being undertaken in
their respective areas ofresponsibility.
GENDER DIVERSITY TARGET
The Committee held a separate deep dive discussion on the actions
needed to make progress on the Company’s target of 30% women in
the business by 2030. The discussion focused on flexible working,
attraction, retention and development of talent, advocacy at Board
and Executive Committee level, culture and brand. A number of
actions were identified and are being progressed by management.
COMMITTEE PERFORMANCE EVALUATION
The Committee was evaluated as part of the internal effectiveness
review of the Board and its Committees (details of which can be found
on pages 92-93). The report was positive highlighting that the
Committee is effective in discharging its responsibilities and has
outstanding leadership. It was noted that the Committee had
benefitted from the separate sessions held during the year on the
gender diversity and net zero targets.
KEY RESPONSIBILITIES OF THE COMMITTEE
Reviewing and making a recommendation to the Board to
approve the Sustainability Report and the Modern Slavery
Statement
Reviewing periodically the sustainability strategy and
considering whether there should be any changes, including
to the targets detailed in the sustainability strategy, and
making a recommendation to the Board for approval
Monitoring the progress of the sustainability strategy
Reviewing the annual Sustainability Materiality Assessment
and providing comments and guidance
Considering and making a recommendation to the Board to
approve the Company’s Sustainability Report and where
relevant recommending to the Board any other public
documents to be approved for disclosure concerning
sustainability-related matters
Receiving regular updates from the various working groups
which are executing the sustainability strategy
Receiving updates on and reviewing (on an ongoing basis) the
Company’s external sustainability ratings and accreditations
Receiving updates on (and reviewing on an ongoing basis)
sustainability reporting requirements and changes to
government strategy, policies and laws impacting
sustainability
Monitoring external trends, developments and emerging best
practices that may affect the Company’s reputation or
sustainability strategy, objectives and targets
Monitoring the level of resource, competence and
commitment applied to the management of sustainability
issues
Receiving relevant sustainability audit findings and details of
sustainability-related assurance activity
KEY ACTIVITIES OF THE COMMITTEE DURING THE YEAR
Reviewed and approved the Company’s 2023 Sustainability
Report, Modern Slavery Statement and Gender Pay
GapReport
Carried out a deep dive on net zero
Discussed the Company’s responsible supply chain approach
Reviewed and discussed safety performance and risks
Reviewed and approved net zero targets
Carried out a deep dive discussion on the Company’s gender
diversity target
Discussed climate risk review
Discussed the human rights gap analysis report
Monitored progress all the Company’s sustainability working
groups
Considering the findings and actions arising from the internal
audit on Racing. Green.
Further information on sustainability can be found on pages 32-55
andalso in the Company’s 2024 Sustainability Report at
www.astonmartin.com/corporate.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
103
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
14XSustainabilityXCommitteeXReport_v41.indd 10314XSustainabilityXCommitteeXReport_v41.indd 103 13/03/2025 14:5213/03/2025 14:52
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT
CONTENTS
108 Executive Directors’ Remuneration At a Glance
113 Directors’ Remuneration Policy
120 Annual Report on Remuneration
120 FY 2024 total single figure remuneration
120 Salary, pension, and benefits
121 Annual bonus
123 Long-term incentive plan
126 Share interests and shareholding guidelines
129 CEO remuneration relative to employees
130 Further information on remuneration for incoming
Chief Executive Officer
130 Further information on remuneration for outgoing
Chief Executive Officer
131 Non-Executive Directors’ remuneration
133 Remuneration Committee in FY 2024
DEAR SHAREHOLDER
I am pleased to present the Directors’ Remuneration Report (DRR) for
the year ending 31 December 2024, which has been approved by both
the Remuneration Committee (the Committee) and the Board.
As set out by both the Executive Chairman and CEO in their statements,
2024 has been a year of strong product successes and strategic
progress, balanced by operational challenges. We completed the
launch of four highly acclaimed new core models, delivered three
iconic Specials programmes, elevated our customer experience and
successfully undertook a series of financing activities. These all
position the Company well for success in the future.
Aston Martin’s performance in FY 2024 reflects the Company’s
progress to an all-new model portfolio. We also navigated the impact
of industry-wide supply chain disruptions and a weaker macroeconomic
environment in China. This, coupled with seeking to smooth the
cadence of wholesale volumes, resulted in a c.1,000-unit reduction in
wholesale volume guidance for 2024, mostly impacting Q4 2024. As a
result, FY 2024 wholesale volumes decreased 9%, revenue decreased
3%, gross profit decreased 9% and adjusted EBITDA decreased 12%,
while adjusted EBIT was broadly flat compared with the prior year.
From a financing perspective, we took decisive steps during the year.
In March 2024, we completed a c.£1.15bn refinancing and increased
our RCF to £170m. In addition, c.£135m and c.£100m of private debt
placings were successfully completed in August and November 2024,
respectively. Together with the c.£111m equity placing in November
2024, these financing activities provide the Company with additional
liquidity to continue to deliver on its growth strategy.
With the support of Aston Martin’s strategic shareholders and the
Board, together with a year-end total liquidity position of over £500m,
we move into 2025 under Adrian’s leadership with a world-class range
of new models and the eagerly awaited launch of Valhalla. Our focus
remains on the continued execution of our brand and product strategy,
which will underpin progress towards our near- and medium-term
financial targets, creating value for all our stakeholders.
LEADERSHIP CHANGE
As set out by the Executive Chairman, we welcomed Adrian Hallmark
to Aston Martin, who joined as our new CEO on 1 September 2024.
Adrian is widely regarded as one of the highest calibre leaders in the
global automotive industry and brings to Aston Martin unrivalled
experience in both the ultra-luxury and British manufacturing sectors.
Directors’ Remuneration Report
DR. ANNE
STEVENS
CHAIR, REMUNERATION COMMITTEE
“AS A LUXURY AUTOMOTIVE
COMPANY, OUR AIM IS TO DELIVER
VALUE TO OUR SHAREHOLDERS
OVER THE LONG-TERM. OUR
INCENTIVES MUST PROMOTE
LONG-TERM DECISION-MAKING
AND MANAGEMENT OF THE VALUE
OF THE BUSINESS AND BRAND”
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
104
15XDirectorsXRemXReport_Directors_XReport_v73.indd 10415XDirectorsXRemXReport_Directors_XReport_v73.indd 104 13/03/2025 14:5313/03/2025 14:53
Adrian’s expertise will be invaluable as we continue the transformation
of the business and deliver the next phase, of sustainably profitable,
long-term growth. The Committee approved the remuneration
package for Adrian Hallmark in line with our Remuneration Policy – full
details are set out on page 130.
The Board extended its thanks to Amedeo Felisa, who led an important
phase in Aston Martin’s portfolio evolution, overseeing the
introduction of our new and reinvigorated core range of models.
Amedeo stepped down from the Board on 1 September 2024 and
remained employed and available to the Group to aid the smooth
transition of leadership until 31 December 2024. He received no
payments in relation to his cessation and the Committee have applied
discretion to treat Amedeo as a good leaver with respect to his
outstanding incentives, in line with the policy and plan rules. Details of
Amedeo’s leaver arrangements are set out on page 130.
FY 2024 EXECUTIVE DIRECTOR SALARIES
Adrian Hallmark’s annual salary from his date of appointment was set
at £1m, as disclosed on the Company website on 19 September 2024.
During 2024, as part of the leadership change, the Executive Chairman
and Remuneration Committee reviewed remuneration for the
leadership team, recognising the importance of stability across the
team. As part of this review, in the context of positioning his salary
appropriately in the range for the leadership team and recognising
external reference points, Doug Lafferty’s (CFO) salary was increased
to £640k effective 1 June 2024.
FY 2024 ANNUAL BONUS APPROACH AND OUTCOME
As outlined above, while 2024 was to represent a year of portfolio
transition, in September 2024, we took the decisive action to adjust our
production volumes for 2024 given a combination of supplier
disruption, the weak macroeconomic environment in China and a
proactive decision to strategically re-align our production plans to
optimise efficiency and achieve a more balanced delivery cadence in
the future.
2024 performance and financial outcomes were therefore below the
targets set at the start of the year with respect to the 2024 annual
bonus. This resulted in no bonus payable in relation to the adjusted
EBITDA, FCF or volumes measures. With respect to the quality metrics,
the stretching target levels set at the start of the year were not
achieved and so no bonus is payable with respect to quality.
In respect of the Accident Frequency Rate (AFR) safety metric,
adiscrepancy arose between the 2024 bonus scorecard target (0.28)
and the target subsequently established in the 5-year Health and
Safety (H&S) KPI scorecard (0.38). In assessing safety performance,
the Committee recognised the significant improvement in the Group’s
reported 2024 AFR of 0.35, compared to 0.40 in 2023. Despite not
meeting the initial bonus target, the Committee recognised the
year-on-year AFR improvement and decided to exercise discretion to
award full payout for this metric, on which 5% of the total bonus
opportunity was based. This level of bonus will be paid to all
employees, which reinforces the Company’s commitment to safety
and acknowledges the improvements in performance across the H&S
KPI scorecard. Full details of 2024 annual bonus targets and
performance are achieved set out on page 121.
As part of terms agreed on his appointment, the Committee approved
that the CEO’s 2024 annual bonus would be subject to individual
performance objectives only. This approach aligns with our
Remuneration Policy upon recruitment, and aimed to reward delivery
of key objectives that the CEO would be responsible for and could
impact most during 2024. The CEO’s 2024 bonus was pro-rated and
paid fully in cash, to facilitate his transition to a more equity-based
remuneration package at Aston Martin, recognising his experience at
his previous Company where all his incentives were paid in cash.
The CEO’s individual performance objectives set with respect to his
2024 annual bonus are set out on page 122. Overall the objectives
setwere achieved at a level of 90% by 31 December 2024 (and in full
bythe year-end results Board meeting in February 2025), resulting in
abonus payment of 90% of maximum. The CEO has decided to use
50% of the net amount of his 2024 bonus to buy shares in the Company
– a decision welcomed by the Committee.
FY 2022 LONG-TERM INCENTIVE PLAN (LTIP) – FY 2024
OUTCOMES
Former CEO Amedeo Felisa’s 2022 LTIP award was subject to absolute
share price performance over a 2-year period. The performance
condition required the AMLGH plc share price to exceed the targets
set for 30 consecutive days at any point during the performance
period, with vesting level based on the highest price achieved. As the
share price did not exceed the targets set, the former CEO’s 2022 LTIP
award lapsed in full.
CFO Doug Lafferty’s 2022 LTIP award was subject to adjusted
EBITDA and relative Total Shareholder Return (TSR) performance.
Performance with respect to both measures was below the threshold
levels set, and so the CFO’s 2022 LTIP award will lapse in full. Full
details of 2022 LTIP awards are set out on page 123.
2025 DIRECTORS’ REMUNERATION POLICY
Our current Remuneration Policy (approved in 2022) will reach the
end of its 3-year life at our 2025 AGM and so we are seeking approval
for a new policy at the AGM this year.
The Committee was keen to ensure our Policy was designed to
support the strategy and performance required to become the
world’s most desirable ultra-luxury British high performance brand,
while being simple and transparent for shareholders, participants and
other stakeholders. As we developed our new Policy, we kept
important context factors firmly in mind, including: alignment with our
strategy, shareholders, Company vision and purpose, the experience
of our wider workforce, the nature of the global markets in which we
operate, practice in the automotive and luxury sectors, evolving
governance, best practice and market trends.
While our 2022 Policy was designed with good flexibility and
has proved broadly fit-for-purpose, we have faced challenges that
the proposed 2025 Policy aims to address. Aston Martin, while a
UK-headquartered and FTSE-listed company, is a global business and
sources executive talent from global luxury and automotive
companies. Over 80% of cars we wholesaled in 2024 were to our
regions outside of the UK, and our Executive Directors frequently visit
the regions and must navigate regulatory and political challenges
across global jurisdictions.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
105
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 10515XDirectorsXRemXReport_Directors_XReport_v73.indd 105 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
The Committee avoids targeting the median of any single peer group
and would not rely on benchmark data for policy changes, instead we
take a holistic view of UK and global reward practices. While we have
been able to secure recent key hires, we have faced challenges during
the recruitment process, due to the lack of competitiveness of our
reward packages, particularly our incentive opportunities compared
to global luxury and automotive peers (where we have recruited
talentfrom).
A further reference point considered was the history of realised pay
at Aston Martin since 2021. While outcomes of our incentives over
recent years have reflected the ambitious nature of the Company and
industry-wide challenges and therefore the shareholder experience,
the Committee is mindful that incentive outcomes have not reflected
the significant efforts of the team. This has resulted in our Executive
Directors being underpaid relative to other senior leaders at Aston
Martin, who receive a portion of their remuneration in restricted
shares. While incentivising performance remains our priority, we
believe we would benefit from a revised incentive approach, to better
align the senior team and to reflect practice of our global peers. This
will help to ensure we can attract, reward and retain the key talent
Aston Martin needs to successfully deliver our strategy and drive
longer-term value creation for our shareholders.
Annual bonus
We are proposing a 50% of base salary increase to bonus opportunities
for Executive Directors, to 250% and 200% of salary for the CEO and
CFO respectively. While this would position annual bonus ahead of UK
FTSE 250 practice, it would take our annual bonus policy to median
within our identified global luxury peer group and lower quartile
against our automotive peers. The increased quantum would continue
to be linked to stretching targets, ensuring maximum payouts are only
received for exceptional performance across a range of KPIs.
A minor policy wording adjustment is also proposed to allow
greater flexibility in the choice of performance measures for the
annual bonus, while maintaining that the majority of bonus weighted
on financial measures as part of our Group KPI scorecard. The
increased flexibility would allow the accommodation over time of
further ESG metrics in-line with our evolving Racing. Green. strategy
and individual executive objectives, aligned with delivery of our
business plan.
Hybrid LTIP
To better align our incentive programmes with pay practice amongst
our peers, we are proposing to introduce a hybrid LTIP structure,
combining existing performance share awards with new restricted
shares to better support the delivery of our strategy.
As a luxury automotive company, our aim is to deliver value to
our shareholders over the long-term. We therefore need an
incentive structure that promotes longer-term decision-making
and ongoing management of the value of the business and brand.
TheCommittee believes that a hybrid LTIP will support this objective:
the performance shares element to incentivise our senior team to
deliver improvement in sustainably profitable long-term performance
and to outperform our peers, and the restricted shares element
to encourage delivery of long-term sustainable shareholder value
andstability of the business.
In line with UK best practice, we operate bonus deferral (where
shareholding guidelines are not met), LTIP holding periods and post-
employment shareholding guidelines, none of which are typically
operated by our luxury and automotive peers. The introduction of a
restricted shares element to the LTIP would help to mitigate these
differences, and better position us to attract and retain our talent and,
as a result, support stability within the business and better succession
planning. A hybrid approach has already been applied at Aston Martin
for executives below Board level and so applying the approach for our
Executive Directors would ensure alignment across the senior team.
When determining the hybrid LTIP, the Committee considered
shareholder expectations around the introduction of restricted shares
and structured the awards element to comply with best practice,
including: a 50% discount to the award value to reflect increased
certainty; a performance underpin allowing the Committee to reduce
vesting based on financial and non-financial performance (to
safeguard against rewards for poor performance); and a 5-year
restricted period (3-year vesting, 2-year holding) with malus and
clawback provisions and Committee discretion.
When considering the appropriate balance between the performance
and restricted shares, the Committee determined that a split of two
thirds performance shares and one third restricted shares was
appropriate, to maintain a strong focus on the performance-based
element. The split of performance shares and restricted shares, and
the overall maximum opportunities is proposed as follows:
Performance
Shares
Restricted
Shares
Tot al
opportunity
CEO 150% 75% 225% of salary
CFO 125% 62.5% 187. 5% of salary
Based on the 50% discount, the CEO’s total award opportunity remains
unchanged. We are proposing a small uplift to the CFO’s opportunity
of 50% salary, to improve positioning of total quantum against our
luxury and automotive peers (while remaining at lower quartile).
Without the hybrid structure, and with a 100% performance-based
LTIP, the proposed award levels would have been CEO: 300% of salary,
CFO: 250% (previously 200%). The performance share awards will
remain subject to stretching performance targets, as per the current
LTIP approach.
FY 2025 REMUNERATION APPROACH
FY 2025 Executive Director salaries
No increases to Executive Director salaries are proposed for 2025.
FY 2025 annual bonus
In 2025, our Group KPI scorecard will be focused on our financial
andquality metrics as our key strategic priorities, and will continue to
include a safety target, reflecting our commitment to improving our
safety performance. Our business plan is focused on achieving positive
adjusted EBIT for the full year and free cash flow (FCF) generation
inH2 2025. To ensure alignment of our bonus metrics with our plan,
weare evolving our Group KPI scorecard for the 2025 bonus, moving
from adjusted EBITDA to adjusted EBIT as our measure of profit,
and increasing the weighting on FCF, and no longer linking bonus
tovolumes, with a focus on maximising the value in every vehicle.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
106
15XDirectorsXRemXReport_Directors_XReport_v73.indd 10615XDirectorsXRemXReport_Directors_XReport_v73.indd 106 13/03/2025 14:5313/03/2025 14:53
The 2025 Group KPI scorecard will therefore include an 80% weighting
on financial measures, including a 50% weighting on adjusted EBIT and
30% on FCF. The non-financial element will continue to focus on our
Quality performance (with a 15% weighting) as a critical strategic
priority and the ESG element introduced in 2024, around the safety
ofour people (weighted at 5%).
We take a Company-wide approach to the annual bonus, with the
Group KPI scorecard applying in some way to bonus for all employees.
To date, 100% of the CEO and CFO’s bonus has been subject to
performance against the Group KPI scorecard. To align with other
members of the management team, for 2025 we are introducing
a bonus element based on individual performance objectives for
the CEO and CFO. The individual element will be weighted at 20%
of bonus, with 80% subject to performance against the Group
KPI scorecard. This weighting will ensure the majority of bonus
continues to be subject to financial performance within the Group
KPI scorecard (adjusted EBIT and FCF for 2025), while the individual
element will incentivise and reward key objectives that underpin
delivery of the business plan. The 2025 individual objectives were set
at the start of the year and will be disclosed retrospectively, along
with the Group KPI scorecard targets and outcomes.
Full details of the 2025 annual bonus are set out on page 122.
FY 2025 LTIP
As per the proposed Policy, we are intending to introduce a Hybrid
LTIP from 2025. The Committee has decided to evolve the
performance measures for the performance shares element of the
LTIP, moving from adjusted EBITDA to adjusted EBIT targets for 2025
awards (accounting for 80%), reflecting the 3-year period 1 January
2025 to 31 December 2027 of the business plan. The remaining 20%
will vest based on relative TSR performance against luxury and
automotive peers, and the FTSE 250. The restricted shares element
ofthe LTIP will be released subject to achievement of an underpin.
All LTIP awards will be subject to a 2-year post vesting holding period,
in-line with our Policy. Full details of the 2025 LTIP approach are set
out on page 125.
BROADER WORKFORCE REWARD
Passionate, motivated and professional people are critical to the
success of Aston Martin and, to attract and retain the best talent
available, our pay and benefits must be competitive. When considering
the remuneration of the Executive Directors and Executive Committee,
the Committee considers remuneration across the whole Company.
The Committee was kept informed of the key areas of focus around
Aston Martin’s people during 2024. The leadership team continued to
demonstrate their commitment to improving workplace engagement
and culture, focusing on making progress towards the goal to secure
accreditation as a Great Place to Work® by 2025. Significant investment
into our facilities, culture and organisation continued during 2024, and
detailed information on our People and progress during the year is set
out from page 38.
On workforce reward more specifically, during the year the Committee
considered information on the policies and practices which are in
place throughout the Company. In particular, during 2024, we granted
our second all-employee share award under the “Aston Martin
Sharing. Success.” plan, awarding 500 free shares to 2,839 employees.
The 2024 free share awards were incredibly well-received, with
significant engagement from participants, giving everyone the chance
to share in the future success of the Company. An annual award of free
shares will be made to all employees once again in 2025, which we
believe will continue to build engagement across the workforce and
aculture where our employees feel and behave like owners.
We also discussed our approach to, and results of, Aston Martin’s
Gender Pay Gap (GPG) reporting. Our aim is to foster a culture where
everybody feels valued, motivated and rewarded to achieve their best
work – detailed information on our People, including our Gender Pay
Gap figures and ED&I strategy, can be found on page 38. There is also
information on the Board’s engagement with our workforce in the
People section and with our other stakeholders in the Governance
section on page 18.
ENGAGEMENT WITH SHAREHOLDERS
We take the views of our shareholders very seriously and the
Committee seeks to establish close engagement relationships with
our larger shareholders to ensure we understand their views and are
able to best reflect these as we make our decisions as a Committee.
We have engaged with our larger shareholders over the past 6 months,
welcoming views on any aspect of executive remuneration – both in
general and at Aston Martin – and we wanted to ensure these were
considered by the Committee as we developed our new remuneration
policy, ahead of seeking shareholder approval for this at the 2025
AGM. In particular, the Committee reflected on feedback around
the approach to the Hybrid LTIP, including the balance between
performance and restricted shares, applying a fixed mix of each type
of shares within the policy, best practice on the ‘discount’ to apply for
the exchange of performance for restricted shares and the importance
of including an underpin.
I would like to thank shareholders for the feedback and views
shared with the Committee and for your continued support. If you
have any questions on any element of this report, please email
company.secretary@astonmartin.com in the first instance and I hope
we can rely on your support at our forthcoming 2025 AGM.
DR. ANNE STEVENS
CHAIR, REMUNERATION COMMITTEE
25 February 2025
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
107
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 10715XDirectorsXRemXReport_Directors_XReport_v73.indd 107 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
Our 2025 Remuneration Policy will be put to shareholders for approval at the AGM on 7 May 2025.
This section explains the outcomes from the implementation of our existing Policy during FY 2024 and summarises our new Policy and the
changes we are proposing to make for 2025.
REMUNERATION OUTCOMES FOR FY 2024
FY 2024 Total Single Figure Remuneration for Executive Directors
The table below sets out the 2024 single figure of total remuneration received by the Executive Directors.
Element
Adrian
Hallmark
CEO (£’000s)
Doug
Lafferty
CFO (£’000s)
Amedeo
Felisa
Previous
CEO (£’000s)
Salary 333 572 610
Benefits 52 126 362
Pension 35 60 64
Annual bonus 600 43 61
LTIP n/a 0 0
Total 1,021 801 1,098
Benefits for Amedeo Felisa include the 2024 cost of private flights for travel between Italy and the UK – full details are set out on page 121.
2024 Annual bonus approach and outcome
The CFO and previous CEO (Amedeo Felisa) were eligible to receive an annual bonus of up to 150% and 200% of salary respectively, subject
toperformance. The table below sets out the Group KPI targets that applied for the 2024 annual bonus, the achieved performance and the level
of payout as a % of maximum for each element.
Performance measure (weighting)
Threshold
(20%)
Target
(50%)
Maximum
(10 0%)
FY 2024
achieved
FY 2024 bonus payment
(% of maximum)
Adjusted EBITDA (50%) £350m £400m £450m £271m 0%
Free Cash Flow (20%) (£200m) (£150m) (£100m) (£392m) 0%
Wholesale Volumes (10%) 6,700 7,000 7,30 0 6,030 0%
Safety (AFR) (5%) n/a 0.28 n/a 0.35
Discretion applied
5%
Quality (15%) Internal: CPA – Customer Perception Audit – an audit of a car that
has completed all the production processes and is intercepted as
it would be handed over to the outbound transport company
Stretching target
levels not achieved
0%
External – Warranty at 3 and 12 months in service:
(1) CPU – Cost Per Unit (2) DPU – Defects Per Unit
Stretching target
levels not achieved
0%
Total (10 0%) 5%
As both the CFO and previous CEO had not met their shareholding guideline as at 31 December 2024, 50% of the net 2024 bonus payment will
bedelivered in shares deferred for three years.
Executive Directors’
remuneration at a glance
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
108
15XDirectorsXRemXReport_Directors_XReport_v73.indd 10815XDirectorsXRemXReport_Directors_XReport_v73.indd 108 13/03/2025 14:5313/03/2025 14:53
The CEO (Adrian Hallmark) was eligible to receive an annual bonus of up to 300% of salary, subject to individual performance objectives.
Thetablebelow sets out the CEO’s 2024 objectives with respect to the 2024 bonus. Overall the objectives set were achieved at a level of 90%
by31 December 2024 (and in full by the year-end results Board meeting in February 2025), resulting in a bonus payment of 90% of maximum
(pro-rata for period of 2024 service).
2024 annual bonus objectives–CEO
1. Align executive Leadership Team, Chairman and all stakeholders on mid-term plan
2. Conduct full assessment of operational performance in all areas of business
Define operation improvement plans for FY2025 in all executive Leadership Team areas
3. Propose revised cycle plan which supports plan out to FY2028
As agreed upon appointment, the CEO’s 2024 bonus will be paid 100% in cash. The CEO has decided to use 50% of the net amount of his 2024
bonus to buy shares in the Company.
2022 LTIP approach and outcome
Executive Director Award
Performance
measure(s) Performance period
Performance
against targets
Vesting outcome
(% of maximum)
Doug Lafferty (CFO)
2022 LTIP Absolute share price 2 years to
12 June 2024
Below threshold 0%
Amedeo Felisa (previous CEO)
2022 LTIP Adjusted EBITDA
(80%)
Relative TSR (20%)
3 years to
31 December 2024
Below threshold
for both measures
0%
Alignment between Executive Directors and shareholders
The CEO and CFO are subject to shareholding guidelines of 300% and 200% of salary respectively, which drives long-term alignment
withinvestors. Having only joined the Company on 1 September 2024, the CEO held no shares. The CFO held 370,990 shares (value of £397k
or62%ofsalary) as at 31 December 2024.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
109
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 10915XDirectorsXRemXReport_Directors_XReport_v73.indd 109 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
2025 REMUNERATION POLICY SUMMARY, INCLUDING CHANGES AND IMPLEMENTATION IN FY 2025
NON-INCENTIVE ELEMENTS
Element 2022 remuneration policy 2025 policy – changes Implementation/strategy alignment
Base salary Any increases generally in line with wider workforce
Take account of role, performance, experience,
business performance, external environment, cost
to Company, wider workforce and comparable roles
at relevant comparators
Fit for purpose –
nochange
CEO £1m / CFO £640k
Next review in 2026
(no 2025 increases)
Set at levels to align with strategy
to recruit and retain best of global
automotive/ manufacturing/ luxury
talent
Pension Maximum of 12% of salary
DC scheme or cash allowance in lieu of pension
(employer’s NI deducted for cash allowance)
Fit for purpose –
nochange
In line with maximum pension
contribution available to majority
of employees
Other benefits Typically include participation in car schemes,
private mileage entitlement, private health, travel
and life insurance
Other benefits may be offered, e.g. allowances
for relocation
Fit for purpose –
nochange
Shareholding
policy
CEO – 300% of salary
CFO (other Executive Directors) – 200%
Requirement to retain at least 75% of any shares
(net of tax) vesting under LTIP/ deferred bonus until
guideline met
Expectation for guideline to be built up within 5years
of appointment
Post-cessation – All Executive Directors required
to retain 50% of guideline above for two years
post-cessation of employment
Fit for purpose –
nochange
Shareholder alignment
Malus and
clawback
Malus and Clawback provisions operated at
discretion of the RemCo in respect of both annual
bonus and LTIP where it considers that there are
exceptional circumstances
May include serious reputational damage, failure
of risk management, error in available financial
information or personal misconduct
Clawback may be applied for a period of up to three
years from payout/ vesting
Fit for purpose –
nochange
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
110
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11015XDirectorsXRemXReport_Directors_XReport_v73.indd 110 13/03/2025 14:5313/03/2025 14:53
ANNUAL BONUS
Element 2022 remuneration policy 2025 policy – changes Implementation/strategy alignment
Maximum
opportunity
CEO – up to 200% of salary
CFO – up to 150%
Change to
opportunities:
• CEO – up to 250%
• CFO – up to 200%
Set at levels to align with strategy to
recruit and retain best of global
automotive/ manufacturing/ luxury
talent
Award vehicle Cash
50% in deferred shares (where shareholding
guideline not met)
Fit for purpose –
nochange
Shareholder alignment
Performance
measures
To be reviewed annually, based
on a combination of financial, operational, strategic
and individual measures
Fit for purpose –
nochange
Company-wide bonus approach –
80% to be based on Group KPI
scorecard (50% EBIT, 30% FCF, 15%
Quality, 5% safety)/ 20% on individual
strategic objectives
2025 Group KPIs to align with road
map to achieve strategic business plan
and targets:
• EBIT positive for FY 2025 and
sustainable thereafter
• Generating positive FCF in H2 2025
and sustainable thereafter
• Quality aligned to ultra-luxury
British brand
• Safety as the foundation of any high
performing manufacturing business
Performance
weighting
To be reviewed annually, with at least 70% of bonus
to be based on financial measures
Up to 30% of bonus could be based on operational,
strategic and/ or individual measures
Change to weighting
wording – ‘To be
reviewed annually,
with the majority of
bonus to be weighted
on financial measures’
To increase flexibility for life of policy
To accommodate a greater weighting
on ESG measures in the future, to align
with Racing. Green. sustainability
strategy and/ or an element of bonus
based on individual strategic
performance objectives
Payout
schedule for
each measure
(as % of max)
Threshold – 20%
Maximum – 100%
Fit for purpose –
nochange
Performance
period
1 year – aligned with the financial year (1 Jan to 31 Dec) Annual targets to align with road map
to achieve medium/ longer-term
plans and targets
Committee
discretion
To adjust bonus outcomes to ensure they reflect underlying business
performance/ any other relevant factors
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
111
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11115XDirectorsXRemXReport_Directors_XReport_v73.indd 111 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
LTIP
Element 2022 remuneration policy 2025 policy – changes Implementation/strategy alignment
Maximum
opportunity
CEO – up to 300% of salary
CFO – up to 200%
Change – Hybrid LTIP:
Maximum (as % of salary) –
Performance Shares (PS) and
Restricted Shares (RS):
CEO:
PS: 150%
RS: 75%
Total: 225%
CFO:
PS: 125%
RS: 62.5%
Total : 187.5%
Set at levels to align with strategy to
recruit and retain best of global
automotive and luxury talent
Hybrid structure to promote longer-term
decision-making and ongoing
management of the value ofthe business
and brand
Award vehicle Shares (granted as nil-cost options
or conditional share awards)
Performance
measures
To be determined ahead of each
award, based on financial,
shareholder return and strategic
performance measures
Change – Introduce Hybrid LTIP,
combining performance share
awards with restricted share awards
Performance shares vest subject to
stretching performance measures,
based on financial, shareholder
return and/ or strategic
performance measures
Restricted shares vest subject to
performance underpin(s), as
determined by the RemCo, which
may include assessment of key
financial and/ or strategic measures
and/ or share price performance
Performance shares to incentivise
delivery of improved long-term
sustainable performance and
outperformance of peers
Restricted shares to encourage delivery
of long-term sustainable shareholder
value and stability of thebusiness
2025 performance shares subject toEBIT
(80%) and relative TSR vs. 11luxury peers
(20%), to align with roadmap to achieve
medium-term plansand targets:
• EBIT positive for FY 2025 and
sustainable thereafter
• TSR out-performance of luxury peers
aligned to becoming an ultra-luxury
British brand
Performance
weighting
To be reviewed annually
Vesting
schedule (as %
of max)
Threshold – 20%
Maximum – 100%
Fit for purpose – nochange
(applies to performance shares)
Performance
period
Usually measured over
3 financial years
Fit for purpose – nochange 3 years to align with road map to achieve
medium-term plans and targets
Holding period 2 years post vesting Fit for purpose – nochange 5 year time horizon to align with delivery
of sustainable shareholder value over the
long-term
Shareholder alignment
Committee
discretion
To adjust the vesting levels to ensure they reflect underlying business
performance and any other relevant factors
Finally, the Committee is making a minor adjustment to the wording (not approach) around the treatment of LTIP awards upon a change of
control, to align this with the LTIP Rules that have been place since the plan was introduced:
In the event of a change of control or winding up of the Company (other than an internal reorganisation), LTIP Awards will vest to the extent that
any performance conditions have been satisfied at that date, as determined by the Committee (which may have regard to projected performance
over the full Performance Period). In addition, unless the Committee decides that pro-rating would be inappropriate in the particular
circumstances, or that it should be carried out on some other basis, pro-rating for service will apply. Outstanding deferred bonus awards will vest
in full as soon as practicable.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
112
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11215XDirectorsXRemXReport_Directors_XReport_v73.indd 112 13/03/2025 14:5313/03/2025 14:53
Aston Martin’s Directors’ Remuneration Policy as set out in this report (the 2025 Remuneration Policy) will be put to shareholders for approval at
the 2025 AGM to be held on 7 May 2025. It is the Committee’s intention that the 2025 Remuneration Policy will apply to payments made from the
date of the 2025 AGM.
The Committee believes that Aston Martin’s executive remuneration should be simple and transparent while being linked to business performance
and strategic direction, taking into account the global markets in which the Company operates and from which it recruits talent as well as our
approach to remuneration throughout the whole workforce. The views of shareholders andtheir advisory bodies are very important and so the
Committee engaged with larger shareholders to understand their views during the development of this Policy and its intended implementation.
The Committee takes its duty toshareholders seriously and will continue to seek to maintain an openand constructive dialogue on our approach
to remuneration.
REMUNERATION POLICY TABLE FOR EXECUTIVE DIRECTORS
Purpose and link
tostrategy
Operation Maximum
opportunity
Performance
measures
Base salary
To attract and retain
executives of the right
calibre to successfully
develop and execute
the business strategy.
To recognise the
marketvalue and
responsibilities of
therole, experience,
abilityand personal
contribution
Typically base salaries will be reviewed
annually, with any increases normally
effectivefrom 1January.
Base salary levels and any increases take
account of:
The individual’s role, performance and
experience;
Business performance, the external
environment and cost to the company;
Salary increases for other employees; and
Salary levels for comparableroles at
relevantcomparators.
No recovery or withholdingapplies.
While there is no prescribed
maximum, salary increases
will generally be in line
withthose of the
widerworkforce.
Increases may be made above
this level where
theCommittee considers
itappropriate including (but
not limited to) a significant
increase in thescale, scope,
market comparability or
responsibilities of the role.
Where an individual has been
appointed on a salary lower
than market levels, increases
above those of the wider
workforce may be made to
recognise experience gained
and performance in the role.
Such increases will be
explained in the relevant
Annual Report on
Remuneration.
Both Company and individual
performance are considered when
determining Executive Directors’
base salaries and anyincreases.
Benefits
To offer market
competitive benefits.
Benefits typically include participation in car
schemes, private mileage entitlement, private
health insurance, travel insurance and life
insurance. Where appropriate, other benefits
may be offered including, but not limited to,
allowances for travel and relocation.
Executive Directors are eligible to participate
in all-employee share plans onthe same basis
as other employees in line with prevailing
HMRC limits.
No recovery or withholdingapplies.
Benefits provided mayvary
by role andindividual
circumstance and are
reviewed periodically.
There is no overall maximum.
None
Directors’ remuneration policy
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
113
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11315XDirectorsXRemXReport_Directors_XReport_v73.indd 113 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
Purpose and link
tostrategy
Operation Maximum
opportunity
Performance
measures
Pension (or cash allowance)
To offer market
competitive
retirement benefits in
line with the wider
workforce.
Executive Directors may participate in a defined
contribution scheme. Individuals may receive
acashallowance in lieu of some or all of their
pension contribution.
No recovery or withholdingapplies.
Maximum of 12% of
salary. The employer’s
National Insurance
contribution is typically
deducted fora cash
allowance. This is in line
with the current
maximum pension
contribution available
tothe majority of
employees.
None
Annual bonus
To focus Executive
Directors on, and
reward them for, the
successful delivery of
the annual strategic
business priorities.
The bonus is earned based on the achievement
of one year performance targets and is
delivered in cash or a combination of cash
anddeferred shares.
If an Executive Director does not meet their
shareholding guideline, 50% of any bonus will
be deferred into shares, typically for a period
ofthree years. Dividend equivalents may be
accrued on deferredshares.
Malus and clawback provisions may be applied
inexceptional circumstances as detailed in the
notes to thistable.
Maximum (as % of
salary):
CEO – 250%
Other Executive
Directors – 200%
The bonus will be based on a combination
of financial, operational, strategic and
individual measures.
Performance measures and weightings are
reviewed annually to ensure they continue
to support the achievement of the
Company’s key strategic priorities. The
majority of the bonus will be based on
financial measures.
The bonus pays out from 20% atthreshold
to 100% at maximumperformance.
The Committee retains discretion to adjust
the bonus outcomes to ensure they reflect
underlying business performance and any
other relevant factors. The Committee will
consult with shareholders where
appropriate before the use of discretion to
increase the outcome.
The Committee has discretion to amend
performance measures and targets after
they have been set if events occur that the
Committee considers substantive enough
to render the original performance
measures and/or targets no longer
applicable. Any amended performance
targets will be at least as challenging as
theones originally set.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
114
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11415XDirectorsXRemXReport_Directors_XReport_v73.indd 114 13/03/2025 14:5313/03/2025 14:53
Purpose and link
tostrategy
Operation Maximum
opportunity
Performance
measures
Long-term incentive plan (LTIP)
To focus Executive
Directors on, and
reward them for,
long-term delivery
ofsustained
performance
and value creation.
To provide longer
term alignment with
the shareholder
experience.
LTIP awards will typically be made annually,
as a combination of performance-based
shareawards and restricted share awards.
Awards may be in the form of nominal or
nil-cost options or conditional shares.
Vested shares are typically subject to a holding
period of up to two years (shares may be sold
atvesting to satisfy any tax-related liabilities).
Dividend equivalents may be accrued on
sharesthat vest.
Malus and clawback provisions may be applied
in exceptional circumstances as detailed in the
notes to this table.
Maximum (as % of
salary) – Performance
Shares (PS) and
Restricted Shares (RS):
CEO:
PS: 150%
RS: 75%
Total: 225%
Other Executive
Directors:
PS: 125%
RS: 62.5%
Total: 187.5%
Performance Shares will vest based on
financial, shareholder return and / or
strategic performance measures aligned
with the business priorities, usually
measured over a three-year period. The
Committee prior to award will determine
the targets, measures and weightings.
The Committee has discretion to amend
performance measures and targets after
they have been set if events occur that the
Committee considers substantive enough
to render the original performance
measures and/or targets no longer
applicable. Any amended performance
targets will be at least as challenging as
theones originally set.
For threshold performance, vesting is 20%
of maximum.
Restricted Shares will vest subject to
achievement of an underpin(s), which
mayinclude key financial and/ or strategic
measures and/ or share price metrics,
usually over a three-year period. The
Committee prior to award will determine
the underpin(s).
The Committee retains discretion to adjust
the vesting levels to ensure they reflect
underlying business performance and any
other relevant factors. The Committee will
consult with shareholders where
appropriate before the use of discretion
toincrease the outcome.
Shareholding policy
To provide alignment
between the interests
of Executive Directors
and shareholders
over thelonger term.
Executive Directors (as% of salary):
CEO – 300%
Other Executive Directors – 200%
Executive Directors are required to retain at
least 75% of the shares (net of tax) vesting
underthe LTIP or deferred bonus until the
shareholding guideline is met. They are
expected to build up their shareholding
guideline within a 5-year period from their
dateof appointment tothe Board.
POST-CESSATION SHAREHOLDING POLICY
All Executive Directors are typically required
toretain 50% of the shareholding guideline
forExecutive Directors (or full actual holding
iflower) for two years post-cessation of
employment, therefore 150% of salary for
theCEO and 100% ofsalary for other
ExecutiveDirectors.
Appropriate enforcement mechanismsexist.
Not applicable. Not applicable.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
115
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11515XDirectorsXRemXReport_Directors_XReport_v73.indd 115 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
OPERATION OF INCENTIVE PLANS
The incentive plans will be operated within the Policy at all times and in
accordance with the relevant plan rules and the Listing Rules. There
are a number of areas over which the Committee retains flexibility as
detailed below:
Participants in each plan;
Timing and size of an award and / or payment;
Performance measures, weightings, targets and underpins that will
apply each year and any adjustments thereof;
Treatment of awards in the event of a change of control,
restructuring or other corporate event;
Treatment of leavers; and
Amendments of plan rules in accordance with theirterms.
In the case of Executive Directors, any use of discretion by the Committee
will be disclosed in the relevant Annual Report on Remuneration and
may be subject to consultation with the Company’s shareholders.
PERFORMANCE MEASURES AND TARGETS
Pay for performance and rewarding sustainable success delivered
over the longer term are central to the Company’s remuneration
philosophy and the Committee give careful consideration to
performance measures and targets for the incentive plans each year
to ensure they are aligned with the Company’s latest strategy,
performance and the shareholder experience.
The annual bonus measures are selected to provide a balance between
rewarding operational excellence and successful execution of the
strategy, which are fundamental to the Company’s future growth. For
the LTIP, the performance measures (for performance shares) and
underpin(s) (for restricted shares) will align participants with the
generation of long-term sustainable value for shareholders with a
focus on the key long-term objectives of theCompany.
Targets for the incentive plans are set taking into account anumber of
reference points including the strategic plan, long-term business
goals and external consensus forecasts for the Company and the
market to ensure the level of performance required is appropriately
stretching.
Conditions applying to the LTIP may be varied if the Committee
considers this appropriate. If they are varied, they must, in the opinion
of the Committee be fair, reasonable and materially no less or more
challenging than the original conditions.
MALUS AND CLAWBACK PROVISIONS
Consistent with best practice, malus and clawback provisions will be
operated at the discretion of the Committee in respect of both the
annual bonus and LTIP where it considers that there are exceptional
circumstances. Such exceptional circumstances may include serious
reputational damage, a failure of risk management, an error in
available financial information, which led to the award being greater
than it would otherwise have been or personal misconduct. Clawback
may be applied for a period of up to three years from payout or vesting
for any bonus and LTIP awards.
LEGACY ARRANGEMENTS
Payments may be made to satisfy commitments made prior to the
approval of this Remuneration Policy. This may include, for example,
payments made to satisfy legacy arrangements agreed prior to an
employee (and not in contemplation of) being promoted to the
Boardof Directors. All outstanding obligations may be honoured,and
payment will be permitted under this RemunerationPolicy.
MINOR AMENDMENTS
The Committee may make minor amendments to the Policy (for
example for tax, regulatory, exchange control or administrative
purposes) without obtaining shareholderapproval.
REMUNERATION POLICY TABLE FOR THE CHAIR AND NON-EXECUTIVE DIRECTORS
Purpose and link
tostrategy
Operation Maximum
opportunity
Performance
measures
Fees
To attract and retain
high calibre and
experienced
individuals to serve
onthe Board by
offering market
competitive fee
arrangements.
A Non-Executive Chair receives an annual fee.
Non-Executive Directors receive an annual base
fee. They may receive further fees for additional
responsibilities including:
Senior Independent Director
Committee Chair
Committee member
Fees are subject to review taking into account time
commitment, responsibilities and market practice.
Non-Executive Directors are entitled to be
reimbursed for reasonable expenses incurred
during the performance of their duties, including
any tax due on these benefits.
Total fees paid will be
within the limit stated
in the Articles of
Association.
None
Non-Executive Directors do not participate in incentive or share schemes or receive a pension provision.
Notes to the Remuneration Policy Table
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
116
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11615XDirectorsXRemXReport_Directors_XReport_v73.indd 116 13/03/2025 14:5313/03/2025 14:53
ILLUSTRATIONS OF APPLICATION OF REMUNERATION POLICY
The charts below provide estimates of the potential remuneration opportunity for the CEO (Adrian Hallmark) and the CFO (Doug Lafferty) and
the split between the three different elements of remuneration under three different performance scenarios: ‘Minimum’, ‘Target’ and ‘Maximum’.
In line with the reporting regulations, a scenario assuming 50% share price growth over the three-year LTIP performance period is also shown
below (for the maximum performance scenario). The assumptions used for these charts are set out in the table below. Although technically
required, a chart has not been included for the Executive Chair as he has elected to take a nominal fee of £1 only.
CEO TOTAL REMUNERATION (£’000s)
Max +50% share
price growth
Maximum
Target
Minimum
Max +50% share
price growth
Maximum
Target
Minimum
3,9137,136
3,3136,011
2,2734,011
1,2332,011
00 1,0002,000
21%18%
25%21%
68%63%
37%32% 28%31% 35%37%
33%35%
39%42%
31%31%
36%37%
15%16%
2,0004,000 3,0006,000 4,0008,000
Fixed pay
Annual bonus
LTIP
LTIP share price growth
32 %37 %
CFO TOTAL REMUNERATION (£’000s)
MINIMUM PERFORMANCE Fixed remuneration (salary, pension and benefits)
No payout under the annual bonus
100% of LTIP restricted shares (RS)
No vesting of LTIP performance shares (PS)
TARGET PERFORMANCE Fixed remuneration
50% of max annual bonus
100% of LTIP RS
50% vesting of LTIP PS
MAXIMUM PERFORMANCE Fixed remuneration
100% of max annual bonus
100% of LTIP RS
100% vesting of LTIP PS
MAXIMUM PERFORMANCE + 50% SHARE PRICE GROWTH Fixed remuneration
100% of max annual bonus
100% of LTIP RS
100% vesting of LTIP PS
50% share price growth over 3-year LTIP period
Other than the ‘Maximum scenario + 50% share price growth’, no share price growth or dividend assumptions have been included in the
chartsabove.
SERVICE AGREEMENTS
The Executive Directors are employed under contracts of employment with Aston Martin Lagonda Limited. Consistent with the Company’s
policy, Executive Directors have service contracts with a notice period of 12 months from the Company and the Executive Director.
The Non-Executive Directors have letters of appointment, as would a Non-Executive Chair. The notice period for a Non-Executive Chair and the
Non-Executive Directors is three months.
The appointment of a Non-Executive Chair and each Non-Executive Director may be terminated immediately in certain circumstances such
ascommitting a material breach ofduties.
The appointment of the Executive Chair and non-independent Non-Executive Directors may be terminated in accordance with the Relationship
Agreement by the relevant shareholder that appointed them. The Company may also terminate their appointment if the relevant Relationship
Agreement isterminated.
The service contracts and letters of appointment are available for inspection at the Company’s registered office.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
117
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11715XDirectorsXRemXReport_Directors_XReport_v73.indd 117 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
POLICY ON PAYMENTS FOR LOSS OF OFFICE
The Company may require the Executive Director to work their notice period or may choose to place the individual on ‘garden leave’ if this is the
most commercially sensible approach. In the event of termination certain restrictions may apply for a period of up to 12 months to protect
thebusiness interests of the Company.
Payment in lieu of notice may be made for the unexpired portion of the notice period which is limited to the Executive Director’s base salary and
is subject to mitigation. The Company may make such payments in monthly instalments. The employment of each Executive Director is terminable
with immediate effect and without payment in lieu of notice in certain circumstances including gross misconduct.
The treatment of any outstanding incentive awards will be determined based on the relevant plan rules as summarised in the table below:
Element Policy and operation
Annual bonus There is no entitlement to a bonus payment in the event of termination. The Remuneration Committee may exercise its
discretion to pay a bonus depending on the circumstances of departure. Generally, leavers will lose entitlement to a bonus
unless the individual is considered a ‘good leaver’. Good leavers are eligible to be considered for a bonus depending on
whether performance conditions have been met and any payment will usually be pro-rated for the period of employment
and, where the shareholding guideline has not been met, deferred into shares on the same basis as for a continuing director,
with Committee discretion to treatotherwise.
DBSP Deferred bonus shares will lapse on leaving in the case of summary dismissal by the Company or voluntary resignation, with
Committee discretion to treat otherwise. In other circumstances, awards will normally be released at the usual time,
although the Committee can apply discretion to allow earlier release. On death, awards typically vest immediately.
LTIP The default treatment is that any outstanding awards lapse on cessation of employment. In certain circumstances “good
leaver”
1
status can be applied. In these circumstances a participant’s awards will usually vest subject to the satisfaction of the
relevant performance criteria and, ordinarily, on a time pro-rated basis with the Committee’s discretion to treat otherwise.
The balance of the awards will lapse. Unless the Committee decides otherwise, any holding period will continue to apply.
Outstanding shares subject to a holding period will not generally lapse unless the individual is subject to summary dismissal.
On death, awards will typically vest subject to the satisfaction of performance conditions as determined by the
Committee and no holding period will apply.
Corporate
event/
Change in
control
In the event of a change of control or winding up of the Company (other than an internal reorganisation), LTIP Awards will
vest to the extent that any performance conditions have been satisfied at that date, as determined by the Committee
(which may have regard to projected performance over the full Performance Period). In addition, unless the Committee
decides that pro-rating would be inappropriate in the particular circumstances, or that it should be carried out on some
other basis, pro-rating for service will apply. Outstanding deferred bonus awards will vest in full as soon as practicable.
In the event of an internal corporate reorganisation, deferred bonus and LTIP awards may (with consent from any
acquiring Company) be replaced by equivalent awards. Alternatively, the Committee may decide that deferred bonus
andLTIP awards will vest as in the case of a change of control described above.
In the event of a demerger, special dividend or other corporate event that will materially impact the share price the
Committee may, at its discretion, allow deferred bonus and LTIP awards to vest on the same basis as for a change of
control as described above. Alternatively, an adjustment may be made to the number of shares if considered appropriate.
1. For the purpose of the table above, a good leaver is generally defined as a participant that ceases employment due to ill-health, injury, disability (in each case
evidenced to the satisfaction of the Remuneration Committee), retirement with the agreement of the Company, the participant’s employing Company ceasing
tobe a Group Company, the business or part of the business to which the participant’s employment related being transferred to a person who is not a Group
Company or any other reason at the Committee’s discretion.
The Committee reserves the right to make other payments in connection with an Executive Director’s cessation of employment. Any such
payment may include paying a reasonable level of fees for outplacement assistance and / or the Director’s legal or professional advice fees
inconnection with his cessation of employment.
No payments are made on termination to any Non-Executive Director of the Company.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
118
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11815XDirectorsXRemXReport_Directors_XReport_v73.indd 118 13/03/2025 14:5313/03/2025 14:53
POLICY ON RECRUITMENT
Talent is key to the success of the Company and our remuneration framework needs to be able to attract talent of the rightcalibre to successfully
execute the Group’s business strategy. When determining remuneration on recruitment, theCommittee will take into account an individual’s role,
experience and relevant data points such as market data and internalrelativities. The Committee is mindful to pay no more than is necessary to
facilitate recruitment of the right talent.Onappointment, remuneration will generally be in line with the Policy and the maximum aggregate value
of incentives(excluding buyouts) will be no more than the maximums in the Policy table. The approach on recruitment is summarisedbelow:
Element Policy and operation
Base salary Base salary will be determined with reference to the individual’s role and responsibilities, experience and skills,
relevant market data, internal relativities and their current base salary. Salaries may be set at a level lower than the
prevailing market rate with increases made at a higher than usual rate as the individual gains experience and
performs in the role.
Pension Participation in the Company’s defined contribution pension plan or cash alternative in line with thePolicy.
Benefits Benefits in line with the Policy, including relocation benefits if appropriate.
Annual bonus The structure described in the Policy table will normally apply for new appointees with the relevant maximum typically
pro-rated to reflect service during the year. For the first year of appointment, the Committee may determine that the
annual bonus may be subject to modified terms considered appropriate in the context of the recruitment.
LTIP LTIP awards will normally be on the same terms as other executives, as described in the Policy table.
Buyout awards The Committee recognises that it may be necessary, in certain circumstances, to provide compensation for
amounts forfeited from a previous employer. Generally any buyout awards will be made on a like-for-like basis in
terms of commercial value, form, application of performance conditions and timing of receipt to ensure that they
reflect the incentives they are replacing.
The approach for an internal promotion will be consistent with the policy outlined above. Where an individual has contractual commitments
oroutstanding awards made prior to their promotion, the Company will honour these legacy arrangements.
For interim positions a cash supplement may be paid rather than salary (for example a Non-Executive Director taking on an executive function
ona short-term basis).
On appointment of a new Non-Executive Director or Chair, the information set out in the Policy table will apply.
CONSIDERATION OF EMPLOYMENT CONDITIONS ELSEWHERE IN THE COMPANY
At a senior level, there is a greater emphasis on long-term, sustainable performance and alignment with the shareholder experience and LTIP
awards are made at these levels with delivery in shares. The remuneration arrangements for Executive Directors outlined above are consistent
with those for other senior executives, although quantum and award opportunities vary by level. The key difference between executive
remuneration and that for the wider workforce is therefore that a higher proportion is at risk and dependent on Company performance.
The philosophy and principles that apply to remuneration at the Company are consistent throughout the organisation. In line with the UKCorporate
Governance Code, the Committee is fully informed of and considers wider employee remuneration and related policies including the following
as they apply to the wider workforce:
salary increases;
opportunities and payments under annual bonus plans;
operation of incentive plans; and
total remuneration levels.
The Company believes open communication with employees is very important and, while the Committee does not formally consult with
employees in respect of thedesign of the Directors’ remuneration policy, our employees are able to communicate their views and ask questions
on any topic, including remuneration through either employee roundtables (including with the designated NED workforce representative(s) and
senior executives), all-employee Townhall sessions or the Trade Union for Non-Management grades, both of which meet regularly or by using the
confidential employee helpline. Pay and terms and conditions for this group are subject to Trade Union negotiation and any increases reflect the
competitive market for skilled labour within the automotive and engineering industries.
CONSIDERATION OF SHAREHOLDER VIEWS
The Committee takes the views of and its responsibility toshareholders very seriously and we are committed to building and maintaining
arelationship that allows for an open and constructive dialogue on a wide-range of areas, including executive remuneration. Both the general
views of and any direct feedback we receive from our shareholders and their representative bodies is considered by the Committee when
determining the appropriate approach to remuneration arrangements for the Company.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
119
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 11915XDirectorsXRemXReport_Directors_XReport_v73.indd 119 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
FY 2024 TOTAL SINGLE FIGURE REMUNERATION FOR EXECUTIVE DIRECTORS (AUDITED)
The table below sets out the single figure of total remuneration received by the Executive Directors in respect of FY 2024 (and the prior financial
year). The subsequent sections detail additional information for each element of remuneration.
Shown in £'000s Salary Benefits Pension Total fixed Annual bonus LTIP Total variable TOTAL
Executive director
Lawrence Stroll
1
Year to 31 December 2024 £1 (one) £1 (one) £1 (one)
Year to 31 December 2023 £1 (one) £1 (one) £1 (one)
Adrian Hallmark
2
Year to 31 December 2024 333 52 35 421 600 n/a 600 1,021
Doug Lafferty
Year to 31 December 2024 572 126 60 758 43 n/a 43 801
Year to 31 December 2023 470 133 50 653 238 n/a 238 891
Former executive director
Amedeo Felisa
3
Year to 31 December 2024 610 362 64 1,037 61 n/a 61 1,098
Year to 31 December 2023 900 1,288 95 2,283 608 n/a 608 2,891
Notes:
1. Lawrence Stroll has elected to receive a nominal salary only, of £1 per annum, and receives no other elements of remuneration
2. 2024 remuneration for Adrian Hallmark relates to the period since joining, 1 September to 31 December 2024
3. 2024 remuneration for Amedeo Felisa relates to the period 1 January to 31 August 2024, when he stepped down from the Board
The benefits figures for Amedeo Felisa include cost of commuting flights between Italy and the UK, the Company also met the
tax payable on these flights (both 2022 and 2023 costs are included in the 2023 amount – full details are set out in the 2023 DRR)
SALARY (AUDITED)
Adrian Hallmark’s salary from date of appointment was £1m. During 2024, as part of the leadership change, the Executive Chairman and
Remuneration Committee reviewed remuneration for the leadership team, recognising the importance of stability across the team. As part of
this review, in the context of positioning his salary appropriately in the range for the leadership team and recognising external reference points,
Doug Lafferty’s (CFO) salary was increased to £640k, with an effective date of 1 June 2024.
The Committee recognises that the CEO and CFO salaries appear high in a UK FTSE 250 context and continues to benchmark remuneration
against global automotive and luxury companies, as these are the most relevant peers. The Committee considers the salary levels to be
appropriate, as they:
reflect the experience these executives have as proven talented automotive and manufacturing leaders
value the skills required to deliver the Company’s strategic objectives and financial targets
recognise the size of the task to deliver the turnaround of Aston Martin to achieve its full potential
No increases will be applied to these salaries during 2025.
In his role as Executive Chairman, Lawrence Stroll has elected to receive a nominal salary only, of £1 per annum, and receives no other elements
of remuneration. The previous CEO’s salary was £925k, as reported in the 2023 DRR.
PENSION (AUDITED)
Each Executive Director receives a cash allowance in lieu of participation in the defined contribution scheme. They receive an allowance of 12%
of salary with a deduction for an amount equal to the employer’s National Insurance contribution.
As disclosed in our Remuneration Policy, the Executive Directors’ pension allowances are in line with the majority of employees. The maximum
level of employer pension contribution throughout the organisation is the same regardless of seniority (at 12% of salary for UK employees).
No Director has a prospective entitlement to receive a defined benefit pension.
Annual report on remuneration
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
120
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12015XDirectorsXRemXReport_Directors_XReport_v73.indd 120 13/03/2025 14:5313/03/2025 14:53
ALLOWANCES AND BENEFITS (AUDITED)
Shown in £’000s Travel
Car allowance and
personal mileage
Life
assurance
Insurance
(private medical
and travel)
Location
allowance Tot al
Adrian Hallmark
Year to 31 December 2024 – £14 £5 £2 £30 £52
Doug Lafferty
Year to 31 December 2024 – £31 £6 £2 £87 £126
Year to 31 December 2023 – £39 £5 £2 £87 £133
Former executive director
Amedeo Felisa
Year to 31 December 2024 £292 £9 £61 £362
Year to 31 December 2023 £1,183 £14 – – £91 £1,288
Notes:
2024 benefits for Amedeo Felisa relate to the period 1 January to 31 August 2024
The benefits figures for Amedeo Felisa include cost of commuting flights between Italy and the UK, the Company also met the tax payable on these flights
(both2022 and 2023 costs are included in the 2023 amount – full details are set out in the 2023 DRR)
The CEO and CFO receive annual cash allowances of £50,000 and £48,000 respectively as location assistance, the Company also meets the tax
payable on these allowances. Amedeo Felisa also received a location allowance of £50,000 p.a.
The Company covered costs of commuting flights between Italy and the UK, shown in the ‘Travel’ column above for the previous CEO (Amedeo
Felisa) until he stepped down from the CEO role on 1 September 2024. The Company also met the tax payable on these flights. These flights have
now ceased, and the Company expects to meet no further such costs.
ANNUAL BONUS OUTCOMES FOR FY 2024 (AUDITED)
The annual bonus in 2024 operated in-line with the Company-wide approach, including a Group scorecard of performance measures to
reflectannual progress on our business plan and KPIs. The Group scorecard was cascaded throughout the Company to apply to annual bonus
forall employees.
For 2024, the scorecard was weighted 80% on financial measures (including a 50% weighting on adjusted EBITDA, 20% on Free Cash Flow and
10% on volumes), 15% on Quality performance and 5% on safety. The performance targets for each measure were set by the Committee at the
start of the year, considering the business plan for 2024 and market expectations. The table below sets out the Group KPI targets, the achieved
performance and the level of payout of the bonus as a % of maximum for each element.
2024 Group KPI targets
Performance measure
(weighting)
Threshold
(20%)
Target
(50%)
Maximum
(10 0%)
FY 2024
achieved
FY 2024
bonus payment
(% of maximum)
Adjusted EBITDA (50%) £350m £400m £450m £271m 0%
Free Cash Flow (20%) (£200m) (£150m) (£100m) (£392m) 0%
Wholesale Volumes (10%) 6,700 7,000 7,3 00 6,030 0%
Safety (AFR) (5%) n/a 0.28 n/a 0.35 Discretion applied
5%
Quality (15%) Internal: CPA – Customer Perception Audit – an audit of a car that has
completed all the production processes and is intercepted as it would
be handed over to the outbound transport company
Stretching targets
not achieved
0%
External – Warranty at 3 and 12 months in service:
(1) CPU – Cost Per Unit
(2) DPU – Defects Per Unit
Stretching targets
not achieved
0%
Total (100%) 5%
In assessing safety performance, the Committee recognised the significant improvement in the Group’s reported 2024 AFR of 0.35, compared to
0.40 in 2023. Despite not meeting the initial target (note the error on 2025 targets, as detailed in the Chair’s letter), the Committee recognised
the year-on-year AFR improvement and decided to exercise discretion to award full payout for this metric, on which 5% of the total bonus
opportunity was based. This level of bonus will be paid to all employees which reinforces the Company’s commitment to safety and acknowledges
the improvements in performance across the H&S KPI scorecard.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
121
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12115XDirectorsXRemXReport_Directors_XReport_v73.indd 121 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
As detailed in the Committee Chair’s introduction, the CEO (Adrian Hallmark) was eligible to receive an annual bonus of up to 300% of salary,
subject to individual performance objectives only. The table below sets out the CEO’s 2024 objectives with respect to the 2024 bonus. Overall the
objectives set were achieved at a level of 90% by 31 December 2024 (and in full by the year-end results Board meeting in February 2025), resulting
in a bonus payment of 90% of maximum (pro-rata for the period of 2024 service).
2024 annual bonus objectives–CEO
1. Align Executive Committee, Chairman and all stakeholders on mid-term plan
2. Conduct full assessment of operational performance in all areas of business
Define operation improvement plans for FY2025 in all Executive Committee areas
3. Propose revised cycle plan which supports plan out to FY2028
As agreed upon appointment, Adrian Hallmark’s 2024 bonus will be paid 100% in cash. The CEO has decided to use 50% of the net amount of his
2024 bonus to buy shares in the Company.
The previous CEO was treated as a good leaver and so will receive an annual bonus payment with respect to FY 2024, in accordance with the
performance outcome. Details of Amedeo Felisa’s leaver arrangements are set out on page 130.
Annual bonus for FY2024
Maximum
bonus
opportunity
(% of salary)
Performance
measures/
targets
Level of
2024
achievement
2024 bonus
payment
(% of
maximum)
2024 bonus
payment
(% of salary)
2024 bonus
payment
(£’000s)
Adrian Hallmark 200% Individual
objectives
See
above
90% 180% £600
Doug Lafferty* 150% Group KPI
targets
See table
above
5% 7. 5% £43
Previous executive director
Amedeo Felisa* 200% Group KPI
targets
See table
above
5% 10% £61
* 50% of the net 2024 bonus payment for the CEO and previous CEO will be delivered in shares, deferred for three years
Bonus shown above for previous CEO is for period of 2024 until he stepped down from the Board (full bonus payment pro rata to 1 September 2024 for Amedeo
Felisa is £92k
ANNUAL BONUS FOR FY 2025
As detailed in the Committee Chair’s letter, our 2025 Group KPI scorecard will be focused on our financial and quality metrics as our key strategic
priorities, and will continue to include a safety target, reflecting our commitment to improving our safety performance. Our business plan is
focused on achieving positive adjusted EBIT for the full year and generating positive FCF in H2 2025. To ensure alignment of our bonus metrics
with our plan, we are evolving our Group KPI scorecard for the 2025 bonus, moving from adjusted EBITDA to adjusted EBIT as our measure of
profit, and increasing the weighting on FCF and no longer linking bonus to volumes.
We take a Company-wide approach to the annual bonus, with the Group KPI scorecard applying in some way to bonus for all employees. To align
with other members of the management team, for 2025 we are introducing a bonus element based on individual performance objectives for the
CEO and CFO. The individual element will be weighted at 20% of bonus, with 80% subject to performance against the Group KPI scorecard. This
weighting will ensure the majority of bonus continues to be subject to financial performance within the Group KPI scorecard, while the individual
element will incentivise and reward key objectives that underpin delivery of the business plan. The 2025 individual objectives were approved by
the Remuneration Committee at the start of the year and will be disclosed retrospectively in the 2025 DRR.
The 2025 Group KPI scorecard is set out in the table below, the actual targets remain commercially sensitive and will be disclosed retrospectively
in the 2025 DRR, when the 2025 performance year is complete.
Group KPI scorecard to apply to 2025 annual bonus (80% weighting) Individual 2025 bonus
element (20% weighting)
Area Profit Cash Quality ESG
PLUS
Individual strategic
objectives that underpin
delivery of the business
plan
Measure Adjusted
EBIT
FCF In-house (CPA) (50%)
External (warranty)
(50%)
Safety (AFR)
Weighting 50% 30% 15% 5% n/a
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
122
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12215XDirectorsXRemXReport_Directors_XReport_v73.indd 122 13/03/2025 14:5313/03/2025 14:53
These Group KPI measures are aligned with our Company KPIs as set out in the Strategic Report on page 24. The Committee has selected the ESG
measure of Accident Frequency Rate (AFR) as this is a reported, well-established KPI which ensures we are able to define a target that is
quantifiable and measurable, and clearly aligned with our strategy and the goals we have committed to in our 2025 Sustainability Report. We
believe this Group KPI scorecard includes the right balance of measures to make progress during 2025 towards delivering our long-term strategy.
While we recognise that the weighting on ESG is relatively low compared to market practice, we believe that this is the right approach as we
continue to embed our approach to ESG across the business. We are committed to demonstrating progress over time given its strategic
importance and so we will continue to keep the weighting, measures and inclusion of ESG metrics in the annual bonus and / or LTIP under review
as we evolve our approach. Full details of our sustainability strategy, Racing. Green., including our ESG goals can be found in our 2025 Sustainability
Report at www.astonmartin.com/corporate.
The Committee will continue to have the discretion to adjust bonus outcomes to ensure they are appropriate and reflect underlying business
performance/ any other relevant factors.
LONG-TERM INCENTIVE PLAN
The following section sets out details of:
2022 LTIP awards – FY 2024 outcomes
2024 LTIP awards granted during FY 2024
2024 DBSP awards granted during FY 2024
Approach to 2025 LTIP awards
2022 LTIP AWARDS – FY 2024 OUTCOMES (AUDITED)
2022 LTIP awards were granted to the senior management team (including the CFO and previous CEO) on 13 June 2022.
The CFO (Doug Lafferty) was granted a standard 2022 LTIP award, subject to adjusted EBITDA performance and relative TSR. Performance with
respect to both measures was below the threshold levels set, and so the CFO’s 2022 LTIP award will lapse in full (zero vesting).
The previous CEO (Amedeo Felisa) was granted a tailored 2022 LTIP award, subject to absolute share price performance over the 2-year period
from grant date (13 June 2022 to 12 June 2024). The performance condition required that the AMLGH plc share price exceeded the £ targets set
for 30 consecutive days at any point during the performance period (with vesting based on the highest price achieved). As the AMLGH plc share
price did not exceed the targets set, the CEO’s 2022 LTIP award lapsed in full (zero vesting).
The table below sets out the adjusted EBITDA performance targets and actual performance achieved against these. The outcome with respect
to this measure was below the threshold set and so none of the shares based on adjusted EBITDA will vest.
LTIP outcomes
for FY2024
2022 LTIP
award
(no. of shares
outstanding)
Performance
period
Performance
measure
(weighting)
Vesting
schedule
Level of
performance
achieved
FY 2022 LTIP
vesting
(% of
maximum)
FY 2022 LTIP
vesting
(£’000s)
Doug Lafferty 299,255 1 Jan 2022 to 31 Dec
2024
FY 2024 adjusted
EBITDA (£m)
(80%)
20% for £350m
80% for £450m
100% for £525m
£271m 0% £0
Relative TSR
(20%)
20% for rank 6th
(median)
100% for rank 3rd
or above
(80th percentile)
Rank 11th 0% £0
Previous executive directors
Amedeo Felisa
872,828 13 June 2022 to 12
June 2024
Share price of the
Company to exceed
£x for 30
consecutive days
0% for £3.71
(or less)
100% for £6.67
(or more)
Less than
£3.71
0% £0
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
123
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12315XDirectorsXRemXReport_Directors_XReport_v73.indd 123 13/03/2025 14:5313/03/2025 14:53
2024 LTIP AWARDS GRANTED DURING FY 2024 (AUDITED)
The approach to 2024 LTIP awards was set out in detail in the 2023 DRR, ahead of the main grant date (in June 2024). The table below summarises
the LTIP share awards that were granted during FY 2024.
FY 2024 Grant date
Type
of award
Basis
of award
Number of
shares awarded
Face value at grant
(£’000s)
Adrian Hallmark (CEO) 5 November 2024 LTIP share award 300% of salary 2,242,152 £3,000
Doug Lafferty (CFO) 5 June 2024 200% of salary 870,748 £1,280
Previous executive director
Amedeo Felisa (previous CEO) 5 June 2024 300% of salary 1,887,755 £2,775
Notes:
(1) The LTIP shares were granted on the dates shown and will vest subject to the performance conditions and vesting schedule set out below
(2) The awards were granted in the form of nil-cost options
(3) The face values of the awards for the CFO and previous CEO were calculated using the 3-day average price prior to the date of grant (£1.47)
(4) The face value of the award for CEO (Adrian Hallmark) was calculated using the 3-month average price prior to the date of grant (£1.338)
The Committee gave considerable thought and discussed in detail the appropriate LTIP award level to grant to the new CEO, given the
performance of the Company both in terms of financial outcomes and share price, and the need to incentivise new leadership and commitments
made on appointment. With support from the Executive Chairman, the Committee decided to grant an LTIP award in respect of 2024 of 300%
ofsalary (at a maximum). The CEO’s 2024 LTIP award was granted in November 2024 on the same basis as to all other 2024 participants with
one exception, the adjusted EBITDA and relative TSR performance conditions were weighted equally (50% on each rather than 80%/ 20%)
torecognise the importance of share price performance.
The previous CEO was treated as a good leaver in respect of his outstanding 2024 LTIP award, and so his award will be preserved but pro-rated
based on period of service to his leave date. Details of Amedeo Felisa’s leaver arrangements are set out on page 130.
The 2024 LTIP awards are subject to the performance conditions detailed below.
2024 LTIP performance measures and targets
FY 2024 LTIP
New CEO Weighting
of measures
CFO and previous CEO
Weighting of measures
2024 LTIP
targets
Vesting*
(as a % of maximum)
Adjusted EBITDA
(£m in FY26)
50% 80% Threshold 450 20%
Stretch 550 80%
Maximum 650 100%
Relative TSR**
(vs. luxury peers)
50% 20% Threshold Rank 6th (median) 20%
Maximum Rank 3rd or above
(80th percentile)
100%
* Vesting will be on a straight-line basis between each of threshold and stretch, and stretch and maximum for the EBITDA element and threshold and maximum for
the TSR element.
** TSR performance will be measured on a ranked basis against the following luxury companies: Burberry, Capri Holdings, Ferrari, Hermes International, Kering,
LVMH, Moncler, Prada, Ralph Lauren and Richemont.
The Remuneration Committee retains discretion to adjust the vesting levels to ensure they reflect underlying business performance and any
other relevant factors to ensure that the value at vesting is fully reflective of the performance delivered and executives do not receive unjustified
windfall gains.
2024 LTIP performance period
Performance for both measures will be measured over three financial years to 31 December 2026. Subject to performance, awards will vest
3years from grant, following the announcement of results for 2026 but subject to a further 2-year holding period post vest (net of tax).
The Executive Directors (including the previous CEO) will be required to hold at least 75% of any shares that vest (net of tax) unless he has met his
shareholding guidelines under the shareholding policy at that time.
2024 DBSP AWARDS GRANTED DURING FY 2024
In accordance with the rules of the Aston Martin Lagonda Deferred Share Bonus Plan 2018 (“DBSP”), the Directors named below were granted
nil-cost options over Shares as follows:
Amedeo Felisa (previous CEO) – 109,677 shares
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
124
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12415XDirectorsXRemXReport_Directors_XReport_v73.indd 124 13/03/2025 14:5313/03/2025 14:53
The DBSP award is in relation to the 2023 annual bonus which, as disclosed in the 2023 DRR, was to be delivered 50% in cash and 50% in deferred
shares. The number of shares granted reflects the net bonus amount (post tax and NI). Shares under the DBSP awards are deferred for a period
of 3 years from grant and will be released, subject to continued employment, on 5 June 2026. The previous CEO was treated as a good leaver
inrespect of his outstanding DBSP awards. Details of Amedeo Felisa’s leaver arrangements are set out on page 130.
MALUS AND CLAWBACK:
Malus and clawback provisions will be operated at the discretion of the Remuneration Committee in respect of awards granted under the
LTIP and DBSP where it considers that there are exceptional circumstances. Such exceptional circumstances may include serious reputational
damage, a failure of risk management, an error in available financial information, which led to the award being greater than it would
otherwise have been or personal misconduct.
Clawback may be applied for a period of up to three years for any LTIP and DBSP awards.
APPROACH TO 2025 LTIP AWARDS
As per the proposed Policy, a Hybrid LTIP approach will be introduced for 2025, including both awards of performance-based shares and
restricted shares.
The Committee has decided to evolve the performance measures for 2025 LTIP awards, moving from adjusted EBITDA to adjusted EBIT targets
for 2025 awards, upon which 80% of performance shares will vest. The Committee believes strong performance in adjusted EBIT will be key
todelivering strong shareholder returns and recognises both market and internal focus on this key profit metric, which is now used to manage
thebusiness. The adjusted EBIT targets have been carefully calibrated based on Aston Martin’s latest business plan and external expectations.
The range has been set to be stretching (particularly at the maximum vesting level) yet motivating in the context of our business plan and the
external environment.
The remaining 20% of performance shares will vest based on relative TSR performance. The Committee reviewed the TSR peers ahead of the
2025 award and decided to measure TSR relative to two groups (10% weighting on each): (1) luxury and automotive peers and (2) the FTSE 250.
Relative TSR recognises the importance of shareholder alignment and will be measured on a relative basis, aiming to incentivise further elevation
of the Aston Martin brand, by out-performance of (1) high-end luxury and automotive companies and (2) the FTSE 250. Ultimately, the successful
delivery of our business plan and strategy (detailed on page 22) will be reflected in our adjusted EBIT and TSR performance.
It is anticipated that 2024 LTIP awards will be granted in May 2025, with awards at the following levels:
2025 LTIP awards (% of salary)
Performance shares Restricted shares Total
Adrian Hallmark (CEO) 150% 75% 225%
Doug Lafferty (CFO) 125% 62.5% 187.5%
2025 LTIP performance measures and targets (to apply to performance shares element)
2025 LTIP
targets
Vesting*
(as a % of maximum)
Adjusted EBIT
(£m in FY27)
(80% of award)
Threshold 125 20%
Stretch 200 80%
Maximum
275 100%
Relative TSR**
(vs. luxury and automotive peers, 10% of award)
(vs. FTSE 250, 10% of award)
Threshold Rank Median 20%
Maximum Rank Upper Quartile
or above 100%
* Vesting will be on a straight-line basis between threshold and stretch, and stretch and maximum for the EBIT element and threshold and maximum for TSR
** TSR peers for the 2025 LTIP: (1) 10% on TSR vs. luxury peers: Burberry, Bruno Cucinelli, Ferrari, Hermes International, Kering, LVMH, Mercedes-Benz, Moncler,
Porsche, Prada, Richemont and Salvatore Ferragmo; (2) 10% on TSR vs. the FTSE 250
2025 LTIP underpin (to apply to restricted shares element)
The restricted shares element of the LTIP will be released subject to achievement of an underpin. For 2025, the underpin will be as follows:
The Committee has discretion to reduce the vesting level if it considers satisfactory performance over the vesting period has not been achieved.
In making this assessment, the Committee will assess the Company’s underlying performance, delivery against the strategy and business plan,
other performance indicators as the Committee considers appropriate (including revenue, earnings, share price performance, delivery of the
Company’s ESG strategy) and the shareholder and wider stakeholder experience.
The Remuneration Committee retains discretion to adjust the vesting levels to ensure they reflect underlying business performance and any
other relevant factors to ensure that the value at vesting is fully reflective of the performance.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
125
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12515XDirectorsXRemXReport_Directors_XReport_v73.indd 125 13/03/2025 14:5313/03/2025 14:53
2025 LTIP Performance period
Performance for both measures (performance shares) and the underpin (restricted shares) will be measured over three financial years to
31December 2027. Subject to performance, awards will vest 3 years from grant, following the announcement of results for 2027 but subject
toafurther 2 year holding period post vest (net of tax).
The CEO and CFO will be required to hold at least 75% of any shares that vest (net of tax) until they have met their shareholding guidelines under
the shareholding policy at that time.
SHARE INTERESTS AND SHAREHOLDING GUIDELINES (AUDITED)
The CEO and CFO are subject to shareholding guidelines of 300% and 200% of salary respectively, which drives long-term alignment
withinvestors.
The following table sets out the total beneficial interests of the executive directors (and their connected persons) in ordinary shares of the
Company as at 31 December 2024 (or at the date of stepping down, if earlier), as well as the status against the shareholding guidelines. The table
also summarises conditional interests in share or option awards.
As at 31 December 2024
Shares owned
outright
Shares vested
but subject
to future
release
1
Total shares owned
outright or vested
2
As a % of
salary
3
Shareholding
guideline
(as % of salary)
Guideline
met?
LTI P award
shares
unvested and
subject to
performance
4
Adrian Hallmark
– – – – 300% No 2,242,152
Doug Lafferty
358,769 12,221 370,990 62.0% 200% No 1,522,855
Lawrence Stroll
5
259,081,263 – 259,081,263 n/a n/a
Previous executive director
Amedeo Felisa
6
30,000 115, 497 145,497 23.4% 300% No 1,887,755
Notes:
1 These shares were awarded under the deferred bonus plan in respect of 50% of the net (post tax and NI) 2022 and 2023 annual bonus payments
(see page 124 and 2023 DRR)
2 There have been no changes in the period up to and including 25 February 2025
3 Based on the closing share price on 31 December 2024 of £1.07
4 These shares were granted under the 2022, 2023 and 2024 LTIP awards
5 The number of shares shown for Lawrence Stroll includes both direct and indirect interests
6 Information for Amedeo Felisa is shown as at the date he stepped down from the Board (31 August 2024)
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
126
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12615XDirectorsXRemXReport_Directors_XReport_v73.indd 126 13/03/2025 14:5313/03/2025 14:53
TSR PERFORMANCE GRAPH AND CEO REMUNERATION
The Company’s shares started trading on the London Stock Exchange’s main market for listed securities on 8 October 2018.
The graph below shows the TSR performance of £100 invested in the Company’s shares since listing, compared to the FTSE 250 index which
hasbeen chosen because the Company has been a constituent of this index since listing.
TSR vs. the FTSE 250
31-Dec-2431-Dec-2331-Dec-2231-Dec-2131-Dec-2031-Dec-1931-Dec-188-Oct-18
AML FTSE 250
0
20
40
60
80
100
120
140
The table below shows the total remuneration earned by the incumbent CEO over the same period, along with the percentage of maximum
opportunity earned in relation to each type of incentive. The total amounts are based on the same methodology as used for the single figure
oftotal remuneration for FY 2024 on page 120.
CEO total remuneration
FY 2018(1) 2018(2) 2019 2020 2020 2021 2022 2022 2023 2024 2024
(AP) (AP) (AP) (AP) (TM) (TM) (TM) (AF) (AF) (AF) (AH)
Total remuneration (£'000s) 407 1,347 1,353 476 1,341 1,055 402 2,891 2,891 1,098 1,021
Bonus (% of maximum) 0% 0% 0% 0% 20% 0% 5.05% 5.05% 34% 10% 90%
LTIP (% of maximum) n/a n/a n/a n/a n/a n/a 0% n/a n/a 0% n/a
Notes:
1 FY 2018 remuneration shown is for the period 8 October to 31 December 2018, annual bonus was restated to zero as set out in the 2019 DRR
2 The amounts shown for FY 2018 in the second column have been annualised, as if the Remuneration Policy operated since IPO had been in place for the full year
(as disclosed in the 2018 DRR, with bonus restated to zero)
3 Adrian Hallmark (AH, from 1 September 2024), Amedeo Felisa (AF, CEO from 4 May 2022 to 30 August 2024), Tobias Moers (TM, CEO from 1 August 2020 to
4May 2022), Dr Andy Palmer (AP, CEO to 25 May 2020)
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
127
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12715XDirectorsXRemXReport_Directors_XReport_v73.indd 127 13/03/2025 14:5313/03/2025 14:53
DIRECTOR REMUNERATION RELATIVE TO EMPLOYEES
The table below shows the percentage change in Directors’ remuneration and average remuneration of employees on an annual basis. For
comparison purposes, only Directors who had periods of service in both 2024 and 2023 have been included and amounts have been adjusted in
all years to reflect a full year equivalent to enable a meaningful reflection of year-on-year change.
Year-on-year
change (%)
2024 2023 2022 2021
Salary/ fees Bonus Benefits Salary/ fees Bonus Benefits Salary/ fees Bonus Benefits Salary/ fees Bonus Benefits
Average
employee 3.8% -114.8% 12.8% 569% 0.0% 6.0% 23.0% 0.0% 0.0% 0.0% 0.0%
Executive
Directors
Lawrence Stroll 0.0% – – 0.0% – – 0.0% – – 0.0% – –
Adrian Hallmark – – – – – – – – – – – –
Doug Lafferty 21.6% -82.0% -5.1% 5.5% 592% 457% – – – – – –
Former
executive
directors
Amedeo Felisa 2.1% -84.9% -69.2% 3.0% 593% 1317% – – – – – –
Non-Executive
Directors
Ahmed
Al-Subaey 0.0% – – 6.8% – – – – – – – –
Nigel Boardman 11.1% – – 35.0% – – – – – – – –
Robin Freestone 0.0% – – 10.6% – – 0.0% – – – – –
Daniel Li
Donghui 4.6% – – – – – – – – – – –
Natalie
Massenet 0.0% – – 6.0% – – 1.0% – – – – –
Marigay McKee 1.3% – – 19.0% – – 2.0% – – – – –
Franz Reiner 0.0% – – 9.2% – – 0.0% – – – – –
Scott Robertson 0.0% – – 6.1% – – – – – – – –
Anne Stevens 0.0% – – 9.9% – – 19.0% – – – – –
Jean Tomlin 4.2% – – – – – – – – – – –
Notes:
1 The comparator group includes all UK employees. This group represents the majority of Aston Martin employees and is the same group used for the pay ratio
reporting below.
2 For the comparator group of employees, the salary year-on-year change is shown includes the annual salary review from 1 January 2024 but excludes any
additional changes made in the year, for example on promotion
3 For benefits, there were no changes to benefit policies or levels during the year. The benefits figures for Amedeo Felisa include cost of commuting flights
between Italy and the UK, the Company also met the tax payable on these flights (both 2022 and 2023 costs are included in the 2023 amount – full details
aresetout in the 2023 DRR)
4 NED fees were increased for the 2023 year, as set out in the 2022 DRR. Nigel Boardman took on the role of SID during 2023 and Marigay McKee became
amember of the Nomination Committee during the year – the increases shown for both 2023 and 2024 reflect fees for these additional roles
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
128
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12815XDirectorsXRemXReport_Directors_XReport_v73.indd 128 13/03/2025 14:5313/03/2025 14:53
CEO PAY RATIOS
The ratios, set out in the table below, compare the total remuneration of the incumbent CEO (as included in the single figure table on page 120)
to the remuneration of the median UK employee as well as employees at each of the lower and upper quartiles. Due to the change of CEO during
the year, the FY 2024 values are derived from the total single figure of remuneration table on page 120 for the periods that each of AdrianHallmark
and Amedeo Felisa held the CEO role (and added together).
25th percentile
(P25)
Median
(P50)
75th percentile
(P75)
Salary of employee identified (FY 24) £50k £44k £59k
Total remuneration of employee identified (FY 24) £55k £66k £79k
CEO pay ratios (Option A)
FY 24 38 to 1 32 to 1 27 to 1
FY 23 59 to 1 50 to 1 41 to 1
FY 22 26 to 1 22 to 1 18 to 1
FY 21 27 to 1 23 to 1 19 to 1
FY 20 53 to 1 45 to 1 37 to 1
FY 19 34 to 1 29 to 1 24 to 1
The ratios are calculated using ‘option A’ as set out in the disclosure regulations. The employees at the lower quartile, median and upper quartile
(P25, P50 and P75) were determined based on total remuneration for FY 2024 using a calculation approach consistent with that used for the
incumbent CEO in the single figure table on page 120. The Committee chose to use option A on the basis that it would provide the most accurate
approach to identifying the median, lower and upper quartile employees.
The Committee considers pay ratios as one of many reference points when considering remuneration. Throughout Aston Martin, pay is positioned
to be fair and market competitive in the context of the relevant talent market for each role.
RELATIVE IMPORTANCE OF SPEND ON PAY FOR FY 2024
The table below sets out the total payroll costs for all employees for FY 2024 compared to distributions to shareholders by way of dividend
andshare buyback. Adjusted EBITDA is also shown as context.
FY 2024 FY 2023
Adjusted EBITDA £m 271 306
% change -11. 4% n/a
Distributions to shareholders £m 0 0
% change 0% 0%
Payroll costs for all employees £m 251.2 221.7
% change +13 . 3%
SERVICE AGREEMENTS
The table below sets out information on service agreements for the executive directors.
Executive Director Title Effective date of service agreement Notice period to and from the Company
Lawrence Stroll Executive Chairman 20 April 2020 Mr Stroll’s appointment is terminable in
accordance with the Yew Tree Relationship
Agreement
Adrian Hallmark Chief Executive Officer 21 March 2024 12 months
Doug Lafferty Chief Financial Officer 13 January 2022 12 months
The service agreements for Executive Directors are available for inspection by shareholders at the registered office of the Company.
EXTERNAL APPOINTMENTS
It is recognised that Non-Executive Directorships can provide a further level of experience that can benefit the Company. As such, Executive
Directors may usually take up one Non-Executive Directorship (broadly equivalent in terms of time commitment to a FTSE 350 Non-Executive
Directorship role) subject to the Board’s approval as long as there is no conflict of interest. A Director may retain any fee received in respect
ofsuch Non-Executive Directorship. Neither the CEO nor the CFO has any Non-Executive Directorships.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
129
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 12915XDirectorsXRemXReport_Directors_XReport_v73.indd 129 13/03/2025 14:5313/03/2025 14:53
FURTHER INFORMATION ON REMUNERATION FOR NEW CEO
Adrian Hallmark’s remuneration for his role as CEO (from 1 September 2024) is detailed below and is in-line with remuneration for the previous
CEO and the Remuneration Policy:
Base salary of £1m, reflecting his experience as one of the most highly regarded leaders and automotive professionals in the high
performance luxury sports car sector
An annual cash allowance of £50,000 as travel/ location assistance (the Company will also meet tax payable on this allowance)
A pension allowance of 12% of salary (with a deduction for an amount equal to the employer’s NI) and other non-cash benefits in accordance
with the Remuneration Policy
Annual performance-based bonus opportunity of up to 200% of salary 2024 bonus approach set out on page 122
Annual award under the Long-Term Incentive Plan of up to 300% of salary 2024 LTIP approach set out on page 124
Shareholding guideline of 300% of salary
FURTHER INFORMATION ON REMUNERATION FOR OUTGOING CEO
Amedeo Felisa stepped down as Chief Executive Officer and an Executive Director of the Company on 1 September 2024. The following
remuneration arrangements applied in connection with the termination of Amedeo Felisa’s employment:
Amedeo Felisa had a 12-month notice period which commenced on 1 September 2024. He remained employed and available to the Group
to aid the smooth transition of leadership until 31 December 2024 at which point his employment terminated. He was paid his normal salary
and received benefits as an employee until his employment ended and was then paid £616,667 (salary only less applicable tax deductions)
inlieu of the unserved part of his notice period.
Amedeo Felisa remained eligible to receive an annual bonus for his 2024 period of service (the full financial year, from 1 January 2024 to
31December 2024). Any 2024 annual bonus due (subject to 2024 performance) will be delivered 50% in cash and 50% in deferred shares
under the Deferred Bonus Share Plan (DBSP). The Remuneration Committee determined that Amedeo Felisa would be treated as a good
leaver, and so his outstanding 2023 and 2024 DBSP awards over 5,820 and 109,677 shares respectively will be released in full on the original
release dates (of 24 May 2026 and 5 June 2027 respectively).
In respect of his outstanding 2024 LTIP award, the Remuneration Committee determined that Amedeo Felisa would be treated as a good
leaver, and this award would be pro-rated based on period of service from grant date to the termination date. The pro-rata number of shares
under this award (394,936 shares) will remain subject to the original performance conditions and vesting date.
Amedeo Felisa will be required to retain all those shares in the Company that he holds as at 1 September 2024 (including shares under
theDBSP awards) for a period of two years until 31 August 2026.
Amedeo Felisa will continue to be covered by the Company’s D&O insurance.
No payments for loss of office were or will be paid to Amedeo Felisa.
PAYMENTS FOR LOSS OF OFFICE
No payments for loss of office were made during the financial year.
PAYMENTS TO PAST DIRECTORS
No payments were made to past Directors during the year.
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
130
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13015XDirectorsXRemXReport_Directors_XReport_v73.indd 130 13/03/2025 14:5313/03/2025 14:53
NON-EXECUTIVE DIRECTORS’ REMUNERATION (AUDITED)
The Policy on remuneration for Non-Executive Directors is set out on page 116.
The table below sets out the single figure of total remuneration received or receivable by the Non-Executive Directors in respect of FY 2024
(andthe prior financial year).
Non-Executive Directors
Tot al fee
(£’000s)
Ahmed Al-Subaey
Year to 31 December 2024 65
Year to 31 December 2023 65
Nigel Boardman
Year to 31 December 2024 100
Year to 31 December 2023 90
Michael de Picciotto
Year to 31 December 2024 –
Year to 31 December 2023 –
Robin Freestone
Year to 31 December 2024 94
Year to 31 December 2023 94
Cyrus Jilla
1
Year to 31 December 2024 –
Year to 31 December 2023 –
Daniel Li Donghui
2
Year to 31 December 2024 71
Year to 31 December 2023 29
Natalie Massenet
Year to 31 December 2024 71
Year to 31 December 2023 71
Marigay McKee
3
Year to 31 December 2024 76
Year to 31 December 2023 75
Franz Reiner
Year to 31 December 2024 71
Year to 31 December 2023 71
Scott Robertson
Year to 31 December 2024 71
Year to 31 December 2023 71
Anne Stevens
Year to 31 December 2024 111
Year to 31 December 2023 111
Jean Tomlin
4
Year to 31 December 2024 76
Year to 31 December 2023 13
Notes:
1 Cyrus Jilla joined the Board on 27 October 2023 and elected to waive his Board fees
2 Daniel Li Donghui joined the Board on 28 July 2023
3 Marigay McKee became a member of the Nomination Committee on 17 May 2023
4 Jean Tomlin joined the Board on 27 October 2023
SUMMARY OF NON-EXECUTIVE DIRECTORS’ FEES FOR FY 2025
The table below sets out the annual fee structure for the NEDs for 2025 (unchanged from 2024 fee levels).
NED role
FY 2025 fee
(£’000s)
Basic NED fee 65
SID fee 17
Committee Chair 17
Committee member 6
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
131
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13115XDirectorsXRemXReport_Directors_XReport_v73.indd 131 13/03/2025 14:5313/03/2025 14:53
NON-EXECUTIVE DIRECTOR SHAREHOLDINGS (AUDITED)
The table below summarises the total interests of the Non-Executive Directors (and their connected persons) in ordinary shares of Aston Martin
Lagonda Global Holdings plc as at 31 December 2024.
Non-Executive Directors Total number of shares owned
1
Ahmed Al-Subaey 704,312
Nigel Boardman 86,983
Michael de Picciotto
2
8,000,000
Robin Freestone 38,929
Cyrus Jilla 1,000,000
Daniel Li Donghui -
Natalie Massenet 20,000
Marigay McKee -
Franz Reiner 13,477
Scott Robertson -
Anne Stevens 35,000
Jean Tomlin -
Notes:
1 Other than those stated below, there have been no changes in the period up to and including 25 February 2025
2 Held via St James Invest SA
LETTERS OF APPOINTMENT
The Non-Executive Directors have letters of appointment. All Non-Executive Directors’ appointments and subsequent re-appointments are
subject to annual re-election at the AGM. Dates of the letters of appointment of the Non-Executive Directors as at the date of this report are set
out in the table below.
Non-Executive Directors Date of appointment Notice period
Ahmed Al-Subaey 1 November 2022 3 months
Nigel Boardman 1 October 2022 3 months
Michael de Picciotto 24 April 2020 3 months
Robin Freestone 1 February 2021 3 months
Natalie Massenet 8 July 2021 3 months
Marigay McKee 8 July 2021 3 months
Cyrus Jilla 27 October 2023 3 months
Daniel Li Donghui 28 July 2023 3 months
Franz Reiner 8 July 2021 3 months
Scott Robertson 1 November 2022 3 months
Anne Stevens 1 February 2021 3 months
Jean Tomlin 27 October 2023 3 months
The terms and conditions of appointment for Non-Executive Directors are available for inspection by shareholders at the registered office of
theCompany.
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
132
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13215XDirectorsXRemXReport_Directors_XReport_v73.indd 132 13/03/2025 14:5313/03/2025 14:53
REMUNERATION COMMITTEE IN FY 2024
Committee membership
The following Directors served as members of the Committee during FY 2024:
Anne Stevens (Chair)
Robin Freestone
Natalie Massenet
Committee remit
The Committee’s Terms of Reference are published on www.astonmartin.com/corporate.
In addition to setting the remuneration of the Executive Directors, the Committee continues to directly oversee the remuneration arrangements
for the other Chief level roles (including Chief Creative Officer, Chief Commercial Officer, Chief Industrial Officer, General Counsel, Chief
Technology Officer, Chief Transformation Officer, Chief People Officer and Chief Procurement Officer).
Summary of meetings
The Committee typically meets four to six times a year. During FY 2024, the Committee met six times and the agenda items discussed at these
meetings are summarised below.
Early February 2023 quality metrics – review of performance and outcome
Expected 2023 annual bonus outcome
2024 approach to incentives – financial measure targets
Review of draft FY 2024 DRR
Late February Approval of 2023 annual bonus payment
2021 LTIP – outcome of adjusted EBITDA element
Approval of 2024 annual bonus performance measures and targets
Approval of 2024 LTIP awards
Approval of 2023 Directors’ Remuneration Report
Approval of 2023 Gender Pay Gap report
Approval of Chief population 2024 remuneration
Approval of incoming CEO remuneration
May Review of leadership team remuneration, in context of leadership change
Approval of 2024 restricted share awards
July Update on external reward environment and latest investor guidelines
2025 Remuneration Policy review – timetable
2021 LTIP – outcome of Relative TSR performance element
CEO 2022 LTIP – outcome of share price performance condition
Approval of leaver terms for outgoing CEO
September 2025 Remuneration Policy review
Approval of CEO 2024 incentives approach
December Expected 2024 annual bonus and 2022 LTIP outcomes
2025 Remuneration Policy review update
Approval of travel allowance updates for two Chief-level roles
Approval of leaver terms for two Chief-level roles
Remuneration Committee annual evaluation
Approval of updated Remuneration Committee terms of reference
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
133
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13315XDirectorsXRemXReport_Directors_XReport_v73.indd 133 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REMUNERATION REPORT CONTINUED
Attendance at Committee meetings
The following table sets out the number of meetings attended by each Committee member during FY 2024
Director Meetings Attended
Robin Freestone 6/6
Natalie Massenet* 5/6
Anne Stevens 6/6
* Natalie Massenet missed one unscheduled meeting due to a conflicting schedule
Committee performance evaluation
The Committee was evaluated as part of the internal effectiveness review of the Board and its Committees (details of which can be found on
page 92). The Committee also reviewed its own performance and was satisfied that it continued to perform effectively and had worked
constructively and collaboratively in a year of many business activities and was rated highly by the members and other respondents to the
evaluation survey.
Advice to the Committee
The Chair of the Board and members of the management team are invited to attend Committee meetings where appropriate, except when their
own remuneration is being discussed. During the year the Executive Chairman, CEO, CFO, VP and General Counsel, Company Secretary, Chief
People Officer, Chief Industrial Officer and Director of Reward attended meetings at the Committee’s invitation.
The Committee has received independent advice on remuneration from Willis Towers Watson (WTW). WTW is a member of the Remuneration
Consultants’ Group and, as such, voluntarily operates under the Remuneration Consultants’ Group Code of Conduct in relation to executive
remuneration consulting in the UK. The Committee is satisfied that the advice provided by WTW is independent and objective. WTW has no other
connection with the Company. Total fees received by WTW in relation to remuneration advice provided that materially assisted the Committee
during FY 2024 were £57,220, which had been charged on a time spent basis.
REMUNERATION VOTING RESULTS
The table below shows the results of the shareholder votes at the 2024 AGM on the DRR and at the 2022 AGM on the Directors’ Remuneration
Policy.
AGM voting results Votes for Votes against Votes withheld
2024 AGM: To approve the DRR for the year ending 31 December 2023 522,975,857 5 4,259,124 131,776
(90.60%) (9.40%)
2022 AGM: To approve the 2022 Directors’ Remuneration Policy 67,922,049 1,772,525 4,251
(97.4 6%) (2.54%)
APPROVAL
This report has been approved by the Board and signed on its behalf by:
DR. ANNE STEVENS
CHAIR, REMUNERATION COMMITTEE
25 February 2025
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
134
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13415XDirectorsXRemXReport_Directors_XReport_v73.indd 134 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REPORT
ABOUT THE DIRECTORS’ REPORT
This Directors’ Report sets out the information required to be disclosed by the Company in compliance with the Companies Act 2006, the UK Listing Rules
and the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules (DTRs). It forms part of the management report as required under the
DTR, along with the Strategic Report (pages 1–63) and other sections of this Annual Report and Accounts including the Corporate Governance Report
(pages 65–134) all of which are incorporated by reference, as outlined in the table below.
Information Reported in Pages
Business model Strategic Report 20 –21
Corporate governance framework Corporate Governance Report 74–77
Community and charitable giving Strategic Report
19 and 41
Credit market and liquidity risks Financial Statements (note 23) 186–195
Directors’ conflicts of interest Corporate Governance Report 76 and 90
Directors’ share interests and remuneration Directors’ Report on Remuneration 104–134
Director training and development Corporate Governance Report 90
Equity, Diversity and Inclusion Strategic Report 38– 41
Nomination Committee Report 91
Employee engagement Strategic Report 38– 41
Governance Report 84–85
Financial instruments Financial Statements (note 23) 186–195
Future developments and strategic priorities Strategic Report 22–23
Going concern statement Financial Statements (note 1) 159–160
Greenhouse gas emissions Strategic Report 52
Health and safety Strategic Report 39
Human rights Strategic Report 43–44
Directors’ Report 139
Modern Slavery Statement Strategic Report 44
Principal risks and risk management Strategic Report 56 – 61
Non-financial and sustainability information Strategic Report 63
Non-pro rata allotments for cash Financial Statements (note 27) 201
Results Consolidated Income Statement 154
Risk management and internal control Strategic Report 56– 61
Section 172 Statement Strategic Report 82–83
Stakeholder engagement Strategic Report 16–19
Statement of Directors’ Responsibilities Directors’ Report 141
Viability Statement Strategic Report 62
Workforce engagement Governance Report 84–85
Strategic Report 38– 41
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
135
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13515XDirectorsXRemXReport_Directors_XReport_v73.indd 135 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REPORT CONTINUED
ANNUAL GENERAL MEETING
The Company’s Annual General Meeting (AGM) will be held
electronically by audio webcast at 10.30am on Wednesday 7 May
2025. The Notice of the AGM will be available on the Company’s
website at www.astonmartin.com/corporate.
ARTICLES OF ASSOCIATION
The Articles of Association set out the internal regulation of the
Company and cover such matters as the rights of shareholders, the
appointment or removal of Directors, and the conduct of the Board
and general meetings. Copies are available from the Company
Secretary and the Articles can also be found on our website
www.astonmartin.com/corporate. In accordance with the Articles,
Directors can be appointed or removed by the Board or by
shareholders in a general meeting. Amendments to the Articles must
be approved by at least 75% of those voting in person or by proxy at a
general meeting of the Company. Subject to UK company law and the
Articles, the Directors may exercise all the powers of the Company,
may delegate authorities to Committees, and may delegate day-to-
day management and decision-making to individual Executive
Directors. Details of the Board Committees can be found on page 76.
The rules governing the appointment and removal of a Director are
set out in the Company’s Articles of Association. Specific details
relating to the significant shareholder groups and their right to appoint
Directors are set out on page 138.
CORPORATE GOVERNANCE STATEMENT
Under the Disclosure and Transparency Rules, a requirement exists for a
Corporate Governance Statement to be included in this Directors’
Report. The corporate governance statement, explaining how the Group
complies with the Governance Code, is set out on page 74. Adescription
of the composition and operation of the Board and its Committees is set
out on pages 68–77. Other than the areas of non-compliance identified
on page 74, the Company has complied throughout the accounting
period with the 2018 UK Corporate Governance Code.
DIRECTORS’ INSURANCE AND INDEMNITIES
The Company’s Articles of Association provide for the Directors and
officers of the Company to be appropriately indemnified subject to
the provisions of the Companies Act 2006. In addition, the Company
maintains Directors’ and Officers’ liability insurance, which provides
cover for legal actions brought against its Directors and officers.
Neither the Company’s indemnity nor insurance covers claims arising
from dishonesty or fraud. In addition, each Director of the Company
also has the benefit of prospectus liability insurance which provides
cover for liabilities incurred by Directors in the performance of their
duties or powers in connection with the issue of the following
documents (as applicable):
The Company’s prospectus dated 20 September 2018 in relation to
the Company’s commercial listing of equity shares and admission
to trading on the Main Market for listed securities of the London
Stock Exchange
The Company’s combined prospectus and circular dated
27February 2020 (together with the two supplementary
prospectuses) in relation to the placing of ordinary shares
and the rights issue
The Company’s prospectus dated 5 September 2022 in relation
tothe placing of ordinary shares and the rights issue
No amount was paid under any of these indemnities or insurances
during the year other than the applicable insurance premiums.
In accordance with Section 236 of the Companies Act 2006, qualifying
third-party indemnity provisions are in place for the Directors in
respect of liabilities incurred as a result of their office, to the extent
permitted by law. Both the insurance and indemnities applied
throughout the year ended 31 December 2024 and up to the date of
this Report.
DIRECTORS
Details of Directors who served throughout the year are set out in the table below. Adrian Hallmark and Vicky Jarman will be offering themselves
for election in accordance with the Company’s Articles of Association at the 2025 AGM. Robin Freestone stepped down from the Board on
28February 2025. All the remaining existing Directors will be offering themselves for re-election. Vicky Jarman’s appointment to the Board was
announced on 25 February 2025, to take effect on 1 March 2025.
Name Date of appointment Date of cessation
Lawrence Stroll 20 April 2020
Amedeo Felisa 4 May 2022 1 September 2024
Adrian Hallmark 1 September 2024
Doug Lafferty 1 May 2022
Ahmed Al-Subaey 1 November 2022
Sir Nigel Boardman 1 October 2022
Michael de Picciotto 24 April 2020
Robin Freestone 1 February 2021 28 February 2025
Cyrus Jilla 27 October 2023
Daniel Li 28 July 2023
Dame Natalie Massenet, DBE 8 July 2021
Marigay McKee, MBE 8 July 2021
Franz Reiner 8 July 2021
Scott Robertson 1 November 2022
Dr. Anne Stevens 1 February 2021
Jean Tomlin, OBE 27 October 2023
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
136
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13615XDirectorsXRemXReport_Directors_XReport_v73.indd 136 13/03/2025 14:5313/03/2025 14:53
GOING CONCERN
After due enquiry, the Directors have a reasonable expectation that
the Group has adequate resources to continue in operational existence
for the foreseeable future and to comply with its financial covenants.
For these reasons, they continue to adopt the going concern basis in
preparing the Financial Statements. Further details of the going
concern statement for the Group are set out in note 1 to the Financial
Statements and the Viability Statement is set out on page 62.
DIVIDEND AND RESULTS
Revenue from the continuing business during the period amounted
to£1.6bn (2023: £1.6bn). A review of the Group’s consolidated results
is set out from page 154.
It is the Directors’ intention to retain the Group’s cash flow to finance
growth and to focus on delivery of its new business plan. The Directors
intend to review, on an ongoing basis, the Company’s dividend policy
and will consider the payment of dividends as the Group’s strategy
matures, depending upon the Group’s free cash flow, financial
condition, future prospects and any other factors deemed by the
Directors to be relevant at the time. The Directors are not
recommending any dividend for the 2024 financial year.
SHARE CAPITAL
Details of the issued share capital, together with details of movements
in the issued share capital of the Company during the year, are shownin
note 27 to the Financial Statements. This is incorporated by reference
and deemed to be part of this Report.
The Company has a commercial listing of equity shares on the Main
Market of the London Stock Exchange. At 31 December 2024 the
Company had one class of ordinary shares which carries no right to
fixed income. Each share carries the right to one vote at general
meetings of the Company.
As at 31 December 2024, the Company had 936,274,947 ordinary
shares of £0.10 in issue. The Company does not hold any shares in
treasury. Specific powers relating to the allotment and issuance of
ordinary shares and the ability of the Company to purchase its own
securities are included within the Articles and such authorities must be
submitted for approval by the shareholders, at the AGM each year
(and were submitted and approved at the 2024 AGM).
Following shareholder approval at the general meeting on
4December 2020 and pursuant to the Warrant Instrument dated
7 December 2020, as amended on 28 September 2022 (Warrant
Instrument), the Company issued 126,647,852 warrants granting
rights to subscribe for up to 37,994,356 ordinary shares of £0.10. Each
warrant entitles a warrantholder to subscribe for 0.3 warrant shares at
the subscription price of £1.67 per warrant share. Warrants are
exercisable during the period starting on 1 July 2021 and ending on
7 December 2027. The Warrant Instrument sets out the rights of
warrantholders, including the right to receive shareholder documents
and notifications and the right to requisition the Company to convene
a meeting of warrantholders. Further information on the warrants
is set out in the Prospectus dated 5 September 2022 and the
announcement by the Company on 28 September 2022 which can be
found on the Company’s website. No warrants were issued in 2024.
On 31 December 2024 the Employee Benefit Trust held a total of 442,152
ordinary shares (75,162 unallocated shares and 366,990 shares allocated
from prior share awards, held as Nominee Shares). The right to receive any
dividend has been waived by the Trustee of the Employee Benefit Trust
over the entire unallocated shares and we note that any dividend due to be
paid over allocated shares would be paid directly to the Company (as the
Trustee Paying Agent) for onward distribution to the respective individuals.
The Trustee has the right to exercise any voting rights in respect of the
unallocated shares it holds and will vote in accordance with the voting
instructions received from the beneficial owners of the allocated shares.
SUBSTANTIAL SHAREHOLDINGS
The Company has received notifications of major interests in its issued
ordinary share capital in accordance with Rule 5 of the DTRs. Details
ofthe position as at the end of the financial year are as follows:
Shareholder
Number of
ordinary shares
% of total
voting rights
Lawrence Stroll
1
259,081,263 27.67
The Public Investment Fund 140,504,260 15.01
Li Shufu (Geely) 142,530,859 15.22
Ernesto Bertarelli 139, 811,974 14.93
Yew Tree Overseas Ltd 101,727,527 10.87
Mercedes-Benz AG 76,320,195 8.15
Lucerne Capital Management, LLC 25,365,529 3.08
Lucid Group Inc 28,352,273 3.03
1 Includes 101,727,527 shares also disclosed by Yew Tree Overseas Ltd and
139,811,974 shares also disclosed by Ernesto Bertarelli.
On 6 February 2025, the Company was notified that Lucerne Capital
Management, LLC’s holding had fallen to 2.63% (24,955,632 ordinary
shares). There have been no other changes notified to the Company in
accordance with Rule 5 of the DTRs to the holdings disclosed above.
RESTRICTIONS ON TRANSFER OF ORDINARY SHARES
The Articles do not contain any restrictions on the transfer of ordinary
shares in the Company other than the usual restrictions applicable where
any amount is unpaid on a share. All issued share capital of the Company
at the date of this Annual Report is fully paid. Certain restrictions are also
imposed by laws and regulations (such as insider trading and marketing
requirements relating to closed periods) and requirements of the Market
Abuse Regulation whereby Directors and certain employees of the
Company require prior approval to deal in the Company’s securities.
SHAREHOLDERS’ RIGHTS
Holders of ordinary shares have the rights accorded to them under UK
company law, including the rights to receive the Company’s Annual
Report and Accounts, attend and speak at general meetings, appoint
proxies and exercise voting rights. No shareholder holds ordinary
shares carrying special rights relating to the control of the Company
and, other than as previously publicly disclosed in relation to the Yew
Tree Consortium, the voting rights of which are exercised in accordance
with instructions of Lawrence Stroll, the Directors are not aware of any
agreements between holders of the Company’s shares that may result
in restrictions on voting rights.
TRANSACTIONS WITH RELATED PARTIES
Details of Related Party Transactions which have been undertaken in
the year ended 31 December 2024 are included within note 31 to the
Financial Statements.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
137
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13715XDirectorsXRemXReport_Directors_XReport_v73.indd 137 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REPORT CONTINUED
Each of the Relationship Agreements provides that each significant
shareholder group is entitled to nominate director(s) to the Board and
the Nomination Committee and an observer to the Remuneration and
Audit and Risk Committees, subject to the size of its respective interest
in the voting rights of the Company as set out in the table above.
On 16 April 2024. the Company entered into a Director Appointment
Rights Agreement with the entities holding shares on behalf of Ernesto
Bertarelli, a significant member of the Yew Tree Consortium. This
agreement provides for a right to appoint a Shareholder Representative
to the Board so long as Ernesto Bertarelli holds 10% or above in the
total Issued Share Capital of the Company. Further, Ernesto Bertarelli
is entitled to appoint a member of the Nomination Committee and an
observer to the Remuneration Committee.
On 26 June 2023, the Company announced it had entered into an
amendment and restatement of its Strategic Co-operation Agreement
with MBAG which was originally entered into on 27 October 2020.
Under the amended agreement, the Company and MBAG will continue
long-term strategic co-operation, supporting the delivery of current
and future generation Aston Martin vehicles. Under the original
agreement the Company would issue additional Aston Martin shares
to MBAG in exchange for access to further technology and this has
now been replaced with a restated commitment to the existing
strategic collaboration allowing the parties to discuss future access to
technology for cash. No further consideration shares, or related cash
top up payments, will be issued or paid to MBAG under the restated
agreement.
In addition to the terms agreed in the Strategic Cooperation
Agreement, the Group has a long-standing technical partnership with
MBAG for the provision of engines, electrical architecture and
entertainment systems. This partnership began in 2013, when MBAG
became one of Aston Martin Holdings (UK) Limited’s shareholders.
The agreements governing our relationship with MBAG provide that
under certain circumstances MBAG may be entitled to terminate
operational agreements on three or four years’ prior notice (depending
on the operational agreement) if a strategic MBAG competitor
acquires a sufficient interest in AML, acquires certain board
appointment rights, or enters into certain strategic arrangements with
AML without MBAG’s consent.
In early 2020, the Group entered into a sponsorship agreement, as
amended in 2022, for a ten-year initial term under which the Racing Point
Formula One® team was re-launched as the Aston Martin Cognizant
Formula One® team with effect from the 2021 season, bringing an Aston
Martin team back to the Formula One® grid for the first time since 1960.
The agreement included a sponsorship arrangement effective from
SIGNIFICANT CONTRACTS
At 31 December 2024, the Group had a Revolving Credit Facility of
£170m which contains a change of control clause. The Group also had
US$1,050.0m of 10.00% Senior Secured Notes and £565.0m of Senior
Secured Notes at 10.375% both of which mature in March 2029 and
contain change of control provisions. In aggregate, these financing
arrangements are considered significant to the Group and, in the event
of a takeover (i.e. a change of control) of the Company, the amounts
outstanding under the Revolving Credit Facility may be cancelled or
become immediately payable and the holders of the Senior Secured
Notes may require the Group to repurchase their notes.
All the Company’s share plans contain provisions relating to a change
of control. In the event of a change of control or winding up of the
Company (other than an internal reorganisation), LTIP awards will vest
subject to the extent to which the performance conditions have been
satisfied. Pro rating for service will apply unless the Remuneration
Committee decides otherwise. Outstanding deferred bonus awards
will vest in full as soon as practicable. In the event of an internal
corporate reorganisation, deferred bonus and LTIP awards may (with
consent from any acquiring company) be replaced by equivalent
awards. Alternatively, the Remuneration Committee may decide that
deferred bonus and LTIP awards will vest as in the case of a change of
control described above. In the event of a demerger, special dividend
or other corporate event that will materially impact the share price the
Committee may, at its discretion, allow deferred bonus and LTIP
awards to vest on the same basis as for a change of control as described
above. Alternatively, an adjustment may be made to the number of
shares if considered appropriate.
The Company currently has four groups of significant shareholders,
namely the Yew Tree Consortium, The Public Investment Fund,
Geely and Mercedes-Benz AG (‘MBAG’). The relationship between
the Company and each of these significant shareholder groups is
governed by four separate relationship agreements (“Relationship
Agreements”).
The purpose of these Relationship Agreements is to ensure that the
Company can carry on its business independently and for the benefit
of shareholders as a whole. The Relationship Agreements also provide
that the Company will not take any action in relation to certain
significant matters without the prior approval of at least two-thirds of
the members of the Board present and entitled to vote. The
Relationship Agreements will terminate upon the relevant significant
shareholder group ceasing to have the entitlement to exercise a
minimum percentage of the voting rights in the Company or the
Company’s shares ceasing to be admitted to the Official List of the
Financial Conduct Authority and traded on the Main Market for listed
securities of the London Stock Exchange.
Significant shareholder group
% of voting rights to
nominate two directors
% of voting rights to
nominate one director
% of voting rights to nominate one director as a member
of the Nomination Committee and an observer to
the Remuneration and Audit and Risk Committees
Yew Tree Consortium 10% or above Between 7% and 10% 7%
Ernesto Bertarelli - 10% or above 10%
Public Investment Fund 10% or above Between 7% and 10% 7%
Mercedes- BenzAG 15% or above Between 7.5% and 15% 7.5%
Geely - 7% 7%
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
138
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13815XDirectorsXRemXReport_Directors_XReport_v73.indd 138 13/03/2025 14:5313/03/2025 14:53
2021 to 2025 with expenses commensurate with the Group’s previous
annual Formula One® expenditure. In March 2023, the parties agreed to
sponsorship fees for the period from 2026 to 2030. In August 2024, the
parties agreed a further amendment to the sponsorship arrangements
which extended the term from 2030 to 2045 and set the fees to be paid
from 2030. From 2045, the sponsorship arrangements will be renewable
at the Board’s discretion for additional ten year periods up to the end of
2060. The Group anticipates that this agreement will strengthen its
brand presence without being associated with the direct costs of owning
an Formula One® team. Under the agreement, the Group’s presence
remains elevated via the chassis and the team name Aston Martin.
On 29 July 2022, the Company entered into a placing agreement with
The Public Investment Fund (Placing Agreement). The Company
provided certain customary representations, warranties and
undertakings in favour of The Public Investment Fund pursuant to the
Placing Agreement, including an undertaking that, between the date
of the Placing Agreement and 180 calendar days after the settlement
date of the 2022 capital raise (being 29 March 2023), inclusive, it would
not without the prior written consent of The Public Investment Fund,
enter into certain transactions involving or relating to ordinary shares,
subject to certain carve-outs and waivers, including the issue of any
ordinary shares or options or the grant of any right to acquire ordinary
shares pursuant to any employees’ share schemes that existed at the
date of the Placing Agreement, which were disclosed in the Prospectus
dated 5 September 2022.
On 26 June 2023 the Company announced its intention to enter into a
supply arrangement with Lucid to access Lucid’s powertrain
components to promote the Company’s electrification strategy and
long term growth. The arrangement was subject to shareholder
approval and regulatory clearance and became unconditional
inNovember 2023.
TAX STRATEGY
The Group is committed to full compliance with all UK and international
statutory tax obligations including full disclosure of all relevant facts
to the appropriate tax authorities and seeks to pay the right and fair
amount of tax in accordance with the letter and spirit of the tax law
governing each territory the Group operates within.
In managing its tax affairs, the Group recognises its responsibilities as
a taxpayer and the need to protect the corporate reputation inherent
in the brand. The Board has ultimate responsibility for the Group’s tax
strategy although the day-to-day management rests with the
Executive Committee, which comprises the senior operational
personnel of the Group. The Chief Financial Officer is the Executive
Committee member with ultimate responsibility for tax matters and is
the Senior Accounting Officer of the Group.
The Chief Financial Officer advises the Board on the tax affairs and risks
of the Group to ensure:
the proper control and management of tax risk
the tax position is planned in line with the Group’s
strategicobjectives
the tax charge is correctly stated in the statutory
accountsandtaxreturns
all tax compliance is completed in a timely manner to HMRC
andother tax authorities.
Further information on the Group’s tax strategy is available on the
Company’s website.
EQUAL OPPORTUNITIES AND EMPLOYMENT OF PERSONS
WITH DISABILITIES
The Group has policies on equal opportunities and the employment of
persons with disabilities which, through the application of fair
employment practices, are intended to ensure that individuals are
treated equitably and consistently regardless of age, race, creed,
colour, gender, marital or parental status, sexual orientation, religious
beliefs and nationality.
Applications for employment by persons with disabilities are always
fully considered, bearing in mind the respective aptitudes and abilities
of the applicant concerned. In the event of employees becoming
disabled, every effort is made to ensure their employment with the
Group is continued and that the appropriate training is arranged. It is
the policy of the Group that the training, career development and
promotion of a persons with disabilities should, as far as possible, be
identical to that of a person who does not have a disability.
HEALTH AND WELLBEING
The health and wellbeing of employees is central to operating an
effective and successful business. The Group also relies on the health
and stability of the communities in which it operates. The Group
recognises its responsibility and the opportunity to make a positive
contribution and is actively engaged with local areas to foster a sense
of partnership with the Group.
The health and safety of its workforce, visitors and the local community
is of paramount importance. The Group aims to be a centre of
excellence and for the Aston Martin Health and Safety Management
System to be aligned with best practice within the automotive industry.
HUMAN RIGHTS
Respect for human rights is essential to the foundations of our business
and collaboration across our supply chain. We are committed to
strengthen our governance systems to prevent human rights violations
across our value chain and recognise that our human rights approach
needs to be embedded in all relevant practices and policies.
To develop our approach to human rights due diligence (HRDD) we
worked with a specialist human rights consultancy to undertake a
maturity assessment to help us align our HRDD with international
frameworks and emerging legislation. This assessment included
engagement with colleagues through interviews, analysis of processes
and a review of documents. The assessment identified strengths and
improvement areas across our value chain and based on this priority
areas for action.
In 2024, no human rights violations within the Group were reported,
nor were any relevant reports received regarding the supply network.
Modern slavery, together with its components of forced labour and
human trafficking, is a worldwide issue estimated to affect millions of
people. This issue can affect people of all ages, genders and ethnicities.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
139
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 13915XDirectorsXRemXReport_Directors_XReport_v73.indd 139 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
DIRECTORS’ REPORT CONTINUED
DISCLAIMER
As set out in more detail on the inside back cover of this agreement,
the purpose of this Annual Report is to provide information to the
members of the Company and it has been prepared for and only for,
the members of the Company as a body, and no other persons. The
Company, its Directors and officers, employees and advisors do not
accept or assume responsibility to any other person to whom this
document is shown or into whose hands it may come and any such
responsibility or liability is expressly disclaimed.
A cautionary statement in respect of forward-looking statements
contained in this Annual Report appears on the inside back cover of
this document.
The Strategic Report (from pages 2–63) and the Directors’ Report (as
described above) have been approved by the Board on 25 February
2025.
By order of the Board
LIZ MILES
COMPANY SECRETARY
Aston Martin Lagonda Holdings plc
Registered Office: Banbury Road, Gaydon, Warwick, CV35 0DB
Registered in England and Wales.
Registered Number: 11488166.
Our Anti-Slavery and Human Trafficking Policy provides employees,
contractors and other business partners with direction on our approach
and the measures we have in place to prevent acts of modern slavery
and human trafficking in the business and supply chain.
In 2024, we launched new training on Modern Slavery, focused on our
Procurement function as a high-risk area in relation to modern slavery.
A copy of our 2023 Modern Slavery Act Statement can be found on our
website at www.astonmartin.com/corporate.
POLITICAL DONATIONS
It is the Company’s policy not to make political donations and no such
political donations were made during the period. In line with 2024 and
reflecting the practice of many other London-listed companies, the
Board will be seeking shareholder approval for political donations at
the 2025 AGM. This is a precautionary measure, for the Company and
its subsidiaries to be able to make donations and/or incur expenditure
which may be construed as “political” by the wide definition of that
term included in the relevant legislation. Further details will be
provided in the 2025 Notice of AGM.
RESEARCH AND DEVELOPMENT
The Group spent £333m (2023: £299m) on research and development
during the year. See note 4 to the Financial Statements.
STRATEGIC REPORT
Aston Martin Lagonda Global Holdings plc is required by the
Companies Act 2006 to prepare a Strategic Report that includes a fair
review of the Company’s business, the development and performance
of the Company’s business during the period, the position of the
Company at the end of the year ended 31 December 2024, and a
description of the principal risks and uncertainties faced by the
Company. The Strategic Report on pages 2–63 is incorporated by
reference and shall be deemed to form part of this Directors’ Report.
DISCLOSURE OF INFORMATION TO
THECOMPANY’SAUDITOR
Each person who is a Director at the date of approval of this Report
and of the Financial Statements confirms that:
(i) so far as such Director is aware, there is no relevant audit
information of which the Company’s Auditor is unaware; and
(ii) such Director has taken all the steps that they ought to have taken
as a Director, in order to make themselves aware of any relevant
audit information and to establish that the Company’s Auditor is
aware of that information.
This confirmation is given and should be interpreted in accordance
with the provisions of Section 418 of the Companies Act 2006.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
140
15XDirectorsXRemXReport_Directors_XReport_v73.indd 14015XDirectorsXRemXReport_Directors_XReport_v73.indd 140 13/03/2025 14:5313/03/2025 14:53
GOVERNANCE
STATEMENT OF DIRECTORS’ RESPONSIBILITIES
Statement of directors’
responsibilities
The Directors are responsible for preparing the Annual Report which
includes the Strategic Report, the Directors’ Report, the Directors’
Remuneration Report and the Group and parent Company Financial
Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare Group and parent
Company Financial Statements for each financial year. Under that law
the Directors have elected to prepare the Group Financial Statements
in accordance with UK-adopted international accounting standards
(IFRSs) and have elected to prepare the parent Company Financial
Statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and
applicable law), including Financial Reporting Standard 101 ‘Reduced
Disclosure Framework’ (FRS 101). Under company law the Directors
must not approve the Financial Statements unless they are satisfied
that they give a true and fair view of the state of affairs of the Group
and parent Company and of their profit or loss for that period.
In preparing each of the Group and parent Company Financial
Statements, the Directors are required to:
select suitable accounting policies in accordance with
InternationalAccounting Standard 8 ‘Accounting Policies,
Changesin Accounting Estimates and Errors’ and then apply
themconsistently
make judgements and estimates that are reasonable and prudent
present information, including accounting policies,
in a manner that provides relevant, reliable, comparable
andunderstandableinformation
provide additional disclosures when compliance with the specific
requirements in IFRSs and, in respect of the parent Company
Financial Statements, FRS 101 is insufficient to enable users to
understand the impact of particular transactions, other events
andconditions on the Group and Company financial position and
financial performance
for the Group Financial Statements, state whether UK-adopted
international accounting standards have been followed, subject
toany material departures disclosed and explained in the
FinancialStatements
for the parent Company Financial Statements, state whether
applicable UK accounting standards, including FRS 101, have been
followed, subject to any material departures disclosed and
explained in the parent Company Financial Statements
prepare the Financial Statements on the going concern basis unless
it is inappropriate to presume that the Company and/or the Group
will continue in business
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the parent Company’s
and Group’s transactions and disclose with reasonable accuracy at any
time the financial position of the parent Company and the Group and
enable them to ensure that the parent Company and Group Financial
Statements comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of the Group and parent
Company and for taking reasonable steps for the prevention and
detection of fraud and other irregularities. Under applicable law and
regulations, the Directors are also responsible for preparing a
Strategic Report, Directors’ Report, Directors’ Remuneration Report
and Corporate Governance Statement that comply with that law and
those regulations. The Directors are responsible for the maintenance
and integrity of the corporate and financial information included
on the Company’s website.
STATEMENT OF DIRECTORS’ RESPONSIBILITIES UNDER
THE DISCLOSURE AND TRANSPARENCY RULES
Each of the Directors at the date of this Report whose names and
functions are listed on pages 68–71, confirm to the best of their
knowledge:
that the consolidated Financial Statements, prepared in
accordance with UK-adopted international accounting standards,
give a true and fair view of the assets, liabilities, financial position
and profit or loss of the Company and the undertakings included in
the consolidation taken as a whole
that the Annual Report and Accounts, including the Strategic
Report, includes a fair review of the development and performance
of the business and the position of the Company and undertakings
included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face
that they consider the Annual Report and Accounts, taken as a
whole, is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Group’s
position and performance, business model and strategy
These statements were approved by the Board on 25 February 2025
and signed on its behalf by:
ADRIAN HALLMARK
CHIEF EXECUTIVE OFFICER
DOUG LAFFERTY
CHIEF FINANCIAL OFFICER OFFICER
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
141
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
15XDirectorsXRemXReport_Directors_XReport_v73.indd 14115XDirectorsXRemXReport_Directors_XReport_v73.indd 141 13/03/2025 14:5313/03/2025 14:53
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
142
16XFinancialXStatementsXDivider_v34.indd 14216XFinancialXStatementsXDivider_v34.indd 142 13/03/2025 14:5313/03/2025 14:53
144 Independent Auditor’s Report
154 Consolidated Financial Statements
159 Notes to the Financial Statements
210 Parent Company Statement
of Financial Position
212 Notes to the Parent Company
FinancialStatements
Financial
statements
PERFORMANCE.
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
143
16XFinancialXStatementsXDivider_v34.indd 14316XFinancialXStatementsXDivider_v34.indd 143 13/03/2025 14:5313/03/2025 14:53
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC
OPINION
In our opinion:
Aston Martin Lagonda Global Holdings plc’s group financial statements and parent company financial statements (the “financial statements”)
give a true and fair view of the state of the group’s and of the parent company’s affairs as at 31 December 2024 and of the group’s loss for the year
then ended;
the group financial statements have been properly prepared in accordance with UK adopted international accounting standards;
the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Aston Martin Lagonda Global Holdings plc (the ‘parent company’) and its subsidiaries (the ‘group’) for the year
ended 31 December 2024 which comprise:
Group Parent company
Consolidated statement of financial position
as at 31 December 2024
Parent company statement of financial position
as at 31 December 2024
Consolidated statement of comprehensive income
for the year then ended
Parent company statement of changes in equity
for the year then ended
Consolidated statement of changes in equity
for the year then ended
Related notes 1 to 6 to the financial statements
including material accounting policy information
Consolidated statement of cash flows for the year then ended
Related notes 1 to 34 to the financial statements,
including material accounting policy information
The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and UK adopted
internationalaccounting standards. The financial reporting framework that has been applied in the preparation of the parent company financial statements
is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted
Accounting Practice).
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion
INDEPENDENCE
We are independent of the group and parent in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK,
including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with
theserequirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company and we remain independent of the
group and the parent company in conducting the audit.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
144
17XIndependentXAuditorsXReport_v22.indd 14417XIndependentXAuditorsXReport_v22.indd 144 13/03/2025 14:5413/03/2025 14:54
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial
statements is appropriate. Our evaluation of the directors’ assessment of the group and parent company’s ability to continue to adopt the going concern basis
of accounting included the following procedures:
Understanding and walking through management’s process for, and controls related to, assessing going concern including discussion with management,
to ensure all key factors were taken into account;
Obtaining management’s going concern assessment, which covers the period to 30 June 2026, and which includes cashflow and liquidity forecasts,
details of facilities available, forecast covenant calculations and the results of management’s downside scenarios, and testing the integrity of the model,
including clerical accuracy;
Confirming to the debt agreements both the maturity profile of the debt and the covenants that are required to be met within the going concern period;
Assessing the reasonableness of forecasts underpinning the going concern model, which are based on the Board-approved budget and the Board-
approved strategic plan. To do this we specifically considered forecast wholesale volumes compared to historical volumes, current confirmed orders and
competitor volumes, sales margins and capital expenditure plans;
Ensuring that these forecasts appropriately reflect the assessed impact of the current macro-economic circumstances and the disclosed climate change
commitments of the group;
Analysing the historical accuracy of forecasting by comparing management’s forecasts to actual results since 2020 and through the subsequent events
period and performing inquiries to the date of this report to determine whether forecast cash flows are reliable based on past experience;
Considering external factors that could impact liquidity/forecasts including reliance on suppliers, recoverability of debtors, the current macro-economic
climate, supply chain disruption and the threat of potential litigations and claims;
Considering the downside scenario identified by management in their assessment on pages159–160, assessing whether there are any other scenarios
which should be considered, and assessing whether the quantum of the impact of the downside scenario modelled in the going concern period
isrealistic;
Performing reverse stress testing on the going concern model by independently determining what reduction in wholesale volumes would be required
before liquidity would be exhausted. This included comparing this scenario to the downside scenario contemplated by management and considering the
likelihood of the events required to exhaust available liquidity;
Evaluating the Group’s ability to undertake mitigating actions should it experience a severe downside scenario, considering likely achievability of both
timing and quantum particularly with respect to constraining capital spending if required; and
Assessing the going concern disclosures in the financial statements to ensure they are in accordance with International Financial Reporting Standards.
We observed that while the group achieved lower than forecast total core wholesale volumes than it was originally targeting in 2024, this was driven by
supplier chain disruptions and continued economic weakness in China. The forecast core wholesale volumes have been realigned for the going concern
assessment period.In the past we have observed the control exercised over capital expenditure in comparison to amounts forecast which corroborates
management’s assertion that in the event of the modelled downside occurring capital expenditure could be deferred. Further, the Group has the borrowings
disclosed in note23 which includes details of the maturities of those facilities.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may
cast significant doubt on the group and parent company’s ability to continue as a going concern for a period to June 2026.
In relation to the group and parent company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it appropriate to adopt the going
concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However,
because not all future events or conditions can be predicted, this statement is not a guarantee as to the group’s ability to continue as a going concern.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
145
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17XIndependentXAuditorsXReport_v22.indd 14517XIndependentXAuditorsXReport_v22.indd 145 13/03/2025 14:5413/03/2025 14:54
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC CONTINUED
Overview of our audit approach
Audit scope We performed an audit of the complete financial information of two components and audit procedures on specific balances for
afurther two components. We also performed specified audit procedures on certain accounts on three additional components.
Weperform central procedures on financial statement line items as detailed in the “Tailoring the scope” section below.
The components where we performed full or specific audit procedures accounted for 100% of Adjusted EBITDA, 100% of Revenue
and 100% of Total assets
Key audit matters Deferred tax asset valuation
Revenue recognition, specifically:
• There is a risk that revenue is overstated due to errors in cut-off, including bill and hold arrangements; and
• There is also a risk of overstatement of revenue through inappropriate manual journal entries
Capitalisation and amortisation of development costs
Parent company investment impairment
Materiality Overall Group materiality of £6.7m which represents 2.5% of Adjusted Earnings before interest, tax, depreciation and amortisation
(‘EBITDA’).
AN OVERVIEW OF THE SCOPE OF THE PARENT COMPANY AND GROUP AUDITS
In the current year our audit scoping has been updated to reflect the new requirements of ISA (UK) 600 (Revised). We have followed a risk-based approach
when developing our audit approach to obtain sufficient appropriate audit evidence on which to base our audit opinion. We performed risk assessment
procedures, with input from our component auditors, to identify and assess risks of material misstatement of the Group financial statements and identified
significant accounts and disclosures. When identifying components at which audit work needed to be performed to respond to the identified risks of material
misstatement of the Group financial statements, we considered our understanding of the Group and its business environment, the potential impact of climate
change, the applicable financial framework, the group’s system of internal control at the entity level, the existence of centralised processes, applications and
any relevant internal audit results.
We determined that centralised audit procedures would be performed on finance income, finance expense, adjusting items, intangible assets, property, plant
and equipment, investments in equity interests, other financial assets, right-of use lease assets and liabilities, borrowings, other financial liabilities, employee
benefits and equity.
We then identified four components as individually relevant to the Group due to materiality or financial size of the components relative to the Group. These
were the UK entities accounted for at Gaydon, Aston Martin Works, the US and China.
We then identified two additional components as individually relevant to the Group based on the materiality of specific accounts relative to the Group
(Europe and Japan).
For the above individually relevant components, we identified the significant accounts where audit work needed to be performed at these components by
applying professional judgement, having considered the group significant accounts on which centralised procedures will be performed, the reasons for
identifying the financial reporting component as an individually relevant component and the size of the component’s account balance relative to the group
significant financial statement account balance.
We then considered whether the remaining group significant account balances not yet subject to audit procedures, in aggregate, could give rise to a risk
ofmaterial misstatement of the group financial statements. We selected one component of the group to include in our audit scope to address these
risks(Singapore).
Having identified the components for which work will be performed, we determined the scope to assign to each component.
Of the seven components selected, we designed and performed audit procedures on the entire financial information of two components (“full scope
components”). For two components, we designed and performed audit procedures on specific significant financial statement account balances or disclosures
of the financial information of the component (“specific scope components”). For the remaining three components, we performed specified audit procedures
to obtain evidence for one or more relevant assertions.
Our scoping to address the risk of material misstatement for each key audit matter is set out in the Key audit matters section of our report.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
146
17XIndependentXAuditorsXReport_v22.indd 14617XIndependentXAuditorsXReport_v22.indd 146 13/03/2025 14:5413/03/2025 14:54
INVOLVEMENT WITH COMPONENT TEAM
In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each of the component by us, as the
Group audit engagement team, or by component auditors operating under our instruction.
Of the seven components selected, audit procedures were performed on six of these directly by the primary audit team.
For the component not audited by the primary team (China), we determined the appropriate level of involvement to enable us to determine that sufficient
audit evidence had been obtained as a basis for our opinion on the Group as a whole.
During the current year’s audit cycle, whilst no physical visits were undertaken by the primary audit team to the component team in China, meetings continued
to be conducted virtually in line with prior periods. These sessions involved meeting with our local component team to discuss the audit approach,
understanding the significant audit findings in response to the key audit matters and reviewing key audit working papers. The primary team interacted
regularly with the component team where appropriate during various stages of the audit, reviewed relevant working papers and were responsible for the
scope and direction of the audit process. Where relevant, the section on key audit matters details the level of involvement we had with component auditors
to enable us to determine that sufficient audit evidence had been obtained as a basis for our opinion on the Group as a whole.
This, together with the additional procedures performed at Group level, gave us appropriate evidence for our opinion on the Group financial statements.
CLIMATE CHANGE
Stakeholders are increasingly interested in how climate change will impact Aston Martin Lagonda Global Holdings plc. The Group has determined that the
most significant future impacts from climate change on its operations will be from the transition to EV (‘Electric vehicle’) powertrains, managing the financial
impact of increasing carbon related costs in response to changes in legislation and managing the brand/reputational impact of continuing to sell ICE (‘Internal
combustion engine’) powered vehicles in the short to medium term. These are explained on pages 45–51 in the required Task Force On Climate Related
Financial Disclosures and on pages 56–61 in the principal risks and uncertainties. They have also explained their climate commitments on pages 33–37.
All these disclosures form part of the “Other information,” rather than the audited financial statements. Our procedures on these unaudited disclosures
therefore consisted solely of considering whether they are materially inconsistent with the financial statements or our knowledge obtained in the course of
the audit or otherwise appear to be materially misstated, in line with our responsibilities on “Other information”.
In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any consequential material impact on
its financial statements.
The Group has explained in Note1 how they have reflected the impact of climate change in their financial statements including how this aligns with their
commitment to the aspirations of the Paris Agreement to achieve net zero emissions by 2050. Significant judgements or estimates relating to climate change
have been factored into the Directors impairment assessments of the carrying value ofcapitalised development cost intangible assets, parent company
investment impairment assessment and recoverability of deferred tax assets in the notes to the financial statements. These considerations did not have a
material impact on the financial reporting judgements and estimates, consistent with the assessment that climate change is not expected to have a significant
impact on the Group’s going concern assessment to 30 June 2026 nor the viability of the Group over the next five years.
Our audit effort, in considering the impact of climate change on the financial statements, was focused on evaluating management’s assessment of the impact
of climate risk, both physical and transition, managements climate commitments and the effects of material climate risks disclosed on pages 47–50.
Wefocused on whether these have been appropriately reflected in asset values where these are impacted by future cash flows, being the impairment testing
of capitalised development costs, impairment of parent company investments and deferred tax asset recoverability and associated sensitivity disclosures
(see notes 9 and 13 in the group financial statements and note 3 in the parent company financial statements) following the requirements of UK adopted
international accounting standards for the group and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United
Kingdom Generally Accepted Accounting Practice) for the parent company. As part of this evaluation, we performed our own risk assessment, supported by
our climate change internal specialists, to determine the risks of material misstatement in the financial statements from climate change which needed to be
considered in our audit.
We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability and associated disclosures. Where
considerations of climate change were relevant to our assessment of going concern, these are described above.
Based on our work we have considered the impact of climate change on the financial statements to impact certain key audit matters. Details of our procedures
and findings are included in our explanation of key audit matters below.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
147
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17XIndependentXAuditorsXReport_v22.indd 14717XIndependentXAuditorsXReport_v22.indd 147 13/03/2025 14:5413/03/2025 14:54
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC CONTINUED
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period
and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those which
had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These matters
were addressed in the context of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on
these matters.
Risk Our response to the risk
Key observations communicated
to the Audit Committee
Deferred Tax Asset Valuation
(Deferred Tax Asset: £126.4m, 2023:£156.3m)
Refer to the Audit Committee Report (page97);
Accounting policies (pages 166–167); and
Note9 of the Consolidated Financial
Statements (pages 172–175)
The extent of recognition of deferred tax
assetsis subject to significant estimation and
assumptions particularly in respect of deferred
tax assets recognised in respect of carried
forward losses based on forecast future
taxableprofits.
We confirmed the existence and the design effectiveness of controls
around management’s assessment of the deferred tax asset valuation.
We considered and challenged the convincing evidence that the
group will make future taxable profits against which to recognise
carried forward losses.
We ensured the forecasts used as the starting point within the
deferred tax asset recognition model are consistent with those used
for going concern, viability and impairment assessments and are
consistent with the Board approved business plan.
For forecasts beyond the board approved business plan, we
considered how these forecasts had been prepared and challenged
the forecast profitability.
We challenged the significant assumptions (being volume and
contribution per unit) used in the model and ensured the cash flows
reflect an appropriate scenario relative to the board approved
business plan including the effects of material climate risks. This
included considering any contra evidence in relation to volumes
andtiming of vehicle launches.
We tested the adjustments made to forecast profit before tax to
arrive at forecast taxable profits.
We considered and challenged the level of Deferred Tax Asset
recognised for trade losses including the timeframe in which these
Deferred Tax Assets will be recovered and whether these forecast
profits are considered probable.
We also considered and challenged the rational for the level of
Deferred Tax Assets which remain unrecognised.
We performed and considered sensitivities on managements’
futureforecasts, both upside and downside, to challenge whether
theforecasts used are the best estimate for use in calculation of
thedeferred tax asset recognised.
We challenged the appropriateness of the disclosures relating
toDeferred Tax Asset to ensure they are compliant with the
requirements of IAS 12 and appropriately reflect the level of
estimation uncertainly.
We performed full scope audit procedures over this risk area in
onelocation, which covered 100% of the risk amount. All audit
workperformed to address this risk was undertaken by the
Groupaudit team.
The net deferred tax asset
recognised is within the reasonable
range of possible outcomes.
The disclosures within the financial
statements in respect of estimation
uncertainty are appropriate.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
148
17XIndependentXAuditorsXReport_v22.indd 14817XIndependentXAuditorsXReport_v22.indd 148 13/03/2025 14:5413/03/2025 14:54
Risk Our response to the risk
Key observations communicated
to the Audit Committee
Revenue Recognition (£1,583.9m;
2023:£1,632.8m)
Refer to the Audit Committee Report (page 97);
Accounting policies (pages 160–161); and
Note3 of the Consolidated Financial
Statements (page 168)
There is a risk that revenue is overstated
duetoerrors in cut-off, including bill and
holdarrangements whereby revenue is
recognised on a completed vehicle before
delivery is made to the customer based on
thecustomer’s request.
In the current year the business and industry
hasexperienced supply chain challenges
andasa result there is an increased risk that
revenue is recognised ahead of the vehicle
buildbeing complete.
There is also a risk of overstatement of revenue
through inappropriate manual journal entries.
We confirmed the existence and the design effectiveness of controls
within the sales process, paying particular attention to those around
cut-off and bill and hold transactions.
For a sample of bill and hold sales we have confirmed the vehicle was
completed before year end by obtaining the signed quality check
documentation. For that sample we also confirmed the transfer of
control had occurred by confirming the transaction directly with the
third-party dealer and by obtaining the customer requests to hold the
vehicles on their behalf.
We performed physical verification on the finished vehicles and
agreed these to either the inventory or the bill and hold listings.
Weensured for a sample of vehicles the manufacturing process was
complete and that the vehicle was not double counted in revenue
andinventory.
We performed cut-off testing by tracing a sample of transactions
around the period end to third party delivery note documentation.
We performed data analytical procedures of the double entries in the
general ledger to test the postings from Revenue to Cash, correlating
the cash conversion of sales. We investigated and obtained evidence
for any unusual items identified.
We performed journal testing procedures to identify unusual journal
entry postings. We obtained audit evidence for unusual and/or
material revenue journals.
We performed audit procedures over this risk area in the full and
specific scope locations which covered 100% of Group revenue. Audit
work performed to address this risk was undertaken by the Group
audit team and the Component audit team. For details of our
involvement with the component team refer to the section above on
Involvement with component team.
Our audit procedures did not
identify evidence of material
misstatements in revenue
recognition arising from the
riskofcut-off, bill and hold or
management override through
journal entries.
Capitalisation and amortisation of
development costs
(Net book value of capitalised development
costs: £922.4m, 2023: £848.4m)
(Amounts capitalised in the year: £312.1m,
2023: £268.5m)
(Amortisation charge: £238.1m, 2023:
£264.0m)
Refer to Accounting policies (pages 162–163);
and Note 12 of the Consolidated Financial
Statements (pages 176–177)
There is a risk that costs are capitalised which
do not meet the criteria set out within IAS 38 or
that the amortisation period is inappropriate.
There is also a risk of overstatement of
capitalised development costs through
inappropriate manual journal entries.
We confirmed the existence and the design effectiveness of controls
around the intangibles process and in particular around the approval
of capitalised development expenditure.
For a sample of costs capitalised we confirmed that the costs incurred
were; capitalised against the correct project; measured correctly;
eligible for capitalisation, and the timing of the expense capitalisation
was appropriate.
For a sample of projects, we compared the actual spend against the
budgeted spend to ensure the projects continue to meet the IAS 38
criteria for capitalisation and remain commercially viable.
For new special vehicles, we obtained the gateway approval
documentation to certify that capitalisation costs meet the required
criteria under IAS38.
For capitalised development costs we confirmed the amortisation
period was aligned to the period over which commercial benefits
areexpected to be received and is consistent with the Group’s
business plan.
We considered the appropriateness of the amount/percentage of
costs which are transferred between models as a result of the carry
over carry across principle (‘COCA’).
We recalculated the amortisation recognised to confirm this was
inline with expectations.
We performed journal testing procedures to identify unusual journal
entry postings. No unusual journal postings relating to capitalised
development costs were identified.
We performed full scope audit procedures over this risk area in
onelocation, which covered 100% of the risk amount. All audit
workperformed to address this risk was undertaken by the Group
audit team.
Our audit procedures did not
identify evidence of material
misstatement in the amounts of
development costs capitalised in
the year or through inappropriate
manual journal entries.
Our audit procedures did not
identify evidence of material
misstatement of the amortisation
charge for development costs
recorded in the period.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
149
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17XIndependentXAuditorsXReport_v22.indd 14917XIndependentXAuditorsXReport_v22.indd 149 13/03/2025 14:5413/03/2025 14:54
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC CONTINUED
Risk Our response to the risk
Key observations communicated
to the Audit Committee
Parent Company Investment impairment
(Investment: £1,056.3m, 2023:£1,051.5m)
(Impairment charge: £158.6m, 2023:
Impairment reversal £460.1m)
Refer to the Audit Committee Report (page97);
Accounting policies (page213); and Note3 of
the Parent Company Financial Statements
(page214)
There is a risk that the parent company
investment impairment is not supported by
thesubsidiaries future forecast cashflows.
We confirmed the existence and the design effectiveness of
controlsaround management’s impairment assessment for
investment in subsidiaries.
We examined management’s methodology and model for assessing
the VIU for investment in subsidiaries.
We confirmed the underlying cash flows are consistent with the Board
approved business plan and appropriately reflect the effects of
material climate risks as disclosed on pages 47–50.
We re-performed the calculations in the model to test the
mathematical integrity.
We assessed the adjustments made to the VIU to determine the
equity value of the investment. This included testing the deductions
made for:
• the fair value of the Groups external debt; and
• the fair value of the groups intercompany payable due to the
parentcompany.
We assessed the discount rate and cost of debt used by obtaining the
underlying data used in the calculation and benchmarking it against
comparable organisations and market data with the support of our
valuation specialists.
We have further reviewed managements cash flow forecasts used
tosupport the repayment of intercompany payables to the parent
company (outside of the Group VIU).
We audited the disclosures and sensitivity analysis in respect of
impairment of investments and confirmed their consistency with
theaudited impairment models.
The impairment charge recorded
iswithin the reasonable range of
possible outcomes.
In the prior year, our auditor’s report included a key audit matter in relation to the impairment of capitalised development costs. In the current year, this has
been removed as a key audit matter given the level of headroom on the CGUs.
OUR APPLICATION OF MATERIALITY
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit and in forming our
audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic decisions of the
users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures.
We determined materiality for the Group to be £6.7 million (2023: £7.5 million), which is 2.5% (2023: 2.5%) of Adjusted EBITDA. We believe that Adjusted
EBITDA provides us with an appropriate basis for materiality as it is a key metric used by investors and management in assessing the performance of theGroup.
We determined materiality for the Parent Company to be £37.6 million (2023: £25.4 million), which is 1.5% (2023: 1%) of Equity. We have increased the
percentage applied to determine materiality in the current year as the prior year adjustments driving the lower percentage in 2023 are resolved. When
auditing balances included within to the Group financial statements, we reduced this to the Group materiality.
Starting basis Adjustments Materiality
Loss before Tax – £289.1m Adjusting items – £33.6m
Adjusted net finance
expense – £172.7m
Depreciation and
Amortisation – £353.7m
EBITDA – £270.9m
Materiality of £6.7m
(2.5% of materiality basis)
During the course of our audit, we reassessed initial materiality and updated this for actual results.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
150
17XIndependentXAuditorsXReport_v22.indd 15017XIndependentXAuditorsXReport_v22.indd 150 13/03/2025 14:5413/03/2025 14:54
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the probability that the
aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was that performance
materiality was 50% (2023: 50%) of our planning materiality, namely £3.4m (2023: £3.7m). We have set performance materiality at this percentage due to the
level of audit adjustments identified in the prior year.
Audit work was undertaken at component locations for the purpose of responding to the assessed risks of material misstatement of the group financial
statements. The performance materiality set for each component is based on the relative scale and risk of the component to the Group as a whole and our
assessment of the risk of misstatement at that component. In the current year, the range of performance materiality allocated to components was £0.67m to
£3.32m (2023: £0.75m to £3.7m).
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £0.34m (2023: £0.38m), which is set at 5%
of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant qualitative
considerations in forming our opinion.
OTHER INFORMATION
The other information comprises the information included in the annual report set out on pages 1 – 224 other than the financial statements and our auditor’s
report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not
express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies
or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.
If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent
with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have
notidentified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches
notvisited by us; or
the parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the accounting
records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
151
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17XIndependentXAuditorsXReport_v22.indd 15117XIndependentXAuditorsXReport_v22.indd 151 13/03/2025 14:5413/03/2025 14:54
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC CONTINUED
CORPORATE GOVERNANCE STATEMENT
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance Statement relating
to the group and company’s compliance with the provisions of the UK Corporate Governance Code specified for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance Statement is
materially consistent with the financial statements or our knowledge obtained during the audit:
Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties identified set
out on pages 159–160;
Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and why the period is appropriate set out on
page62;
Director’s statement on whether it has a reasonable expectation that the group will be able to continue in operation and meets its liabilities set out on
pages 62 and 159–160;
Directors’ statement on fair, balanced and understandable set out on pages 96–97 and 141;
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page98;
The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on pages 98–100; and
The section describing the work of the audit committee set out on pages 98–101.
RESPONSIBILITIES OF DIRECTORS
As explained more fully in the directors’ responsibilities statement set out on page 141, the directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group and parent company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the
group or the parent company or to cease operations, or have no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined
above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one
resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent
to which our procedures are capable of detecting irregularities, including fraud is detailed below.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
152
17XIndependentXAuditorsXReport_v22.indd 15217XIndependentXAuditorsXReport_v22.indd 152 13/03/2025 14:5413/03/2025 14:54
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant are
frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK adopted
international accounting standards, FRS 101, the Companies Act 2006 and UK Corporate Governance Code.
We understood how Aston Martin Lagonda Global Holdings plc is complying with those frameworks by making enquiries of management, internal audit,
those responsible for legal and compliance procedures and the company secretary. We corroborated our enquiries through our review of board minutes,
papers provided to the Audit Committee and correspondence received from regulatory bodies.
We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur by by meeting with
management and internal audit to understand where they considered there was susceptibility to fraud. We also considered performance targets and
thepotential incentives or opportunities to manage earnings or influence the perceptions of analysts. We considered the programmes and controls
thatthe Group has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors
thoseprograms and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk.
Theseprocedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free
frommaterial fraud.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved
understanding management’s internal controls over compliance with laws and regulations; enquiries of legal counsel, Group management, internal audit,
and full and specific scope management; reading internal audit reports and whistleblowing summaries provided to the Audit Committee and performing
focused testing, as referred to in the key audit matters section above.
Specific enquiries were made with the component team to confirm any non-compliance with laws and regulations and this was reported through their
audit deliverables based on the procedures detailed in the previous paragraph.
A further description of our responsibilities for the audit of the financial statements is located on theFinancial Reporting Council’s website at
https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
OTHER MATTERS WE ARE REQUIRED TO ADDRESS
Following the recommendation from the audit committee we were appointed by the company on 24 July 2019 to audit the financial statements for the
year ending 31 December 2019 and subsequent financial periods.
The period of total uninterrupted engagement including previous renewals and reappointments is six years, covering the years ending 2019 to 2024.
The audit opinion is consistent with the additional report to the audit committee.
USE OF OUR REPORT
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body,
for our audit work, for this report, or for the opinions we have formed.
WILLIAM BINNS (SENIOR STATUTORY AUDITOR)
FOR AND ON BEHALF OF ERNST & YOUNG LLP, STATUTORY AUDITOR
London
25 February 2025
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
153
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17XIndependentXAuditorsXReport_v22.indd 15317XIndependentXAuditorsXReport_v22.indd 153 13/03/2025 14:5413/03/2025 14:54
FINANCIAL STATEMENTS
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2024
2024
2023
Adjusting Adjusting
Adjusted items*Total Adjusted items* Total
Notes £m £m £m £m £m £m
Revenue
3
1,583.9
–
1,583.9
1,632.8
–
1,632.8
Cost of sales
(1,000.0)
–
(1,000.0)
(993.6)
–
(993.6)
Gross profit
583.9
–
583.9
639.2
–
639.2
Selling and distribution expenses
(135.4)
–
(135.4)
(143.8)
–
(143.8)
Administrative and other operating expenses
(531.3)
(16.7)
(548.0)
(575.1)
(31.5)
(606.6)
Operating loss
4
(82.8)
(16.7)
(99.5)
(79.7)
(31.5)
(111.2)
Finance income
7
7.1
18.8
25.9
74.3
–
74.3
Finance expense
8
(179.8)
(35.7)
(215.5)
(166.4)
(36.5)
(202.9)
Loss before ta
x
(255.5)
(33.6)
(289.1)
(171.8)
(68.0)
(239.8)
Income tax (charge)/credit
9
(34.4)
–
(34.4)
13.0
–
13.0
Loss for the yea
r
(289.9)
(33.6)
(323.5)
(158.8)
(68.0)
(226.8)
Loss attributable to:
Owners of the Group
(323.5)
(228.1)
Non-controlling interests
33
–
1.3
(323.5)
(226.8)
Other comprehensive income
Items that will never be reclassified to the Income Statement
Remeasurement of Defined Benefit liability
26
10.2
(0.1)
Change in fair value of investments in equity instruments
15
51.4
–
Taxation on items that will never be reclassified to the
Income Statement
9
(11.9)
–
Items that are or may be reclassified to the Income Statement
Foreign currency translation differences
0.8
(4.0)
Fair value adjustment – cash flow hedges
23
–
0.7
Amounts reclassified to the Income Statement – cash flow hedges
23
(3.6)
(5.4)
Taxation on items that may be reclassified to the Income Statement
9
0.9
1.2
Other comprehensive income/(loss) for the year, net of income tax
47.8
(7.6)
Total comprehensive loss for the yea
r
(275.7)
(234.4)
Total comprehensive (loss)/income for the year attributable to:
Owners of the Group
(275.7)
(235.7)
Non-controlling interests
33
–
1.3
(275.7)
(234.4)
Earnings per ordinary share
Basic loss per share
11
(38.9p)
(30.5p)
Diluted loss per share
11
(38.9p)
(30.5p)
All operations of the Group are continuing.
* Adjusting items are defined in note 2 with further detail shown in note 5.
The notes on pages 159–209 form an integral part of the Financial Statements.
Consolidated Statement of Changes in Equity
as at 31 December 2024
Grou
p
Share
capital
£m
Share
premium
£m
Merger
reserve
£m
Capital
redemption
reserve
£m
Capital
reserve
£m
Translation
reserve
£m
Hedge
reserves
£m
Retained
earnings
£m
Non-
controlling
interest
£m
Total
Equity
£m
At 1 January 2024 82.4 2,094.5 143.9 9.3 6.6 2.5 0.8 (1,437.7) 20.8 923.1
Total comprehensive loss for
the yea
r
Loss for the year – – – – – – – (323.5) – (323.5)
Other comprehensive income
Foreign currency translation
differences – – – – – 0.8 – – – 0.8
Fair value movement – cash flow
hedges (note 23) – – – – – – – – – –
Amounts reclassified to the
Consolidated Income Statement
– cash flow hedges (note 23) – – – – – – (3.6) – – (3.6)
Remeasurement of Defined
Benefit liability (note 26) – – – – – – – 10.2 – 10.2
Fair value movement of
investments in equity instruments
(note 15) – – – – – – – 51.4 – 51.4
Tax on other comprehensive
income (note 9) – – – – – – 0.9 (11.9) – (11.0)
Total other comprehensive
income/(loss) – – – – – 0.8 (2.7) 49.7 – 47.8
Total comprehensive
income/(loss) for the yea
r
– – – – – 0.8 (2.7) (273.8) – (275.7)
Transactions with owners,
recorded directly in equit
y
Issuance of new shares (note 27) 11.1 98.1 – – – – – – – 109.2
Issue of shares to Share Incentive
Plan (note 27) 0.1 – – – – – – (0.1) – –
Dividend paid to non-controlling
interest (note 10) – – – – – – – – (8.1) (8.1)
Credit for the year under equity-
settled share-based payments
(note 29) – – – – – – – 4.8 – 4.8
Tax on items credited to equity
(note 9) – – – – – – – (0.4) – (0.4)
Total transactions with owners 11.2 98.1 – – – – – 4.3 (8.1) 105.5
At 31 December 2024 93.6 2,192.6 143.9 9.3 6.6 3.3 (1.9) (1,707.2) 12.7 752.9
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
154
17aXFinancialXStatements_v7.indd 15417aXFinancialXStatements_v7.indd 154 13/03/2025 14:5513/03/2025 14:55
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2024
2024 2023
Notes
Adjusted
£m
Adjusting
items*
£m
Total
£m
Adjusted
£m
Adjusting
items*
£m
Total
£m
Revenue 3 1,583.9 – 1,583.9 1,632.8 – 1,632.8
Cost of sales (1,000.0) – (1,000.0) (993.6) – (993.6)
Gross profit 583.9 – 583.9 639.2 – 639.2
Selling and distribution expenses (135.4) – (135.4) (143.8) – (143.8)
Administrative and other operating expenses (531.3) (16.7) (548.0) (575.1) (31.5) (606.6)
Operating loss 4 (82.8) (16.7) (99.5) (79.7) (31.5) (111.2)
Finance income 7 7.1 18.8 25.9 74.3 – 74.3
Finance expense 8 (179.8) (35.7) (215.5) (166.4) (36.5) (202.9)
Loss before ta
x
(255.5) (33.6) (289.1) (171.8) (68.0) (239.8)
Income tax (charge)/credit 9 (34.4) – (34.4) 13.0 – 13.0
Loss for the yea
r
(289.9) (33.6) (323.5) (158.8) (68.0) (226.8)
Loss attributable to:
Owners of the Group (323.5) (228.1)
Non-controlling interests 33 – 1.3
(323.5) (226.8)
Other comprehensive income
Items that will never be reclassified to the Income Statement
Remeasurement of Defined Benefit liability 26 10.2 (0.1)
Change in fair value of investments in equity instruments 15 51.4 –
Taxation on items that will never be reclassified to the
Income Statement 9 (11.9) –
Items that are or may be reclassified to the Income Statement
Foreign currency translation differences 0.8 (4.0)
Fair value adjustment – cash flow hedges 23 – 0.7
Amounts reclassified to the Income Statement – cash flow hedges 23 (3.6) (5.4)
Taxation on items that may be reclassified to the Income Statement 9 0.9 1.2
Other comprehensive income/(loss) for the year, net of income tax 47.8 (7.6)
Total comprehensive loss for the yea
r
(275.7) (234.4)
Total comprehensive (loss)/income for the year attributable to:
Owners of the Group (275.7) (235.7)
Non-controlling interests 33 – 1.3
(275.7) (234.4)
Earnings per ordinary share
Basic loss per share 11 (38.9p) (30.5p)
Diluted loss per share 11 (38.9p) (30.5p)
All operations of the Group are continuing.
* Adjusting items are defined in note 2 with further detail shown in note 5.
The notes on pages 159–209 form an integral part of the Financial Statements.
Consolidated Statement of Changes in Equity
as at 31 December 2024
Capital Non-
Share Share Merger redemption Capital Translation Hedge Retained controlling Total
capital premium reserve reserve reserve reserve reserves earnings interest Equity
Grou
p
£m £m £m £m £m £m £m £m £m £m
At 1 January 2024
82.4
2,094.5
143.9
9.3
6.6
2.5
0.8
(1,437.7)
20.8
923.1
Total comprehensive loss for
the yea
r
Loss for the year
–
–
–
–
–
–
–
(323.5)
–
(323.5)
Other comprehensive income
Foreign currency translation
differences
–
–
–
–
–
0.8
–
–
–
0.8
Fair value movement – cash flow
hedges (note 23)
–
–
–
–
–
–
–
–
–
–
Amounts reclassified to the
Consolidated Income Statement
– cash flow hedges (note 23)
–
–
–
–
–
–
(3.6)
–
–
(3.6)
Remeasurement of Defined
Benefit liability (note 26)
–
–
–
–
–
–
–
10.2
–
10.2
Fair value movement of
investments in equity instruments
(note 15)
–
–
–
–
–
–
–
51.4
–
51.4
Tax on other comprehensive
income (note 9)
–
–
–
–
–
–
0.9
(11.9)
–
(11.0)
Total other comprehensive
income/(loss)
–
–
–
–
–
0.8
(2.7)
49.7
–
47.8
Total comprehensive
income/(loss) for the yea
r
–
–
–
–
–
0.8
(2.7)
(273.8)
–
(275.7)
Transactions with owners,
recorded directly in equit
y
Issuance of new shares (note 27)
11.1
98.1
–
–
–
–
–
–
–
109.2
Issue of shares to Share Incentive
Plan (note 27)
0.1
–
–
–
–
–
–
(0.1)
–
–
Dividend paid to non-controlling
interest (note 10)
–
–
–
–
–
–
–
–
(8.1)
(8.1)
Credit for the year under equity-
settled share-based payments
(note 29)
–
–
–
–
–
–
–
4.8
–
4.8
Tax on items credited to equity
(note 9)
–
–
–
–
–
–
–
(0.4)
–
(0.4)
Total transactions with owners
11.2
98.1
–
–
–
–
–
4.3
(8.1)
105.5
At 31 December 2024
93.6
2,192.6
143.9
9.3
6.6
3.3
(1.9)
(1,707.2)
12.7
752.9
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
155
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 15517aXFinancialXStatements_v7.indd 155 13/03/2025 14:5513/03/2025 14:55
Consolidated Statement of Changes in Equity as at 31 December 2023
Capital Non-
Share Share Merger redemption Capital Translation Hedge Retained controlling Total
capital premium reserve reserve reserve reserve reserves earnings interest Equity
Grou
p
£m £m £m £m £m £m £m £m £m £m
At 1 January 2023
69.9
1,697.4
143.9
9.3
6.6
6.5
4.3
(1,233.9)
19.5
723.5
Total comprehensive loss for
the yea
r
(Loss)/profit for the year
–
–
–
–
–
–
–
(228.1)
1.3
(226.8)
Other comprehensive income
Foreign currency translation
differences
–
–
–
–
–
(4.0)
–
–
–
(4.0)
Fair value movement – cash flow
hedges (note 23)
–
–
–
–
–
–
0.7
–
–
0.7
Amounts reclassified to the
Consolidated Income Statement
– cash flow hedges (note 23)
–
–
–
–
–
–
(5.4)
–
–
(5.4)
Remeasurement of Defined
Benefit liability (note 26)
–
–
–
–
–
–
–
(0.1)
–
(0.1)
Tax on other comprehensive loss
(note 9)
–
–
–
–
–
–
1.2
–
–
1.2
Total other comprehensive loss
–
–
–
–
–
(4.0)
(3.5)
(0.1)
–
(7.6)
Total comprehensive
(loss)/income for the yea
r
–
–
–
–
–
(4.0)
(3.5)
(228.2)
1.3
(234.4)
Transactions with owners,
recorded directly in equit
y
Issuance of new shares (note 27)
11.5
383.0
–
–
–
–
–
–
–
394.5
Issue of shares to Share Incentive
Plan (note 27)
0.1
–
–
–
–
–
–
(0.1)
–
–
Warrant options exercised
(note 27)
0.9
14.1
–
–
–
–
–
18.6
–
33.6
Credit for the year under equity-
settled share-based payments
(note 29)
–
–
–
–
–
–
–
5.4
–
5.4
Tax on items credited to equity
(note 9)
–
–
–
–
–
–
–
0.5
–
0.5
Total transactions with owners
12.5
397.1
–
–
–
–
–
24.4
–
434.0
At 31 December 2023
82.4
2,094.5
143.9
9.3
6.6
2.5
0.8
(1,437.7)
20.8
923.1
Consolidated Statement of Financial Position at 31 December 2024
Notes
31 December 2024
£m
31 December 2023
£m
Non-current assets
Intangible assets 12 1,659.1 1,577.6
Property, plant and equipment 14 351.4 353.7
Investments in equity interests 15 50.9 18.2
Other financial assets 20 23.2 –
Right-of-use lease assets 16 69.9 70.4
Trade and other receivables 18 7.3 5.3
Deferred tax asset 9 126.4 156.3
2,288.2 2,181.5
Current assets
Inventories 17 303.0 272.7
Trade and other receivables 18 209.7 322.2
Income tax receivable – 0.9
Other financial assets 20 1.0 3.3
Cash and cash equivalents 19 359.6 392.4
873.3 991.5
Total assets 3,161.5 3,173.0
Current liabilities
Borrowings 23 – 89.4
Trade and other payables 21 658.2 840.4
Income tax payable 5.7 2.1
Other financial liabilities 22 10.6 25.2
Lease liabilities 16 9.4 8.8
Provisions 25 19.7 20.2
703.6 986.1
Non-current liabilities
Borrowings 23 1,387.3 980.3
Trade and other payables 21 151.5 122.3
Lease liabilities 16 87.2 88.5
Other financial liabilities 22 23.2 –
Provisions 25 27.1 23.7
Employee benefits 26 28.7 49.0
1,705.0 1,263.8
Total liabilities 2,408.6 2,249.9
Net assets 752.9 923.1
Capital and reserves
Share capital 27 93.6 82.4
Share premium 27 2,192.6 2,094.5
Merger reserve 143.9 143.9
Capital redemption reserve 9.3 9.3
Capital reserve 6.6 6.6
Translation reserve 3.3 2.5
Hedge reserves 23 (1.9) 0.8
Retained earnings (1,707.2) (1,437.7)
Equity attributable to owners of the Group 740.2 902.3
Non-controlling interests 12.7 20.8
Total shareholders’ equit
y
752.9 923.1
The Financial Statements were approved by the Board of Directors on 25 February 2025 and were signed on its behalf by
ADRIAN HALLMARK DOUG LAFFERTY
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
Company Number: 11488166
FINANCIAL STATEMENTS
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
156
17aXFinancialXStatements_v7.indd 15617aXFinancialXStatements_v7.indd 156 13/03/2025 14:5513/03/2025 14:55
Consolidated Statement of Changes in Equity as at 31 December 2023
Grou
p
Share
capital
£m
Share
premium
£m
Merger
reserve
£m
Capital
redemption
reserve
£m
Capital
reserve
£m
Translation
reserve
£m
Hedge
reserves
£m
Retained
earnings
£m
Non-
controlling
interest
£m
Total
Equity
£m
At 1 January 2023 69.9 1,697.4 143.9 9.3 6.6 6.5 4.3 (1,233.9) 19.5 723.5
Total comprehensive loss for
the yea
r
(Loss)/profit for the year – – – – – – – (228.1) 1.3 (226.8)
Other comprehensive income
Foreign currency translation
differences – – – – – (4.0) – – – (4.0)
Fair value movement – cash flow
hedges (note 23) – – – – – – 0.7 – – 0.7
Amounts reclassified to the
Consolidated Income Statement
– cash flow hedges (note 23) – – – – – – (5.4) – – (5.4)
Remeasurement of Defined
Benefit liability (note 26) – – – – – – – (0.1) – (0.1)
Tax on other comprehensive loss
(note 9) – – – – – – 1.2 – – 1.2
Total other comprehensive loss – – – – – (4.0) (3.5) (0.1) – (7.6)
Total comprehensive
(loss)/income for the yea
r
– – – – – (4.0) (3.5) (228.2) 1.3 (234.4)
Transactions with owners,
recorded directly in equit
y
Issuance of new shares (note 27) 11.5 383.0 – – – – – – – 394.5
Issue of shares to Share Incentive
Plan (note 27) 0.1 – – – – – – (0.1) – –
Warrant options exercised
(note 27) 0.9 14.1 – – – – – 18.6 – 33.6
Credit for the year under equity-
settled share-based payments
(note 29) – – – – – – – 5.4 – 5.4
Tax on items credited to equity
(note 9) – – – – – – – 0.5 – 0.5
Total transactions with owners 12.5 397.1 – – – – – 24.4 – 434.0
At 31 December 2023 82.4 2,094.5 143.9 9.3 6.6 2.5 0.8 (1,437.7) 20.8 923.1
Consolidated Statement of Financial Position at 31 December 2024
31 December 2024 31 December 2023
Notes £m £m
Non-current assets
Intangible assets
12
1,659.1
1,577.6
Property, plant and equipment
14
351.4
353.7
Investments in equity interests
15
50.9
18.2
Other financial assets
20
23.2
–
Right-of-use lease assets
16
69.9
70.4
Trade and other receivables
18
7.3
5.3
Deferred tax asset
9
126.4
156.3
2,288.2
2,181.5
Current assets
Inventories
17
303.0
272.7
Trade and other receivables
18
209.7
322.2
Income tax receivable
–
0.9
Other financial assets
20
1.0
3.3
Cash and cash equivalents
19
359.6
392.4
873.3
991.5
Total assets
3,161.5
3,173.0
Current liabilities
Borrowings
23
–
89.4
Trade and other payables
21
658.2
840.4
Income tax payable
5.7
2.1
Other financial liabilities
22
10.6
25.2
Lease liabilities
16
9.4
8.8
Provisions
25
19.7
20.2
703.6
986.1
Non-current liabilities
Borrowings
23
1,387.3
980.3
Trade and other payables
21
151.5
122.3
Lease liabilities
16
87.2
88.5
Other financial liabilities
22
23.2
–
Provisions
25
27.1
23.7
Employee benefits
26
28.7
49.0
1,705.0
1,263.8
Total liabilities
2,408.6
2,249.9
Net assets
752.9
923.1
Capital and reserves
Share capital
27
93.6
82.4
Share premium
27
2,192.6
2,094.5
Merger reserve
143.9
143.9
Capital redemption reserve
9.3
9.3
Capital reserve
6.6
6.6
Translation reserve
3.3
2.5
Hedge reserves
23
(1.9)
0.8
Retained earnings
(1,707.2)
(1,437.7)
Equity attributable to owners of the Group
740.2
902.3
Non-controlling interests
12.7
20.8
Total shareholders’ equit
y
752.9
923.1
The Financial Statements were approved by the Board of Directors on 25 February 2025 and were signed on its behalf by
ADRIAN HALLMARK DOUG LAFFERTY
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
Company Number: 11488166
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
157
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 15717aXFinancialXStatements_v7.indd 157 13/03/2025 14:5513/03/2025 14:55
Consolidated Statement of Cash Flows for the year ended 31 December 2024
2024 2023
Notes £m £m
O
p
eratin
g
activities
Loss for the
y
ear
(323.5)
(226.8)
A
d
j
ustments to reconcile loss for the
y
ear to net cash inflow from operatin
g
activities
Tax char
g
e/(credit) on operations
9
34.4
(13.0)
Net finance costs
189.6
128.6
Depreciation of propert
y
, plant and equipment
4
74.3
90.3
Depreciation of ri
g
ht-of-use lease assets
4
10.1
9.3
Amortisation of intan
g
ible assets
4
269.3
283.4
Loss on sale/scrap of propert
y
, plant and equipment
4
0.1
2.6
Difference between pension contributions paid and amounts reco
g
nised in the Consolidated Income Statement
(12.1)
(15.0)
Decrease/(increase) in inventories
(12.8)
11.9
(Increase)/decrease in trade and other receivables
106.7
(82.3)
Increase in trade and other pa
y
ables
(33.8)
50.9
Decrease in advances and customer deposits
(177.7)
(66.0)
Movement in provisions
2.7
3.4
Other non-cash movements – Movements in translation reserve and other exchan
g
e related items
0.3
(5.7)
Movements in hed
g
in
g
position and forei
g
n exchan
g
e derivatives
2.2
(7.2)
Increase in other derivative contracts
–
(11.2)
Movements in deferred tax relatin
g
to RDEC credit
9
(9.8)
(7.4)
Other non-cash movements – Movement in LTIP Reserve
4.8
5.4
Cash
g
enerated from o
p
erations
124.8
151.2
Decrease in cash held not available for short-term use
–
0.3
Income taxes paid
9
(0.9)
(5.6)
Net cash inflow from o
p
eratin
g
activities
123.9
145.9
Cash flows from investin
g
activities
Interest received
7
7.1
13.5
Repa
y
ment of loan assets
–
0.5
Pa
y
ments to acquire propert
y
, plant and equipment
(88.7)
(91.1)
Cash outflow on technolo
gy
and development expenditure
(311.9)
(306.3)
Proceeds from disposal of investments in equit
y
instruments
15
18.7
–
Net cash used in investin
g
activities
(374.8)
(383.4)
Cash flows from financin
g
activities
Interest paid
28
(122.0)
(122.5)
Proceeds from equit
y
share issue
27
111.2
310.9
Proceeds from issue of warrants
27
–
15.0
Proceeds from financial instrument utilised durin
g
refinancin
g
transactions
7
0.7
–
Dividend paid to non-controllin
g
interest
10
(8.0)
–
Principal element of lease pa
y
ments
28
(9.5)
(7.9)
Proceeds from inventor
y
repurchase arran
g
ement
21
75.4
38.0
Repa
y
ment of inventor
y
repurchase arran
g
ement
21
(80.0)
(40.0)
Proceeds from new borrowin
g
s
28
1,394.6
11.5
Repa
y
ment of existin
g
borrowin
g
s
28
(1,084.9)
(129.7)
Premium paid upon redemption of borrowin
g
s
28
(35.7)
(8.0)
Transaction fees paid on issuance of shares
24
(1.7)
(7.6)
Transaction fees paid on financin
g
activities
24
(24.3)
–
Net cash inflow from financin
g
activities
215.8
59.7
Net decrease in cash and cash e
q
uivalents
(35.1)
(177.8)
Cash and cash equivalents at the be
g
innin
g
of the
y
ear
392.4
583.3
Effect of exchan
g
e rates on cash and cash equivalents
2.3
(13.1)
Cash and cash e
q
uivalents at the end of the
y
ea
r
359.6
392.4
Notes the Financial Statements
1 BASIS OF ACCOUNTING
Aston Martin Lagonda Global Holdings plc (the “Company”) is a company
incorporated in England and Wales and domiciled in the UK. The Group
Financial Statements consolidate those of the Company and its subsidiaries
(together referred to as the “Group”).
The Group Financial Statements have been prepared and approved by the
Directors in accordance with UK adopted international accounting standards.
The Group Financial Statements have been prepared under the historical
cost convention except where the measurement of balances at fair value is
required as explained below. The Financial Statements are prepared in
millions to one decimal place, and in sterling, which is the Company’s
functional currency.
Climate change
In preparing the Consolidated Financial Statements, management have
considered the impact of climate change, particularly in the context of the
disclosures included in the Strategic Report this year and the sustainability
goals, including the stated net-zero targets. Climate change is not expected
to have a significant impact on the Group’s going concern assessment to
30 June 2026 nor the viability of the Group over the next five years following
consideration of the below points.
– The Group has modelled various scenarios to take account of the risks
and opportunities identified with the impact of climate change to assess
the financial impact on its business plan and viability.
– The Group is developing alternatives to the Internal Combustion Engine
(‘ICE’) with a blended drivetrain approach between 2025 and 2030,
including Plug-in Hybrid Electric Vehicle (‘PHEV’) and Battery Electric
Vehicle (‘BEV’), with a clear plan to have a line-up of electrified sports
cars and SUVs. This is supported by significant planned capital
investment of around £2bn in advanced technologies over the 5 year
period from 2025 to 2029, with investment shifting from ICE to BEV
technology.
– The Group has a Strategic Cooperation Agreement with Mercedes-Benz
AG. The agreement provides the Company with access to a wide range of
world-class technologies for the current generation of luxury vehicles
and future derivatives which are planned to be launched through to 2028.
– The Group has a supply agreement with world-leading electric vehicle
technologies company, Lucid Group, Inc., which will help drive the
Group’s high-performance electrification strategy and its long-term
growth. The agreement involves Lucid, a world-leader in the design
and manufacture of advanced electric powertrains and battery systems,
supplying industry-leading electric vehicle technologies. Access to
Lucid’s current and future powertrain and battery technology will
support the creation of a bespoke, singular BEV platform, suitable for
all product types from hypercar to SUV.
– The Group is leading a six-partner collaborative research and
development project, Project ELEVATION, which was awarded £9.0m of
government funding through the Advanced Propulsion Centre, further
supplementing the research and development of its innovative modular
BEV platform.
– The Group’s first hybrid supercar, Valhalla, is entering production in
2025, with its first BEV planned for the latter part of this decade.
Consistent with the above, management have further considered the impact of
climate change on a number of key estimates within the Financial Statements
and has not found climate change to have a material impact on the conclusions
reached.
Climate change considerations have been factored into the Directors’
impairment assessments of the carrying value of non-current assets (such as
capitalised development cost intangible assets) through usage of a pre-tax
discount rate which reflects the individual nature and specific risks relating to
the business and the market in which the Group operates.
In addition, the forecast cash flows used in both the impairment assessments
of the carrying value of non-current assets and the assessment of the
recoverability of deferred tax assets, reflect the current energy cost
headwinds and future costs to achieve net zero manufacturing facilities by
2030. The forecasts also consider forecast volumes for both existing and
future car lines given current order books and the assessment of changing
customer preferences in the context of climate change considerations.
Going concern
The Group meets its day-to-day working capital requirements and medium
term funding requirements through a mixture of $1,050.0m SSNs at 10.0%
and £565.0m of SSNs at 10.375% both of which mature in March 2029, a
revolving credit facility (RCF) (£170.0m) which matures on 31 December
2028, facilities to finance inventory, a bilateral RCF facility and a wholesale
vehicle financing facility (as described in note 18). Under the RCF, the Group
is required to comply with a leverage covenant tested quarterly. Leverage is
calculated as the ratio of adjusted EBITDA to net debt, after certain
accounting adjustments are made. Of these adjustments, the most significant
is to account for lease liabilities under “frozen GAAP”, i.e. under IAS17 rather
than IFRS 16. Details of this adjustment are included in note 16. The Group
has complied with its covenant requirements for the year ended
31 December 2024 and expects to do so for the Going Concern period.
The amounts outstanding on all the borrowings are shown in note 23.
The directors have developed trading and cash flow forecasts for the period
from the date of approval of these Financial Statements through 30 June
2026 (the “going concern review period”). These forecasts show that the
Group has sufficient financial resources to meet its obligations as they fall
due and to comply with covenants for the going concern review period.
The forecasts reflect the Group’s ultra-luxury performance-oriented
strategy, balancing supply and demand and the actions taken to
improve cost efficiency and gross margin. The forecasts include the costs of
the Group's environmental, social and governance ("ESG") commitments
and make assumptions in respect of future market conditions and, in
particular, wholesale volumes, average selling price, the launch of new
models, and future operating costs. The nature of the Group's business is
such that there can be variation in the timing of cash flows around the
development and launch of new models. In addition, the availability of funds
provided through the vehicle wholesale finance facility changes as the
availability of credit insurance and sales volumes vary, in total and seasonally.
FINANCIAL STATEMENTS
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
158
17aXFinancialXStatements_v7.indd 15817aXFinancialXStatements_v7.indd 158 13/03/2025 14:5513/03/2025 14:55
Consolidated Statement of Cash Flows for the year ended 31 December 2024
Notes
2024
£m
2023
£m
O
p
eratin
g
activities
Loss for the
y
ear (323.5) (226.8)
A
d
j
ustments to reconcile loss for the
y
ear to net cash inflow from operatin
g
activities
Tax char
g
e/(credit) on operations 9 34.4 (13.0)
Net finance costs 189.6 128.6
Depreciation of propert
y
, plant and equipment 4 74.3 90.3
Depreciation of ri
g
ht-of-use lease assets 4 10.1 9.3
Amortisation of intan
g
ible assets 4 269.3 283.4
Loss on sale/scrap of propert
y
, plant and equipment 4 0.1 2.6
Difference between pension contributions paid and amounts reco
g
nised in the Consolidated Income Statement (12.1) (15.0)
Decrease/(increase) in inventories (12.8) 11.9
(Increase)/decrease in trade and other receivables 106.7 (82.3)
Increase in trade and other pa
y
ables (33.8) 50.9
Decrease in advances and customer deposits (177.7) (66.0)
Movement in provisions 2.7 3.4
Other non-cash movements – Movements in translation reserve and other exchan
g
e related items 0.3 (5.7)
Movements in hed
g
in
g
position and forei
g
n exchan
g
e derivatives 2.2 (7.2)
Increase in other derivative contracts – (11.2)
Movements in deferred tax relatin
g
to RDEC credit 9 (9.8) (7.4)
Other non-cash movements – Movement in LTIP Reserve 4.8 5.4
Cash
g
enerated from o
p
erations 124.8 151.2
Decrease in cash held not available for short-term use – 0.3
Income taxes paid 9 (0.9) (5.6)
Net cash inflow from o
p
eratin
g
activities 123.9 145.9
Cash flows from investin
g
activities
Interest received 7 7.1 13.5
Repa
y
ment of loan assets – 0.5
Pa
y
ments to acquire propert
y
, plant and equipment (88.7) (91.1)
Cash outflow on technolo
gy
and development expenditure (311.9) (306.3)
Proceeds from disposal of investments in equit
y
instruments 15 18.7 –
Net cash used in investin
g
activities (374.8) (383.4)
Cash flows from financin
g
activities
Interest paid 28 (122.0) (122.5)
Proceeds from equit
y
share issue 27 111.2 310.9
Proceeds from issue of warrants 27 – 15.0
Proceeds from financial instrument utilised durin
g
refinancin
g
transactions 7 0.7 –
Dividend paid to non-controllin
g
interest 10 (8.0) –
Principal element of lease pa
y
ments 28 (9.5) (7.9)
Proceeds from inventor
y
repurchase arran
g
ement 21 75.4 38.0
Repa
y
ment of inventor
y
repurchase arran
g
ement 21 (80.0) (40.0)
Proceeds from new borrowin
g
s 28 1,394.6 11.5
Repa
y
ment of existin
g
borrowin
g
s 28 (1,084.9) (129.7)
Premium paid upon redemption of borrowin
g
s 28 (35.7) (8.0)
Transaction fees paid on issuance of shares 24 (1.7) (7.6)
Transaction fees paid on financin
g
activities 24 (24.3) –
Net cash inflow from financin
g
activities 215.8 59.7
Net decrease in cash and cash e
q
uivalents (35.1) (177.8)
Cash and cash equivalents at the be
g
innin
g
of the
y
ear 392.4 583.3
Effect of exchan
g
e rates on cash and cash equivalents 2.3 (13.1)
Cash and cash e
q
uivalents at the end of the
y
ea
r
359.6 392.4
Notes the Financial Statements
1 BASIS OF ACCOUNTING
Aston Martin Lagonda Global Holdings plc (the “Company”) is a company
incorporated in England and Wales and domiciled in the UK. The Group
Financial Statements consolidate those of the Company and its subsidiaries
(together referred to as the “Group”).
The Group Financial Statements have been prepared and approved by the
Directors in accordance with UK adopted international accounting standards.
The Group Financial Statements have been prepared under the historical
cost convention except where the measurement of balances at fair value is
required as explained below. The Financial Statements are prepared in
millions to one decimal place, and in sterling, which is the Company’s
functional currency.
Climate change
In preparing the Consolidated Financial Statements, management have
considered the impact of climate change, particularly in the context of the
disclosures included in the Strategic Report this year and the sustainability
goals, including the stated net-zero targets. Climate change is not expected
to have a significant impact on the Group’s going concern assessment to
30 June 2026 nor the viability of the Group over the next five years following
consideration of the below points.
– The Group has modelled various scenarios to take account of the risks
and opportunities identified with the impact of climate change to assess
the financial impact on its business plan and viability.
– The Group is developing alternatives to the Internal Combustion Engine
(‘ICE’) with a blended drivetrain approach between 2025 and 2030,
including Plug-in Hybrid Electric Vehicle (‘PHEV’) and Battery Electric
Vehicle (‘BEV’), with a clear plan to have a line-up of electrified sports
cars and SUVs. This is supported by significant planned capital
investment of around £2bn in advanced technologies over the 5 year
period from 2025 to 2029, with investment shifting from ICE to BEV
technology.
– The Group has a Strategic Cooperation Agreement with Mercedes-Benz
AG. The agreement provides the Company with access to a wide range of
world-class technologies for the current generation of luxury vehicles
and future derivatives which are planned to be launched through to 2028.
– The Group has a supply agreement with world-leading electric vehicle
technologies company, Lucid Group, Inc., which will help drive the
Group’s high-performance electrification strategy and its long-term
growth. The agreement involves Lucid, a world-leader in the design
and manufacture of advanced electric powertrains and battery systems,
supplying industry-leading electric vehicle technologies. Access to
Lucid’s current and future powertrain and battery technology will
support the creation of a bespoke, singular BEV platform, suitable for
all product types from hypercar to SUV.
– The Group is leading a six-partner collaborative research and
development project, Project ELEVATION, which was awarded £9.0m of
government funding through the Advanced Propulsion Centre, further
supplementing the research and development of its innovative modular
BEV platform.
– The Group’s first hybrid supercar, Valhalla, is entering production in
2025, with its first BEV planned for the latter part of this decade.
Consistent with the above, management have further considered the impact of
climate change on a number of key estimates within the Financial Statements
and has not found climate change to have a material impact on the conclusions
reached.
Climate change considerations have been factored into the Directors’
impairment assessments of the carrying value of non-current assets (such as
capitalised development cost intangible assets) through usage of a pre-tax
discount rate which reflects the individual nature and specific risks relating to
the business and the market in which the Group operates.
In addition, the forecast cash flows used in both the impairment assessments
of the carrying value of non-current assets and the assessment of the
recoverability of deferred tax assets, reflect the current energy cost
headwinds and future costs to achieve net zero manufacturing facilities by
2030. The forecasts also consider forecast volumes for both existing and
future car lines given current order books and the assessment of changing
customer preferences in the context of climate change considerations.
Going concern
The Group meets its day-to-day working capital requirements and medium
term funding requirements through a mixture of $1,050.0m SSNs at 10.0%
and £565.0m of SSNs at 10.375% both of which mature in March 2029, a
revolving credit facility (RCF) (£170.0m) which matures on 31 December
2028, facilities to finance inventory, a bilateral RCF facility and a wholesale
vehicle financing facility (as described in note 18). Under the RCF, the Group
is required to comply with a leverage covenant tested quarterly. Leverage is
calculated as the ratio of adjusted EBITDA to net debt, after certain
accounting adjustments are made. Of these adjustments, the most significant
is to account for lease liabilities under “frozen GAAP”, i.e. under IAS17 rather
than IFRS 16. Details of this adjustment are included in note 16. The Group
has complied with its covenant requirements for the year ended
31 December 2024 and expects to do so for the Going Concern period.
The amounts outstanding on all the borrowings are shown in note 23.
The directors have developed trading and cash flow forecasts for the period
from the date of approval of these Financial Statements through 30 June
2026 (the “going concern review period”). These forecasts show that the
Group has sufficient financial resources to meet its obligations as they fall
due and to comply with covenants for the going concern review period.
The forecasts reflect the Group’s ultra-luxury performance-oriented
strategy, balancing supply and demand and the actions taken to
improve cost efficiency and gross margin. The forecasts include the costs of
the Group's environmental, social and governance ("ESG") commitments
and make assumptions in respect of future market conditions and, in
particular, wholesale volumes, average selling price, the launch of new
models, and future operating costs. The nature of the Group's business is
such that there can be variation in the timing of cash flows around the
development and launch of new models. In addition, the availability of funds
provided through the vehicle wholesale finance facility changes as the
availability of credit insurance and sales volumes vary, in total and seasonally.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
159
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 15917aXFinancialXStatements_v7.indd 159 13/03/2025 14:5513/03/2025 14:55
1 BASIS OF ACCOUNTING CONTINUED
Going concern continued
Going concern continued The forecasts take into account these factors to the
extent that the Directors consider them to represent their best estimate of
the future based on the information that is available to them at the time
of approval of these Financial Statements.
The Group directors have considered a severe but plausible downside
scenario that includes considering the impact of a 20% reduction in DBX
volumes and a 10% reduction in sports volumes from forecast levels
covering, although not exclusively, operating costs higher than the base plan,
incremental working capital requirements such as reduced deposit inflows
or increased deposit outflows and the impact of the strengthening of the
sterling-dollar exchange rate.
The Group plans to make continued investment for growth in the period and,
accordingly, funds generated through operations are expected to be
reinvested in the business mainly through new model development and
other capital expenditure. To a certain extent such expenditure is
discretionary and, in the event of risks occurring which could have a
particularly severe effect on the Group, as identified in the severe but
plausible downside scenario, actions such as constraining capital spending,
working capital improvements, reduction in marketing expenditure and the
continuation of strict and immediate expense control would be taken to
safeguard the Group’s financial position.
In addition, we also considered the circumstances which would be needed to
exhaust the Group’s liquidity over the assessment period; a reverse stress
test. This would indicate that vehicle sales would need to reduce by more
than 40% from forecast levels without any of the above mitigations to result
in having no liquidity. The likelihood of these circumstances occurring is
considered remote both in terms of the magnitude of the reduction and that
over such a long period, management could take substantial mitigating
actions, such as reducing capital spending to preserve liquidity.
Accordingly, after considering the forecasts, appropriate sensitivities,
current trading and available facilities, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future and to comply with its
financial covenants, therefore, the Directors continue to adopt the going
concern basis in preparing the Financial Statements.
2 ACCOUNTING POLICIES
Basis of consolidation
The Consolidated Financial Statements consist of the Financial Statements of
the Group and all entities controlled by the Group. All intercompany balances
and transactions, including unrealised profits arising, are eliminated.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through
its power over the entity. In assessing control, the Group takes into
consideration potential voting rights that are currently exercisable.
The acquisition date is the date on which control is transferred to the
acquirer. The financial statements of subsidiaries are included in the Group
Financial Statements from the date that control commences until the date
that control ceases. The financial statements of subsidiaries used in the
preparation of the Consolidated Financial Statements are prepared for
the same reporting year as the Group and are based on consistent
accounting policies.
Foreign currency translation
Transactions in foreign currencies are initially recorded in the functional
currency of the operation by applying the exchange rate ruling at the date of
the transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the reporting
date. All differences are taken to the Consolidated Income Statement except
for the translational differences on monetary items that form part of
designated hedge relationships.
The assets and liabilities of foreign operations are translated into sterling at
the rate of exchange ruling at the reporting date. Income and expenses are
translated at average exchange rates for the period. The resulting exchange
differences are taken through Other Comprehensive Income to the
translation reserve. On disposal of a foreign entity, the deferred cumulative
amount recognised in the translation reserve relating to the foreign
operation is recognised in the Consolidated Income Statement.
Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rates as at the dates of the initial
transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair
value was determined.
Revenue recognition
Revenue is recognised when the Group satisfies its performance obligation
to supply a product or service to the customer. Revenue is measured at the
fair value of the consideration receivable, deducting dealer incentives, VAT
and other sales taxes or duty. The following criteria must also be met before
revenue is recognised.
Sale of vehicles
Revenue from the sale of vehicles is recognised when control of the vehicle
is passed to the dealer or individual, thus evidencing the satisfaction of the
associated performance obligation under that contract. Control is passed
when the buyer can direct the use of and obtain substantially all of the
benefits of the vehicle which is typically at the point of despatch. When
despatch is deferred at the formal request of the buyer and a written request
to hold the vehicle until a specified delivery date has been received, revenue
is recognised when the vehicle is ready for despatch and the Group can no
longer use or direct the vehicle to an alternative buyer.
Where the dealer is Aston Martin Works Limited, an indirect subsidiary of the
Company, revenue is recognised when control of the vehicle is passed to an
individual customer outside of the group.
The Group estimates the consideration to which it will be entitled in
exchange for satisfaction of the performance obligation as part of the sale of
a vehicle. Revenue is recognised at the wholesale selling price net of dealer
incentives (variable marketing expense or “VME”). VME is estimated and
accrued for at the time of the wholesale sale to the dealer where no other
obligations exist. For those elements of VME connected with retail sales by
the dealer where there is also a contractual requirement for the dealer to
2 ACCOUNTING POLICIES CONTINUED
Revenue recognition continued
make additional wholesale purchases at that time to receive the incentive,
the incentive is accrued at the time of the retail sale by the dealer to the
end customer.
Warranties are issued on new vehicles sold with no separate purchase option
available to the customer and, on this basis, are accounted for in accordance
with IAS 37. Service packages sold as part of the supply of a vehicle are
accounted for as a separate performance obligation with the revenue
deferred, based on the term of the package, at the original point of sale. The
deferred revenue is released to the Consolidated Income Statement over the
shorter of the period that the service package covers or the number of
vehicle services that the end user is entitled to.
The Group sells vehicles which feature certain telematics services allowing
connectivity between a vehicle and an end user’s technology device.
Payment for the initial usage period of such features is typically received as
part of the overall vehicle price. The Group recognises a contract liability
reflecting an appropriate allocation of the vehicle sales price for the initial
usage period. To the extent that the Group sells the service separately in the
same market, the allocation is the observable price at which the Group sells
the service separately. For all other services, the Group estimates the
standalone selling price using a cost-plus-margin approach. Revenue is
recognised on a straight-line basis over the term of the service which
commences at the point of the vehicle being retailed to an end customer.
Where a sale of a vehicle includes other performance obligations, the Group
determines the allocation of the total transaction price by reference to their
relative standalone selling prices where possible.
Sales of parts
Revenue from the sale of parts is recognised upon transfer of control to the
customer, generally when the parts are released to the carrier responsible
for transporting them. Where the dealer is Aston Martin Works Limited, an
indirect subsidiary of the Company, revenue is recognised upon despatch
to a customer outside of the Group.
Servicing and restoration of vehicles
Revenue is recognised upon completion of the service /restoration typically
when the service or restoration is completed in accordance with the
customers’ requirements.
Brands and motorsport
Revenue from brands and motorsport is recognised when the performance
obligations, principally use of the Aston Martin brand name or supply of a
motorsport vehicle, are satisfied. Revenue is recognised either at a point in time or
over a period of time in line with IFRS 15 and according to the terms of the contract.
Customer advance payments
The Group receives advance cash payments from customers to secure their
allocation of a vehicle produced in limited quantities, typically with a lead time of
greater than 12 months. The value of the advance, both contractually refundable
or non-refundable, is held as a contract liability in the Consolidated Statement of
Financial Position. Upon satisfaction of the performance obligation, the liability is
released to revenue in the Consolidated Income Statement. If the deposit is
returned to the customer prior to satisfaction of the performance obligation, the
contract liability is derecognised.
Where a significant financing component exists, the contract liability
is increased over the same period of time as the contract liability is held
to account for the time value of money. A corresponding charge is
recognised in the Consolidated Income Statement within finance expenses.
Upon satisfaction of the linked performance obligation, the liability is
released to revenue.
The Group applies a practical expedient for short-term advances received
from customers whereby the advanced payment is not adjusted for the
effects of a significant financing component.
Finance income
Finance income comprises interest receivable on invested funds calculated
using the effective interest rate method, interest income and net currency gains
arising on foreign currency denominated borrowings (not designated under a
hedge relationship) that are recognised in the Consolidated Income Statement.
Finance expense
Finance expense comprises interest payable on borrowings calculated using
the effective interest rate method, interest expense on the net Defined
Benefit pension liability, gains and losses on financial instruments that are
recognised at fair value through the Consolidated Income Statement and net
foreign exchange losses on foreign currency denominated borrowings
(not designated under a hedge relationship) that are recognised in the
Consolidated Income Statement.
Interest incurred on lease liabilities accounted for under IFRS 16, interest
charged in relation to significant financing components on customer
advance payments, and the unwind of discounting on long term liabilities are
all recognised within finance expense.
Current/non-current classification
Current assets include assets held primarily for trading purposes, cash and
cash equivalents, and assets expected to be realised in, or intended for
sale or consumption as part of the Group’s normal identifiable operating
cycle which is assumed to be 12 months. All other assets are classified as
non-current assets.
Current liabilities include liabilities held primarily for trading purposes in line
with the Group’s identifiable normal operating cycle. These liabilities are
expected to be settled as part of the Group’s normal course of business.
All other liabilities are classified as non-current liabilities. Customer deposits
and advances are typically presented as current, although, due to the timing
between deposit payment and a sale completing, can take longer than
12 months to unwind.
Goodwill
For acquisitions on or after 1 January 2010, the Group measures goodwill
at the acquisition date as:
– the fair value of the consideration transferred; plus
– the recognised amount of any non-controlling interests
in the acquiree; plus
– the fair value of the existing equity interest in the acquiree; less
– the net recognised amount (generally fair value) of the identifiable assets
acquired and liabilities assumed.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
160
17aXFinancialXStatements_v7.indd 16017aXFinancialXStatements_v7.indd 160 13/03/2025 14:5513/03/2025 14:55
1 BASIS OF ACCOUNTING CONTINUED
Going concern continued
Going concern continued The forecasts take into account these factors to the
extent that the Directors consider them to represent their best estimate of
the future based on the information that is available to them at the time
of approval of these Financial Statements.
The Group directors have considered a severe but plausible downside
scenario that includes considering the impact of a 20% reduction in DBX
volumes and a 10% reduction in sports volumes from forecast levels
covering, although not exclusively, operating costs higher than the base plan,
incremental working capital requirements such as reduced deposit inflows
or increased deposit outflows and the impact of the strengthening of the
sterling-dollar exchange rate.
The Group plans to make continued investment for growth in the period and,
accordingly, funds generated through operations are expected to be
reinvested in the business mainly through new model development and
other capital expenditure. To a certain extent such expenditure is
discretionary and, in the event of risks occurring which could have a
particularly severe effect on the Group, as identified in the severe but
plausible downside scenario, actions such as constraining capital spending,
working capital improvements, reduction in marketing expenditure and the
continuation of strict and immediate expense control would be taken to
safeguard the Group’s financial position.
In addition, we also considered the circumstances which would be needed to
exhaust the Group’s liquidity over the assessment period; a reverse stress
test. This would indicate that vehicle sales would need to reduce by more
than 40% from forecast levels without any of the above mitigations to result
in having no liquidity. The likelihood of these circumstances occurring is
considered remote both in terms of the magnitude of the reduction and that
over such a long period, management could take substantial mitigating
actions, such as reducing capital spending to preserve liquidity.
Accordingly, after considering the forecasts, appropriate sensitivities,
current trading and available facilities, the Directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future and to comply with its
financial covenants, therefore, the Directors continue to adopt the going
concern basis in preparing the Financial Statements.
2 ACCOUNTING POLICIES
Basis of consolidation
The Consolidated Financial Statements consist of the Financial Statements of
the Group and all entities controlled by the Group. All intercompany balances
and transactions, including unrealised profits arising, are eliminated.
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an
entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through
its power over the entity. In assessing control, the Group takes into
consideration potential voting rights that are currently exercisable.
The acquisition date is the date on which control is transferred to the
acquirer. The financial statements of subsidiaries are included in the Group
Financial Statements from the date that control commences until the date
that control ceases. The financial statements of subsidiaries used in the
preparation of the Consolidated Financial Statements are prepared for
the same reporting year as the Group and are based on consistent
accounting policies.
Foreign currency translation
Transactions in foreign currencies are initially recorded in the functional
currency of the operation by applying the exchange rate ruling at the date of
the transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the reporting
date. All differences are taken to the Consolidated Income Statement except
for the translational differences on monetary items that form part of
designated hedge relationships.
The assets and liabilities of foreign operations are translated into sterling at
the rate of exchange ruling at the reporting date. Income and expenses are
translated at average exchange rates for the period. The resulting exchange
differences are taken through Other Comprehensive Income to the
translation reserve. On disposal of a foreign entity, the deferred cumulative
amount recognised in the translation reserve relating to the foreign
operation is recognised in the Consolidated Income Statement.
Non-monetary items that are measured in terms of historical cost in a foreign
currency are translated using the exchange rates as at the dates of the initial
transactions. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair
value was determined.
Revenue recognition
Revenue is recognised when the Group satisfies its performance obligation
to supply a product or service to the customer. Revenue is measured at the
fair value of the consideration receivable, deducting dealer incentives, VAT
and other sales taxes or duty. The following criteria must also be met before
revenue is recognised.
Sale of vehicles
Revenue from the sale of vehicles is recognised when control of the vehicle
is passed to the dealer or individual, thus evidencing the satisfaction of the
associated performance obligation under that contract. Control is passed
when the buyer can direct the use of and obtain substantially all of the
benefits of the vehicle which is typically at the point of despatch. When
despatch is deferred at the formal request of the buyer and a written request
to hold the vehicle until a specified delivery date has been received, revenue
is recognised when the vehicle is ready for despatch and the Group can no
longer use or direct the vehicle to an alternative buyer.
Where the dealer is Aston Martin Works Limited, an indirect subsidiary of the
Company, revenue is recognised when control of the vehicle is passed to an
individual customer outside of the group.
The Group estimates the consideration to which it will be entitled in
exchange for satisfaction of the performance obligation as part of the sale of
a vehicle. Revenue is recognised at the wholesale selling price net of dealer
incentives (variable marketing expense or “VME”). VME is estimated and
accrued for at the time of the wholesale sale to the dealer where no other
obligations exist. For those elements of VME connected with retail sales by
the dealer where there is also a contractual requirement for the dealer to
2 ACCOUNTING POLICIES CONTINUED
Revenue recognition continued
make additional wholesale purchases at that time to receive the incentive,
the incentive is accrued at the time of the retail sale by the dealer to the
end customer.
Warranties are issued on new vehicles sold with no separate purchase option
available to the customer and, on this basis, are accounted for in accordance
with IAS 37. Service packages sold as part of the supply of a vehicle are
accounted for as a separate performance obligation with the revenue
deferred, based on the term of the package, at the original point of sale. The
deferred revenue is released to the Consolidated Income Statement over the
shorter of the period that the service package covers or the number of
vehicle services that the end user is entitled to.
The Group sells vehicles which feature certain telematics services allowing
connectivity between a vehicle and an end user’s technology device.
Payment for the initial usage period of such features is typically received as
part of the overall vehicle price. The Group recognises a contract liability
reflecting an appropriate allocation of the vehicle sales price for the initial
usage period. To the extent that the Group sells the service separately in the
same market, the allocation is the observable price at which the Group sells
the service separately. For all other services, the Group estimates the
standalone selling price using a cost-plus-margin approach. Revenue is
recognised on a straight-line basis over the term of the service which
commences at the point of the vehicle being retailed to an end customer.
Where a sale of a vehicle includes other performance obligations, the Group
determines the allocation of the total transaction price by reference to their
relative standalone selling prices where possible.
Sales of parts
Revenue from the sale of parts is recognised upon transfer of control to the
customer, generally when the parts are released to the carrier responsible
for transporting them. Where the dealer is Aston Martin Works Limited, an
indirect subsidiary of the Company, revenue is recognised upon despatch
to a customer outside of the Group.
Servicing and restoration of vehicles
Revenue is recognised upon completion of the service /restoration typically
when the service or restoration is completed in accordance with the
customers’ requirements.
Brands and motorsport
Revenue from brands and motorsport is recognised when the performance
obligations, principally use of the Aston Martin brand name or supply of a
motorsport vehicle, are satisfied. Revenue is recognised either at a point in time or
over a period of time in line with IFRS 15 and according to the terms of the contract.
Customer advance payments
The Group receives advance cash payments from customers to secure their
allocation of a vehicle produced in limited quantities, typically with a lead time of
greater than 12 months. The value of the advance, both contractually refundable
or non-refundable, is held as a contract liability in the Consolidated Statement of
Financial Position. Upon satisfaction of the performance obligation, the liability is
released to revenue in the Consolidated Income Statement. If the deposit is
returned to the customer prior to satisfaction of the performance obligation, the
contract liability is derecognised.
Where a significant financing component exists, the contract liability
is increased over the same period of time as the contract liability is held
to account for the time value of money. A corresponding charge is
recognised in the Consolidated Income Statement within finance expenses.
Upon satisfaction of the linked performance obligation, the liability is
released to revenue.
The Group applies a practical expedient for short-term advances received
from customers whereby the advanced payment is not adjusted for the
effects of a significant financing component.
Finance income
Finance income comprises interest receivable on invested funds calculated
using the effective interest rate method, interest income and net currency gains
arising on foreign currency denominated borrowings (not designated under a
hedge relationship) that are recognised in the Consolidated Income Statement.
Finance expense
Finance expense comprises interest payable on borrowings calculated using
the effective interest rate method, interest expense on the net Defined
Benefit pension liability, gains and losses on financial instruments that are
recognised at fair value through the Consolidated Income Statement and net
foreign exchange losses on foreign currency denominated borrowings
(not designated under a hedge relationship) that are recognised in the
Consolidated Income Statement.
Interest incurred on lease liabilities accounted for under IFRS 16, interest
charged in relation to significant financing components on customer
advance payments, and the unwind of discounting on long term liabilities are
all recognised within finance expense.
Current/non-current classification
Current assets include assets held primarily for trading purposes, cash and
cash equivalents, and assets expected to be realised in, or intended for
sale or consumption as part of the Group’s normal identifiable operating
cycle which is assumed to be 12 months. All other assets are classified as
non-current assets.
Current liabilities include liabilities held primarily for trading purposes in line
with the Group’s identifiable normal operating cycle. These liabilities are
expected to be settled as part of the Group’s normal course of business.
All other liabilities are classified as non-current liabilities. Customer deposits
and advances are typically presented as current, although, due to the timing
between deposit payment and a sale completing, can take longer than
12 months to unwind.
Goodwill
For acquisitions on or after 1 January 2010, the Group measures goodwill
at the acquisition date as:
– the fair value of the consideration transferred; plus
– the recognised amount of any non-controlling interests
in the acquiree; plus
– the fair value of the existing equity interest in the acquiree; less
– the net recognised amount (generally fair value) of the identifiable assets
acquired and liabilities assumed.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
161
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 16117aXFinancialXStatements_v7.indd 161 13/03/2025 14:5513/03/2025 14:55
2 ACCOUNTING POLICIES CONTINUED
Goodwill continued
Costs related to the acquisition, other than those associated with the issue of
debt or equity securities, are expensed as incurred.
For the purpose of impairment testing, goodwill is allocated to the related
cash-generating unit. The only cash-generating unit of the Group is that of
Aston Martin Lagonda Group as there are no smaller groups of assets that
can be identified with certainty which generate specific cash flows
independent of the inflows generated by other assets or groups of assets.
Where the recoverable amount of the cash-generating unit is less than the
carrying amount, an impairment loss is recognised in the Consolidated
Income Statement.
Intangible assets
Intangible assets acquired separately from a business are carried initially
at cost. An intangible asset acquired as part of a business combination is
recognised outside of goodwill if the asset is separable, or arises from
contractual or other legal rights, and its fair value can be measured reliably.
Fair value adjustments are considered to be provisional at the first year end
date after the acquisition, to allow the maximum time to elapse for
management to make a reliable estimate.
Purchased intellectual property
Purchased intellectual property that is not integral to an item of property,
plant and equipment is recognised separately as an intangible asset stated at
cost less accumulated depreciation.
Brands
An acquired brand is only recognised in the Consolidated Statement of
Financial Position as an intangible asset where it is supported by a registered
trademark, is established in the marketplace, the brand could be sold
separately from the rest of the business and where the brand achieves
earnings in excess of those achieved by unbranded products.
The value of an acquired brand is determined by allocating the purchase
price consideration of an acquired business between goodwill and the
underlying fair values of the tangible assets, brands and other intangible
assets acquired, using an income approach following the multi-period excess
earnings methodology. Acquired brands have an indefinite life when there is
no foreseeable limit to the period over which the asset is expected to
generate cash inflows.
Development costs
Expenditure on internally developed intangible assets, excluding
development costs, is taken to the Consolidated Income Statement in the
year in which it is incurred. Clearly defined and identifiable development
costs are capitalised under IAS 38 ‘Intangible Assets’ after the following
criteria have been met:
– The project’s technical feasibility and commercial viability, based on an
estimate of future cash flows, can be demonstrated when the project has
reached a defined milestone according to the Group's established
product development model.
– Technical and financial resources are available for the project.
– An intention to complete the project has been confirmed.
– The correlation between development costs and future revenues has
been established.
Technology
Patented and unpatented technology acquired in business combinations is
valued using the cost approach. The obsolete element is determined by
reference to the proportion of the product lifecycle that had expired at the
acquisition date. Technology acquired from third parties is measured at the
acquisition date fair value using the cost approach.
Dealer network
Save for certain direct sales of some special edition and buyer-commissioned
vehicles, the Group sells its vehicles exclusively through a network of dealers.
All dealers in the dealer network are independent dealers with the exception
of Aston Martin Works Limited. To the extent that the Group benefits
from the network, the dealer network has been valued based on costs
incurred by the Group. The existing Dealer Network asset arose as part of a
business combination.
Amortisation
Following initial recognition, the historical cost model is applied, with
intangible assets being carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation of these capitalised costs
begins when the asset is available for use. Intangible assets with a finite life
have no residual value and are amortised on a straight-line basis over their
expected useful lives as follows:
Years
Purchased intellectual property
5
Development costs
1 to 10
Technology
10
Software and other
3 to 10
Dealer network
20
The useful lives and residual values of capitalised development costs are
determined at the time of capitalisation and are reviewed annually for
appropriateness and recoverability.
Amortisation of special vehicle development costs are spread evenly across
the limited quantity of vehicles produced and charged to the Consolidated
Income Statement at the point of sale for each vehicle.
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated
depreciation and accumulated impairment losses. Cost comprises the
aggregate amount paid, and the fair value of any other consideration given,
to acquire the asset, including directly attributable costs to make the asset
capable of operation.
Depreciation is provided on all property, plant and equipment, other than
land, on a straight-line basis to its residual value over its expected useful life
as follows:
Years
Freehold buildings
30
Plant and machinery
5 to 30
Fixtures and fittings
3 to 12
Tooling
1 to 15
Motor vehicles
3 to 5
2 ACCOUNTING POLICIES CONTINUED
Property, plant and equipment continued
Tooling is depreciated over the life of the project. Assets in the course
of construction are included in their respective category but are not
depreciated until available for use. The carrying values of property, plant
and equipment are reviewed for impairment if events or changes in
circumstances indicate the carrying value may not be recoverable and are
written down immediately to their recoverable amount. Useful lives and
residual values are reviewed annually and where adjustments are required
these are made prospectively.
An item of property, plant and equipment is derecognised upon disposal.
Any gain or loss arising on the derecognition of the asset is included in the
Consolidated Income Statement in the period of derecognition.
Investments in equity instruments
Upon initial recognition, the Group can elect to classify irrevocably its equity
investments as equity instruments designated at fair value through OCI when
they meet the definition of equity under IAS 32 ‘Financial Instruments:
Presentation’ and are not held for trading. The classification is determined on
an instrument-by-instrument basis. Gains and losses on these financial assets
are never recycled to profit or loss. Dividends are recognised as other income
in the statement of profit or loss when the right of payment has been
established, except when the Group benefits from such proceeds as a
recovery of part of the cost of the financial asset, in which case, such gains
are recorded in OCI. Equity instruments designated at fair value through OCI
are not subject to impairment assessment. The Group elected to classify
irrevocably its non-listed equity investments under this category.
Government grants
Government grants are recognised in the Consolidated Income Statement,
either on a systematic basis when the Group recognises the related costs that
the grants are intended to compensate for, or immediately if the costs have
already been incurred.
Government grants related to assets are deducted from the cost of the asset
and amortised over the useful life of the asset. Government grants are
recognised when there is reasonable assurance that the Group will comply
with the relevant conditions and the grant will be received.
Research and development tax relief in the form of the Research and
Development Expenditure Credit (“RDEC”) is recognised in the Consolidated
Income Statement over the periods in which the qualifying expenditure
giving rise to the RDEC claim is recognised, as the Group’s assessment of the
conditions of receipt of the RDEC concludes that it meets the definition of a
Government grant. Certain expenses within the scope of RDEC are
capitalised as part of the Group’s development costs. Where this is the case,
the Group defers the income associated with the claim to deferred income
and releases it to the Consolidated Income Statement in line with the
amortisation profile of the associated asset. Claims are submitted annually
based on the qualifying expenditure for a given accounting period. The cash
benefit from the claim is received in the year of the claim and presented in
operating cash flows.
If the subsidiary submitting the claim is loss-making, the RDEC claim is
restricted by an amount equal to the current rate of UK corporation tax. The
restricted amount can be applied in discharging any liability of the subsidiary
to pay corporation tax in any subsequent tax period and has been accounted
for as an unused tax credit in accordance with IAS 12 and is included within
deferred tax assets.
Movements in government grants are presented within operating cashflows.
Carbon credits
The production and import of vehicles into certain jurisdictions can trigger
a requirement to eliminate negative carbon credits, which gives rise to a
liability. From time to time, the Group enters into contracts to purchase
positive credits to offset the liability. The annual liability is currently immaterial
to the Group.
Right-of-use assets and lease liabilities – IFRS 16
Leases under which the Group acts as lessee
The Group is a party to lease contracts for properties, plant and machinery
and IT equipment. The Group recognises a right-of-use asset and a lease
liability at the lease commencement date. The right-of-use asset is initially
measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date,
plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the earlier of the end of the useful
life of the right-of-use asset or the end of the lease term. If the Group is
reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset’s useful life. The estimated useful lives
of right-of-use assets are determined on the same basis as those of property,
plant and equipment. Moreover, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease
payments unpaid at the commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily determined, an
estimate of the Group’s incremental borrowing rate at that point in time.
The Group estimates the incremental borrowing rate by taking a credit risk
adjusted risk-free rate in addition to making other specific adjustments to
account for certain characteristics in the lease such as geography, type of
asset and security pledged.
Lease payments included in the measurement of the lease liability comprise
either fixed lease payments or lease payments subject to periodic fixed
increases. The lease liability is measured at amortised cost using the effective
interest rate method. Lease payments are allocated between principal and
interest cost with the interest costs charged to the Consolidated Income
Statement over the lease period.
The liability is remeasured when there is an increase/decrease in future lease
payments arising from a change in an index or rate specified.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
162
17aXFinancialXStatements_v7.indd 16217aXFinancialXStatements_v7.indd 162 13/03/2025 14:5513/03/2025 14:55
2 ACCOUNTING POLICIES CONTINUED
Goodwill continued
Costs related to the acquisition, other than those associated with the issue of
debt or equity securities, are expensed as incurred.
For the purpose of impairment testing, goodwill is allocated to the related
cash-generating unit. The only cash-generating unit of the Group is that of
Aston Martin Lagonda Group as there are no smaller groups of assets that
can be identified with certainty which generate specific cash flows
independent of the inflows generated by other assets or groups of assets.
Where the recoverable amount of the cash-generating unit is less than the
carrying amount, an impairment loss is recognised in the Consolidated
Income Statement.
Intangible assets
Intangible assets acquired separately from a business are carried initially
at cost. An intangible asset acquired as part of a business combination is
recognised outside of goodwill if the asset is separable, or arises from
contractual or other legal rights, and its fair value can be measured reliably.
Fair value adjustments are considered to be provisional at the first year end
date after the acquisition, to allow the maximum time to elapse for
management to make a reliable estimate.
Purchased intellectual property
Purchased intellectual property that is not integral to an item of property,
plant and equipment is recognised separately as an intangible asset stated at
cost less accumulated depreciation.
Brands
An acquired brand is only recognised in the Consolidated Statement of
Financial Position as an intangible asset where it is supported by a registered
trademark, is established in the marketplace, the brand could be sold
separately from the rest of the business and where the brand achieves
earnings in excess of those achieved by unbranded products.
The value of an acquired brand is determined by allocating the purchase
price consideration of an acquired business between goodwill and the
underlying fair values of the tangible assets, brands and other intangible
assets acquired, using an income approach following the multi-period excess
earnings methodology. Acquired brands have an indefinite life when there is
no foreseeable limit to the period over which the asset is expected to
generate cash inflows.
Development costs
Expenditure on internally developed intangible assets, excluding
development costs, is taken to the Consolidated Income Statement in the
year in which it is incurred. Clearly defined and identifiable development
costs are capitalised under IAS 38 ‘Intangible Assets’ after the following
criteria have been met:
– The project’s technical feasibility and commercial viability, based on an
estimate of future cash flows, can be demonstrated when the project has
reached a defined milestone according to the Group's established
product development model.
– Technical and financial resources are available for the project.
– An intention to complete the project has been confirmed.
– The correlation between development costs and future revenues has
been established.
Technology
Patented and unpatented technology acquired in business combinations is
valued using the cost approach. The obsolete element is determined by
reference to the proportion of the product lifecycle that had expired at the
acquisition date. Technology acquired from third parties is measured at the
acquisition date fair value using the cost approach.
Dealer network
Save for certain direct sales of some special edition and buyer-commissioned
vehicles, the Group sells its vehicles exclusively through a network of dealers.
All dealers in the dealer network are independent dealers with the exception
of Aston Martin Works Limited. To the extent that the Group benefits
from the network, the dealer network has been valued based on costs
incurred by the Group. The existing Dealer Network asset arose as part of a
business combination.
Amortisation
Following initial recognition, the historical cost model is applied, with
intangible assets being carried at cost less accumulated amortisation and
accumulated impairment losses. Amortisation of these capitalised costs
begins when the asset is available for use. Intangible assets with a finite life
have no residual value and are amortised on a straight-line basis over their
expected useful lives as follows:
Years
Purchased intellectual property 5
Development costs 1 to 10
Technology 10
Software and other 3 to 10
Dealer network 20
The useful lives and residual values of capitalised development costs are
determined at the time of capitalisation and are reviewed annually for
appropriateness and recoverability.
Amortisation of special vehicle development costs are spread evenly across
the limited quantity of vehicles produced and charged to the Consolidated
Income Statement at the point of sale for each vehicle.
Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated
depreciation and accumulated impairment losses. Cost comprises the
aggregate amount paid, and the fair value of any other consideration given,
to acquire the asset, including directly attributable costs to make the asset
capable of operation.
Depreciation is provided on all property, plant and equipment, other than
land, on a straight-line basis to its residual value over its expected useful life
as follows:
Years
Freehold buildings 30
Plant and machinery 5 to 30
Fixtures and fittings 3 to 12
Tooling 1 to 15
Motor vehicles 3 to 5
2 ACCOUNTING POLICIES CONTINUED
Property, plant and equipment continued
Tooling is depreciated over the life of the project. Assets in the course
of construction are included in their respective category but are not
depreciated until available for use. The carrying values of property, plant
and equipment are reviewed for impairment if events or changes in
circumstances indicate the carrying value may not be recoverable and are
written down immediately to their recoverable amount. Useful lives and
residual values are reviewed annually and where adjustments are required
these are made prospectively.
An item of property, plant and equipment is derecognised upon disposal.
Any gain or loss arising on the derecognition of the asset is included in the
Consolidated Income Statement in the period of derecognition.
Investments in equity instruments
Upon initial recognition, the Group can elect to classify irrevocably its equity
investments as equity instruments designated at fair value through OCI when
they meet the definition of equity under IAS 32 ‘Financial Instruments:
Presentation’ and are not held for trading. The classification is determined on
an instrument-by-instrument basis. Gains and losses on these financial assets
are never recycled to profit or loss. Dividends are recognised as other income
in the statement of profit or loss when the right of payment has been
established, except when the Group benefits from such proceeds as a
recovery of part of the cost of the financial asset, in which case, such gains
are recorded in OCI. Equity instruments designated at fair value through OCI
are not subject to impairment assessment. The Group elected to classify
irrevocably its non-listed equity investments under this category.
Government grants
Government grants are recognised in the Consolidated Income Statement,
either on a systematic basis when the Group recognises the related costs that
the grants are intended to compensate for, or immediately if the costs have
already been incurred.
Government grants related to assets are deducted from the cost of the asset
and amortised over the useful life of the asset. Government grants are
recognised when there is reasonable assurance that the Group will comply
with the relevant conditions and the grant will be received.
Research and development tax relief in the form of the Research and
Development Expenditure Credit (“RDEC”) is recognised in the Consolidated
Income Statement over the periods in which the qualifying expenditure
giving rise to the RDEC claim is recognised, as the Group’s assessment of the
conditions of receipt of the RDEC concludes that it meets the definition of a
Government grant. Certain expenses within the scope of RDEC are
capitalised as part of the Group’s development costs. Where this is the case,
the Group defers the income associated with the claim to deferred income
and releases it to the Consolidated Income Statement in line with the
amortisation profile of the associated asset. Claims are submitted annually
based on the qualifying expenditure for a given accounting period. The cash
benefit from the claim is received in the year of the claim and presented in
operating cash flows.
If the subsidiary submitting the claim is loss-making, the RDEC claim is
restricted by an amount equal to the current rate of UK corporation tax. The
restricted amount can be applied in discharging any liability of the subsidiary
to pay corporation tax in any subsequent tax period and has been accounted
for as an unused tax credit in accordance with IAS 12 and is included within
deferred tax assets.
Movements in government grants are presented within operating cashflows.
Carbon credits
The production and import of vehicles into certain jurisdictions can trigger
a requirement to eliminate negative carbon credits, which gives rise to a
liability. From time to time, the Group enters into contracts to purchase
positive credits to offset the liability. The annual liability is currently immaterial
to the Group.
Right-of-use assets and lease liabilities – IFRS 16
Leases under which the Group acts as lessee
The Group is a party to lease contracts for properties, plant and machinery
and IT equipment. The Group recognises a right-of-use asset and a lease
liability at the lease commencement date. The right-of-use asset is initially
measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date,
plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line
method from the commencement date to the earlier of the end of the useful
life of the right-of-use asset or the end of the lease term. If the Group is
reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset’s useful life. The estimated useful lives
of right-of-use assets are determined on the same basis as those of property,
plant and equipment. Moreover, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease
payments unpaid at the commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily determined, an
estimate of the Group’s incremental borrowing rate at that point in time.
The Group estimates the incremental borrowing rate by taking a credit risk
adjusted risk-free rate in addition to making other specific adjustments to
account for certain characteristics in the lease such as geography, type of
asset and security pledged.
Lease payments included in the measurement of the lease liability comprise
either fixed lease payments or lease payments subject to periodic fixed
increases. The lease liability is measured at amortised cost using the effective
interest rate method. Lease payments are allocated between principal and
interest cost with the interest costs charged to the Consolidated Income
Statement over the lease period.
The liability is remeasured when there is an increase/decrease in future lease
payments arising from a change in an index or rate specified .
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
163
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 16317aXFinancialXStatements_v7.indd 163 13/03/2025 14:5513/03/2025 14:55
2 ACCOUNTING POLICIES CONTINUED
Short-term leases and leases of low-value assets
The Group does not recognise right of-use-assets and lease liabilities
for short-term leases that have a lease term of fewer than 12 months and
leases of low-value assets. The Group recognises the lease payments
associated with these leases as an expense on a straight-line basis in the
Consolidated Income Statement over the lease term.
Impairment of assets
The Group assesses at each reporting date whether there is an indication that
an asset may be impaired. If any such indication exists, or when annual
impairment testing for an asset is required, the Group makes an estimate of
the asset’s recoverable amount. An asset’s recoverable amount is the higher
of an asset, or cash-generating unit’s, fair value less costs to sell and its
value-in-use.
Where the carrying amount of an asset exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.
In assessing value-in-use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the
asset. Impairment losses on continuing operations are recognised in the
Consolidated Income Statement.
For goodwill, brands and other intangible assets that have an indefinite
life, the recoverable amount is estimated annually or more frequently when
there is an indication that the asset is impaired.
For intangible assets, property, plant and equipment, and right-of-use lease
assets that have a finite life, the recoverable amount is estimated when there
is an indication that the asset is impaired.
Where an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of the
recoverable amount, but such that the increased carrying amount does not
exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in prior periods. A reversal of
an impairment loss is recognised in the Consolidated Income Statement
as income immediately.
Inventories
Inventories are stated at the lower of cost and net realisable value. For service
and restoration projects, net realisable value is the price at which the project
can be invoiced in the normal course of business after allowing for the costs
of completion.
Cost includes all costs incurred in bringing each product to its present
location and condition, as follows:
– Raw materials, service parts and spare parts – purchase cost on a first-in,
first-out basis.
– Work in progress and finished vehicles – cost of direct materials and
labour plus attributable overheads based on a normalised level of
activity, excluding borrowing costs.
Provisions are made, on a specific basis, for obsolete, slow-moving and
defective stocks and if the cost of the service or restoration project cannot
be fully recovered. Inventories held under financing arrangements are
recognised when control is transferred to the Group.
Cash and cash equivalents
Cash and cash equivalent in the Statement of Financial Position comprise:
– cash, being cash at banks and in hand as well as demand deposits.
– cash equivalents, being short-term deposits with an original maturity
of three months or less, subject to insignificant changes in value,
which are readily convertible to known amounts and held to meet short-
term commitments.
Derivative financial instruments
Derivative financial assets and liabilities are recognised in the Statement of
Financial Position at fair value when the Group becomes a party to the
contractual provisions of the instrument. The Group uses derivative
instruments to manage its exposure to foreign exchange risk arising from
operating activities. Movements in the fair value of foreign exchange
derivatives not qualifying for hedge accounting are recognised in finance
income or expense. The accounting policy on derivatives that are designated
as hedging instruments in hedging relationships is detailed in the hedge
accounting policies. A financial asset or liability is derecognised when the
contract that gives rise to it is settled, sold, cancelled or expires.
Financial assets and liabilities
Financial assets are cash or a contractual right to receive cash or another
financial asset from another entity, or to exchange financial assets or
liabilities with another entity under conditions that are potentially favourable
to the entity. In addition, contracts that result in another entity delivering
a variable number of its own equity instruments are financial assets.
Derivative financial instruments, including equity options, are held at fair
value. All other financial instruments are held at amortised cost.
Trade and other receivables
Trade and other receivables are carried at the lower of their original invoiced
value and recoverable amount. A trade receivable loss allowance is
measured at an amount equal to the lifetime expected credit loss at initial
recognition and throughout the life of the receivable. Receivables are not
discounted, as the time value of money is not considered to be material.
Trade and other payables
Trade and other payables are recognised and carried at their original
invoiced value. Trade payables are not discounted to consider the time value
of money as the impact is immaterial.
Refundable and non-refundable customer deposits are held as contract
liabilities within current trade and other payables.
Inventory sale and repurchase arrangements, which are in substance
financing transactions, are included in other payables. The difference
between the sale and repurchase value is accounted for as part of the
effective interest calculation. The effective interest is charged to the
Consolidated Income Statement over the period from sale to repayment.
Hedge accounting
The Group uses derivative financial instruments in the form of forward
currency contracts, and certain US dollar denominated borrowings, to hedge
the foreign currency risk of sales (including inter-Group sales) of finished
vehicles and external purchases of component parts. For the purpose
of hedge accounting, hedges are classified as cash flow hedges when
hedging the exposure to variability in cash flows either attributable to a
2 ACCOUNTING POLICIES CONTINUED
Hedge accounting continued
particular risk associated with a recognised asset or liability, or a highly
probable forecast transaction, or the foreign currency risk of an
unrecognised firm commitment.
At the inception of the hedge relationship, the Group formally designates
and documents the hedge relationship and the risk management objectives
and strategy for undertaking the hedge. The documentation includes
identification of the hedging instrument, the hedged item, the nature of
the risk being hedged and how the Group will assess hedge effectiveness.
A hedging relationship qualifies for hedge accounting if it meets all the
following effectiveness requirements:
– There is an economic relationship between the hedged item and the
hedging instrument.
– The effect of credit risk does not dominate the value changes resulting
from that economic relationship.
– The theoretical hedge ratio of the hedging relationship is the same
as practically occurs.
Derivative financial instruments
The effective portion of the gain or loss on the hedging instrument is
recognised in Other Comprehensive Income in the cash flow hedge reserve,
while any ineffective portion is recognised immediately in the Consolidated
Income Statement. The Group designates only the spot element of forward
contracts as a hedging instrument. The forward element is recognised in
Other Comprehensive Income and accumulated in a separate component of
equity under cost of hedging reserve.
Financial liability as a hedge
Foreign currency differences arising on the retranslation of a financial liability
designated as a cash flow hedge are recognised directly in Other
Comprehensive Income to the extent that the hedge is effective. To the
extent that the hedge is ineffective, such differences are recognised in the
Consolidated Income Statement.
Subsequent accounting
The amounts accumulated in both the cash flow hedge reserve and the cost of
hedging reserve are accounted for depending on the nature of the underlying
hedged transaction. If the hedged transaction subsequently results in the
recognition of a non-financial item, the amount accumulated in the hedge
reserve is removed and included in the initial cost of the hedge item. For any
other cash flow hedges, the amount accumulated in the hedge reserve is
reclassified to the Consolidated Income Statement as a reclassification
adjustment in the same period or periods during which the hedged cash
flow affects profit or loss.
If hedge accounting is discontinued, the amount that has been accumulated
in the hedge reserve must remain in equity if the hedged future cash flows
are still expected to occur. Otherwise, the amount will be immediately
reclassified to the Consolidated Income Statement as a reclassification
adjustment. After discontinuation, once the hedged cash flow occurs, any
amount remaining in the hedge reserve is accounted for depending on the
nature of the underlying transaction.
Borrowings
Borrowings are recognised initially at fair value less attributable transaction
costs. Subsequent to initial recognition, borrowings are stated at amortised
cost with any difference between the amount initially recorded and
redemption value being recognised in the Consolidated Income Statement
as a finance expense over the period of the borrowings on an effective
interest basis.
Pensions
The Group operates a Defined Contribution pension plan under which the
Group pays fixed contributions into a separate entity and has no legal or
constructive obligation to pay further amounts. Obligations for contributions
to Defined Contribution pension plans are recognised as an expense in the
Consolidated Income Statement in the periods during which services are
rendered by employees.
The Group operates a Defined Benefit pension plan, which is contracted out
of the state scheme. The Group’s net obligation in respect of Defined Benefit
plans is calculated for the plan by estimating the amount of the future benefit
that employees have earned in the current and prior periods, discounting
that amount and deducting the fair value of any plan assets.
The calculation of Defined Benefit obligations is performed annually
by a qualified actuary using the projected unit credit method. When the
calculation results in a potential asset for the Group, the recognised asset
is limited to the present value of economic benefits available in the form
of any future refunds from the plan or reductions in future contributions to
the plan. When the calculation results in a deficit for the Group, the
recognised liability is adjusted for the discounted value of future deficit
reduction contributions in excess of the calculated deficit.
Remeasurements of the net Defined Benefit asset or liability, which comprise
actuarial gains and losses, the interest on plan assets, and the effect of the
asset ceiling or minimum funding requirements, are recognised immediately
in Other Comprehensive Income. The Group determines the net interest
expense (income) on the net Defined Benefit asset or liability, considering
any changes in the net defined asset or liability during the period as a result
of contributions and benefit payments. Net interest expense and other
expenses related to Defined Benefit plans are recognised in the Consolidated
Income Statement.
When the benefits of the plan are changed or when a plan is curtailed, the
resulting change in benefit that relates to past service cost or the gain or loss
on curtailment is recognised immediately in the Consolidated Income
Statement. The Group recognises gains and losses on the settlement of a
Defined Benefit plan when the settlement occurs.
Share-based payment transactions
The fair value of equity-classified share-based awards with both market and
non-market-based performance conditions is recognised as an expense
within administrative and other expenses in the Consolidated Income
Statement, with a corresponding increase in equity over the period that the
employees become unconditionally entitled to the shares.
The amount recognised as an expense is adjusted to reflect both non-
market-based conditions, such as continued employment and profit-related
metrics, in addition to market-based conditions driven by an estimation of
the quantum of awards expected to vest at the date of grant.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
164
17aXFinancialXStatements_v7.indd 16417aXFinancialXStatements_v7.indd 164 13/03/2025 14:5513/03/2025 14:55
2 ACCOUNTING POLICIES CONTINUED
Short-term leases and leases of low-value assets
The Group does not recognise right of-use-assets and lease liabilities
for short-term leases that have a lease term of fewer than 12 months and
leases of low-value assets. The Group recognises the lease payments
associated with these leases as an expense on a straight-line basis in the
Consolidated Income Statement over the lease term.
Impairment of assets
The Group assesses at each reporting date whether there is an indication that
an asset may be impaired. If any such indication exists, or when annual
impairment testing for an asset is required, the Group makes an estimate of
the asset’s recoverable amount. An asset’s recoverable amount is the higher
of an asset, or cash-generating unit’s, fair value less costs to sell and its
value-in-use.
Where the carrying amount of an asset exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.
In assessing value-in-use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the
asset. Impairment losses on continuing operations are recognised in the
Consolidated Income Statement.
For goodwill, brands and other intangible assets that have an indefinite
life, the recoverable amount is estimated annually or more frequently when
there is an indication that the asset is impaired.
For intangible assets, property, plant and equipment, and right-of-use lease
assets that have a finite life, the recoverable amount is estimated when there
is an indication that the asset is impaired.
Where an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of the
recoverable amount, but such that the increased carrying amount does not
exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in prior periods. A reversal of
an impairment loss is recognised in the Consolidated Income Statement
as income immediately.
Inventories
Inventories are stated at the lower of cost and net realisable value. For service
and restoration projects, net realisable value is the price at which the project
can be invoiced in the normal course of business after allowing for the costs
of completion.
Cost includes all costs incurred in bringing each product to its present
location and condition, as follows:
– Raw materials, service parts and spare parts – purchase cost on a first-in,
first-out basis.
– Work in progress and finished vehicles – cost of direct materials and
labour plus attributable overheads based on a normalised level of
activity, excluding borrowing costs.
Provisions are made, on a specific basis, for obsolete, slow-moving and
defective stocks and if the cost of the service or restoration project cannot
be fully recovered. Inventories held under financing arrangements are
recognised when control is transferred to the Group.
Cash and cash equivalents
Cash and cash equivalent in the Statement of Financial Position comprise:
– cash, being cash at banks and in hand as well as demand deposits.
– cash equivalents, being short-term deposits with an original maturity
of three months or less, subject to insignificant changes in value,
which are readily convertible to known amounts and held to meet short-
term commitments.
Derivative financial instruments
Derivative financial assets and liabilities are recognised in the Statement of
Financial Position at fair value when the Group becomes a party to the
contractual provisions of the instrument. The Group uses derivative
instruments to manage its exposure to foreign exchange risk arising from
operating activities. Movements in the fair value of foreign exchange
derivatives not qualifying for hedge accounting are recognised in finance
income or expense. The accounting policy on derivatives that are designated
as hedging instruments in hedging relationships is detailed in the hedge
accounting policies. A financial asset or liability is derecognised when the
contract that gives rise to it is settled, sold, cancelled or expires.
Financial assets and liabilities
Financial assets are cash or a contractual right to receive cash or another
financial asset from another entity, or to exchange financial assets or
liabilities with another entity under conditions that are potentially favourable
to the entity. In addition, contracts that result in another entity delivering
a variable number of its own equity instruments are financial assets.
Derivative financial instruments, including equity options, are held at fair
value. All other financial instruments are held at amortised cost.
Trade and other receivables
Trade and other receivables are carried at the lower of their original invoiced
value and recoverable amount. A trade receivable loss allowance is
measured at an amount equal to the lifetime expected credit loss at initial
recognition and throughout the life of the receivable. Receivables are not
discounted, as the time value of money is not considered to be material.
Trade and other payables
Trade and other payables are recognised and carried at their original
invoiced value. Trade payables are not discounted to consider the time value
of money as the impact is immaterial.
Refundable and non-refundable customer deposits are held as contract
liabilities within current trade and other payables.
Inventory sale and repurchase arrangements, which are in substance
financing transactions, are included in other payables. The difference
between the sale and repurchase value is accounted for as part of the
effective interest calculation. The effective interest is charged to the
Consolidated Income Statement over the period from sale to repayment.
Hedge accounting
The Group uses derivative financial instruments in the form of forward
currency contracts, and certain US dollar denominated borrowings, to hedge
the foreign currency risk of sales (including inter-Group sales) of finished
vehicles and external purchases of component parts. For the purpose
of hedge accounting, hedges are classified as cash flow hedges when
hedging the exposure to variability in cash flows either attributable to a
2 ACCOUNTING POLICIES CONTINUED
Hedge accounting continued
particular risk associated with a recognised asset or liability, or a highly
probable forecast transaction, or the foreign currency risk of an
unrecognised firm commitment.
At the inception of the hedge relationship, the Group formally designates
and documents the hedge relationship and the risk management objectives
and strategy for undertaking the hedge. The documentation includes
identification of the hedging instrument, the hedged item, the nature of
the risk being hedged and how the Group will assess hedge effectiveness.
A hedging relationship qualifies for hedge accounting if it meets all the
following effectiveness requirements:
– There is an economic relationship between the hedged item and the
hedging instrument.
– The effect of credit risk does not dominate the value changes resulting
from that economic relationship.
– The theoretical hedge ratio of the hedging relationship is the same
as practically occurs.
Derivative financial instruments
The effective portion of the gain or loss on the hedging instrument is
recognised in Other Comprehensive Income in the cash flow hedge reserve,
while any ineffective portion is recognised immediately in the Consolidated
Income Statement. The Group designates only the spot element of forward
contracts as a hedging instrument. The forward element is recognised in
Other Comprehensive Income and accumulated in a separate component of
equity under cost of hedging reserve.
Financial liability as a hedge
Foreign currency differences arising on the retranslation of a financial liability
designated as a cash flow hedge are recognised directly in Other
Comprehensive Income to the extent that the hedge is effective. To the
extent that the hedge is ineffective, such differences are recognised in the
Consolidated Income Statement.
Subsequent accounting
The amounts accumulated in both the cash flow hedge reserve and the cost of
hedging reserve are accounted for depending on the nature of the underlying
hedged transaction. If the hedged transaction subsequently results in the
recognition of a non-financial item, the amount accumulated in the hedge
reserve is removed and included in the initial cost of the hedge item. For any
other cash flow hedges, the amount accumulated in the hedge reserve is
reclassified to the Consolidated Income Statement as a reclassification
adjustment in the same period or periods during which the hedged cash
flow affects profit or loss.
If hedge accounting is discontinued, the amount that has been accumulated
in the hedge reserve must remain in equity if the hedged future cash flows
are still expected to occur. Otherwise, the amount will be immediately
reclassified to the Consolidated Income Statement as a reclassification
adjustment. After discontinuation, once the hedged cash flow occurs, any
amount remaining in the hedge reserve is accounted for depending on the
nature of the underlying transaction.
Borrowings
Borrowings are recognised initially at fair value less attributable transaction
costs. Subsequent to initial recognition, borrowings are stated at amortised
cost with any difference between the amount initially recorded and
redemption value being recognised in the Consolidated Income Statement
as a finance expense over the period of the borrowings on an effective
interest basis.
Pensions
The Group operates a Defined Contribution pension plan under which the
Group pays fixed contributions into a separate entity and has no legal or
constructive obligation to pay further amounts. Obligations for contributions
to Defined Contribution pension plans are recognised as an expense in the
Consolidated Income Statement in the periods during which services are
rendered by employees.
The Group operates a Defined Benefit pension plan, which is contracted out
of the state scheme. The Group’s net obligation in respect of Defined Benefit
plans is calculated for the plan by estimating the amount of the future benefit
that employees have earned in the current and prior periods, discounting
that amount and deducting the fair value of any plan assets.
The calculation of Defined Benefit obligations is performed annually
by a qualified actuary using the projected unit credit method. When the
calculation results in a potential asset for the Group, the recognised asset
is limited to the present value of economic benefits available in the form
of any future refunds from the plan or reductions in future contributions to
the plan. When the calculation results in a deficit for the Group, the
recognised liability is adjusted for the discounted value of future deficit
reduction contributions in excess of the calculated deficit.
Remeasurements of the net Defined Benefit asset or liability, which comprise
actuarial gains and losses, the interest on plan assets, and the effect of the
asset ceiling or minimum funding requirements, are recognised immediately
in Other Comprehensive Income. The Group determines the net interest
expense (income) on the net Defined Benefit asset or liability, considering
any changes in the net defined asset or liability during the period as a result
of contributions and benefit payments. Net interest expense and other
expenses related to Defined Benefit plans are recognised in the Consolidated
Income Statement.
When the benefits of the plan are changed or when a plan is curtailed, the
resulting change in benefit that relates to past service cost or the gain or loss
on curtailment is recognised immediately in the Consolidated Income
Statement. The Group recognises gains and losses on the settlement of a
Defined Benefit plan when the settlement occurs.
Share-based payment transactions
The fair value of equity-classified share-based awards with both market and
non-market-based performance conditions is recognised as an expense
within administrative and other expenses in the Consolidated Income
Statement, with a corresponding increase in equity over the period that the
employees become unconditionally entitled to the shares.
The amount recognised as an expense is adjusted to reflect both non-
market-based conditions, such as continued employment and profit-related
metrics, in addition to market-based conditions driven by an estimation of
the quantum of awards expected to vest at the date of grant .
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
165
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 16517aXFinancialXStatements_v7.indd 165 13/03/2025 14:5513/03/2025 14:55
2 ACCOUNTING POLICIES CONTINUED
Share-based payment transactions continued
Where the Group obtains goods or services in exchange for the issuance of
shares, these are accounted for as equity-settled share-based payments in
accordance with IFRS 2. Where the fair value of the goods or services can be
estimated reliably, these are recorded at fair value with a corresponding
increase in equity.
In the instance of a scheme modification, the number of shares comprised in
an award is adjusted to reflect equity changes in the Group and will therefore
not impact underlying charges.
Provisions
The Group provides product warranties on all new vehicle sales. Warranty
provisions are recognised when vehicles are sold or when new warranty
programmes are initiated. Based on historical warranty claim experience,
assumptions are made on the type and extent of future warranty claims,
including non-contractual warranty claims as well as on possible recall
campaigns. These assessments are based on the frequency and extent
of vehicle faults and defects in the past. In addition, the estimates include
assumptions on the potential repair costs per vehicle and the effects of
possible time or mileage limits. The provisions are regularly adjusted to
reflect new information.
Restructuring provisions are recognised only when the Group has a
constructive obligation, which is when:
– there is a detailed formal plan that identifies the business or part of the
business concerned, the location and number of employees affected,
the detailed estimate of the associated costs, and the timeline; and
– the employees affected have been notified of the plan’s main features.
Income taxes
Tax on the profit or loss for the period represents the sum of the tax currently
payable and deferred tax. Tax is recognised in the Consolidated Income
Statement except to the extent that it relates to items recognised directly in
equity or Other Comprehensive Income whereby the tax treatment follows
that of the underlying item.
Current tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities, based on tax rates and
laws that are enacted or substantively enacted by the reporting date.
The Group is subject to corporate taxes in a number of different jurisdictions
and judgement is required in determining the appropriate provision for
transactions where the ultimate tax determination is uncertain. In such
circumstances, the Group recognises liabilities for anticipated taxes based on
the best information available and where the anticipated liability is both
probable and can be estimated. Any interest and penalties accrued, if
applicable, are included in income taxes in both the Consolidated Income
Statement and the Consolidated Statement of Financial Position. Where the
final outcome of such matters differs from the amount recorded, any
differences may impact the income tax and deferred tax provisions in the
period in which the final determination is made.
Deferred tax is recognised on all temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the
Consolidated Financial Statements, with the following exceptions:
– Where the temporary difference arises from the initial recognition of
goodwill or of an asset or liability in a transaction that is not a business
combination that at the time of the transaction affects neither accounting
nor taxable profit or loss.
– In respect of taxable temporary differences associated with investments
in subsidiaries, where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
– Deferred income tax assets are recognised only to the extent that
it is probable that taxable profit will be available against which the
deductible temporary differences, carried forward tax credits
or tax losses can be utilised.
Deferred tax assets and liabilities are measured on an undiscounted basis at
the tax rates that are expected to apply when the related asset is realised or
liability is settled. Deferred tax assets and liabilities are disclosed on a net
basis where a right of offset exists.
The Group applied the exception under IAS 12 to recognising and disclosing
information about deferred tax assets and liabilities related to Pillar Two
income taxes.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the
assets of the Group after deducting all of its liabilities. Equity instruments
issued by the Group are recorded at the proceeds received, net of direct
issue costs. Dividends and distributions relating to equity instruments are
debited direct to equity.
Adjusting items
An adjusting item is disclosed separately in the Consolidated Statement of
Comprehensive Income where the quantum, nature or volatility of such items
would otherwise distort the underlying trading performance of the Group,
including where they are not expected to repeat in future periods. The tax
effect is also included.
The Directors exercise judgement in determining the items which are
included in the alternative performance measures where an IFRS
measurement is adjusted in a manner which the Directors believe provide
additional insight into the performance of the Group. Additional detail on
how the alternative performance measures are calculated and benefit the
users of the accounts is set out in note 34.
Details in respect of adjusting items recognised in the current and prior year
are set out in note 5.
Critical accounting assumptions and key sources of estimation uncertainty
Estimates
The preparation of Financial Statements requires management to make
estimates and assumptions that affect the amounts reported for assets and
liabilities as at the reporting date and the amounts reported for revenues and
expenses during the period. The nature of estimation means that actual
outcomes could differ from those estimates .
2 ACCOUNTING POLICIES CONTINUED
Critical accounting assumptions and key sources of estimation
uncertainty continued
In the process of applying the Group’s accounting policies, which are
described in this note, management have made estimates. Other than
as set out below, variations in the remaining estimates are not considered to
give rise to a significant risk of a material adjustment to the carrying amounts
of assets and liabilities within the next financial year. The Group considers
it appropriate to identify the nature of the estimates used in preparing
the Group Financial Statements and the main sources of estimation
uncertainty are:
– impairment of finite life intangible assets; and
– the recognition of deferred tax assets
Impairment of finite life intangible assets
For intangible assets that have a finite life, the recoverable amount
is estimated when there is an indication that the asset is impaired.
The result of the calculation of the value-in-use is sensitive to the
assumptions made and is a subjective estimate (note 13).
Recognition of deferred tax assets
Deferred tax assets are first recognised against deferred tax liabilities relating
to the same taxation authority and the same taxable company which are
expected to reverse in the same period.
Net deferred tax assets remaining are then only recognised to the extent that
it is probable that sufficient future taxable profits will be available against
which the deductible temporary difference or unused tax losses or credits
can be recovered or utilised. The Group reviews the same underlying
assumptions and base future forecasts used for impairment testing, going
concern and viability assessments to evaluate the level of estimated future
taxable profits and the associated level of net deferred tax assets which are
supportable for recognition at the reporting date.
In considering recoverability of the deferred tax assets, the Group relies upon
future forecasts, which inherently increases the level of significant estimation
uncertainty in the later periods. Note 9 provides information on the
inherent sensitivities.
New accounting standards
The following standards, amendments and interpretations were applicable
for the period beginning 1 January 2024 and were adopted by the Group for
year to 31 December 2024. They have not had a significant impact on the
Group’s result for the year, equity or disclosures:
– Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants – Amendments to IAS 1.
– Lease Liability in a Sale and Leaseback – Amendments to IFRS 16.
– Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7.
The following amendment to an existing standard has been published and
will be applicable for the Group’s accounting periods beginning 1 January
2025 onwards.
– Lack of exchangeability – Amendments to IAS 21
The Group has not early adopted this amendment, and it is not expected to
have a material impact on the Group’s Consolidated Financial Statements.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
166
17aXFinancialXStatements_v7.indd 16617aXFinancialXStatements_v7.indd 166 13/03/2025 14:5513/03/2025 14:55
2 ACCOUNTING POLICIES CONTINUED
Share-based payment transactions continued
Where the Group obtains goods or services in exchange for the issuance of
shares, these are accounted for as equity-settled share-based payments in
accordance with IFRS 2. Where the fair value of the goods or services can be
estimated reliably, these are recorded at fair value with a corresponding
increase in equity.
In the instance of a scheme modification, the number of shares comprised in
an award is adjusted to reflect equity changes in the Group and will therefore
not impact underlying charges.
Provisions
The Group provides product warranties on all new vehicle sales. Warranty
provisions are recognised when vehicles are sold or when new warranty
programmes are initiated. Based on historical warranty claim experience,
assumptions are made on the type and extent of future warranty claims,
including non-contractual warranty claims as well as on possible recall
campaigns. These assessments are based on the frequency and extent
of vehicle faults and defects in the past. In addition, the estimates include
assumptions on the potential repair costs per vehicle and the effects of
possible time or mileage limits. The provisions are regularly adjusted to
reflect new information.
Restructuring provisions are recognised only when the Group has a
constructive obligation, which is when:
– there is a detailed formal plan that identifies the business or part of the
business concerned, the location and number of employees affected,
the detailed estimate of the associated costs, and the timeline; and
– the employees affected have been notified of the plan’s main features.
Income taxes
Tax on the profit or loss for the period represents the sum of the tax currently
payable and deferred tax. Tax is recognised in the Consolidated Income
Statement except to the extent that it relates to items recognised directly in
equity or Other Comprehensive Income whereby the tax treatment follows
that of the underlying item.
Current tax assets and liabilities are measured at the amount expected to be
recovered from or paid to the taxation authorities, based on tax rates and
laws that are enacted or substantively enacted by the reporting date.
The Group is subject to corporate taxes in a number of different jurisdictions
and judgement is required in determining the appropriate provision for
transactions where the ultimate tax determination is uncertain. In such
circumstances, the Group recognises liabilities for anticipated taxes based on
the best information available and where the anticipated liability is both
probable and can be estimated. Any interest and penalties accrued, if
applicable, are included in income taxes in both the Consolidated Income
Statement and the Consolidated Statement of Financial Position. Where the
final outcome of such matters differs from the amount recorded, any
differences may impact the income tax and deferred tax provisions in the
period in which the final determination is made.
Deferred tax is recognised on all temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the
Consolidated Financial Statements, with the following exceptions:
– Where the temporary difference arises from the initial recognition of
goodwill or of an asset or liability in a transaction that is not a business
combination that at the time of the transaction affects neither accounting
nor taxable profit or loss.
– In respect of taxable temporary differences associated with investments
in subsidiaries, where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary
differences will not reverse in the foreseeable future.
– Deferred income tax assets are recognised only to the extent that
it is probable that taxable profit will be available against which the
deductible temporary differences, carried forward tax credits
or tax losses can be utilised.
Deferred tax assets and liabilities are measured on an undiscounted basis at
the tax rates that are expected to apply when the related asset is realised or
liability is settled. Deferred tax assets and liabilities are disclosed on a net
basis where a right of offset exists.
The Group applied the exception under IAS 12 to recognising and disclosing
information about deferred tax assets and liabilities related to Pillar Two
income taxes.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the
assets of the Group after deducting all of its liabilities. Equity instruments
issued by the Group are recorded at the proceeds received, net of direct
issue costs. Dividends and distributions relating to equity instruments are
debited direct to equity.
Adjusting items
An adjusting item is disclosed separately in the Consolidated Statement of
Comprehensive Income where the quantum, nature or volatility of such items
would otherwise distort the underlying trading performance of the Group,
including where they are not expected to repeat in future periods. The tax
effect is also included.
The Directors exercise judgement in determining the items which are
included in the alternative performance measures where an IFRS
measurement is adjusted in a manner which the Directors believe provide
additional insight into the performance of the Group. Additional detail on
how the alternative performance measures are calculated and benefit the
users of the accounts is set out in note 34.
Details in respect of adjusting items recognised in the current and prior year
are set out in note 5.
Critical accounting assumptions and key sources of estimation uncertainty
Estimates
The preparation of Financial Statements requires management to make
estimates and assumptions that affect the amounts reported for assets and
liabilities as at the reporting date and the amounts reported for revenues and
expenses during the period. The nature of estimation means that actual
outcomes could differ from those estimates.
2 ACCOUNTING POLICIES CONTINUED
Critical accounting assumptions and key sources of estimation
uncertainty continued
In the process of applying the Group’s accounting policies, which are
described in this note, management have made estimates. Other than
as set out below, variations in the remaining estimates are not considered to
give rise to a significant risk of a material adjustment to the carrying amounts
of assets and liabilities within the next financial year. The Group considers
it appropriate to identify the nature of the estimates used in preparing
the Group Financial Statements and the main sources of estimation
uncertainty are:
– impairment of finite life intangible assets; and
– the recognition of deferred tax assets
Impairment of finite life intangible assets
For intangible assets that have a finite life, the recoverable amount
is estimated when there is an indication that the asset is impaired.
The result of the calculation of the value-in-use is sensitive to the
assumptions made and is a subjective estimate (note 13).
Recognition of deferred tax assets
Deferred tax assets are first recognised against deferred tax liabilities relating
to the same taxation authority and the same taxable company which are
expected to reverse in the same period.
Net deferred tax assets remaining are then only recognised to the extent that
it is probable that sufficient future taxable profits will be available against
which the deductible temporary difference or unused tax losses or credits
can be recovered or utilised. The Group reviews the same underlying
assumptions and base future forecasts used for impairment testing, going
concern and viability assessments to evaluate the level of estimated future
taxable profits and the associated level of net deferred tax assets which are
supportable for recognition at the reporting date.
In considering recoverability of the deferred tax assets, the Group relies upon
future forecasts, which inherently increases the level of significant estimation
uncertainty in the later periods. Note 9 provides information on the
inherent sensitivities.
New accounting standards
The following standards, amendments and interpretations were applicable
for the period beginning 1 January 2024 and were adopted by the Group for
year to 31 December 2024. They have not had a significant impact on the
Group’s result for the year, equity or disclosures:
– Classification of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants – Amendments to IAS 1.
– Lease Liability in a Sale and Leaseback – Amendments to IFRS 16.
– Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7.
The following amendment to an existing standard has been published and
will be applicable for the Group’s accounting periods beginning 1 January
2025 onwards.
– Lack of exchangeability – Amendments to IAS 21
The Group has not early adopted this amendment, and it is not expected to
have a material impact on the Group’s Consolidated Financial Statements.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
167
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 16717aXFinancialXStatements_v7.indd 167 13/03/2025 14:5513/03/2025 14:55
3 SEGMENTAL REPORTING
Operating segments are defined as components of the Group about which separate financial information is available and is evaluated regularly by the chief
operating decision-maker in assessing performance. The Group has only one operating segment, the automotive segment, and therefore no separate
segmental report is disclosed. The automotive segment includes all activities relating to design, development, manufacture and marketing of vehicles,
including consulting services; as well as the sale of parts, servicing and automotive brand activities from which the Group derives its revenues.
2024 2023
Revenue £m £m
Analysis by category
Sale of vehicles
1,477.9
1,531.9
Sale of parts
84.4
80.0
Servicing of vehicles
11.0
9.8
Brands and motorsport
10.6
11.1
1,583.9
1,632.8
2024 2023
Revenue £m £m
Analysis by geographical location
United Kingdom
262.1
309.9
The Americas
1
629.2
452.8
Rest of Europe, Middle East and Africa
2
434.7
547.0
Asia Pacific
3
257.9
323.1
1,583.9
1,632.8
1. Within The Americas geographical segment, material revenue of £591.0m (2023: £409.9m) is generated in the United States of America
2. Within Rest of Europe, Middle East and Africa geographical segment, material revenue of £137.7m (2023: £167.4m) is generated in Germany
3. Within Asia Pacific geographical segment, material revenue of £111.8m (2023: £134.5m) is generated in Japan
Non-current assets other than financial instruments and deferred tax assets by geographical location
Right-of-use Property, plant, Intangible Other
lease asset equipment Goodwill
assets
1
receivables Total
As at 31 December 2024 £m £m £m £m £m £m
United Kingdom
61.3
277.3
85.4
1,230.2
–
1,654.2
The Americas
5.3
5.4
–
188.5
3.8
203.0
Rest of Europe
1.1
68.4
–
155.0
3.5
228.0
Asia Pacific
2.2
0.3
–
–
–
2.5
69.9
351.4
85.4
1,573.7
7.3
2,087.7
1. Within Intangible assets located in Europe, £155.0m is located in Germany. Within Intangible assets located in the Americas, £188.5m is located in the United States of America. These assets
relate to the technology sharing agreements with Mercedes Benz AG and Lucid Group, Inc. respectively.
Right-of-use Property, plant, Intangible Other
lease asset equipment Goodwill
assets
1
receivables Total
As at 31 December 2023 £m £m £m £m £m £m
United Kingdom
59.0
269.0
85.4
1,160.3
–
1,573.7
The Americas
6.3
6.8
–
188.5
3.3
204.9
Rest of Europe
1.7
77.6
–
143.4
2.0
224.7
Asia Pacific
3.4
0.3
–
–
–
3.7
70.4
353.7
85.4
1,492.2
5.3
2,007.0
1. Within Intangible assets located in Europe, £143.4m is located in Germany. Within Intangible assets located in the Americas, £188.5m is located in the United States of America. These assets
relate to the technology sharing agreements with Mercedes Benz AG and Lucid Group, Inc. respectively.
4 OPERATING LOSS
The Group’s operating loss is stated after charging/(crediting):
2024
£m
2023
£m
Depreciation of property, plant and equipment (note 14) 78.5 91.2
Depreciation absorbed into inventory under standard costing (4.2) (0.9)
Loss on sale/scrap of property, plant and equipment (note 14) 0.1 2.6
Depreciation of right-of-use lease assets (note 16) 10.1 9.3
Amortisation of intangible assets (note 12) 282.7 280.4
Amortisation (absorbed into)/released from inventory under standard costing (13.4) 3.0
Depreciation, amortisation and impairment charges included in administrative and other operating expenses 353.8 385.6
Increase/(decrease) in trade receivable loss allowance – administrative and other operating expenses (note 23) 1.3 (1.3)
Research and development expenditure tax credit (23.8) (23.8)
Other grant income* (1.1) –
Net foreign currency differences 8.0 0.3
Cost of inventories recognised as an expense 826.0 844.0
Write-down of inventories to net realisable value 4.2 24.2
Increase in fair value of other derivative contracts – (11.2)
Lease payments (gross of sub-lease receipts)
Plant, machinery and IT equipment** 0.3 0.3
Sub-lease receipts Land and buildings (0.5) (0.4)
Auditor’s remuneration:
Audit of these Financial Statements 0.3 0.3
Audit of Financial Statements of subsidiaries pursuant to legislation 0.5 0.5
Audit-related assurance 0.1 0.1
Research and development expenditure recognised as an expense 21.2 30.7
* Other grant income reflects income recognised in the Consolidated Income Statement in relation to an award from the Advanced Propulsion Centre towards the Group’s research and
development into a modular battery electric vehicle platform.
** Election taken by the Group to not recognise right-of-use lease assets and equivalent lease liabilities for short-term and low-value leases.
2024
£m
2023
£m
Total research and development expenditure 333.3 299.2
Capitalised research and development expenditure (note 12) (312.1) (268.5)
Research and development expenditure recognised as an expense 21.2 30.7
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
168
17aXFinancialXStatements_v7.indd 16817aXFinancialXStatements_v7.indd 168 13/03/2025 14:5513/03/2025 14:55
3 SEGMENTAL REPORTING
Operating segments are defined as components of the Group about which separate financial information is available and is evaluated regularly by the chief
operating decision-maker in assessing performance. The Group has only one operating segment, the automotive segment, and therefore no separate
segmental report is disclosed. The automotive segment includes all activities relating to design, development, manufacture and marketing of vehicles,
including consulting services; as well as the sale of parts, servicing and automotive brand activities from which the Group derives its revenues.
Revenue
2024
£m
2023
£m
Analysis by category
Sale of vehicles 1,477.9 1,531.9
Sale of parts 84.4 80.0
Servicing of vehicles 11.0 9.8
Brands and motorsport 10.6 11.1
1,583.9 1,632.8
Revenue
2024
£m
2023
£m
Analysis by geographical location
United Kingdom 262.1 309.9
The Americas
1
629.2 452.8
Rest of Europe, Middle East and Africa
2
434.7 547.0
Asia Pacific
3
257.9 323.1
1,583.9 1,632.8
1. Within The Americas geographical segment, material revenue of £591.0m (2023: £409.9m) is generated in the United States of America
2. Within Rest of Europe, Middle East and Africa geographical segment, material revenue of £137.7m (2023: £167.4m) is generated in Germany
3. Within Asia Pacific geographical segment, material revenue of £111.8m (2023: £134.5m) is generated in Japan
Non-current assets other than financial instruments and deferred tax assets by geographical location
As at 31 December 2024
Right-of-use
lease asset
£m
Property, plant,
equipment
£m
Goodwill
£m
Intangible
assets
1
£m
Other
receivables
£m
Total
£m
United Kingdom 61.3 277.3 85.4 1,230.2 – 1,654.2
The Americas 5.3 5.4 – 188.5 3.8 203.0
Rest of Europe 1.1 68.4 – 155.0 3.5 228.0
Asia Pacific 2.2 0.3 – – – 2.5
69.9 351.4 85.4 1,573.7 7.3 2,087.7
1. Within Intangible assets located in Europe, £155.0m is located in Germany. Within Intangible assets located in the Americas, £188.5m is located in the United States of America. These assets
relate to the technology sharing agreements with Mercedes Benz AG and Lucid Group, Inc. respectively.
As at 31 December 2023
Right-of-use
lease asset
£m
Property, plant,
equipment
£m
Goodwill
£m
Intangible
assets
1
£m
Other
receivables
£m
Total
£m
United Kingdom 59.0 269.0 85.4 1,160.3 – 1,573.7
The Americas 6.3 6.8 – 188.5 3.3 204.9
Rest of Europe 1.7 77.6 – 143.4 2.0 224.7
Asia Pacific 3.4 0.3 – – – 3.7
70.4 353.7 85.4 1,492.2 5.3 2,007.0
1. Within Intangible assets located in Europe, £143.4m is located in Germany. Within Intangible assets located in the Americas, £188.5m is located in the United States of America. These assets
relate to the technology sharing agreements with Mercedes Benz AG and Lucid Group, Inc. respectively.
4 OPERATING LOSS
The Group’s operating loss is stated after charging/(crediting):
2024 2023
£m £m
Depreciation of property, plant and equipment (note 14)
78.5
91.2
Depreciation absorbed into inventory under standard costing
(4.2)
(0.9)
Loss on sale/scrap of property, plant and equipment (note 14)
0.1
2.6
Depreciation of right-of-use lease assets (note 16)
10.1
9.3
Amortisation of intangible assets (note 12)
282.7
280.4
Amortisation (absorbed into)/released from inventory under standard costing
(13.4)
3.0
Depreciation, amortisation and impairment charges included in administrative and other operating expenses
353.8
385.6
Increase/(decrease) in trade receivable loss allowance – administrative and other operating expenses (note 23)
1.3
(1.3)
Research and development expenditure tax credit
(23.8)
(23.8)
Other grant income*
(1.1)
–
Net foreign currency differences
8.0
0.3
Cost of inventories recognised as an expense
826.0
844.0
Write-down of inventories to net realisable value
4.2
24.2
Increase in fair value of other derivative contracts
–
(11.2)
Lease payments (gross of sub-lease receipts)
Plant, machinery and IT equipment**
0.3
0.3
Sub-lease receipts
Land and buildings
(0.5)
(0.4)
Auditor’s remuneration:
Audit of these Financial Statements
0.3
0.3
Audit of Financial Statements of subsidiaries pursuant to legislation
0.5
0.5
Audit-related assurance
0.1
0.1
Research and development expenditure recognised as an expense
21.2
30.7
* Other grant income reflects income recognised in the Consolidated Income Statement in relation to an award from the Advanced Propulsion Centre towards the Group’s research and
development into a modular battery electric vehicle platform.
** Election taken by the Group to not recognise right-of-use lease assets and equivalent lease liabilities for short-term and low-value leases.
2024 2023
£m £m
Total research and development expenditure
333.3
299.2
Capitalised research and development expenditure (note 12)
(312.1)
(268.5)
Research and development expenditure recognised as an expense
21.2
30.7
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
169
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 16917aXFinancialXStatements_v7.indd 169 13/03/2025 14:5513/03/2025 14:55
5 ADJUSTING ITEMS
2024 2023
£m £m
A
djusting operating expenses:
ERP implementation costs
1
(10.0)
(14.5)
Defined Benefit pension scheme closure costs
7
–
(1.0)
Legal settlement income
2
2.9
–
Legal settlement and costs
2
(8.1)
(16.0)
Director settlement and change costs
3
(1.5)
–
(16.7)
(31.5)
A
djusting finance income:
Gain on financial instruments recognised at fair value through Consolidated Income Statement
4
18.1
–
Gain on financial instrument utilised during refinance transactions
5
0.7
–
A
djusting finance expenses:
Premium paid on the early redemption of Senior Secured Notes
5,8
(35.7)
(8.0)
Write-off of capitalised borrowing fees and discount upon early settlement of Senior Secured Notes
8
–
(9.5)
Loss on financial instruments recognised at fair value through Consolidated Income Statement
4
–
(19.0)
(16.9)
(36.5)
Total adjusting items before tax
(33.6)
(68.0)
Tax charge on adjusting items
6
–
–
Adjusting items after tax
(33.6)
(68.0)
Summary of 2024 adjusting items
1. In the year ended 31 December 2024, the Group incurred further implementation costs for a cloud-based Enterprise Resource Planning (ERP) system for which the Group will not own any
intellectual property. £10.0m (2023: £14.5m) of costs have been incurred in the period under the service contract and expensed to the Consolidated Income Statement during the business
readiness phase of the project. The project continued to undergo a phased rollout during 2024 with the first of two manufacturing sites and further aspects of purchasing going live to
complement previous rollouts which included HR, ordering and dealer management, and limited aspects of purchasing in 2023 following the previous migration of finance in 2022. Due to the
infrequent recurrence of such costs and the expected quantum during the implementation phase, these have been separately presented as adjusting. The cash impact of this item is a working
capital outflow at the time of invoice payment.
2. During the year ended 31 December 2024, the Group incurred legal costs in relation to a number of disputes and claims with entities ultimately owned by a former significant shareholder of the
Group. The Group has incurred legal costs of £8.1m associated with its defence of such claims and pursuit of its counterclaims. AMMENA, Aston Martin’s distributor in the Middle East, North
Africa and Turkey region has brought various claims, which the Group denies. Certain aspects of these claims, and Aston Martin’s counterclaims, were heard in a confidential arbitration in
September 2024. The Tribunal made a partial award in November 2024 and the counterparty has sought permission to appeal certain parts of the award. There is a further hearing set for
September 2025 to determine the quantum of any award due in respect of Aston Martin’s counterclaim. Separately, on 1 March 2024 a court order was issued quantifying the amounts payable
to the Group from the judgment of a case involving claims against a retail dealership, which is ultimately owned by entities that are shareholders in one of the Group’s subsidiary entities, including
for unpaid debts relating to two agreements from 2015 and 2016. The Group was awarded certain of its legal costs, including some on an indemnity basis. Following challenge by the
counterparty, the overall amount received by the Group was £2.9m. All remaining amounts due in relation to this dispute have now been resolved. In 2023 the Group had incurred costs of £2.7m
in the year which were considered non-recurring in nature as these were related to historic disputes with former shareholders and not related to the ongoing business of the Group. In line with
the associated costs relating to the legal matter, which have been considered as non-recurring in nature above, the associated judgment income has been deemed as non-recurring in nature.
During the year ended 31 December 2023, the Group was involved in one other High Court case against entities ultimately owned by a former significant shareholder of the Group. AMMENA
brought a number of claims against the Group, including claims for debts arising between 2019-2021 when Aston Martin was acting as AMMENA’s agent and several claims that the Group had
acted in bad faith when AMMENA resumed its obligations as distributor. The Group successfully defended all the bad faith claims and AMMENA’s 2021 debt claim was dismissed. Aston Martin,
however, was unsuccessful in its claim to set off its own counter-claim that AMMENA (as the region’s distributor) should indemnify the Group in relation to costs incurred in the termination of a
retail dealer, so was required to pay AMMENA’s debt claims for 2019 and 2020 (totalling £5.3m plus interest of £0.6m). The Group incurred costs of £5.7m in defending AMMENA’s claims and
paid opposition costs of £1.7m. The cash impact of these costs was a cash outflow in February 2024 as well as working capital movements during the year ended 31 December 2023 for costs
already incurred.
Whilst disputes and legal proceedings pending are often in the normal course of the Group’s business, in all these cases the opposing party has links to companies that were former significant
shareholders of the Group. On that basis the Group has classified these costs as non-recurring in nature. The Group has continued to disclose a contingent liability in respect of ongoing claims
with former significant shareholders of the Group (note 32).
3. On 22 March 2024 it was announced that Amedeo Felisa would be retiring from the business and Adrian Hallmark would be joining the Group as Chief Executive Officer. In addition, Marco
Mattiacci, the Group’s Chief Commercial Officer, left the Group on 31 December 2024. The total costs associated with these changes was £1.5m, all of which represents severance costs and
payments in lieu of notice (note 6). Due to the nature and quantum, these items have been separately presented. The cash impact of such changes is a working capital movement in 2025.
4. The Group issued Second Lien SSNs during the year ended 31 December 2020 which included detachable warrants classified as a derivative option liability initially valued at £34.6m.
The movement in fair value of the liability in the year ended 31 December 2024 resulted in a gain, including warrant exercises, of £18.1m (2023: loss including warrant exercises of £19.0m) being
recognised in the Consolidated Income Statement. There is no cash impact of this adjustment.
5. During the year ended 31 December 2024 the Group undertook a refinancing exercise whereby new Senior Secured Notes of $960.0m at 10.0% and £400.0m at 10.375% repayable 31 March
2029 were issued, and all outstanding First Lien and Second Lien Senior Secured Notes issued by the Group were repaid. To facilitate the repayment of the outstanding Secured Notes, the Group
placed a forward currency contract to purchase US dollars. Due to favourable movements in the exchange rates, a gain of £0.7m was recognised in the Consolidated Income Statement at the
transaction date. The cash impact of this gain was realised at the point of refinancing. Additionally, in repaying the notes prior to their redemption date, a redemption premium of £35.7m was
incurred, of which the cash impact was incurred in the year ended 31 December 2024.
6. In 2024, nil tax has been recognised as an adjusting item (2023: nil tax) which is not in line with the standard rate of income tax for the Group of 25% (2023: 23.5%). This is on the basis that the
adjusting items generate net deferred tax assets (specifically unused tax losses and interest amounts disallowed under the corporate interest restriction legislation). These have not been
recognised to the extent that sufficient taxable profits are not forecast (under the defined planning cycle applied for the recognition of deferred tax assets) against which the unused tax losses
and interest amounts disallowed under the corporate interest restriction legislation would be utilised.
Summary of 2023 adjusting items
7. On 31 January 2022, the Group closed its Defined Benefit Pension Scheme to future accrual. Under the terms of the closure agreement, the affected employees were each granted 185 shares
incurring a share-based payment charge of £1.0m during 2022. The terms of the agreement provide the employees with a minimum guaranteed value for these shares subject to their ongoing
employment with the Group. The Group paid the employees a further cash sum as the share price at 1 February 2024 did not meet this value. The charge associated with this portion was £1.0m
in the year ended 31 December 2023 and was accounted for in accordance with IFRS2 as a cash settled share-based payment scheme. No other costs have been recognised in 2024 following
the final payment to the relevant employees.
8. During the year ended 31 December 2023, the Group repaid $121.7m of Second Lien Senior Secured Notes (“SSNs”). In repaying the notes prior to their redemption date, a redemption premium
of £8.0m was incurred, of which the cash impact was incurred in the year ended 31 December 2023. Accelerated amortisation of capitalised borrowing costs and discount of £9.5m was recognised
which was a non-cash item
6 STAFF COSTS AND DIRECTORS’ EMOLUMENTS
(a) Staff costs (including Directors)
2024
£m
2023
£m
Wages and salaries 213.4 188.0
Social security costs 21.9 19.4
Contributions to Defined Contribution plans 15.9 20.9
251.2 228.3
The average monthly number of employees during the year were:
B
y
activit
y
2024
Number
2023
Numbe
r
Production 1,266 1,238
Selling and distribution 399 342
Administration 1,255 1,160
2,920 2,740
(b) Directors’ emoluments and transactions
2024
£m
2023
£m
Directors’ emoluments 3.6 4.4
Company contributions to pension schemes 0.2 0.1
Severance and payments in lieu of notice 0.7 –
4.5 4.5
All Directors benefited from qualifying third-party indemnity provisions. Further information relating to Directors’ remuneration is set out in the Directors’
Remuneration Report on pages 104–124.
(c) Compensation of key management personnel (including Executive Directors)
2024
£m
2023
£m
Short-term employee benefits 8.4 11.0
Post-employment benefits 0.5 0.5
Severance and payments in lieu of notice 1.9 –
Share related awards – 0.2
10.8 11.7
7 FINANCE INCOME
2024
£m
2023
£m
Bank deposit and other interest income 7.1 13.5
Foreign exchange gain on borrowings not designated as part of a hedging relationship – 60.8
Finance income before adjusting items 7.1 74.3
A
djusting finance income items:
Foreign exchange gain on financial instrument utilised during refinance transactions 0.7 –
Gain on financial instruments recognised at fair value through Consolidated Income Statement (note 23) 18.1 –
Total adjusting finance income 18.8 –
Total finance income 25.9 74.3
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
170
17aXFinancialXStatements_v7.indd 17017aXFinancialXStatements_v7.indd 170 13/03/2025 14:5513/03/2025 14:55
5 ADJUSTING ITEMS
2024
£m
2023
£m
A
djusting operating expenses:
ERP implementation costs
1
(10.0) (14.5)
Defined Benefit pension scheme closure costs
7
– (1.0)
Legal settlement income
2
2.9 –
Legal settlement and costs
2
(8.1) (16.0)
Director settlement and change costs
3
(1.5) –
(16.7) (31.5)
A
djusting finance income:
Gain on financial instruments recognised at fair value through Consolidated Income Statement
4
18.1 –
Gain on financial instrument utilised during refinance transactions
5
0.7 –
A
djusting finance expenses:
Premium paid on the early redemption of Senior Secured Notes
5,8
(35.7) (8.0)
Write-off of capitalised borrowing fees and discount upon early settlement of Senior Secured Notes
8
– (9.5)
Loss on financial instruments recognised at fair value through Consolidated Income Statement
4
– (19.0)
(16.9) (36.5)
Total adjusting items before tax (33.6) (68.0)
Tax charge on adjusting items
6
– –
Adjusting items after tax (33.6) (68.0)
Summary of 2024 adjusting items
1. In the year ended 31 December 2024, the Group incurred further implementation costs for a cloud-based Enterprise Resource Planning (ERP) system for which the Group will not own any
intellectual property. £10.0m (2023: £14.5m) of costs have been incurred in the period under the service contract and expensed to the Consolidated Income Statement during the business
readiness phase of the project. The project continued to undergo a phased rollout during 2024 with the first of two manufacturing sites and further aspects of purchasing going live to
complement previous rollouts which included HR, ordering and dealer management, and limited aspects of purchasing in 2023 following the previous migration of finance in 2022. Due to the
infrequent recurrence of such costs and the expected quantum during the implementation phase, these have been separately presented as adjusting. The cash impact of this item is a working
capital outflow at the time of invoice payment.
2. During the year ended 31 December 2024, the Group incurred legal costs in relation to a number of disputes and claims with entities ultimately owned by a former significant shareholder of the
Group. The Group has incurred legal costs of £8.1m associated with its defence of such claims and pursuit of its counterclaims. AMMENA, Aston Martin’s distributor in the Middle East, North
Africa and Turkey region has brought various claims, which the Group denies. Certain aspects of these claims, and Aston Martin’s counterclaims, were heard in a confidential arbitration in
September 2024. The Tribunal made a partial award in November 2024 and the counterparty has sought permission to appeal certain parts of the award. There is a further hearing set for
September 2025 to determine the quantum of any award due in respect of Aston Martin’s counterclaim. Separately, on 1 March 2024 a court order was issued quantifying the amounts payable
to the Group from the judgment of a case involving claims against a retail dealership, which is ultimately owned by entities that are shareholders in one of the Group’s subsidiary entities, including
for unpaid debts relating to two agreements from 2015 and 2016. The Group was awarded certain of its legal costs, including some on an indemnity basis. Following challenge by the
counterparty, the overall amount received by the Group was £2.9m. All remaining amounts due in relation to this dispute have now been resolved. In 2023 the Group had incurred costs of £2.7m
in the year which were considered non-recurring in nature as these were related to historic disputes with former shareholders and not related to the ongoing business of the Group. In line with
the associated costs relating to the legal matter, which have been considered as non-recurring in nature above, the associated judgment income has been deemed as non-recurring in nature.
During the year ended 31 December 2023, the Group was involved in one other High Court case against entities ultimately owned by a former significant shareholder of the Group. AMMENA
brought a number of claims against the Group, including claims for debts arising between 2019-2021 when Aston Martin was acting as AMMENA’s agent and several claims that the Group had
acted in bad faith when AMMENA resumed its obligations as distributor. The Group successfully defended all the bad faith claims and AMMENA’s 2021 debt claim was dismissed. Aston Martin,
however, was unsuccessful in its claim to set off its own counter-claim that AMMENA (as the region’s distributor) should indemnify the Group in relation to costs incurred in the termination of a
retail dealer, so was required to pay AMMENA’s debt claims for 2019 and 2020 (totalling £5.3m plus interest of £0.6m). The Group incurred costs of £5.7m in defending AMMENA’s claims and
paid opposition costs of £1.7m. The cash impact of these costs was a cash outflow in February 2024 as well as working capital movements during the year ended 31 December 2023 for costs
already incurred.
Whilst disputes and legal proceedings pending are often in the normal course of the Group’s business, in all these cases the opposing party has links to companies that were former significant
shareholders of the Group. On that basis the Group has classified these costs as non-recurring in nature. The Group has continued to disclose a contingent liability in respect of ongoing claims
with former significant shareholders of the Group (note 32).
3. On 22 March 2024 it was announced that Amedeo Felisa would be retiring from the business and Adrian Hallmark would be joining the Group as Chief Executive Officer. In addition, Marco
Mattiacci, the Group’s Chief Commercial Officer, left the Group on 31 December 2024. The total costs associated with these changes was £1.5m, all of which represents severance costs and
payments in lieu of notice (note 6). Due to the nature and quantum, these items have been separately presented. The cash impact of such changes is a working capital movement in 2025.
4. The Group issued Second Lien SSNs during the year ended 31 December 2020 which included detachable warrants classified as a derivative option liability initially valued at £34.6m.
The movement in fair value of the liability in the year ended 31 December 2024 resulted in a gain, including warrant exercises, of £18.1m (2023: loss including warrant exercises of £19.0m) being
recognised in the Consolidated Income Statement. There is no cash impact of this adjustment.
5. During the year ended 31 December 2024 the Group undertook a refinancing exercise whereby new Senior Secured Notes of $960.0m at 10.0% and £400.0m at 10.375% repayable 31 March
2029 were issued, and all outstanding First Lien and Second Lien Senior Secured Notes issued by the Group were repaid. To facilitate the repayment of the outstanding Secured Notes, the Group
placed a forward currency contract to purchase US dollars. Due to favourable movements in the exchange rates, a gain of £0.7m was recognised in the Consolidated Income Statement at the
transaction date. The cash impact of this gain was realised at the point of refinancing. Additionally, in repaying the notes prior to their redemption date, a redemption premium of £35.7m was
incurred, of which the cash impact was incurred in the year ended 31 December 2024.
6. In 2024, nil tax has been recognised as an adjusting item (2023: nil tax) which is not in line with the standard rate of income tax for the Group of 25% (2023: 23.5%). This is on the basis that the
adjusting items generate net deferred tax assets (specifically unused tax losses and interest amounts disallowed under the corporate interest restriction legislation). These have not been
recognised to the extent that sufficient taxable profits are not forecast (under the defined planning cycle applied for the recognition of deferred tax assets) against which the unused tax losses
and interest amounts disallowed under the corporate interest restriction legislation would be utilised.
Summary of 2023 adjusting items
7. On 31 January 2022, the Group closed its Defined Benefit Pension Scheme to future accrual. Under the terms of the closure agreement, the affected employees were each granted 185 shares
incurring a share-based payment charge of £1.0m during 2022. The terms of the agreement provide the employees with a minimum guaranteed value for these shares subject to their ongoing
employment with the Group. The Group paid the employees a further cash sum as the share price at 1 February 2024 did not meet this value. The charge associated with this portion was £1.0m
in the year ended 31 December 2023 and was accounted for in accordance with IFRS2 as a cash settled share-based payment scheme. No other costs have been recognised in 2024 following
the final payment to the relevant employees.
8. During the year ended 31 December 2023, the Group repaid $121.7m of Second Lien Senior Secured Notes (“SSNs”). In repaying the notes prior to their redemption date, a redemption premium
of £8.0m was incurred, of which the cash impact was incurred in the year ended 31 December 2023. Accelerated amortisation of capitalised borrowing costs and discount of £9.5m was recognised
which was a non-cash item
6 STAFF COSTS AND DIRECTORS’ EMOLUMENTS
(a) Staff costs (including Directors)
2024 2023
£m £m
Wages and salaries
213.4
188.0
Social security costs
21.9
19.4
Contributions to Defined Contribution plans
15.9
20.9
251.2
228.3
The average monthly number of employees during the year were:
2024 2023
B
y
activit
y
Number
Numbe
r
Production
1,266
1,238
Selling and distribution
399
342
Administration
1,255
1,160
2,920
2,740
(b) Directors’ emoluments and transactions
2024 2023
£m £m
Directors’ emoluments
3.6
4.4
Company contributions to pension schemes
0.2
0.1
Severance and payments in lieu of notice
0.7
–
4.5
4.5
All Directors benefited from qualifying third-party indemnity provisions. Further information relating to Directors’ remuneration is set out in the Directors’
Remuneration Report on pages 104–124.
(c) Compensation of key management personnel (including Executive Directors)
2024 2023
£m £m
Short-term employee benefits
8.4
11.0
Post-employment benefits
0.5
0.5
Severance and payments in lieu of notice
1.9
–
Share related awards
–
0.2
10.8
11.7
7 FINANCE INCOME
2024 2023
£m £m
Bank deposit and other interest income
7.1
13.5
Foreign exchange gain on borrowings not designated as part of a hedging relationship
–
60.8
Finance income before adjusting items
7.1
74.3
A
djusting finance income items:
Foreign exchange gain on financial instrument utilised during refinance transactions
0.7
–
Gain on financial instruments recognised at fair value through Consolidated Income Statement (note 23)
18.1
–
Total adjusting finance income
18.8
–
Total finance income
25.9
74.3
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
171
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 17117aXFinancialXStatements_v7.indd 171 13/03/2025 14:5513/03/2025 14:55
8 FINANCE EXPENSE
2024 2023
£m £m
Bank loans, overdrafts and senior secured notes
151.4
151.3
Interest on lease liabilities (note 16)
4.2
4.1
Net interest expense on the net Defined Benefit liability (note 26)
2.0
2.7
Interest on contract liabilities held (note 21)
3.7
7.7
Foreign exchange loss on borrowings not designated as part of a hedging relationship
14.1
–
Effect of discounting on long-term liabilities
4.4
0.6
Finance expense before adjusting items
179.8
166.4
A
djusting finance expense items:
Loss on financial instruments recognised at fair value through Consolidated Income Statement (note 23)
–
19.0
Premium paid on the early redemption of Senior Secured Notes
35.7
8.0
Write-off of capitalised borrowing fees upon early settlement of Senior Secured Notes
–
9.5
Total adjusting finance expense
35.7
36.5
Total finance expense
215.5
202.9
9 TAXATION
2024 2023
£m £m
UK corporation tax on result
0.1
0.3
Overseas tax
5.4
1.7
Prior period movement
(0.1)
(0.1)
Total current income tax charge
5.4
1.9
Deferred tax charge/(credit)
Origination and reversal of temporary differences
27.1
(15.1)
Prior period movement
1.8
0.2
Effect of change in deferred tax rate
0.1
–
Total deferred tax charge/(credit)
29.0
(14.9)
Total income tax charge/(credit) in the Consolidated Income Statement
34.4
(13.0)
Tax relating to items charged/(credited
)
to other comprehensive income
Deferred ta
x
Actuarial movement on Defined Benefit plan
2.5
–
Fair value adjustment on investments in equity interests
9.4
–
Fair value adjustment on cash flow hedges
(0.9)
(1.2)
11.0
(1.2)
Tax relating to items charged in equity
–
deferred tax
Effect of equity settled share-based payment charge
0.4
(0.5)
9 TAXATION CONTINUED
(a) Reconciliation of the total income tax (credit)/charge
The tax charge (2023: credit) in the Consolidated Statement of Comprehensive Income for the year is higher (2023: lower) than the standard rate of
corporation tax in the UK of 25% (2023: 23.5%). The differences are reconciled below:
2024
£m
2023
£m
Loss from operations before taxation (289.1) (239.8)
Loss from operations before taxation multiplied by standard rate of corporation tax in the UK of 25% (2023: 23.5%) (72.3) (56.3)
Difference to total income tax charge/(credit) due to effects of:
Expenses not deductible for tax purposes 1.4 1.2
Movement in unprovided deferred tax 70.0 43.4
Net prior year deferred tax assets no longer recognised 29.9 –
Adjustments in respect of prior periods 1.7 0.1
Effect of change in deferred tax rate 0.1 –
Difference in UK tax rates – (0.7)
Difference in overseas tax rates 0.1 0.2
Investments in equity instruments 3.5 –
Other – (0.9)
Total income tax charge/(credit) 34.4 (13.0)
(b) Tax paid
Total net tax paid during the year was £0.9m (2023: £5.6m).
(c) Factors affecting future tax charges
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates. The legislation is effective from the
Group's financial year commencing 1 January 2024. The Group has performed an assessment of the Group's potential exposure to Pillar Two income taxes.
The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting and financial
statements for the constituent entities in the Group. Based on the assessment, the Pillar Two Transitional Safe Harbour provisions are expected to apply in
each jurisdiction the Group operates in, and management is not aware of any circumstance under which this might change. Therefore, there is no tax expense
associated with the Pillar Two legislation for the financial period ended 31 December 2024. The Group has applied the exception in IAS 12 ’Income Taxes’ to
recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
(d) Deferred tax
Deferred tax assets and liabilities are attributable to the following:
Assets
2024
£m
Assets
2023
£m
Liabilities
2024
£m
Liabilities
2023
£m
Property, plant and equipment (115.8) (108.5) – –
Intangible assets – – 191.5 182.9
Employee benefits (7.7) (12.7) – –
Provisions (4.0) (10.4) – –
RDEC credit
1
(33.3) (23.5) – –
RDEC deferred income
2
(17.7) (13.8) – –
Losses and other deductions
3
(150.7) (168.3) – –
Share-based payments (1.4) (2.0) – –
Investments in equity interests
4
– – 12.7 –
Deferred tax (assets)/liabilities (330.6) (339.2) 204.2 182.9
Offset of tax liabilities/(assets) 204.2 182.9 (204.2) (182.9)
Total deferred tax (assets)/liabilities (126.4) (156.3) – –
1 Deferred tax assets categorised as ‘RDEC credit’ relate to the cumulative restricted amount of the payable tax credits which can be applied or surrendered in discharging any future corporation
tax liability of the claimant company, as detailed in the Government Grants section of the Accounting Policies (Note 2).
2 Deferred tax assets categorised as ‘RDEC deferred income’ relate to expenditure deferred to the Consolidated Statement of Financial position which has previously been included within filed
RDEC claims and subject to corporation tax. Any future release of the RDEC deferred income to the Consolidated Income Statement will not be subject to corporation tax for a second time.
3 Deferred tax assets categorised as ‘Losses and other deductions’ relate to tax losses and tax interest amounts disallowed under the corporate interest restriction legislation.
4 Deferred tax liabilities categorised as 'Investments in equity interests' relate to the Groups subscription for shares in AMR GP Holdings Limited (Note 15). The above amount represents the future
tax charge arising on taxable gains that will crystalise upon a sale of the Groups shareholding.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
172
17aXFinancialXStatements_v7.indd 17217aXFinancialXStatements_v7.indd 172 13/03/2025 14:5513/03/2025 14:55
8 FINANCE EXPENSE
2024
£m
2023
£m
Bank loans, overdrafts and senior secured notes 151.4 151.3
Interest on lease liabilities (note 16) 4.2 4.1
Net interest expense on the net Defined Benefit liability (note 26) 2.0 2.7
Interest on contract liabilities held (note 21) 3.7 7.7
Foreign exchange loss on borrowings not designated as part of a hedging relationship 14.1 –
Effect of discounting on long-term liabilities 4.4 0.6
Finance expense before adjusting items 179.8 166.4
A
djusting finance expense items:
Loss on financial instruments recognised at fair value through Consolidated Income Statement (note 23) – 19.0
Premium paid on the early redemption of Senior Secured Notes 35.7 8.0
Write-off of capitalised borrowing fees upon early settlement of Senior Secured Notes – 9.5
Total adjusting finance expense 35.7 36.5
Total finance expense 215.5 202.9
9 TAXATION
2024
£m
2023
£m
UK corporation tax on result 0.1 0.3
Overseas tax 5.4 1.7
Prior period movement (0.1) (0.1)
Total current income tax charge 5.4 1.9
Deferred tax charge/(credit)
Origination and reversal of temporary differences 27.1 (15.1)
Prior period movement 1.8 0.2
Effect of change in deferred tax rate 0.1 –
Total deferred tax charge/(credit) 29.0 (14.9)
Total income tax charge/(credit) in the Consolidated Income Statement 34.4 (13.0)
Tax relating to items charged/(credited
)
to other comprehensive income
Deferred ta
x
Actuarial movement on Defined Benefit plan 2.5 –
Fair value adjustment on investments in equity interests 9.4 –
Fair value adjustment on cash flow hedges (0.9) (1.2)
11.0 (1.2)
Tax relating to items charged in equity
–
deferred tax
Effect of equity settled share-based payment charge 0.4 (0.5)
9 TAXATION CONTINUED
(a) Reconciliation of the total income tax (credit)/charge
The tax charge (2023: credit) in the Consolidated Statement of Comprehensive Income for the year is higher (2023: lower) than the standard rate of
corporation tax in the UK of 25% (2023: 23.5%). The differences are reconciled below:
2024 2023
£m £m
Loss from operations before taxation
(289.1)
(239.8)
Loss from operations before taxation multiplied by standard rate of corporation tax in the UK of 25% (2023: 23.5%)
(72.3)
(56.3)
Difference to total income tax charge/(credit) due to effects of:
Expenses not deductible for tax purposes
1.4
1.2
Movement in unprovided deferred tax
70.0
43.4
Net prior year deferred tax assets no longer recognised
29.9
–
Adjustments in respect of prior periods
1.7
0.1
Effect of change in deferred tax rate
0.1
–
Difference in UK tax rates
–
(0.7)
Difference in overseas tax rates
0.1
0.2
Investments in equity instruments
3.5
–
Other
–
(0.9)
Total income tax charge/(credit)
34.4
(13.0)
(b) Tax paid
Total net tax paid during the year was £0.9m (2023: £5.6m).
(c) Factors affecting future tax charges
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates. The legislation is effective from the
Group's financial year commencing 1 January 2024. The Group has performed an assessment of the Group's potential exposure to Pillar Two income taxes.
The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting and financial
statements for the constituent entities in the Group. Based on the assessment, the Pillar Two Transitional Safe Harbour provisions are expected to apply in
each jurisdiction the Group operates in, and management is not aware of any circumstance under which this might change. Therefore, there is no tax expense
associated with the Pillar Two legislation for the financial period ended 31 December 2024. The Group has applied the exception in IAS 12 ’Income Taxes’ to
recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
(d) Deferred tax
Deferred tax assets and liabilities are attributable to the following:
Assets Assets Liabilities Liabilities
2024 2023 2024 2023
£m £m £m £m
Property, plant and equipment
(115.8)
(108.5)
–
–
Intangible assets
–
–
191.5
182.9
Employee benefits
(7.7)
(12.7)
–
–
Provisions
(4.0)
(10.4)
–
–
RDEC credit
1
(33.3)
(23.5)
–
–
RDEC deferred income
2
(17.7)
(13.8)
–
–
Losses and other deductions
3
(150.7)
(168.3)
–
–
Share-based payments
(1.4)
(2.0)
–
–
Investments in equity interests
4
–
–
12.7
–
Deferred tax (assets)/liabilities
(330.6)
(339.2)
204.2
182.9
Offset of tax liabilities/(assets)
204.2
182.9
(204.2)
(182.9)
Total deferred tax (assets)/liabilities
(126.4)
(156.3)
–
–
1 Deferred tax assets categorised as ‘RDEC credit’ relate to the cumulative restricted amount of the payable tax credits which can be applied or surrendered in discharging any future corporation
tax liability of the claimant company, as detailed in the Government Grants section of the Accounting Policies (Note 2).
2 Deferred tax assets categorised as ‘RDEC deferred income’ relate to expenditure deferred to the Consolidated Statement of Financial position which has previously been included within filed
RDEC claims and subject to corporation tax. Any future release of the RDEC deferred income to the Consolidated Income Statement will not be subject to corporation tax for a second time.
3 Deferred tax assets categorised as ‘Losses and other deductions’ relate to tax losses and tax interest amounts disallowed under the corporate interest restriction legislation.
4 Deferred tax liabilities categorised as 'Investments in equity interests' relate to the Groups subscription for shares in AMR GP Holdings Limited (Note 15). The above amount represents the future
tax charge arising on taxable gains that will crystalise upon a sale of the Groups shareholding.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
173
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 17317aXFinancialXStatements_v7.indd 173 13/03/2025 14:5513/03/2025 14:55
9 TAXATION CONTINUED
(d) Deferred tax continued
Where the right exists in certain jurisdictions, deferred tax assets and liabilities have been offset.
Net tax
recognised Net tax Net tax
1 January in Income recognised recognised in Other 31 December
2024 Statement in OCI equity movement 2024
Movement in deferred tax in 2024 £m £m £m £m £m £m
Property, plant and equipment
(108.5)
(7.3)
–
–
–
(115.8)
Intangible assets
182.9
8.6
–
–
–
191.5
Employee benefits
(12.7)
2.5
2.5
–
–
(7.7)
Provisions
(10.4)
7.9
(0.9)
–
(0.6)
(4.0)
RDEC credit
(23.5)
–
–
–
(9.8)
(33.3)
RDEC deferred income
(13.8)
(3.9)
–
–
–
(17.7)
Losses and other deductions
(168.3)
17.8
–
–
(0.2)
(150.7)
Share-based payments
(2.0)
0.1
–
0.4
0.1
(1.4)
Investments in equity instruments
–
3.3
9.4
–
–
12.7
(156.3)
29.0
11.0
0.4
(10.5)
(126.4)
Net tax
recognised Net tax Net tax
1 January in Income recognised recognised in Other 31 December
2023 Statement in OCI equity movement 2023
Movement in deferred tax in 2023 £m £m £m £m £m £m
Property, plant and equipment
(76.2)
(32.3)
–
–
–
(108.5)
Intangible assets
181.3
1.6
–
–
–
182.9
Employee benefits
(15.5)
2.8
–
–
–
(12.7)
Provisions
(8.4)
(1.4)
(1.2)
–
0.6
(10.4)
RDEC credit
(16.1)
–
–
–
(7.4)
(23.5)
RDEC deferred income
–
(13.8)
–
–
–
(13.8)
Losses and other deductions
(198.6)
30.1
–
–
0.2
(168.3)
Share-based payments
(0.2)
(1.2)
–
(0.5)
(0.1)
(2.0)
Other
0.7
(0.7)
–
–
–
–
(133.0)
(14.9)
(1.2)
(0.5)
(6.7)
(156.3)
The losses and other deductions of £150.7m (£602.6m gross) are comprised of UK tax losses totalling £95.1m (£380.5m gross) and disallowed
interest amounts of £55.6m (£222.1m gross). Net deferred tax assets have been recognised to the extent that it is considered probable that future taxable
profits will be available against which the deductible temporary differences or unused tax losses or credits can be recovered or utilised. In evaluating the level
of probable future taxable profits the Group reviews the same underlying assumptions and future forecasts used for impairment testing, going concern
and viability assessments.
Given the recent history of accumulating tax losses, the Group has evaluated whether there is convincing other evidence that sufficient taxable profit will be
available in determining the supportable level of net deferred tax assets which have been recognised at the reporting date. The launch of four new core
models, the successful refinancing exercise, and a strengthened Executive team as well as rebasing of future plans in September 2024 smoothing the cadence
of wholesale volumes and maximising production efficiencies provides convincing evidence that the current business plan, as set out by the Executive team,
will start generating the forecast taxable profits in the UK in the short term in order to support the recognition of deferred tax assets.
The future forecasts cover an extended period, which inherently increases the level of significant estimation uncertainty in the later periods. Specifically in this
context, for the deferred tax assets held by the main UK trading entity, a defined look-out period for Internal Combustion Engine (‘ICE’) and Plug-In Hybrid
Vehicle (‘PHEV’) to 31 December 2030 was selected on the basis that this timeframe correlates to existing vehicle life cycles and the prior year look-out period
end date.
9 TAXATION CONTINUED
(d) Deferred tax continued
The group has gross deferred tax assets unrecognised at the reporting date totalling £1,650.9m comprised of £709.6m tax losses (UK tax losses of £683.8m
and China tax losses of £25.8m), £254.0m accelerated capital allowances, £49.6m provisions (US provisions of £31.8m and China provisions of £17.8m) and
£637.7m of disallowed tax interest amounts. An increase/decrease of £50m in forecast taxable UK profits by 2030 would increase/decrease the level of
deferred tax asset that would be recognised on losses by £6.3m under current UK tax legislation. A 20% decrease in DBX volumes, a 10% decrease in sports
volumes and an £82m non-achievement of cost-saving initiatives to the base forecasts results in a potential decrease in recognition of £36.5m, equivalent to
2 year of additional recognition under current UK tax legislation. The removal of EV profits from 2029 and 2030 results in a potential decrease in recognition
of £14.8m, equivalent to 1 year of additional recognition. The aggregate amount of temporary differences associated with investments in subsidiaries and
branches for which deferred tax liabilities have not been recognised is £2.9m for the financial year ended 31 December 2024 (2023: £1.5m).
10 DIVIDENDS
Aston Martin Works Limited, a subsidiary of the Group, declared and paid a dividend of £16.0m during the year. As Aston Martin Works Limited is not fully
owned by the Group at the time of the dividend transaction, £8.0m of the dividend was paid to shareholders outside of the Group.
AMWS Limited (the parent Company of Aston Martin Works Limited in which AML held a 50% shareholding up to the point of the AMWS Limited’s liquidation)
declared and paid dividends totalling £0.1m in the year relating to surplus funds in the business upon liquidation. At the time of the dividend transactions,
AMWS Limited was not fully owned by the Group. Less than £0.1m of the dividends were paid to the shareholders outside of the Group.
No dividends were declared or paid by the Company or any Group entities in the year ended 31 December 2023.
11 EARNINGS PER ORDINARY SHARE
Basic earnings per ordinary share is calculated by dividing the loss for the year available for equity holders by the weighted average number of ordinary shares
in issue during the year. A total of 2,301,201 ordinary shares were issued under the Group’s share investment plan (note 29). As these shares are held in trust
on behalf of the Group’s employees and the Group controls the trust they have been excluded from the calculation of the weighted average number of shares.
Continuin
g
and total o
p
erations 2024 2023
Basic earnings per ordinary share
Loss available for equity holders (£m) (323.5) (228.1)
Basic weighted average number of ordinary shares (million) 832.4 748.2
Basic loss per ordinary share (pence) (38.9p) (30.5p)
Diluted earnings per ordinary share is calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the weighted average number
of dilutive ordinary share awards outstanding during the year, including the future technology shares and warrants detailed below. The weighted average
number of dilutive ordinary share awards outstanding during the year are excluded when including them would be anti-dilutive to the earnings per share value.
Continuin
g
and total o
p
erations 2024 2023
Diluted earnings per ordinary share
Loss available for equity holders (£m) (323.5) (228.1)
Basic weighted average number of ordinary shares (million) 832.4 748.2
Diluted loss per ordinary share (pence) (38.9p) (30.5p)
2024
Number
2023
Numbe
r
Diluted weighted average number of ordinary shares is calculated as:
Basic weighted average number of ordinary shares (million) 832.4 748.2
Adjustments for calculation of diluted earnings per share:
1
Long-term incentive plans – –
Issue of unexercised ordinary share warrants – –
Weighted average number of diluted ordinary shares (million) 832.4 748.2
1 The number of ordinary shares issued as part of the long-term incentive plans and the potential number of ordinary shares issued as part of the 2020 issue of share warrants have been excluded
from the weighted average number of diluted ordinary shares, as including them is anti-dilutive to diluted earnings per share.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
174
17aXFinancialXStatements_v7.indd 17417aXFinancialXStatements_v7.indd 174 13/03/2025 14:5513/03/2025 14:55
9 TAXATION CONTINUED
(d) Deferred tax continued
Where the right exists in certain jurisdictions, deferred tax assets and liabilities have been offset.
Movement in deferred tax in 2024
1 January
2024
£m
Net tax
recognised
in Income
Statement
£m
Net tax
recognised
in OCI
£m
Net tax
recognised in
equity
£m
Other
movement
£m
31 December
2024
£m
Property, plant and equipment (108.5) (7.3) – – – (115.8)
Intangible assets 182.9 8.6 – – – 191.5
Employee benefits (12.7) 2.5 2.5 – – (7.7)
Provisions (10.4) 7.9 (0.9) – (0.6) (4.0)
RDEC credit (23.5) – – – (9.8) (33.3)
RDEC deferred income (13.8) (3.9) – – – (17.7)
Losses and other deductions (168.3) 17.8 – – (0.2) (150.7)
Share-based payments (2.0) 0.1 – 0.4 0.1 (1.4)
Investments in equity instruments – 3.3 9.4 – – 12.7
(156.3) 29.0 11.0 0.4 (10.5) (126.4)
Movement in deferred tax in 2023
1 January
2023
£m
Net tax
recognised
in Income
Statement
£m
Net tax
recognised
in OCI
£m
Net tax
recognised in
equity
£m
Other
movement
£m
31 December
2023
£m
Property, plant and equipment (76.2) (32.3) – – – (108.5)
Intangible assets 181.3 1.6 – – – 182.9
Employee benefits (15.5) 2.8 – – – (12.7)
Provisions (8.4) (1.4) (1.2) – 0.6 (10.4)
RDEC credit (16.1) – – – (7.4) (23.5)
RDEC deferred income – (13.8) – – – (13.8)
Losses and other deductions (198.6) 30.1 – – 0.2 (168.3)
Share-based payments (0.2) (1.2) – (0.5) (0.1) (2.0)
Other 0.7 (0.7) – – – –
(133.0) (14.9) (1.2) (0.5) (6.7) (156.3)
The losses and other deductions of £150.7m (£602.6m gross) are comprised of UK tax losses totalling £95.1m (£380.5m gross) and disallowed
interest amounts of £55.6m (£222.1m gross). Net deferred tax assets have been recognised to the extent that it is considered probable that future taxable
profits will be available against which the deductible temporary differences or unused tax losses or credits can be recovered or utilised. In evaluating the level
of probable future taxable profits the Group reviews the same underlying assumptions and future forecasts used for impairment testing, going concern
and viability assessments.
Given the recent history of accumulating tax losses, the Group has evaluated whether there is convincing other evidence that sufficient taxable profit will be
available in determining the supportable level of net deferred tax assets which have been recognised at the reporting date. The launch of four new core
models, the successful refinancing exercise, and a strengthened Executive team as well as rebasing of future plans in September 2024 smoothing the cadence
of wholesale volumes and maximising production efficiencies provides convincing evidence that the current business plan, as set out by the Executive team,
will start generating the forecast taxable profits in the UK in the short term in order to support the recognition of deferred tax assets.
The future forecasts cover an extended period, which inherently increases the level of significant estimation uncertainty in the later periods. Specifically in this
context, for the deferred tax assets held by the main UK trading entity, a defined look-out period for Internal Combustion Engine (‘ICE’) and Plug-In Hybrid
Vehicle (‘PHEV’) to 31 December 2030 was selected on the basis that this timeframe correlates to existing vehicle life cycles and the prior year look-out period
end date.
9 TAXATION CONTINUED
(d) Deferred tax continued
The group has gross deferred tax assets unrecognised at the reporting date totalling £1,650.9m comprised of £709.6m tax losses (UK tax losses of £683.8m
and China tax losses of £25.8m), £254.0m accelerated capital allowances, £49.6m provisions (US provisions of £31.8m and China provisions of £17.8m) and
£637.7m of disallowed tax interest amounts. An increase/decrease of £50m in forecast taxable UK profits by 2030 would increase/decrease the level of
deferred tax asset that would be recognised on losses by £6.3m under current UK tax legislation. A 20% decrease in DBX volumes, a 10% decrease in sports
volumes and an £82m non-achievement of cost-saving initiatives to the base forecasts results in a potential decrease in recognition of £36.5m, equivalent to
2 year of additional recognition under current UK tax legislation. The removal of EV profits from 2029 and 2030 results in a potential decrease in recognition
of £14.8m, equivalent to 1 year of additional recognition. The aggregate amount of temporary differences associated with investments in subsidiaries and
branches for which deferred tax liabilities have not been recognised is £2.9m for the financial year ended 31 December 2024 (2023: £1.5m).
10 DIVIDENDS
Aston Martin Works Limited, a subsidiary of the Group, declared and paid a dividend of £16.0m during the year. As Aston Martin Works Limited is not fully
owned by the Group at the time of the dividend transaction, £8.0m of the dividend was paid to shareholders outside of the Group.
AMWS Limited (the parent Company of Aston Martin Works Limited in which AML held a 50% shareholding up to the point of the AMWS Limited’s liquidation)
declared and paid dividends totalling £0.1m in the year relating to surplus funds in the business upon liquidation. At the time of the dividend transactions,
AMWS Limited was not fully owned by the Group. Less than £0.1m of the dividends were paid to the shareholders outside of the Group.
No dividends were declared or paid by the Company or any Group entities in the year ended 31 December 2023.
11 EARNINGS PER ORDINARY SHARE
Basic earnings per ordinary share is calculated by dividing the loss for the year available for equity holders by the weighted average number of ordinary shares
in issue during the year. A total of 2,301,201 ordinary shares were issued under the Group’s share investment plan (note 29). As these shares are held in trust
on behalf of the Group’s employees and the Group controls the trust they have been excluded from the calculation of the weighted average number of shares.
Continuin
g
and total o
p
erations
2024
2023
Basic earnings per ordinary share
Loss available for equity holders (£m)
(323.5)
(228.1)
Basic weighted average number of ordinary shares (million)
832.4
748.2
Basic loss per ordinary share (pence)
(38.9p)
(30.5p)
Diluted earnings per ordinary share is calculated by adjusting basic earnings per ordinary share to reflect the notional exercise of the weighted average number
of dilutive ordinary share awards outstanding during the year, including the future technology shares and warrants detailed below. The weighted average
number of dilutive ordinary share awards outstanding during the year are excluded when including them would be anti-dilutive to the earnings per share value.
Continuin
g
and total o
p
erations
2024
2023
Diluted earnings per ordinary share
Loss available for equity holders (£m)
(323.5)
(228.1)
Basic weighted average number of ordinary shares (million)
832.4
748.2
Diluted loss per ordinary share (pence)
(38.9p)
(30.5p)
2024 2023
Number
Numbe
r
Diluted weighted average number of ordinary shares is calculated as:
Basic weighted average number of ordinary shares (million)
832.4
748.2
Adjustments for calculation of diluted earnings per share:
1
Long-term incentive plans
–
–
Issue of unexercised ordinary share warrants
–
–
Weighted average number of diluted ordinary shares (million)
832.4
748.2
1 The number of ordinary shares issued as part of the long-term incentive plans and the potential number of ordinary shares issued as part of the 2020 issue of share warrants have been excluded
from the weighted average number of diluted ordinary shares, as including them is anti-dilutive to diluted earnings per share.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
175
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 17517aXFinancialXStatements_v7.indd 175 13/03/2025 14:5513/03/2025 14:55
11 EARNINGS PER ORDINARY SHARE CONTINUED
Detachable warrants to acquire shares in the Company were issued alongside the Second Lien SSNs issued by the Group in December 2020, and subsequently
repaid in March 2024, can be exercised from 1 July 2021 through to 7 December 2027. As a consequence of the rights issue during the period ended 31 December
2022 the number of ordinary shares issuable via the options was increased by a multiple of 6 to ensure the warrant holders’ interests were not diluted. As at
31 December 2024, 66,159,325 warrant options, each entitled to 0.3 ordinary shares, remain unexercised. The future exercise of warrants may have a dilutive effect
in future periods if the Group generates a profit.
Adjusted earnings per share is disclosed in note 34 to show performance undistorted by adjusting items to assist in providing useful information on the
underlying performance of the Group and enhance the comparability of information between reporting periods.
12 INTANGIBLE ASSETS
Capitalised Dealer Software
Goodwill Brands Technology development cost network and other Total
£m £m £m £m £m £m £m
Cost
Balance at 1 January 2023
85.4
297.6
163.5
1,845.9
15.4
73.0
2,480.8
Additions
–
–
188.5
268.5
–
6.4
463.4
Balance at 31 December 2023
85.4
297.6
352.0
2,114.4
15.4
79.4
2,944.2
Balance at 1 January 2024
85.4
297.6
352.0
2,114.4
15.4
79.4
2,944.2
Additions
–
–
47.9
312.1
–
4.2
364.2
Balance at 31 December 2024
85.4
297.6
399.9
2,426.5
15.4
83.6
3,308.4
Amortisation
Balance at 1 January 2023
–
–
11.8
1,002.0
11.6
60.8
1,086.2
Charge for the year
–
–
9.8
264.0
0.7
5.9
280.4
Balance at 31 December 2023
–
–
21.6
1,266.0
12.3
66.7
1,366.6
Balance at 1 January 2024
–
–
21.6
1,266.0
12.3
66.7
1,366.6
Charge for the yea
r
–
–
35.4
238.1
0.8
8.4
282.7
Balance at 31 December 2024
–
–
57.0
1,504.1
13.1
75.1
1,649.3
Net book value
At 1 January 2023
85.4
297.6
151.7
843.9
3.8
12.2
1,394.6
At 31 December 2023
85.4
297.6
330.4
848.4
3.1
12.7
1,577.6
At 1 January 2024
85.4
297.6
330.4
848.4
3.1
12.7
1,577.6
At 31 December 2024
85.4
297.6
342.9
922.4
2.3
8.5
1,659.1
On 7 December 2020, the Company issued 224,657,287 shares to MBAG as consideration for access to the first tranche of powertrain and electronic
architecture via a Strategic Cooperation Agreement (“SCA”). The Group was required to undertake a valuation exercise to measure the fair value of the access
to the MBAG technology upon its initial capitalisation. The Group selected the ‘With and Without’ income approach which compares the net present value of
cash flows from the Group’s business plan prior to (‘Without’) and after (‘With’) the access to the technology. This methodology estimates the present value
of the net benefit associated with acquiring the access to the technology. In the Group’s assessment, the fair value of access to this technology was £142.3m.
The £142.3m represented the assumed cost at acquisition after which the cost model has been adopted. Amortisation commenced during the year ended
31 December 2023 and the current carrying value of the SCA technology asset is £85.5m (2023: £134.2m). On 2 July 2024 the Group entered a further
agreement with MBAG relating to the future supply of engine units at a total cost of £63.2m. £15.3m of the cost was funded via a transfer from the SCA noted
above with the balance of £47.9m to be cash settled. Amortisation is aligned to when the asset is available for use – i.e. when it is in the location and condition
necessary for it to be capable of operating in the manner intended by management.
12 INTANGIBLE ASSETS CONTINUED
On 26 June 2023, the Aston Martin Lagonda Global Holdings plc confirmed a strategic supply arrangement with Lucid Group, Inc. (“Lucid”) providing the
Group with access to select powertrain components for future BEV vehicles (collectively the “technology”). The consideration paid by the Group was a mixture
of cash and 28,352,273 newly issued shares in Aston Martin Lagonda Global Holdings plc. The Group was required to undertake a valuation exercise to
measure the fair value of the access to the Lucid technology upon its initial capitalisation. The Group selected the ‘With and Without’ income approach which
compares the net present value of cash flows from the Group’s business plan prior to (‘Without’) and after (‘With’) the access to the technology. This
methodology estimates the present value of the net benefit associated with acquiring the access to the technology. In the Group’s assessment, the fair value
of access to this technology was £188.5m. The £188.5m represented the assumed cost at acquisition after which the cost model has been adopted.
Amortisation is aligned to when the asset is available for use – i.e. when it is in the location and condition necessary for it to be capable of operating in the
manner intended by management. The carrying value of the technology asset is £188.5m.
Amortisation of capitalised development costs commences when the programme to which the expenditure relates is available for use. As at 31 December 2024,
£382.1m (2023: £253.2m) of capitalised development costs were not yet within the scope of amortisation.
13 IMPAIRMENT TESTING
Indefinite useful life non-current assets
Goodwill and brands acquired through business combinations have been allocated for impairment testing purposes to one cash-generating unit – the
Aston Martin Lagonda Group business. This represents the lowest level within the Group at which goodwill and brands are monitored for internal purposes.
The Group has considered the carrying value of its assets in the context of the Group’s market capitalisation. At this level, it was concluded that the net assets
of the Group are recoverable owing to the Group’s market capitalisation of £1.0bn at 31 December 2024.
Finite useful life non-current assets
Recoverability of non-current assets with finite useful lives include property, plant and equipment, right-of-use lease assets and certain intangible assets.
Intangible assets with finite useful lives mainly consist of capitalised development costs and technology.
The Group reviews the carrying amount of non-current assets with finite useful lives when events and circumstances indicate that an asset may be impaired.
Impairment tests are performed by comparing the carrying amount and the recoverable amount of the assets. The recoverable amount is the higher of the
assets’ fair value less costs of disposal and their value-in-use. Where non-current assets with finite useful lives are not yet available for use, these are tested
for impairment annually.
In assessing the value-in-use, the estimated future cash flows relating to the forecast usage period of the asset, or group of assets, are discounted to their
present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks.
Key assumptions used in value-in-use calculations
The calculation of value-in-use for the assets is most sensitive to the following assumptions:
– Cash flows are projected based on actual operating results and the current five-year plan.
– Discount rates are calculated using a weighted average cost of capital approach. They reflect the individual nature and specific risks relating to the
business and the market in which the Group operates. The pre-tax discount rate used was 15.0% (2023: 14.0%).
– A long-term growth rate of 2% (2023: 2%).
Sensitivity analysis
– As at 31 December 2024, the gross margin would need to decrease by 40% (2023: 36%) before any of the finite life assets become impaired.
The Group has considered the carrying value of its assets in conjunction with the trading and cash flow forecasts for the Group including factors related to the
Group’s ongoing climate commitments (see note 1). The Group is satisfied no impairment is required at 31 December 2024. No reasonably possible change
in an assumption could result in a material impact on the impairment assessment in the next twelve months.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
176
17aXFinancialXStatements_v7.indd 17617aXFinancialXStatements_v7.indd 176 13/03/2025 14:5513/03/2025 14:55
11 EARNINGS PER ORDINARY SHARE CONTINUED
Detachable warrants to acquire shares in the Company were issued alongside the Second Lien SSNs issued by the Group in December 2020, and subsequently
repaid in March 2024, can be exercised from 1 July 2021 through to 7 December 2027. As a consequence of the rights issue during the period ended 31 December
2022 the number of ordinary shares issuable via the options was increased by a multiple of 6 to ensure the warrant holders’ interests were not diluted. As at
31 December 2024, 66,159,325 warrant options, each entitled to 0.3 ordinary shares, remain unexercised. The future exercise of warrants may have a dilutive effect
in future periods if the Group generates a profit.
Adjusted earnings per share is disclosed in note 34 to show performance undistorted by adjusting items to assist in providing useful information on the
underlying performance of the Group and enhance the comparability of information between reporting periods.
12 INTANGIBLE ASSETS
Goodwill
£m
Brands
£m
Technology
£m
Capitalised
development cost
£m
Dealer
network
£m
Software
and other
£m
Total
£m
Cost
Balance at 1 January 2023 85.4 297.6 163.5 1,845.9 15.4 73.0 2,480.8
Additions – – 188.5 268.5 – 6.4 463.4
Balance at 31 December 2023 85.4 297.6 352.0 2,114.4 15.4 79.4 2,944.2
Balance at 1 January 2024 85.4 297.6 352.0 2,114.4 15.4 79.4 2,944.2
Additions – – 47.9 312.1 – 4.2 364.2
Balance at 31 December 2024 85.4 297.6 399.9 2,426.5 15.4 83.6 3,308.4
Amortisation
Balance at 1 January 2023 – – 11.8 1,002.0 11.6 60.8 1,086.2
Charge for the year – – 9.8 264.0 0.7 5.9 280.4
Balance at 31 December 2023 – – 21.6 1,266.0 12.3 66.7 1,366.6
Balance at 1 January 2024 – – 21.6 1,266.0 12.3 66.7 1,366.6
Charge for the yea
r
– – 35.4 238.1 0.8 8.4 282.7
Balance at 31 December 2024 – – 57.0 1,504.1 13.1 75.1 1,649.3
Net book value
At 1 January 2023 85.4 297.6 151.7 843.9 3.8 12.2 1,394.6
At 31 December 2023 85.4 297.6 330.4 848.4 3.1 12.7 1,577.6
At 1 January 2024 85.4 297.6 330.4 848.4 3.1 12.7 1,577.6
At 31 December 2024 85.4 297.6 342.9 922.4 2.3 8.5 1,659.1
On 7 December 2020, the Company issued 224,657,287 shares to MBAG as consideration for access to the first tranche of powertrain and electronic
architecture via a Strategic Cooperation Agreement (“SCA”). The Group was required to undertake a valuation exercise to measure the fair value of the access
to the MBAG technology upon its initial capitalisation. The Group selected the ‘With and Without’ income approach which compares the net present value of
cash flows from the Group’s business plan prior to (‘Without’) and after (‘With’) the access to the technology. This methodology estimates the present value
of the net benefit associated with acquiring the access to the technology. In the Group’s assessment, the fair value of access to this technology was £142.3m.
The £142.3m represented the assumed cost at acquisition after which the cost model has been adopted. Amortisation commenced during the year ended
31 December 2023 and the current carrying value of the SCA technology asset is £85.5m (2023: £134.2m). On 2 July 2024 the Group entered a further
agreement with MBAG relating to the future supply of engine units at a total cost of £63.2m. £15.3m of the cost was funded via a transfer from the SCA noted
above with the balance of £47.9m to be cash settled. Amortisation is aligned to when the asset is available for use – i.e. when it is in the location and condition
necessary for it to be capable of operating in the manner intended by management.
12 INTANGIBLE ASSETS CONTINUED
On 26 June 2023, the Aston Martin Lagonda Global Holdings plc confirmed a strategic supply arrangement with Lucid Group, Inc. (“Lucid”) providing the
Group with access to select powertrain components for future BEV vehicles (collectively the “technology”). The consideration paid by the Group was a mixture
of cash and 28,352,273 newly issued shares in Aston Martin Lagonda Global Holdings plc. The Group was required to undertake a valuation exercise to
measure the fair value of the access to the Lucid technology upon its initial capitalisation. The Group selected the ‘With and Without’ income approach which
compares the net present value of cash flows from the Group’s business plan prior to (‘Without’) and after (‘With’) the access to the technology. This
methodology estimates the present value of the net benefit associated with acquiring the access to the technology. In the Group’s assessment, the fair value
of access to this technology was £188.5m. The £188.5m represented the assumed cost at acquisition after which the cost model has been adopted.
Amortisation is aligned to when the asset is available for use – i.e. when it is in the location and condition necessary for it to be capable of operating in the
manner intended by management. The carrying value of the technology asset is £188.5m.
Amortisation of capitalised development costs commences when the programme to which the expenditure relates is available for use. As at 31 December 2024,
£382.1m (2023: £253.2m) of capitalised development costs were not yet within the scope of amortisation.
13 IMPAIRMENT TESTING
Indefinite useful life non-current assets
Goodwill and brands acquired through business combinations have been allocated for impairment testing purposes to one cash-generating unit – the
Aston Martin Lagonda Group business. This represents the lowest level within the Group at which goodwill and brands are monitored for internal purposes.
The Group has considered the carrying value of its assets in the context of the Group’s market capitalisation. At this level, it was concluded that the net assets
of the Group are recoverable owing to the Group’s market capitalisation of £1.0bn at 31 December 2024.
Finite useful life non-current assets
Recoverability of non-current assets with finite useful lives include property, plant and equipment, right-of-use lease assets and certain intangible assets.
Intangible assets with finite useful lives mainly consist of capitalised development costs and technology.
The Group reviews the carrying amount of non-current assets with finite useful lives when events and circumstances indicate that an asset may be impaired.
Impairment tests are performed by comparing the carrying amount and the recoverable amount of the assets. The recoverable amount is the higher of the
assets’ fair value less costs of disposal and their value-in-use. Where non-current assets with finite useful lives are not yet available for use, these are tested
for impairment annually.
In assessing the value-in-use, the estimated future cash flows relating to the forecast usage period of the asset, or group of assets, are discounted to their
present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks.
Key assumptions used in value-in-use calculations
The calculation of value-in-use for the assets is most sensitive to the following assumptions:
– Cash flows are projected based on actual operating results and the current five-year plan.
– Discount rates are calculated using a weighted average cost of capital approach. They reflect the individual nature and specific risks relating to the
business and the market in which the Group operates. The pre-tax discount rate used was 15.0% (2023: 14.0%).
– A long-term growth rate of 2% (2023: 2%).
Sensitivity analysis
– As at 31 December 2024, the gross margin would need to decrease by 40% (2023: 36%) before any of the finite life assets become impaired.
The Group has considered the carrying value of its assets in conjunction with the trading and cash flow forecasts for the Group including factors related to the
Group’s ongoing climate commitments (see note 1). The Group is satisfied no impairment is required at 31 December 2024. No reasonably possible change
in an assumption could result in a material impact on the impairment assessment in the next twelve months.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
177
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 17717aXFinancialXStatements_v7.indd 177 13/03/2025 14:5513/03/2025 14:55
14 PROPERTY, PLANT AND EQUIPMENT
Freehold Plant, machinery,
land and fixtures Motor
buildings Tooling and fittings vehicles Total
£m £m £m £m £m
Cost
Balance at 1 January 2023
74.7
611.7
265.8
0.7
952.9
Additions
9.1
45.0
23.8
–
77.9
Disposals
(0.1)
(2.8)
(1.7)
(0.1)
(4.7)
Effect of movements in exchange rates
(0.4)
–
(0.1)
–
(0.5)
Balance at 31 December 2023
83.3
653.9
287.8
0.6
1,025.6
Balance at 1 January 2024
83.3
653.9
287.8
0.6
1,025.6
Additions
4.8
52.6
18.8
0.1
76.3
Disposals
–
(0.2)
–
–
(0.2)
Effect of movements in exchange rates
–
–
(0.1)
–
(0.1)
Balance at 31 December 2024
88.1
706.3
306.5
0.7
1,101.6
Depreciation
Balance at 1 January 2023
35.1
424.2
123.5
0.2
583.0
Charge for the year
3.8
67.9
19.5
–
91.2
Disposals
(0.1)
(0.9)
(1.0)
(0.1)
(2.1)
Effect of movements in exchange rates
(0.1)
–
(0.1)
–
(0.2)
Balance at 31 December 2023
38.7
491.2
141.9
0.1
671.9
Balance at 1 January 2024
38.7
491.2
141.9
0.1
671.9
Charge for the yea
r
4.5
55.1
18.9
–
78.5
Disposals
–
(0.1)
–
–
(0.1)
Effect of movements in exchange rates
–
–
(0.1)
–
(0.1)
Balance at 31 December 2024
43.2
546.2
160.7
0.1
750.2
Net book value
At 1 January 2023
39.6
187.5
142.3
0.5
369.9
At 31 December 2023
44.6
162.7
145.9
0.5
353.7
At 1 January 2024
44.6
162.7
145.9
0.5
353.7
At 31 December 2024
44.9
160.1
145.8
0.6
351.4
14 PROPERTY, PLANT AND EQUIPMENT CONTINUED
Property, plant and equipment provides security for a fixed and floating charge in favour of the Aston Martin Lagonda Limited pension scheme.
Assets in the course of construction at a cost of £56.2m (2023: £37.4m) are not depreciated until available for use and are included within the tooling and
plant and machinery categories. The gross value of freehold land and buildings includes freehold land of £6.1m (2023: £6.1m) which is not depreciated.
Capital commitments are disclosed in note 30.
The tables below analyse the net book value of the Group’s property, plant and equipment by geographical location.
At 31 December 2024
United Kingdom
£m
Rest of Europe
£m
The Americas
£m
Asia Pacific
£m
Total
£m
Freehold land and buildings 40.3 1.7 4.5 – 46.5
Tooling 91.0 64.1 0.6 0.3 156.0
Plant, machinery, fixtures and fittings, and motor vehicles 146.0 2.6 0.3 – 148.9
277.3 68.4 5.4 0.3 351.4
At 31 December 2023
United Kingdom
£m
Rest of Europe
£m
The Americas
£m
Asia Pacific
£m
Total
£m
Freehold land and buildings 38.7 1.9 5.7 – 46.3
Tooling 83.7 73.7 0.9 0.3 158.6
Plant, machinery, fixtures and fittings, and motor vehicles 146.6 2.0 0.2 – 148.8
269.0 77.6 6.8 0.3 353.7
15 INVESTMENTS IN EQUITY INTERESTS
On 15 November 2023, the Group subscribed for shares in AMR GP Holdings Limited (“AMR GP”) by exercising its primary warrant option and subscribing for
reward shares it was entitled to under the initial sponsorship term. The primary warrant became exercisable following the Group entering an agreement in
2023 with AMR GP for a second sponsorship term running from 2026 to 2030.
At the point of subscription, a valuation exercise was undertaken to determine the fair value of the derivatives with a gain being recognised in the Consolidated
Income Statement (see note 20). As the subscription was sufficiently close to the prior year end date, and no material changes occurred in the underlying
business between the subscription date and the year end date, the same valuation was used to determine the fair value as at 31 December 2023. The fair value
of the warrant equity option and reward shares was established by applying the proportion of equity represented by the derivatives to an assessment of the
equity value of AMR GP Limited, which was then adjusted to reflect marketability and control commensurate with the size of the investment.
During the year ended 31 December 2024, two new third parties made substantial investments into AMR GP. As this represented a third such investment into
AMR GP since November 2023, the Group has measured the fair value of its holdings with reference to the sales price achieved in those transactions. As part
of both inward investments into AMR GP in 2024, the Group disposed of a portion of its shareholding for total gross proceeds of £18.7m.
The Group has made the election to carry the investment at fair value through other comprehensive income and will continue to fair value the investment in
line with the requirements of IFRS 9 at future balance sheet dates. This election was made to reduce volatility due to movements in fair value within the
Consolidated Income Statement.
2024
£m
2023
£m
Investments
As at 1 January 18.2 –
Change in fair value 51.4 –
Additions – 18.2
Disposals (18.7) –
As at 31 December 50.9 18.2
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
178
17aXFinancialXStatements_v7.indd 17817aXFinancialXStatements_v7.indd 178 13/03/2025 14:5513/03/2025 14:55
14 PROPERTY, PLANT AND EQUIPMENT
Freehold
land and
buildings
£m
Tooling
£m
Plant, machinery,
fixtures
and fittings
£m
Motor
vehicles
£m
Total
£m
Cost
Balance at 1 January 2023 74.7 611.7 265.8 0.7 952.9
Additions 9.1 45.0 23.8 – 77.9
Disposals (0.1) (2.8) (1.7) (0.1) (4.7)
Effect of movements in exchange rates (0.4) – (0.1) – (0.5)
Balance at 31 December 2023 83.3 653.9 287.8 0.6 1,025.6
Balance at 1 January 2024 83.3 653.9 287.8 0.6 1,025.6
Additions 4.8 52.6 18.8 0.1 76.3
Disposals – (0.2) – – (0.2)
Effect of movements in exchange rates – – (0.1) – (0.1)
Balance at 31 December 2024 88.1 706.3 306.5 0.7 1,101.6
Depreciation
Balance at 1 January 2023 35.1 424.2 123.5 0.2 583.0
Charge for the year 3.8 67.9 19.5 – 91.2
Disposals (0.1) (0.9) (1.0) (0.1) (2.1)
Effect of movements in exchange rates (0.1) – (0.1) – (0.2)
Balance at 31 December 2023 38.7 491.2 141.9 0.1 671.9
Balance at 1 January 2024 38.7 491.2 141.9 0.1 671.9
Charge for the yea
r
4.5 55.1 18.9 – 78.5
Disposals – (0.1) – – (0.1)
Effect of movements in exchange rates – – (0.1) – (0.1)
Balance at 31 December 2024 43.2 546.2 160.7 0.1 750.2
Net book value
At 1 January 2023 39.6 187.5 142.3 0.5 369.9
At 31 December 2023 44.6 162.7 145.9 0.5 353.7
At 1 January 2024 44.6 162.7 145.9 0.5 353.7
At 31 December 2024 44.9 160.1 145.8 0.6 351.4
14 PROPERTY, PLANT AND EQUIPMENT CONTINUED
Property, plant and equipment provides security for a fixed and floating charge in favour of the Aston Martin Lagonda Limited pension scheme.
Assets in the course of construction at a cost of £56.2m (2023: £37.4m) are not depreciated until available for use and are included within the tooling and
plant and machinery categories. The gross value of freehold land and buildings includes freehold land of £6.1m (2023: £6.1m) which is not depreciated.
Capital commitments are disclosed in note 30.
The tables below analyse the net book value of the Group’s property, plant and equipment by geographical location.
United Kingdom Rest of Europe The Americas Asia Pacific Total
At 31 December 2024 £m £m £m £m £m
Freehold land and buildings
40.3
1.7
4.5
–
46.5
Tooling
91.0
64.1
0.6
0.3
156.0
Plant, machinery, fixtures and fittings, and motor vehicles
146.0
2.6
0.3
–
148.9
277.3
68.4
5.4
0.3
351.4
United Kingdom Rest of Europe The Americas Asia Pacific Total
At 31 December 2023 £m £m £m £m £m
Freehold land and buildings
38.7
1.9
5.7
–
46.3
Tooling
83.7
73.7
0.9
0.3
158.6
Plant, machinery, fixtures and fittings, and motor vehicles
146.6
2.0
0.2
–
148.8
269.0
77.6
6.8
0.3
353.7
15 INVESTMENTS IN EQUITY INTERESTS
On 15 November 2023, the Group subscribed for shares in AMR GP Holdings Limited (“AMR GP”) by exercising its primary warrant option and subscribing for
reward shares it was entitled to under the initial sponsorship term. The primary warrant became exercisable following the Group entering an agreement in
2023 with AMR GP for a second sponsorship term running from 2026 to 2030.
At the point of subscription, a valuation exercise was undertaken to determine the fair value of the derivatives with a gain being recognised in the Consolidated
Income Statement (see note 20). As the subscription was sufficiently close to the prior year end date, and no material changes occurred in the underlying
business between the subscription date and the year end date, the same valuation was used to determine the fair value as at 31 December 2023. The fair value
of the warrant equity option and reward shares was established by applying the proportion of equity represented by the derivatives to an assessment of the
equity value of AMR GP Limited, which was then adjusted to reflect marketability and control commensurate with the size of the investment.
During the year ended 31 December 2024, two new third parties made substantial investments into AMR GP. As this represented a third such investment into
AMR GP since November 2023, the Group has measured the fair value of its holdings with reference to the sales price achieved in those transactions. As part
of both inward investments into AMR GP in 2024, the Group disposed of a portion of its shareholding for total gross proceeds of £18.7m.
The Group has made the election to carry the investment at fair value through other comprehensive income and will continue to fair value the investment in
line with the requirements of IFRS 9 at future balance sheet dates. This election was made to reduce volatility due to movements in fair value within the
Consolidated Income Statement.
2024 2023
£m £m
Investments
As at 1 January
18.2
–
Change in fair value
51.4
–
Additions
–
18.2
Disposals
(18.7)
–
As at 31 December
50.9
18.2
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
179
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 17917aXFinancialXStatements_v7.indd 179 13/03/2025 14:5513/03/2025 14:55
16 LEASES
The Group holds lease contracts for buildings, plant and machinery and IT equipment.
a) Right-of-use lease assets
Plant and
Properties machinery IT equipment Total
£m £m £m £m
Cost
Balance at 1 January 2023
92.2
11.1
0.9
104.2
Additions
4.4
–
1.4
5.8
Modifications
0.6
–
–
0.6
Disposals
(3.5)
(0.1)
(0.1)
(3.7)
Effect of movements in exchange rates
(1.5)
–
(0.1)
(1.6)
Balance at 31 December 2023
92.2
11.0
2.1
105.3
Balance at 1 January 2024
92.2
11.0
2.1
105.3
Additions
6.2
–
2.0
8.2
Modifications
1.6
–
–
1.6
Disposals
(5.3)
–
(0.7)
(6.0)
Effect of movements in exchange rates
(0.5)
–
–
(0.5)
Balance at 31 December 2024
94.2
11.0
3.4
108.6
Depreciation
Balance at 1 January 2023
28.0
1.2
0.6
29.8
Charge for the year
8.3
0.4
0.6
9.3
Disposals
(3.4)
(0.1)
(0.1)
(3.6)
Effect of movements in exchange rates
(0.7)
–
0.1
(0.6)
Balance at 31 December 2023
32.2
1.5
1.2
34.9
Balance at 1 January 2024
32.2
1.5
1.2
34.9
Charge for the yea
r
8.8
0.4
0.9
10.1
Disposals
(5.3)
–
(0.7)
(6.0)
Effect of movements in exchange rates
(0.4)
0.1
–
(0.3)
Balance at 31 December 2024
35.3
2.0
1.4
38.7
Carrying value
At 1 January 2023
64.2
9.9
0.3
74.4
At 31 December 2023
60.0
9.5
0.9
70.4
At 1 January 2024
60.0
9.5
0.9
70.4
At 31 December 2024
58.9
9.0
2.0
69.9
Income from the sub-leasing of right-of-use assets in the year 31 December 2024 was £0.5m (2023: £0.4m). The Group recognises the lease payments
received on a straight-line basis over the lease term within administrative and other operating expenses in the Consolidated Income Statement.
16 LEASES CONTINUED
b) Obligations under leases
The maturity profile of undiscounted lease cash flows accounted for under IFRS 16 is:
2024
£m
2023
£m
Less than one year 13.3 12.7
One to five years 39.7 40.3
More than five years 80.4 82.8
133.4 135.8
The maturity profile of discounted lease cash flows accounted for under IFRS 16 is:
2024
£m
2023
£m
Less than one year 9.4 8.8
One to five years 28.2 28.5
More than five years 59.0 60.0
96.6 97.3
Analysed as:
Current 9.4 8.8
Non-current 87.2 88.5
96.6 97.3
A reconciliation of the lease liability from 1 January to 31 December for the current and prior year is disclosed within note 28.
The total lease interest expense for the year ended 31 December 2024 was £4.2m (2023: £4.1m). Total cash outflow for capital payments for leases accounted
for under IFRS 16 for the current year was £9.5m (2023: £7.9m). Expenses charged to the Consolidated Income Statement for short-term leases for the year
ended 31 December 2024 were £0.3m (2023: £0.3m). The portfolio of short-term leases at 31 December 2024 is representative of the expected annual
short-term lease expense in future years.
The following disclosure has been included to facilitate the understanding of the impact of adopting IFRS 16 on the Group due to covenants in the Group’s
finance arrangements that continue to use IAS 17.
The impact of IFRS 16 on the Consolidated Income Statement, excluding tax, for the year ended 31 December 2024 is:
As reported
31 December
2024
£m
Add back
IFRS 16
interest
charge
£m
Add back
IFRS 16
depreciation
charge
£m
Less
amortisation
of legal fees
£m
Less lease
incentives
£m
Less
IAS 17
lease cost
£m
Excluding
impact of
IFRS 16
31 December
2024
£m
Revenue 1,583.9 – – – – – 1,583.9
Cost of sales (1,000.0) – – – – – (1,000.0)
Gross profit 583.9 – – – – – 583.9
Selling and distribution expenses (135.4) – – – – – (135.4)
Administrative and other
operating expenses
(548.0) – 10.1 (0.1) 1.1 (13.7) (550.6)
Operating loss (99.5) – 10.1 (0.1) 1.1 (13.7) (102.1)
Finance income 25.9 – – – – – 25.9
Finance expense (215.5) 4.2 – – – – (211.3)
(Loss)/profit before ta
x
(289.1) 4.2 10.1 (0.1) 1.1 (13.7) (287.5)
Adjusted EBITDA (note 34) 271.0 – – (0.1) 1.1 (13.7) 258.3
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
180
17aXFinancialXStatements_v7.indd 18017aXFinancialXStatements_v7.indd 180 13/03/2025 14:5513/03/2025 14:55
16 LEASES
The Group holds lease contracts for buildings, plant and machinery and IT equipment.
a) Right-of-use lease assets
Properties
£m
Plant and
machinery
£m
IT equipment
£m
Total
£m
Cost
Balance at 1 January 2023 92.2 11.1 0.9 104.2
Additions 4.4 – 1.4 5.8
Modifications 0.6 – – 0.6
Disposals (3.5) (0.1) (0.1) (3.7)
Effect of movements in exchange rates (1.5) – (0.1) (1.6)
Balance at 31 December 2023 92.2 11.0 2.1 105.3
Balance at 1 January 2024 92.2 11.0 2.1 105.3
Additions 6.2 – 2.0 8.2
Modifications 1.6 – – 1.6
Disposals (5.3) – (0.7) (6.0)
Effect of movements in exchange rates (0.5) – – (0.5)
Balance at 31 December 2024 94.2 11.0 3.4 108.6
Depreciation
Balance at 1 January 2023 28.0 1.2 0.6 29.8
Charge for the year 8.3 0.4 0.6 9.3
Disposals (3.4) (0.1) (0.1) (3.6)
Effect of movements in exchange rates (0.7) – 0.1 (0.6)
Balance at 31 December 2023 32.2 1.5 1.2 34.9
Balance at 1 January 2024 32.2 1.5 1.2 34.9
Charge for the yea
r
8.8 0.4 0.9 10.1
Disposals (5.3) – (0.7) (6.0)
Effect of movements in exchange rates (0.4) 0.1 – (0.3)
Balance at 31 December 2024 35.3 2.0 1.4 38.7
Carrying value
At 1 January 2023 64.2 9.9 0.3 74.4
At 31 December 2023 60.0 9.5 0.9 70.4
At 1 January 2024 60.0 9.5 0.9 70.4
At 31 December 2024 58.9 9.0 2.0 69.9
Income from the sub-leasing of right-of-use assets in the year 31 December 2024 was £0.5m (2023: £0.4m). The Group recognises the lease payments
received on a straight-line basis over the lease term within administrative and other operating expenses in the Consolidated Income Statement.
16 LEASES CONTINUED
b) Obligations under leases
The maturity profile of undiscounted lease cash flows accounted for under IFRS 16 is:
2024 2023
£m £m
Less than one year
13.3
12.7
One to five years
39.7
40.3
More than five years
80.4
82.8
133.4
135.8
The maturity profile of discounted lease cash flows accounted for under IFRS 16 is:
2024 2023
£m £m
Less than one year
9.4
8.8
One to five years
28.2
28.5
More than five years
59.0
60.0
96.6
97.3
Analysed as:
Current
9.4
8.8
Non-current
87.2
88.5
96.6
97.3
A reconciliation of the lease liability from 1 January to 31 December for the current and prior year is disclosed within note 28.
The total lease interest expense for the year ended 31 December 2024 was £4.2m (2023: £4.1m). Total cash outflow for capital payments for leases accounted
for under IFRS 16 for the current year was £9.5m (2023: £7.9m). Expenses charged to the Consolidated Income Statement for short-term leases for the year
ended 31 December 2024 were £0.3m (2023: £0.3m). The portfolio of short-term leases at 31 December 2024 is representative of the expected annual
short-term lease expense in future years.
The following disclosure has been included to facilitate the understanding of the impact of adopting IFRS 16 on the Group due to covenants in the Group’s
finance arrangements that continue to use IAS 17.
The impact of IFRS 16 on the Consolidated Income Statement, excluding tax, for the year ended 31 December 2024 is:
Excluding
Add back Add back
impact of
As reported IFRS 16 IFRS 16 Less Less
IFRS 16
31 December interest depreciation amortisation Less lease IAS 17
31 December
2024 charge charge of legal fees incentives
lease cost
2024
£m £m £m £m £m
£m
£m
Revenue
1,583.9
–
–
–
–
–
1,583.9
Cost of sales
(1,000.0)
–
–
–
–
–
(1,000.0)
Gross profit
583.9
–
–
–
–
–
583.9
Selling and distribution expenses
(135.4)
–
–
–
–
–
(135.4)
Administrative and other
operating expenses
(548.0)
–
10.1
(0.1)
1.1
(13.7)
(550.6)
Operating loss
(99.5)
–
10.1
(0.1)
1.1
(13.7)
(102.1)
Finance income
25.9
–
–
–
–
–
25.9
Finance expense
(215.5)
4.2
–
–
–
–
(211.3)
(Loss)/profit before ta
x
(289.1)
4.2
10.1
(0.1)
1.1
(13.7)
(287.5)
Adjusted EBITDA (note 34)
271.0
–
–
(0.1)
1.1
(13.7)
258.3
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
181
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 18117aXFinancialXStatements_v7.indd 181 13/03/2025 14:5513/03/2025 14:55
16 LEASES CONTINUED
b) Obligations under leases continued
The impact of IFRS 16 on the Consolidated Income Statement, excluding tax, for the year ended 31 December 2023 is:
Excluding
Add back Add back
impact of
As reported IFRS 16 IFRS 16 Less Less
IFRS 16
31 December interest depreciation amortisation Less lease IAS 17
31 December
2023 charge charge of legal fees incentives
lease cost
2023
£m £m £m £m £m
£m
£m
Revenue
1,632.8
–
–
–
–
–
1,632.8
Cost of sales
(993.6)
–
–
–
–
–
(993.6)
Gross profit
639.2
–
–
–
–
–
639.2
Selling and distribution expenses
(143.8)
–
–
–
–
–
(143.8)
Administrative and other
operating expenses
(606.6)
–
9.3
(0.1)
1.1
(11.7)
(608.0)
Operating loss
(111.2)
–
9.3
(0.1)
1.1
(11.7)
(112.6)
Finance income
74.3
–
–
–
–
–
74.3
Finance expense
(202.9)
4.1
–
–
–
–
(198.8)
(Loss)/profit before ta
x
(239.8)
4.1
9.3
(0.1)
1.1
(11.7)
(237.1)
Adjusted EBITDA (note 34)
305.9
–
–
(0.1)
1.1
(11.7)
295.2
17 INVENTORIES
2024 2023
£m £m
Parts for resale, service parts and production stock
132.2
157.7
Work in progress
50.4
33.2
Finished vehicles
120.4
81.8
303.0
272.7
Finished vehicles include Group-owned service cars at a net realisable value of £53.4m (2023: £49.0m).
During the years ended 31 December 2024 and 2023, inventory repurchase arrangements were entered into for certain parts for resale, service parts and
production stock. These inventories were sold and subsequently repurchased – see note 21 for further details.
18 TRADE AND OTHER RECEIVABLES
2024 2023
£m £m
Amounts included in current assets
Trade receivables
125.5
216.2
Indirect taxation
46.1
43.8
Prepayments
27.6
46.6
Other receivables
10.5
15.6
209.7
322.2
Amounts included in non-current assets
Other receivables
7.3
5.3
Trade and other receivables for non-vehicle receivables are non-interest bearing and generally have terms of less than 60 days. Due to their short maturities,
the fair value of trade and other receivables approximates to their book value. Certain vehicle trade receivables are financed through a wholesale finance
facility (see below). Where vehicle trade receivables remain a part of the Group’s Consolidated Statement of Financial Position, these receivables bear interest
after 60 days. Credit terms for such trade receivables vary between 0 and 180 days.
Within other receivables, £11.0m (2023: £9.6m) relates to cash collateral paid to financial institutions in respect of a risk share arrangement for customer-
leased vehicles. £3.7m (2023: £4.3m) of the balance is presented in current assets with £7.3m (2023: £5.3m) presented in non-current assets.
Credit risk is discussed further in note 23.
18 TRADE AND OTHER RECEIVABLES CONTINUED
The carrying amount of trade and other receivables (excluding prepayments) at 31 December, converted into sterling at the year end exchange rates, are
denominated in the following currencies:
2024
£m
2023
£m
Sterling 48.0 78.6
Chinese renminbi 7.8 38.3
Euro 80.6 87.9
US dollar 15.4 17.0
Japanese yen 26.0 41.0
Other 11.6 18.1
189.4 280.9
Wholesale finance facilities
Sales to third-party Aston Martin franchised dealers are eligible, subject to individual dealer approved credit limits, to be financed through a wholesale
finance facility.
In the year ended 31 December 2022, the Group entered into a multi-currency wholesale finance facility with CA Auto Bank S.p.A. (“CAAB”) and its regional
designates within the UK and EU markets and in the year ended 31 December 2024 entered into a wholesale finance facility with Stellantis Automotive Finance
Co., Ltd. (“Stellantis”) for the China market. Under the facilities, the Group finances dealer trade receivables with CAAB and Stellantis around the time a sale
has been made under the Group’s revenue recognition policy and receives consideration equal to the value of the trade receivable financed. The Group has
the option to subvent the dealer financing cost which provides the dealer network an interest-free period. The cost of this subvention is presented as a
financing expense in the Consolidated Income Statement. The Group has considered the IFRS 9 criteria for asset derecognition in respect of the trade
receivables financed through CAAB and Stellantis. The Group is satisfied that substantially all the risks are transferred to CAAB and Stellantis in both
arrangements. As a result, the wholesale finance facilities are off balance sheet. Due to this classification, financing costs of £4.2m (2023: £2.5m) associated
with the scheme are presented in operating cash flows (note 28). As at 31 December 2024, £149.0m was financed under the CAAB facility and £4.0m under
the Stellantis facility (2023: £83.8m under the CAAB facility).
19 CASH AND CASH EQUIVALENTS
2024
£m
2023
£m
Cash and cash equivalents 359.6 392.4
Cash at bank when placed on deposit earns interest at floating rates based on daily bank deposit rates. The book value of cash and cash equivalents
approximates to their fair value.
Cash is held in the following currencies; those held in currencies other than sterling have been converted into sterling at year end exchange rates:
2024
£m
2023
£m
Sterling 175.8 143.2
Chinese renminbi 14.7 21.6
Euro 38.9 38.7
US dollar 113.4 166.5
Japanese yen 9.9 15.9
Other 6.9 6.5
359.6 392.4
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
182
17aXFinancialXStatements_v7.indd 18217aXFinancialXStatements_v7.indd 182 13/03/2025 14:5513/03/2025 14:55
16 LEASES CONTINUED
b) Obligations under leases continued
The impact of IFRS 16 on the Consolidated Income Statement, excluding tax, for the year ended 31 December 2023 is:
As reported
31 December
2023
£m
Add back
IFRS 16
interest
charge
£m
Add back
IFRS 16
depreciation
charge
£m
Less
amortisation
of legal fees
£m
Less lease
incentives
£m
Less
IAS 17
lease cost
£m
Excluding
impact of
IFRS 16
31 December
2023
£m
Revenue 1,632.8 – – – – – 1,632.8
Cost of sales (993.6) – – – – – (993.6)
Gross profit 639.2 – – – – – 639.2
Selling and distribution expenses (143.8) – – – – – (143.8)
Administrative and other
operating expenses (606.6) – 9.3 (0.1) 1.1 (11.7) (608.0)
Operating loss (111.2) – 9.3 (0.1) 1.1 (11.7) (112.6)
Finance income 74.3 – – – – – 74.3
Finance expense (202.9) 4.1 – – – – (198.8)
(Loss)/profit before ta
x
(239.8) 4.1 9.3 (0.1) 1.1 (11.7) (237.1)
Adjusted EBITDA (note 34) 305.9 – – (0.1) 1.1 (11.7) 295.2
17 INVENTORIES
2024
£m
2023
£m
Parts for resale, service parts and production stock 132.2 157.7
Work in progress 50.4 33.2
Finished vehicles 120.4 81.8
303.0 272.7
Finished vehicles include Group-owned service cars at a net realisable value of £53.4m (2023: £49.0m).
During the years ended 31 December 2024 and 2023, inventory repurchase arrangements were entered into for certain parts for resale, service parts and
production stock. These inventories were sold and subsequently repurchased – see note 21 for further details.
18 TRADE AND OTHER RECEIVABLES
2024
£m
2023
£m
Amounts included in current assets
Trade receivables 125.5 216.2
Indirect taxation 46.1 43.8
Prepayments 27.6 46.6
Other receivables 10.5 15.6
209.7 322.2
Amounts included in non-current assets
Other receivables 7.3 5.3
Trade and other receivables for non-vehicle receivables are non-interest bearing and generally have terms of less than 60 days. Due to their short maturities,
the fair value of trade and other receivables approximates to their book value. Certain vehicle trade receivables are financed through a wholesale finance
facility (see below). Where vehicle trade receivables remain a part of the Group’s Consolidated Statement of Financial Position, these receivables bear interest
after 60 days. Credit terms for such trade receivables vary between 0 and 180 days.
Within other receivables, £11.0m (2023: £9.6m) relates to cash collateral paid to financial institutions in respect of a risk share arrangement for customer-
leased vehicles. £3.7m (2023: £4.3m) of the balance is presented in current assets with £7.3m (2023: £5.3m) presented in non-current assets.
Credit risk is discussed further in note 23.
18 TRADE AND OTHER RECEIVABLES CONTINUED
The carrying amount of trade and other receivables (excluding prepayments) at 31 December, converted into sterling at the year end exchange rates, are
denominated in the following currencies:
2024 2023
£m £m
Sterling
48.0
78.6
Chinese renminbi
7.8
38.3
Euro
80.6
87.9
US dollar
15.4
17.0
Japanese yen
26.0
41.0
Other
11.6
18.1
189.4
280.9
Wholesale finance facilities
Sales to third-party Aston Martin franchised dealers are eligible, subject to individual dealer approved credit limits, to be financed through a wholesale
finance facility.
In the year ended 31 December 2022, the Group entered into a multi-currency wholesale finance facility with CA Auto Bank S.p.A. (“CAAB”) and its regional
designates within the UK and EU markets and in the year ended 31 December 2024 entered into a wholesale finance facility with Stellantis Automotive Finance
Co., Ltd. (“Stellantis”) for the China market. Under the facilities, the Group finances dealer trade receivables with CAAB and Stellantis around the time a sale
has been made under the Group’s revenue recognition policy and receives consideration equal to the value of the trade receivable financed. The Group has
the option to subvent the dealer financing cost which provides the dealer network an interest-free period. The cost of this subvention is presented as a
financing expense in the Consolidated Income Statement. The Group has considered the IFRS 9 criteria for asset derecognition in respect of the trade
receivables financed through CAAB and Stellantis. The Group is satisfied that substantially all the risks are transferred to CAAB and Stellantis in both
arrangements. As a result, the wholesale finance facilities are off balance sheet. Due to this classification, financing costs of £4.2m (2023: £2.5m) associated
with the scheme are presented in operating cash flows (note 28). As at 31 December 2024, £149.0m was financed under the CAAB facility and £4.0m under
the Stellantis facility (2023: £83.8m under the CAAB facility).
19 CASH AND CASH EQUIVALENTS
2024 2023
£m £m
Cash and cash equivalents
359.6
392.4
Cash at bank when placed on deposit earns interest at floating rates based on daily bank deposit rates. The book value of cash and cash equivalents
approximates to their fair value.
Cash is held in the following currencies; those held in currencies other than sterling have been converted into sterling at year end exchange rates:
2024 2023
£m £m
Sterling
175.8
143.2
Chinese renminbi
14.7
21.6
Euro
38.9
38.7
US dollar
113.4
166.5
Japanese yen
9.9
15.9
Other
6.9
6.5
359.6
392.4
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
183
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 18317aXFinancialXStatements_v7.indd 183 13/03/2025 14:5513/03/2025 14:55
20 OTHER FINANCIAL ASSETS
2024 2023
£m £m
Forward currency contracts held at fair value
1.0
3.3
Other derivative contracts
23.2
–
24.2
3.3
Analysed as:
Current
1.0
3.3
Non-current
23.2
–
24.2
3.3
The Group uses forward currency contracts to partly manage the risk associated with fluctuations in exchange rates on future sales and purchase contracts.
At the reporting date these cash flow hedges are marked-to-market and any assets are shown as other financial assets in the Consolidated Statement of
Financial Position.
Other derivative contracts represent the secondary warrant option which entitles the Group to subscribe for additional equity in AMR GP for a fixed value. The
secondary warrant option, an embedded derivative, was not recognised upon entering the initial sponsorship contract in March 2020 due to insufficient certainty
over the conditions attached to the warrant being achieved. During 2024, the Group further extended its sponsorship contract with AMR GP for a period from
2031 to 2045 giving the Group sufficient certainty to recognise the derivative as a financial asset. The fair value of the option was assessed in the same manner as
the Group values its existing investment in AMR GP (see note 15). A corresponding liability was recognised on recognition of the derivative (see note 23) which
represents an accrual for that element of future sponsorship payments. The option is exercisable from 1 January 2031.
Future movements in the fair value of the derivative will be recognised in the Consolidated Income Statement.
21 TRADE AND OTHER PAYABLES
Current trade and other payables
2024 2023
£m £m
Trade payables
108.1
143.2
Repurchase liability
38.4
39.7
Customer deposits and advances
96.8
272.1
Accruals and other payables
388.8
356.5
Deferred income – tax relief
14.3
13.8
Deferred income – service packages
7.3
4.7
Deferred income - telematics
1.1
–
Deferred income – other
3.4
10.4
658.2
840.4
Trade payables are non-interest bearing, and it is the Group’s policy to settle the liability within 90 days.
Accruals and other payables consist of product development and capital accruals of £104.3m (2023: £115.4m), sales and marketing accruals of £98.2m
(2023: £70.4m), manufacturing accruals of £38.7m (2023: £44.4m) and administrative and other accruals of £147.6m (2023: £126.3m).
At 31 December 2024, a repurchase liability of £38.4m (2023: £39.7m) including accrued interest of £0.7m (2023: £1.7m), has been recognised in trade
and other payables and net debt (see note 24). In 2024, £62.1m of parts for resale, service parts and production stock (2023: £31.4m) were sold for £74.5m
(2023: £38.0m) (gross of indirect tax) and subsequently repurchased. Under this repurchase agreement, the Group will repay a total of £80.0m, of which
£40.0m was repaid during the year (2023: £40.0m) (gross of indirect tax). As part of the arrangement, legal title to the parts was surrendered, however, control
remained with the Group. During 2024, £40.0m (2023: £40.0m) had been repaid relating to the liability of £39.7m as at 31 December 2023 following further
interest accrual.
21 TRADE AND OTHER PAYABLES CONTINUED
Contract liabilities
Changes in the Group’s contract liabilities during the year are summarised as follows:
At 1 January
2024
£m
Additional
amounts arising
during the
period
£m
Amounts
recognised
within
revenue
£m
Significant
financing
component for
which an interest
charge is
recognised
£m
Amounts
returned
and other
changes
£m
At 31
December
2024
£m
Customer deposits and advances 272.1 55.2 (197.9) 3.7 (36.3) 96.8
Deferred income – service packages 12.5 14.9 (6.4) – (0.3) 20.7
Deferred income - telematics – 3.6 (0.3) – – 3.3
At 1 January
2023
£m
Additional
amounts arising
during the
period
£m
Amounts
recognised
within
revenue
£m
Significant
financing
component for
which an interest
charge is
recognised
£m
Amounts
returned
and other
changes
£m
At 31
December
2023
£m
Customer deposits and advances 335.7 122.7 (156.1) 7.7 (37.9) 272.1
Deferred income – service packages 13.7 4.2 (5.2) – (0.2) 12.5
Customer deposits and advances are recognised in revenue when the performance obligation, principally the supply of a Special Vehicle, supply of a core
vehicle, or service of a vehicle, is met by the Group. As part of the operating cycle of Special Vehicle projects, to which these customer deposits primarily
relate, the Group expects to derecognise a significant proportion over the next three years with approximately £57.7m expected to be derecognised in 2025.
This unwind relates to the balance held as at 31 December 2024 and does not take into consideration any additional deposits and advances arising
during 2025.
In the year ended 31 December 2024, a finance expense of £3.7m (see note 8) was recognised as a significant financing component on contract liabilities held
for greater than 12 months (2023: £7.7m). Upon satisfaction of the linked performance obligation, the liability is released to revenue so that the total amount
taken to the Consolidated Income Statement reflects the sales price the customer would have paid for the vehicle at that point in time.
The Group applies a practical expedient for short-term advances received from customers whereby the advanced payment is not adjusted for the effects of
a significant financing component. According to the individual terms of the Special Vehicle contract and the position of the customer in the staged deposit
and vehicle specification process, some deposits are contractually refundable. At 31 December 2024, the Group held £82.1m of contractually refundable
deposits (before the impact of significant financing components) (2023: £132.8m). The Special Vehicle programmes are typically oversubscribed and, in the
event that a customer requests reimbursement of their advanced payment, the newly created allocation is then given to an alternative customer who
is required to make an equivalent advanced payment. The cumulative significant financing component associated with a reimbursed advance payment is
credited in arriving at the net significant finance charge for the year. Further liquidity risk considerations are disclosed in note 23.
Deferred service package revenue is recognised in revenue in the Consolidated Income Statement at the point the obligation of service is carried out or lapsed.
Deferred telematics revenue is recognised in revenue in the Consolidated Income Statement over the length of the service commencing from warranty start
of the vehicle.
Non-current trade and other payables
2024
£m
2023
£m
Trade payables* 77.3 71.7
Deferred income – tax relief 57.8 42.0
Deferred income – service packages 13.4 7.8
Deferred income – telematics 2.2 –
Other payables 0.8 0.8
151.5 122.3
* Trade payables consists of discounted deferred payments relating to technology purchases in the current and previous year (see note 12).
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
184
17aXFinancialXStatements_v7.indd 18417aXFinancialXStatements_v7.indd 184 13/03/2025 14:5513/03/2025 14:55
20 OTHER FINANCIAL ASSETS
2024
£m
2023
£m
Forward currency contracts held at fair value 1.0 3.3
Other derivative contracts 23.2 –
24.2 3.3
Analysed as:
Current 1.0 3.3
Non-current 23.2 –
24.2 3.3
The Group uses forward currency contracts to partly manage the risk associated with fluctuations in exchange rates on future sales and purchase contracts.
At the reporting date these cash flow hedges are marked-to-market and any assets are shown as other financial assets in the Consolidated Statement of
Financial Position.
Other derivative contracts represent the secondary warrant option which entitles the Group to subscribe for additional equity in AMR GP for a fixed value. The
secondary warrant option, an embedded derivative, was not recognised upon entering the initial sponsorship contract in March 2020 due to insufficient certainty
over the conditions attached to the warrant being achieved. During 2024, the Group further extended its sponsorship contract with AMR GP for a period from
2031 to 2045 giving the Group sufficient certainty to recognise the derivative as a financial asset. The fair value of the option was assessed in the same manner as
the Group values its existing investment in AMR GP (see note 15). A corresponding liability was recognised on recognition of the derivative (see note 23) which
represents an accrual for that element of future sponsorship payments. The option is exercisable from 1 January 2031.
Future movements in the fair value of the derivative will be recognised in the Consolidated Income Statement.
21 TRADE AND OTHER PAYABLES
Current trade and other payables
2024
£m
2023
£m
Trade payables 108.1 143.2
Repurchase liability 38.4 39.7
Customer deposits and advances 96.8 272.1
Accruals and other payables 388.8 356.5
Deferred income – tax relief 14.3 13.8
Deferred income – service packages 7.3 4.7
Deferred income - telematics 1.1 –
Deferred income – other 3.4 10.4
658.2 840.4
Trade payables are non-interest bearing, and it is the Group’s policy to settle the liability within 90 days.
Accruals and other payables consist of product development and capital accruals of £104.3m (2023: £115.4m), sales and marketing accruals of £98.2m
(2023: £70.4m), manufacturing accruals of £38.7m (2023: £44.4m) and administrative and other accruals of £147.6m (2023: £126.3m).
At 31 December 2024, a repurchase liability of £38.4m (2023: £39.7m) including accrued interest of £0.7m (2023: £1.7m), has been recognised in trade
and other payables and net debt (see note 24). In 2024, £62.1m of parts for resale, service parts and production stock (2023: £31.4m) were sold for £74.5m
(2023: £38.0m) (gross of indirect tax) and subsequently repurchased. Under this repurchase agreement, the Group will repay a total of £80.0m, of which
£40.0m was repaid during the year (2023: £40.0m) (gross of indirect tax). As part of the arrangement, legal title to the parts was surrendered, however, control
remained with the Group. During 2024, £40.0m (2023: £40.0m) had been repaid relating to the liability of £39.7m as at 31 December 2023 following further
interest accrual.
21 TRADE AND OTHER PAYABLES CONTINUED
Contract liabilities
Changes in the Group’s contract liabilities during the year are summarised as follows:
Significant
financing
Additional Amounts component for Amounts
amounts arising recognised which an interest returned At 31
At 1 January during the within charge is and other December
2024 period revenue recognised changes 2024
£m £m £m £m £m £m
Customer deposits and advances
272.1
55.2
(197.9)
3.7
(36.3)
96.8
Deferred income – service packages
12.5
14.9
(6.4)
–
(0.3)
20.7
Deferred income - telematics
–
3.6
(0.3)
–
–
3.3
Significant
financing
Additional Amounts component for Amounts
amounts arising recognised which an interest returned At 31
At 1 January during the within charge is and other December
2023 period revenue recognised changes 2023
£m £m £m £m £m £m
Customer deposits and advances
335.7
122.7
(156.1)
7.7
(37.9)
272.1
Deferred income – service packages
13.7
4.2
(5.2)
–
(0.2)
12.5
Customer deposits and advances are recognised in revenue when the performance obligation, principally the supply of a Special Vehicle, supply of a core
vehicle, or service of a vehicle, is met by the Group. As part of the operating cycle of Special Vehicle projects, to which these customer deposits primarily
relate, the Group expects to derecognise a significant proportion over the next three years with approximately £57.7m expected to be derecognised in 2025.
This unwind relates to the balance held as at 31 December 2024 and does not take into consideration any additional deposits and advances arising
during 2025.
In the year ended 31 December 2024, a finance expense of £3.7m (see note 8) was recognised as a significant financing component on contract liabilities held
for greater than 12 months (2023: £7.7m). Upon satisfaction of the linked performance obligation, the liability is released to revenue so that the total amount
taken to the Consolidated Income Statement reflects the sales price the customer would have paid for the vehicle at that point in time.
The Group applies a practical expedient for short-term advances received from customers whereby the advanced payment is not adjusted for the effects of
a significant financing component. According to the individual terms of the Special Vehicle contract and the position of the customer in the staged deposit
and vehicle specification process, some deposits are contractually refundable. At 31 December 2024, the Group held £82.1m of contractually refundable
deposits (before the impact of significant financing components) (2023: £132.8m). The Special Vehicle programmes are typically oversubscribed and, in the
event that a customer requests reimbursement of their advanced payment, the newly created allocation is then given to an alternative customer who
is required to make an equivalent advanced payment. The cumulative significant financing component associated with a reimbursed advance payment is
credited in arriving at the net significant finance charge for the year. Further liquidity risk considerations are disclosed in note 23.
Deferred service package revenue is recognised in revenue in the Consolidated Income Statement at the point the obligation of service is carried out or lapsed.
Deferred telematics revenue is recognised in revenue in the Consolidated Income Statement over the length of the service commencing from warranty start
of the vehicle.
Non-current trade and other payables
2024 2023
£m £m
Trade payables*
77.3
71.7
Deferred income – tax relief
57.8
42.0
Deferred income – service packages
13.4
7.8
Deferred income – telematics
2.2
–
Other payables
0.8
0.8
151.5
122.3
* Trade payables consists of discounted deferred payments relating to technology purchases in the current and previous year (see note 12).
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
185
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 18517aXFinancialXStatements_v7.indd 185 13/03/2025 14:5513/03/2025 14:55
22 OTHER FINANCIAL LIABILITIES
2024 2023
£m £m
Forward currency contracts held at fair value (see note 23)
5.6
2.1
Other derivatives (see note 20)
23.2
–
Derivative option over own shares (see note 23)
5.0
23.1
33.8
25.2
Analysed as:
Current
10.6
25.2
Non-current
23.2
–
33.8
25.2
23 FINANCIAL INSTRUMENTS
Group
The Group's principal financial instruments comprise cash and cash equivalents, Senior Secured Notes (“SSNs”), a Revolving Credit Facility (“RCF”), a finished
vehicle financing facility, a bilateral RCF, loan assets, derivative options, and forward currency contracts. Additionally, the Group has trade payables and
trade receivables which arise directly from its operations. Included in trade and other payables is a liability relating to an inventory repurchase arrangement.
These short-term assets and liabilities are included in the currency risk disclosure. The main risks arising from the Group's financial instruments are credit risk,
interest-rate risk, currency risk and liquidity risk. The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk
management framework. The Group's risk policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and
controls, and monitor adherence to limits. The Board of Directors oversees how management monitor compliance with the Group risk management policies
and procedures and reviews the adequacy of the risk management framework in relation to specific risks faced by the Group.
Credit risk
The Group sells vehicles through a global dealer network. Dealers outside of North America are required to pay for vehicles in advance of their despatch or
use the wholesale financing scheme (see note 18). Credit risk on receivables purchased by CAAB and Stellantis under the wholesale finance facilities is borne
by CAAB and Stellantis. The Group has no credit risk associated with the CAAB or Stellantis facilities. The Group’s remaining vehicle sales to territories where
there is currently no wholesale financing are made on credit terms ranging from 30 to 180 days. The Group manages the default risk of such sales via a credit
risk insurance policy. Dealers within North America are allowed ten-day credit terms from the date of invoice. In certain circumstances, after thorough
consideration of the credit history of an individual dealer, the Group may sell vehicles outside of the credit risk insurance policy or on deferred payment terms.
Parts sales, which represent a smaller element of total revenue, are made to dealers on net 30-day credit terms. Servicing receivables are due for payment on
collection of the vehicle.
Trade and other receivables are only written off when the Group has exhausted all options to recover the amounts due and provided for in full when there is
no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of the debtor to
engage in a repayment plan with the Group and a failure to make contractual payments. An expected credit loss provision is then calculated on the remaining
trade and other receivables. The expected credit loss related to default of other receivables (note 18) is assessed as zero.
In generating the expected credit loss provision for trade receivables, historical credit loss rates for the preceding five years are calculated, including
consideration given to future factors that may affect the ability of customers to settle receivables, and applied to the trade and other receivable ageing buckets
at the year end. The Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade
receivables. The Group has no material contract assets.
As at 31 December 2024
As at 31 December 2023
Expected Gross carrying Loss Expected Gross carrying Loss
loss rate amount allowance loss rate amount allowance
% £m £m % £m £m
Current *
99.7
– *
180.1
–
1 – 30 days past due *
7.5
– *
28.2
–
31 – 60 days past due *
15.4
– *
3.7
–
61+ days past due
42.0%
5.0
2.1
52.2%
8.8
4.6
127.6
2.1
220.8
4.6
* The expected loss rates for these specific ageing categories are not disclosed, as no material loss allowance is generated when applied against the gross carrying value. The expected loss rate
has reduced following the settlement of previously provided receivables.
23 FINANCIAL INSTRUMENTS CONTINUED
Credit risk continued
2024
£m
2023
£m
Opening loss allowance as at 1 Januar
y
4.6 6.1
Increase/(decrease) in loss allowance recognised in the Consolidated Income Statement – administrative and other
operating expenses 1.3 (1.3)
Receivables written off during the year as uncollectible (3.7) (0.2)
Effect of foreign exchange (0.1) –
At 31 Decembe
r
2.1 4.6
Borrowings
The following table analyses Group borrowings:
2024
£m
2023
£m
Current
Bank loans and overdrafts – 89.4
Non-current
Bank loans and overdrafts 8.4 –
Senior Secured Notes 1,378.9 980.3
Total borrowings 1,387.3 1,069.7
Total borrowings are denominated in the following currencies, converted into sterling at the year end exchange rates:
2024
£m
2023
£m
Sterling 561.1 89.4
US dollar 826.2 980.3
Total borrowings 1,387.3 1,069.7
Current borrowings
The Group has a £50.0m bilateral revolving credit facility with HSBC Bank plc (“HSBC”), whereby Chinese Renminbi can be deposited in a restricted account
with HSBC in China in exchange for a Sterling overdraft facility with HSBC Bank plc in the United Kingdom. This facility was not drawn at either 31 December
2024 or 31 December 2023. The facility remains available until at least 19 March 2027.
Non-current borrowings
The Group has a RCF attached to the SSNs. The carrying amount net of unamortised arrangement fees relating to the RCF at 31 December 2024 was £8.4m
(2023: £89.4m). At 31 December 2024 £10.0m of the £170.0m RCF was drawn as cash (2023: £90.0m of the £99.6m facility). A further £3.8m was utilised by
way of financial guarantees (2023: £4.4m). The Group has a contractual right to rollover the RCF such that contractual repayment is not required until at least
12 months after the year end date.
In March 2024 the Group refinanced all SSNs in issue with new Sterling and US Dollar SSNs. Additional US Dollar and Sterling notes were issued in August 2024
and further Sterling notes were issued in November 2024. These notes are repayable in March 2029. At 31 December 2024, the Group held £1,378.9m of
SSNs comprising £565.0m (nominal value) of Sterling SSNs at 10.375% cash interest and $1,050.0m (nominal value) of US Dollar Notes at 10.0% cash interest.
Transaction costs and discounts on issuance are amortised using the effective interest rate. Transaction costs capitalised on the new note issuances in 2024
were £24.0m and discounts totalled £4.7m, of which £20.0m and £4.5m remains unamortised as at 31 December 2024.
As at 31 December 2023, the Group held £980.3m of SSNs comprising First Lien SSNs of $1,143.7m at 10.5% cash interest and Second Lien SSNs of $121.7m
at 8.89% cash interest and 6.11% payment-in-kind (‘PIK’) interest respectively. The Second Lien Notes were issued at a 2% discount and included detachable
share warrants which remain exercisable after the 2024 refinancing (see above). The redemption of the First Lien and Second Lien SSNs in the year ended
31 December 2024 and early repayments of the Second Lien SSNs in the year ended 31 December 2023 resulted in one off premium costs and the acceleration
of transaction costs and discounts (see note 5).
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
186
17aXFinancialXStatements_v7.indd 18617aXFinancialXStatements_v7.indd 186 13/03/2025 14:5513/03/2025 14:55
22 OTHER FINANCIAL LIABILITIES
2024
£m
2023
£m
Forward currency contracts held at fair value (see note 23) 5.6 2.1
Other derivatives (see note 20) 23.2 –
Derivative option over own shares (see note 23) 5.0 23.1
33.8 25.2
Analysed as:
Current 10.6 25.2
Non-current 23.2 –
33.8 25.2
23 FINANCIAL INSTRUMENTS
Group
The Group's principal financial instruments comprise cash and cash equivalents, Senior Secured Notes (“SSNs”), a Revolving Credit Facility (“RCF”), a finished
vehicle financing facility, a bilateral RCF, loan assets, derivative options, and forward currency contracts. Additionally, the Group has trade payables and
trade receivables which arise directly from its operations. Included in trade and other payables is a liability relating to an inventory repurchase arrangement.
These short-term assets and liabilities are included in the currency risk disclosure. The main risks arising from the Group's financial instruments are credit risk,
interest-rate risk, currency risk and liquidity risk. The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk
management framework. The Group's risk policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and
controls, and monitor adherence to limits. The Board of Directors oversees how management monitor compliance with the Group risk management policies
and procedures and reviews the adequacy of the risk management framework in relation to specific risks faced by the Group.
Credit risk
The Group sells vehicles through a global dealer network. Dealers outside of North America are required to pay for vehicles in advance of their despatch or
use the wholesale financing scheme (see note 18). Credit risk on receivables purchased by CAAB and Stellantis under the wholesale finance facilities is borne
by CAAB and Stellantis. The Group has no credit risk associated with the CAAB or Stellantis facilities. The Group’s remaining vehicle sales to territories where
there is currently no wholesale financing are made on credit terms ranging from 30 to 180 days. The Group manages the default risk of such sales via a credit
risk insurance policy. Dealers within North America are allowed ten-day credit terms from the date of invoice. In certain circumstances, after thorough
consideration of the credit history of an individual dealer, the Group may sell vehicles outside of the credit risk insurance policy or on deferred payment terms.
Parts sales, which represent a smaller element of total revenue, are made to dealers on net 30-day credit terms. Servicing receivables are due for payment on
collection of the vehicle.
Trade and other receivables are only written off when the Group has exhausted all options to recover the amounts due and provided for in full when there is
no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, among others, the failure of the debtor to
engage in a repayment plan with the Group and a failure to make contractual payments. An expected credit loss provision is then calculated on the remaining
trade and other receivables. The expected credit loss related to default of other receivables (note 18) is assessed as zero.
In generating the expected credit loss provision for trade receivables, historical credit loss rates for the preceding five years are calculated, including
consideration given to future factors that may affect the ability of customers to settle receivables, and applied to the trade and other receivable ageing buckets
at the year end. The Group applies the simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade
receivables. The Group has no material contract assets.
As at 31 December 2024 As at 31 December 2023
Expected
loss rate
%
Gross carrying
amount
£m
Loss
allowance
£m
Expected
loss rate
%
Gross carrying
amount
£m
Loss
allowance
£m
Current * 99.7 – * 180.1 –
1 – 30 days past due * 7.5 – * 28.2 –
31 – 60 days past due * 15.4 – * 3.7 –
61+ days past due 42.0% 5.0 2.1 52.2% 8.8 4.6
127.6 2.1 220.8 4.6
* The expected loss rates for these specific ageing categories are not disclosed, as no material loss allowance is generated when applied against the gross carrying value. The expected loss rate
has reduced following the settlement of previously provided receivables.
23 FINANCIAL INSTRUMENTS CONTINUED
Credit risk continued
2024 2023
£m £m
Opening loss allowance as at 1 Januar
y
4.6
6.1
Increase/(decrease) in loss allowance recognised in the Consolidated Income Statement – administrative and other
operating expenses
1.3
(1.3)
Receivables written off during the year as uncollectible
(3.7)
(0.2)
Effect of foreign exchange
(0.1)
–
At 31 Decembe
r
2.1
4.6
Borrowings
The following table analyses Group borrowings:
2024 2023
£m £m
Current
Bank loans and overdrafts
–
89.4
Non-current
Bank loans and overdrafts
8.4
–
Senior Secured Notes
1,378.9
980.3
Total borrowings
1,387.3
1,069.7
Total borrowings are denominated in the following currencies, converted into sterling at the year end exchange rates:
2024 2023
£m £m
Sterling
561.1
89.4
US dollar
826.2
980.3
Total borrowings
1,387.3
1,069.7
Current borrowings
The Group has a £50.0m bilateral revolving credit facility with HSBC Bank plc (“HSBC”), whereby Chinese Renminbi can be deposited in a restricted account
with HSBC in China in exchange for a Sterling overdraft facility with HSBC Bank plc in the United Kingdom. This facility was not drawn at either 31 December
2024 or 31 December 2023. The facility remains available until at least 19 March 2027.
Non-current borrowings
The Group has a RCF attached to the SSNs. The carrying amount net of unamortised arrangement fees relating to the RCF at 31 December 2024 was £8.4m
(2023: £89.4m). At 31 December 2024 £10.0m of the £170.0m RCF was drawn as cash (2023: £90.0m of the £99.6m facility). A further £3.8m was utilised by
way of financial guarantees (2023: £4.4m). The Group has a contractual right to rollover the RCF such that contractual repayment is not required until at least
12 months after the year end date.
In March 2024 the Group refinanced all SSNs in issue with new Sterling and US Dollar SSNs. Additional US Dollar and Sterling notes were issued in August 2024
and further Sterling notes were issued in November 2024. These notes are repayable in March 2029. At 31 December 2024, the Group held £1,378.9m of
SSNs comprising £565.0m (nominal value) of Sterling SSNs at 10.375% cash interest and $1,050.0m (nominal value) of US Dollar Notes at 10.0% cash interest.
Transaction costs and discounts on issuance are amortised using the effective interest rate. Transaction costs capitalised on the new note issuances in 2024
were £24.0m and discounts totalled £4.7m, of which £20.0m and £4.5m remains unamortised as at 31 December 2024.
As at 31 December 2023, the Group held £980.3m of SSNs comprising First Lien SSNs of $1,143.7m at 10.5% cash interest and Second Lien SSNs of $121.7m
at 8.89% cash interest and 6.11% payment-in-kind (‘PIK’) interest respectively. The Second Lien Notes were issued at a 2% discount and included detachable
share warrants which remain exercisable after the 2024 refinancing (see above). The redemption of the First Lien and Second Lien SSNs in the year ended
31 December 2024 and early repayments of the Second Lien SSNs in the year ended 31 December 2023 resulted in one off premium costs and the acceleration
of transaction costs and discounts (see note 5).
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
187
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 18717aXFinancialXStatements_v7.indd 187 13/03/2025 14:5513/03/2025 14:55
23 FINANCIAL INSTRUMENTS CONTINUED
Borrowings continued
Derivative option over own shares
The Second Lien SSNs issued in 2020 included detachable warrants enabling the warrant holders to subscribe for a number of ordinary shares in the Company
at the subscription price of £1.67 (previously £10 per share prior to the rights issue in September 2022). The warrant holders have the right to exchange
their warrant options for a reduced number of warrant shares, resulting in no cash being paid to receive the shares. The ratio at which this exchange
can be transacted is determined by the share price at execution of the options. A derivative option liability was initially recorded at 31 December 2020
due to the uncertain number of shares which will be issued under the agreement, which is subsequently remeasured at fair value through the
Consolidated Income Statement.
The warrants can be exercised from 1 July 2021 through to 7 December 2027. The issuance of debt with attached warrants required the Group to assess
separately the fair value of the warrants and the debt. The fair value of the warrants was determined using a binomial model used to predict the behaviour of
the warrant holders and when they might exercise their holdings. The derivative option liability was initially recognised as a derivative forward at fair value
with changes in the fair value being recognised in the Consolidated Income Statement until issuance of the warrants on 7 December 2020 resulting in an initial
valuation of £34.6m. Upon issuance of the $335m SSNs, the carrying value of the debt was reduced by the same amount. The debt was increased via an
effective interest charge over the term to the repayment of the SSNs. During the year ended 31 December 2024, changes to the fair value of the derivative
option have resulted in a credit to the Consolidated Income Statement of £18.1m (2023: £19.0m debit to the Consolidated Income Statement) which is
presented in adjusting items. During the year ended 31 December 2024, a total of nil (2023: 29,969,927 warrants) were exercised, resulting in no further
change to the associated liability (2023: resulting in a £18.6m reduction to the liability).
Interest rate risk
The Group is exposed to interest rate risk on the RCF attached to the SSNs and on the bilateral RCF facility with HSBC when drawn, whereby Chinese renminbi
are deposited in a restricted account with HSBC in China in exchange for a sterling overdraft facility with HSBC in the UK. The interest rate charged on both
facilities is based on SONIA and compounded in arrears.
Profile
At 31 December the interest rate profile of the Group’s interest-bearing financial instruments was:
2024 2023
£m £m
Fixed rate instruments
Financial liabilities
1,378.9
980.3
Variable rate instruments
Financial liabilities
8.4
89.4
The SSNs, are at fixed interest rates. The rate of interest on the RCF, which is attached to the SSNs, and the bilateral RCF are based on SONIA plus a percentage
spread. As SONIA varies on a daily basis both the RCF and bilateral RCF are considered to be variable rate instruments. The bilateral RCF is not drawn at either
31 December 2024 or 31 December 2023.
In 2024 and 2023, the Group entered into an inventory repurchase arrangement (not included within the financial liabilities noted above). The interest charged
on this arrangement is determined as the difference between the sales and repurchase value and is therefore fixed at the time of entering into the arrangement.
The repayment terms of this arrangement are not in excess of 270 days.
Surplus cash funds, when appropriate, are placed on deposit and attract interest at variable rates.
Interest rate risks – sensitivity
The following table demonstrates the sensitivity, with all other variables held constant, of the Group’s loss after tax to a reasonably possible change in interest
rates on the bilateral RCF with HSBC and the RCF attached to the SSNs.
2024 2023
£m £m
Increase/ Effect Effect
(decrease) in on loss on loss
interest rate after tax after tax
SONIA
3.00%
(0.2)
(2.1)
SONIA
(3.00)%
0.2
2.1
23 FINANCIAL INSTRUMENTS CONTINUED
Foreign currency exposure
The Group’s exposure to the risk of changes in foreign currency exchange relates primarily to US dollar sales (including inter-Group sales), Chinese renminbi
sales, Japanese yen sales and Euro denominated purchases.
At 31 December 2024, the Group hedged 31% for 2025 (2023: 25% for 2024) of its US dollar denominated highly probable inter-Group sales, 32% for 2025
of its Japanese yen sales (2023: 53% for 2024) and 25% of its Euro denominated purchases for 2025 (2023: 0% for 2024). These foreign currency risks are
hedged by using foreign currency forward contracts.
The Group’s sterling equivalents of financial assets and liabilities (excluding borrowings analysed by currency above) denominated in foreign currencies at
31 December were:
At 31 December 2024
Euros
£m
US dollars
£m
Chinese
renminbi
£m
Japanese yen
£m
Other
£m
Total
£m
Financial assets
Trade and other receivables (excluding prepayments) 80.6 15.4 7.8 26.0 11.6 141.4
Foreign currency contracts – – – 1.0 – 1.0
Cash balances 38.9 113.4 14.7 9.9 6.9 183.8
119.5 128.8 22.5 36.9 18.5 326.2
Financial liabilities
Trade and other payables (183.1) (133.8) (5.8) (10.6) (2.0) (335.3)
Lease liabilities (1.2) (6.8) – (2.3) – (10.3)
Customer deposits and advances (23.3) (38.1) (4.2) (5.6) (4.9) (76.1)
Foreign currency contracts (1.7) (3.9) – – – (5.6)
(209.3) (182.6) (10.0) (18.5) (6.9) (427.3)
Net balance sheet exposure (89.8) (53.8) 12.5 18.4 11.6 (101.1)
At 31 December 2023
Euros
£m
US dollars
£m
Chinese
renminbi
£m
Japanese yen
£m
Other
£m
Total
£m
Financial assets
Trade and other receivables 94.8 22.2 38.8 41.2 17.2 214.2
Foreign currency contracts – 3.3 – – – 3.3
Cash balances 38.7 166.5 21.6 15.9 6.5 249.2
133.5 192.0 60.4 57.1 23.7 466.7
Financial liabilities
Trade and other payables (172.5) (274.0) (27.6) (16.3) (11.6) (502.0)
Lease liabilities (2.0) (7.7) (0.3) (3.4) – (13.4)
Customer deposits and advances (33.8) (54.6) (5.6) (7.4) (8.7) (110.1)
Foreign currency contracts – – – (2.1) – (2.1)
(208.3) (336.3) (33.5) (29.2) (20.3) (627.6)
Net balance sheet exposure (74.8) (144.3) 26.9 27.9 3.4 (160.9)
The following significant exchange rates applied during the year and at the year end date:
Average rate
2024
Average rate
2023
Closing rate
2024
Closing rate
2023
Euro 1.18 1.15 1.21 1.15
Chinese renminbi 9.19 8.75 9.14 9.04
US dollar 1.29 1.23 1.25 1.27
Japanese yen 191.53 172.09 196.83 179.72
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
188
17aXFinancialXStatements_v7.indd 18817aXFinancialXStatements_v7.indd 188 13/03/2025 14:5513/03/2025 14:55
23 FINANCIAL INSTRUMENTS CONTINUED
Borrowings continued
Derivative option over own shares
The Second Lien SSNs issued in 2020 included detachable warrants enabling the warrant holders to subscribe for a number of ordinary shares in the Company
at the subscription price of £1.67 (previously £10 per share prior to the rights issue in September 2022). The warrant holders have the right to exchange
their warrant options for a reduced number of warrant shares, resulting in no cash being paid to receive the shares. The ratio at which this exchange
can be transacted is determined by the share price at execution of the options. A derivative option liability was initially recorded at 31 December 2020
due to the uncertain number of shares which will be issued under the agreement, which is subsequently remeasured at fair value through the
Consolidated Income Statement.
The warrants can be exercised from 1 July 2021 through to 7 December 2027. The issuance of debt with attached warrants required the Group to assess
separately the fair value of the warrants and the debt. The fair value of the warrants was determined using a binomial model used to predict the behaviour of
the warrant holders and when they might exercise their holdings. The derivative option liability was initially recognised as a derivative forward at fair value
with changes in the fair value being recognised in the Consolidated Income Statement until issuance of the warrants on 7 December 2020 resulting in an initial
valuation of £34.6m. Upon issuance of the $335m SSNs, the carrying value of the debt was reduced by the same amount. The debt was increased via an
effective interest charge over the term to the repayment of the SSNs. During the year ended 31 December 2024, changes to the fair value of the derivative
option have resulted in a credit to the Consolidated Income Statement of £18.1m (2023: £19.0m debit to the Consolidated Income Statement) which is
presented in adjusting items. During the year ended 31 December 2024, a total of nil (2023: 29,969,927 warrants) were exercised, resulting in no further
change to the associated liability (2023: resulting in a £18.6m reduction to the liability).
Interest rate risk
The Group is exposed to interest rate risk on the RCF attached to the SSNs and on the bilateral RCF facility with HSBC when drawn, whereby Chinese renminbi
are deposited in a restricted account with HSBC in China in exchange for a sterling overdraft facility with HSBC in the UK. The interest rate charged on both
facilities is based on SONIA and compounded in arrears.
Profile
At 31 December the interest rate profile of the Group’s interest-bearing financial instruments was:
2024
£m
2023
£m
Fixed rate instruments
Financial liabilities 1,378.9 980.3
Variable rate instruments
Financial liabilities 8.4 89.4
The SSNs, are at fixed interest rates. The rate of interest on the RCF, which is attached to the SSNs, and the bilateral RCF are based on SONIA plus a percentage
spread. As SONIA varies on a daily basis both the RCF and bilateral RCF are considered to be variable rate instruments. The bilateral RCF is not drawn at either
31 December 2024 or 31 December 2023.
In 2024 and 2023, the Group entered into an inventory repurchase arrangement (not included within the financial liabilities noted above). The interest charged
on this arrangement is determined as the difference between the sales and repurchase value and is therefore fixed at the time of entering into the arrangement.
The repayment terms of this arrangement are not in excess of 270 days.
Surplus cash funds, when appropriate, are placed on deposit and attract interest at variable rates.
Interest rate risks – sensitivity
The following table demonstrates the sensitivity, with all other variables held constant, of the Group’s loss after tax to a reasonably possible change in interest
rates on the bilateral RCF with HSBC and the RCF attached to the SSNs.
2024
£m
2023
£m
Increase/
(decrease) in
interest rate
Effect
on loss
after tax
Effect
on loss
after tax
SONIA 3.00% (0.2) (2.1)
SONIA (3.00)% 0.2 2.1
23 FINANCIAL INSTRUMENTS CONTINUED
Foreign currency exposure
The Group’s exposure to the risk of changes in foreign currency exchange relates primarily to US dollar sales (including inter-Group sales), Chinese renminbi
sales, Japanese yen sales and Euro denominated purchases.
At 31 December 2024, the Group hedged 31% for 2025 (2023: 25% for 2024) of its US dollar denominated highly probable inter-Group sales, 32% for 2025
of its Japanese yen sales (2023: 53% for 2024) and 25% of its Euro denominated purchases for 2025 (2023: 0% for 2024). These foreign currency risks are
hedged by using foreign currency forward contracts.
The Group’s sterling equivalents of financial assets and liabilities (excluding borrowings analysed by currency above) denominated in foreign currencies at
31 December were:
Chinese
Euros US dollars renminbi Japanese yen Other Total
At 31 December 2024 £m £m £m £m £m £m
Financial assets
Trade and other receivables (excluding prepayments)
80.6
15.4
7.8
26.0
11.6
141.4
Foreign currency contracts
–
–
–
1.0
–
1.0
Cash balances
38.9
113.4
14.7
9.9
6.9
183.8
119.5
128.8
22.5
36.9
18.5
326.2
Financial liabilities
Trade and other payables
(183.1)
(133.8)
(5.8)
(10.6)
(2.0)
(335.3)
Lease liabilities
(1.2)
(6.8)
–
(2.3)
–
(10.3)
Customer deposits and advances
(23.3)
(38.1)
(4.2)
(5.6)
(4.9)
(76.1)
Foreign currency contracts
(1.7)
(3.9)
–
–
–
(5.6)
(209.3)
(182.6)
(10.0)
(18.5)
(6.9)
(427.3)
Net balance sheet exposure
(89.8)
(53.8)
12.5
18.4
11.6
(101.1)
Chinese
Euros US dollars renminbi Japanese yen Other Total
At 31 December 2023 £m £m £m £m £m £m
Financial assets
Trade and other receivables
94.8
22.2
38.8
41.2
17.2
214.2
Foreign currency contracts
–
3.3
–
–
–
3.3
Cash balances
38.7
166.5
21.6
15.9
6.5
249.2
133.5
192.0
60.4
57.1
23.7
466.7
Financial liabilities
Trade and other payables
(172.5)
(274.0)
(27.6)
(16.3)
(11.6)
(502.0)
Lease liabilities
(2.0)
(7.7)
(0.3)
(3.4)
–
(13.4)
Customer deposits and advances
(33.8)
(54.6)
(5.6)
(7.4)
(8.7)
(110.1)
Foreign currency contracts
–
–
–
(2.1)
–
(2.1)
(208.3)
(336.3)
(33.5)
(29.2)
(20.3)
(627.6)
Net balance sheet exposure
(74.8)
(144.3)
26.9
27.9
3.4
(160.9)
The following significant exchange rates applied during the year and at the year end date:
Average rate Average rate Closing rate Closing rate
2024 2023 2024 2023
Euro
1.18
1.15
1.21
1.15
Chinese renminbi
9.19
8.75
9.14
9.04
US dollar
1.29
1.23
1.25
1.27
Japanese yen
191.53
172.09
196.83
179.72
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
189
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 18917aXFinancialXStatements_v7.indd 189 13/03/2025 14:5513/03/2025 14:55
23 FINANCIAL INSTRUMENTS CONTINUED
Foreign currency exposure continued
Currency risk – sensitivity
The following table demonstrates the sensitivity to a change in the US dollar, Euro, Chinese renminbi and Japanese yen exchange rates, with all other variables
held constant, of the Group’s result after tax (due to changes in the fair value of monetary assets and liabilities) assuming that none of the US dollar or Euro
exposures are used as hedging instruments.
Effect on result Effect on result
(Increase)/ after tax after tax
decrease 2024 2023
in rate £m £m
US dollar
-5%
(9.6)
(7.3)
US dollar
5%
8.7
8.1
Euro
-5%
10.8
8.5
Euro
5%
(11.9)
(9.4)
Chinese renminbi
-5%
(1.5)
(0.3)
Chinese renminbi
5%
1.7
0.4
Japanese yen
-5%
(4.1)
(3.4)
Japanese yen
5%
4.5
3.8
$1,050.0m and £565.0m Senior Secured Notes
During 2024 the Group refinanced all SSNs in issue with new Sterling and US Dollar SSNs. At 31 December 2024 the Group had not hedged the new SSNs.
The notes issued in 2024 replaced the notes in issuance at 31 December 2023, which were repaid in March 2024. These notes were also unhedged.
Foreign currency gains/(losses) on the US dollar denominated SSNs, due to exchange rate movements between the US dollar and sterling, are charged to the
Consolidated Income Statement within finance income/(expense). A corresponding change in the translated sterling value of these SSNs is reflected in the
Consolidated Statement of Financial Position.
$400m Senior Secured Notes
The Group had designated $400m of historic SSNs as a hedging instrument in respect of $400m of highly probable forecast US dollar sales that are not already
hedged with forward contracts. These SSNs were repaid in December 2020 and hedge accounting was discontinued from the date of repayment. As the
forecast transactions were still expected to occur, the amount accumulated in the cash flow hedge reserve at the repayment date was fully released to the
Consolidated Income Statement in line with the profile of the US dollar sales to which it related, ending in 2023.
Hedge accounting
The Group is primarily exposed to US dollar currency variations on the sale of vehicles and parts, and Euro currency variations on the purchase of raw material
parts and services. As part of its risk management policy, the Group uses derivative financial instruments in the form of foreign currency forward contracts to
manage the cash flow risk resulting from these exchange rate movements. The Group had designated the foreign exchange movement on $400m of historic
fully repaid SSNs as part of a cash flow hedging relationship, to manage the exchange rate risk resulting from forecast US dollar inter-Group sales. Together,
these are referred to as cash flow hedges. The cash flow hedges give certainty over the transactional values to be recognised in the Consolidated Income
Statement, and in the case of the forward contracts, certainty around the value of cash flows arising as foreign currencies are exchanged at predetermined
rates. The Group hedges significant foreign currency exposures as follows:
– Firstly, when practical, with foreign currency forward contracts on a reducing basis with the highest coverage in the year immediately following the year
end date. When practicable, the Group places additional hedges on a regular basis so that the percentage of the foreign currency exposure hedged
increases as the time to maturity of the foreign currency exposure reduces.
– Secondly, the Group has designated $400m of historic fully repaid SSNs as a hedging instrument in respect of $400m of highly probable forecast US
dollar sales that are not already hedged with forward contracts. These SSNs were repaid in December 2020. The Group currently has no active foreign
currency forward contract cash flow hedges beyond 2025. The Group does not mitigate all transactional foreign currency exposures, with the unhedged
proportion converted at exchange rates prevailing on the date of the transaction.
23 FINANCIAL INSTRUMENTS CONTINUED
Hedge accounting continued
Derivative financial instruments
Derivative financial instruments are recorded at fair value. The hedging instruments of the cash flow hedge relationship have been designated as the spot
element of forward foreign exchange contract, and the forward points are excluded from the hedge relationship. The hedged items have been designated as
highly probable forecast net sales or purchases denominated in foreign currencies.
Where the value of the hedging instrument matches the value of the hedged item in a 1:1 hedge ratio, the hedge is effective, and changes in the fair value
of the hedging instrument attributable to the spot risk are considered an effective hedge and recognised in the cash flow hedge reserve within Other
Comprehensive Income. Changes in fair value attributable to forward points are recognised in the cost of hedging reserve within Other Comprehensive
Income. Where the value of hedging instrument is greater than the value of the hedged item, the excess portion is recognised as the ineffective portion of the
gain or loss on the hedging instrument and is recorded immediately in the Consolidated Income Statement.
$400m Senior Secured Notes
The $400m SSNs were repaid in December 2020. Prior to repayment they were recorded at amortised cost and translated into sterling at the year end or
repayment date closing rates with movements in the carrying value due to foreign exchange movements offset by movements in the value of the highly
probable forecast sales when translated from US dollars to sterling. When the hedge ratio is 1:1, the value of the hedging instrument matches the value
of the hedged item. In this case, the change in the carrying value of these SSNs, arising as a result of exchange differences, is recognised through
Other Comprehensive Income into the hedge reserve instead of within finance income/(expense).
When the value of the hedging instrument is greater than the value of the hedged item, the excess portion is recognised as ineffective and is recorded
immediately to finance expense in the Consolidated Income Statement.
The amounts recorded within the hedge reserve, including the cost of hedging reserve, are reclassified to the Consolidated Income Statement when the
hedged item affects the Consolidated Income Statement. Due to the nature of the hedged items, all amounts reclassified to the Consolidated Income
Statement in 2023 are recorded in cost of sales. There were no amounts reclassified to the Consolidated Income Statement in 2024. Any ineffective amounts
relating to the $400m SSNs would have been recorded as finance expense in the Consolidated Income Statement. There were no ineffective amounts in either
2024 or 2023.
When the expected volume of hedged highly probable forecast transactions is lower than the designated volume, and a portion of the hedged item is
no longer highly probable to occur, hedge accounting is discontinued for that portion. If the hedged future cash flows are still expected to occur, then
the accumulated amount in cash flow hedge reserve relating to the discontinued portion remains in the cash flow hedge reserve until the future cash flows
occur. If the hedged future cash flows are no longer expected to occur, then that amount is immediately reclassified from the cash flow hedge reserve to the
Consolidated Income Statement as a reclassification adjustment.
Main sources of hedge ineffectiveness
Other than previously described, in relation only to foreign currency forward contracts designated as a hedge, the main sources of potential hedge
ineffectiveness relate to potential differences in the nominal value of hedged items and the hedging instrument should they occur.
The impact of hedging instruments on the Consolidated Statement of Financial Position is as follows:
31 December 2024 31 December 2023
Notional
value
£m
Carrying
value
£m
Change in fair
value used for
measuring
ineffectiveness
£m
Notional
value
£m
Carrying
value
£m
Change in fair
value used for
measuring
ineffectiveness
£m
Foreign exchange forward contracts –
other financial assets
32.8
1.0 1.0
94.1
3.3 3.3
Foreign exchange forward contracts –
other financial liabilities
244.7
(5.6) (5.6)
52.9
(2.1) (2.1)
Foreign exchange forward contracts – inventory 54.9 2.2 2.2 53.8 – –
$400m Senior Secured Notes – hedge instrument – – – 75.2 – –
Tax on fair value movements recognised in OCI – 0.5 0.5 – (0.4) (0.4)
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
190
17aXFinancialXStatements_v7.indd 19017aXFinancialXStatements_v7.indd 190 13/03/2025 14:5513/03/2025 14:55
23 FINANCIAL INSTRUMENTS CONTINUED
Foreign currency exposure continued
Currency risk – sensitivity
The following table demonstrates the sensitivity to a change in the US dollar, Euro, Chinese renminbi and Japanese yen exchange rates, with all other variables
held constant, of the Group’s result after tax (due to changes in the fair value of monetary assets and liabilities) assuming that none of the US dollar or Euro
exposures are used as hedging instruments.
(Increase)/
decrease
in rate
Effect on result
after tax
2024
£m
Effect on result
after tax
2023
£m
US dollar -5% (9.6) (7.3)
US dollar 5% 8.7 8.1
Euro -5% 10.8 8.5
Euro 5% (11.9) (9.4)
Chinese renminbi -5% (1.5) (0.3)
Chinese renminbi 5% 1.7 0.4
Japanese yen -5% (4.1) (3.4)
Japanese yen 5% 4.5 3.8
$1,050.0m and £565.0m Senior Secured Notes
During 2024 the Group refinanced all SSNs in issue with new Sterling and US Dollar SSNs. At 31 December 2024 the Group had not hedged the new SSNs.
The notes issued in 2024 replaced the notes in issuance at 31 December 2023, which were repaid in March 2024. These notes were also unhedged.
Foreign currency gains/(losses) on the US dollar denominated SSNs, due to exchange rate movements between the US dollar and sterling, are charged to the
Consolidated Income Statement within finance income/(expense). A corresponding change in the translated sterling value of these SSNs is reflected in the
Consolidated Statement of Financial Position.
$400m Senior Secured Notes
The Group had designated $400m of historic SSNs as a hedging instrument in respect of $400m of highly probable forecast US dollar sales that are not already
hedged with forward contracts. These SSNs were repaid in December 2020 and hedge accounting was discontinued from the date of repayment. As the
forecast transactions were still expected to occur, the amount accumulated in the cash flow hedge reserve at the repayment date was fully released to the
Consolidated Income Statement in line with the profile of the US dollar sales to which it related, ending in 2023.
Hedge accounting
The Group is primarily exposed to US dollar currency variations on the sale of vehicles and parts, and Euro currency variations on the purchase of raw material
parts and services. As part of its risk management policy, the Group uses derivative financial instruments in the form of foreign currency forward contracts to
manage the cash flow risk resulting from these exchange rate movements. The Group had designated the foreign exchange movement on $400m of historic
fully repaid SSNs as part of a cash flow hedging relationship, to manage the exchange rate risk resulting from forecast US dollar inter-Group sales. Together,
these are referred to as cash flow hedges. The cash flow hedges give certainty over the transactional values to be recognised in the Consolidated Income
Statement, and in the case of the forward contracts, certainty around the value of cash flows arising as foreign currencies are exchanged at predetermined
rates. The Group hedges significant foreign currency exposures as follows:
– Firstly, when practical, with foreign currency forward contracts on a reducing basis with the highest coverage in the year immediately following the year
end date. When practicable, the Group places additional hedges on a regular basis so that the percentage of the foreign currency exposure hedged
increases as the time to maturity of the foreign currency exposure reduces.
– Secondly, the Group has designated $400m of historic fully repaid SSNs as a hedging instrument in respect of $400m of highly probable forecast US
dollar sales that are not already hedged with forward contracts. These SSNs were repaid in December 2020. The Group currently has no active foreign
currency forward contract cash flow hedges beyond 2025. The Group does not mitigate all transactional foreign currency exposures, with the unhedged
proportion converted at exchange rates prevailing on the date of the transaction.
23 FINANCIAL INSTRUMENTS CONTINUED
Hedge accounting continued
Derivative financial instruments
Derivative financial instruments are recorded at fair value. The hedging instruments of the cash flow hedge relationship have been designated as the spot
element of forward foreign exchange contract, and the forward points are excluded from the hedge relationship. The hedged items have been designated as
highly probable forecast net sales or purchases denominated in foreign currencies.
Where the value of the hedging instrument matches the value of the hedged item in a 1:1 hedge ratio, the hedge is effective, and changes in the fair value
of the hedging instrument attributable to the spot risk are considered an effective hedge and recognised in the cash flow hedge reserve within Other
Comprehensive Income. Changes in fair value attributable to forward points are recognised in the cost of hedging reserve within Other Comprehensive
Income. Where the value of hedging instrument is greater than the value of the hedged item, the excess portion is recognised as the ineffective portion of the
gain or loss on the hedging instrument and is recorded immediately in the Consolidated Income Statement.
$400m Senior Secured Notes
The $400m SSNs were repaid in December 2020. Prior to repayment they were recorded at amortised cost and translated into sterling at the year end or
repayment date closing rates with movements in the carrying value due to foreign exchange movements offset by movements in the value of the highly
probable forecast sales when translated from US dollars to sterling. When the hedge ratio is 1:1, the value of the hedging instrument matches the value
of the hedged item. In this case, the change in the carrying value of these SSNs, arising as a result of exchange differences, is recognised through
Other Comprehensive Income into the hedge reserve instead of within finance income/(expense).
When the value of the hedging instrument is greater than the value of the hedged item, the excess portion is recognised as ineffective and is recorded
immediately to finance expense in the Consolidated Income Statement.
The amounts recorded within the hedge reserve, including the cost of hedging reserve, are reclassified to the Consolidated Income Statement when the
hedged item affects the Consolidated Income Statement. Due to the nature of the hedged items, all amounts reclassified to the Consolidated Income
Statement in 2023 are recorded in cost of sales. There were no amounts reclassified to the Consolidated Income Statement in 2024. Any ineffective amounts
relating to the $400m SSNs would have been recorded as finance expense in the Consolidated Income Statement. There were no ineffective amounts in either
2024 or 2023.
When the expected volume of hedged highly probable forecast transactions is lower than the designated volume, and a portion of the hedged item is
no longer highly probable to occur, hedge accounting is discontinued for that portion. If the hedged future cash flows are still expected to occur, then
the accumulated amount in cash flow hedge reserve relating to the discontinued portion remains in the cash flow hedge reserve until the future cash flows
occur. If the hedged future cash flows are no longer expected to occur, then that amount is immediately reclassified from the cash flow hedge reserve to the
Consolidated Income Statement as a reclassification adjustment.
Main sources of hedge ineffectiveness
Other than previously described, in relation only to foreign currency forward contracts designated as a hedge, the main sources of potential hedge
ineffectiveness relate to potential differences in the nominal value of hedged items and the hedging instrument should they occur.
The impact of hedging instruments on the Consolidated Statement of Financial Position is as follows:
31 December 2024
31 December 2023
Change in fair Change in fair
value used for value used for
Notional Carrying measuring Notional Carrying measuring
value value ineffectiveness value value ineffectiveness
£m £m £m £m £m £m
Foreign exchange forward contracts –
other financial assets 32.8
1.0
1.0
94.1
3.3
3.3
Foreign exchange forward contracts –
other financial liabilities 244.7
(5.6)
(5.6)
52.9
(2.1)
(2.1)
Foreign exchange forward contracts – inventory
54.9
2.2
2.2
53.8
–
–
$400m Senior Secured Notes – hedge instrument
–
–
–
75.2
–
–
Tax on fair value movements recognised in OCI
–
0.5
0.5
–
(0.4)
(0.4)
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
191
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 19117aXFinancialXStatements_v7.indd 191 13/03/2025 14:5513/03/2025 14:55
23 FINANCIAL INSTRUMENTS CONTINUED
Hedge accounting continued
The impact of hedged items on the Consolidated Statement of Financial Position is as follows:
31 December 2024
31 December 2023
Cash flow hedge Cost of hedging Cash flow hedge Cost of hedging
reserve reserve reserve reserve
£m £m £m £m
Foreign exchange forward contracts
(0.5)
(1.9)
1.9
(0.8)
Tax on fair value movements recognised in OCI
0.1
0.4
(0.5)
0.2
The effect of the cash flow hedge in the Consolidated Income Statement and Other Comprehensive Income is:
Amount
Ineffectiveness reclassified
Total hedging recognised in the Fair value from OCI to
(loss)/gain Consolidated movement the Consolidated
recognised Income Income on cash flow Income Income
in OCI Statement Statement hedges Statement Statement
Year ended 31 December 2024 £m £m line item £m £m line item
Foreign exchange forward contracts
(3.6)
–
Cost of sales
–
(3.6)
Cost of sales
Tax on fair value movements recognised in OCI
0.9
–
Cost of sales
–
0.9
Cost of sales
Amount
Total hedging Ineffectiveness Fair value reclassified
(loss)/gain recognised in the movement from OCI to
recognised Consolidated Income on cash flow the Consolidated Income
in OCI Income Statement Statement hedges Income Statement Statement
Year ended 31 December 2023 £m £m line item £m £m line item
Foreign exchange forward contracts
(0.8)
–
Cost of sales
0.7
(1.5)
Cost of sales
$400m Senior Secured Notes – hedge instrument
(3.9)
–
Cost of sales
–
(3.9)
Cost of sales
Tax on fair value movements recognised in OCI
1.2
–
–
(0.2)
1.4
–
Hedge ineffectiveness recognised within the Consolidated Income Statement relates to differences in the nominal value of the hedged items and the hedging
instrument. At 31 December 2024 and 2023, there were no balances remaining in the cash flow hedge reserve from hedging relationships for which hedge
accounting is no longer required.
All hedging instruments recognised by the Group at 31 December 2024 have a maturity date of less than one year.
Liquidity risk
The Group seeks to manage liquidity risk to ensure sufficient liquidity is available to meet foreseeable needs and, when appropriate, allow placement of cash
on deposit safely and profitably. During 2024, the Group refinanced its SSNs until March 2029, issued additional notes related to the refinancing and undertook
a share placing and retail offer to strengthen the liquidity of the business.
The Group has a £50.0m bilateral revolving credit facility with HSBC Bank plc (“HSBC”), whereby Chinese Renminbi can be deposited in a restricted account
with HSBC in China in exchange for a Sterling overdraft facility with HSBC Bank plc in the United Kingdom. This facility was not drawn at either 31 December
2024 or 31 December 2023. The facility remains available until at least 19 March 2027.
At 31 December 2024 the Group held £1,378.9m of SSNs (2023: £980.3m). In March 2024, the Group refinanced the existing notes at 31 December 2023 with
£400.0m of Sterling SSNs and $960.0m of US Dollar SSNs. In August 2024 the Group issued a further £65.0m of Sterling SSNs and $90.0m of US Dollar SSNs.
In December 2024 the Group issued a further £100.0m of Sterling SSNs. At 31 December 2023, the Group held £980.3m of SSNs comprising First Lien SSNs
of $1,143.7m and Second Lien SSNs of $121.7m. In November 2023, the Group repurchased $121.7m of Second Lien SSNs. The redemption of the First Lien
and Second Lien SSNs in the year ended 31 December 2024 and early repayments of the Second Lien SSNs in the year ended 31 December 2023 resulted in
one off premium costs and the acceleration of transaction costs and discounts (see note 5). The Sterling SSNs and US Dollar SSNs in issue at 31 December
2024 are repayable in March 2029. The US dollar amounts have been converted to sterling equivalents for reporting purposes.
Attached to the new SSNs (2023: previous SSNs) is a £170.0m (2023: £90.6m) RCF of which £10.0m (2023: £90.0m) was drawn in cash at the reporting date.
The amount recorded in the Consolidated Statement of Financial Position is net of unamortised transaction costs. £5.9m (2023: £9.2m) of the RCF has been
reserved for letters of credit and guarantees. The RCF attached to the SSNs is available until December 2028.
23 FINANCIAL INSTRUMENTS CONTINUED
Liquidity risk continued
As part of the normal operating cycle of the Group, customers make advanced payments to secure their allocation of Special Vehicles produced in limited
numbers. The cash from these advance payments is primarily used to fund upfront costs of the Special Vehicle project, including raw materials and
components required in manufacture. In certain circumstances, according to the individual terms of the Special Vehicle contract and the position of the
customer in the staged deposit and vehicle specification process, the advanced payments are contractually refundable. At 31 December 2024, the Group
held refundable deposits of £82.1m (2023: £132.8m). The Special Vehicle programmes are typically oversubscribed and, in the event that a customer requests
reimbursement of their advanced payment, the newly created allocation is then given to an alternative customer, who is required to make an equivalent
advanced payment.
The maturity profile of the Group’s financial liabilities at 31 December 2024 based on contractual undiscounted payments, was as follows.
On demand
£m
Less than 3
months
£m
3 to 12
months
£m
1 to 5
years
£m
>5 years
£m
Contractual Cash
Flows Total
£m
Non-derivative financial liabilities
Bank loans and overdrafts – – – 10.2 – 10.2
Senior Secured Notes – – 141.5 1,890.1 – 2,031.6
Trade and other payables – 377.6 104.3 77.4 0.8 560.1
Refundable customer deposits and advances 82.1 – – – – 82.1
Derivative financial liabilities
Forward exchange contracts – 0.9 4.7 – – 5.6
82.1 378.5 250.5 1,977.7 0.8 2,689.6
Included in the tables above and below are interest bearing loans and borrowings at a carrying value of £1,387.3m (2023: £1,069.7m). The liquidity profile
associated with leases accounted under IFRS 16 is detailed in note 16.
The maturity profile of the Group’s financial liabilities at 31 December 2023 based on contractual undiscounted payments, was as follows.
On demand
£m
Less than 3
months
£m
3 to 12
months
£m
1 to 5
years
£m
>5 years
£m
Contractual Cash
Flows Total
£m
Non-derivative financial liabilities
Bank loans and overdrafts – 90.6 – – – 90.6
Senior Secured Notes – – 102.8 1,133.9 – 1,236.7
Trade and other payables – 441.5 120.2 79.5 0.8 642.0
Refundable customer deposits and advances 132.8 – – – – 132.8
Derivative financial liabilities
Forward exchange contracts – 0.3 1.8 – – 2.1
132.8 532.4 224.8 1,213.4 0.8 2,104.2
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
192
17aXFinancialXStatements_v7.indd 19217aXFinancialXStatements_v7.indd 192 13/03/2025 14:5513/03/2025 14:55
23 FINANCIAL INSTRUMENTS CONTINUED
Hedge accounting continued
The impact of hedged items on the Consolidated Statement of Financial Position is as follows:
31 December 2024 31 December 2023
Cash flow hedge
reserve
£m
Cost of hedging
reserve
£m
Cash flow hedge
reserve
£m
Cost of hedging
reserve
£m
Foreign exchange forward contracts (0.5) (1.9) 1.9 (0.8)
Tax on fair value movements recognised in OCI 0.1 0.4 (0.5) 0.2
The effect of the cash flow hedge in the Consolidated Income Statement and Other Comprehensive Income is:
Year ended 31 December 2024
Total hedging
(loss)/gain
recognised
in OCI
£m
Ineffectiveness
recognised in the
Consolidated
Income
Statement
£m
Income
Statement
line item
Fair value
movement
on cash flow
hedges
£m
Amount
reclassified
from OCI to
the Consolidated
Income
Statement
£m
Income
Statement
line item
Foreign exchange forward contracts (3.6) – Cost of sales – (3.6) Cost of sales
Tax on fair value movements recognised in OCI 0.9 – Cost of sales – 0.9 Cost of sales
Year ended 31 December 2023
Total hedging
(loss)/gain
recognised
in OCI
£m
Ineffectiveness
recognised in the
Consolidated
Income Statement
£m
Income
Statement
line item
Fair value
movement
on cash flow
hedges
£m
Amount
reclassified
from OCI to
the Consolidated
Income Statement
£m
Income
Statement
line item
Foreign exchange forward contracts (0.8) – Cost of sales 0.7 (1.5) Cost of sales
$400m Senior Secured Notes – hedge instrument (3.9) – Cost of sales – (3.9) Cost of sales
Tax on fair value movements recognised in OCI 1.2 – – (0.2) 1.4 –
Hedge ineffectiveness recognised within the Consolidated Income Statement relates to differences in the nominal value of the hedged items and the hedging
instrument. At 31 December 2024 and 2023, there were no balances remaining in the cash flow hedge reserve from hedging relationships for which hedge
accounting is no longer required.
All hedging instruments recognised by the Group at 31 December 2024 have a maturity date of less than one year.
Liquidity risk
The Group seeks to manage liquidity risk to ensure sufficient liquidity is available to meet foreseeable needs and, when appropriate, allow placement of cash
on deposit safely and profitably. During 2024, the Group refinanced its SSNs until March 2029, issued additional notes related to the refinancing and undertook
a share placing and retail offer to strengthen the liquidity of the business.
The Group has a £50.0m bilateral revolving credit facility with HSBC Bank plc (“HSBC”), whereby Chinese Renminbi can be deposited in a restricted account
with HSBC in China in exchange for a Sterling overdraft facility with HSBC Bank plc in the United Kingdom. This facility was not drawn at either 31 December
2024 or 31 December 2023. The facility remains available until at least 19 March 2027.
At 31 December 2024 the Group held £1,378.9m of SSNs (2023: £980.3m). In March 2024, the Group refinanced the existing notes at 31 December 2023 with
£400.0m of Sterling SSNs and $960.0m of US Dollar SSNs. In August 2024 the Group issued a further £65.0m of Sterling SSNs and $90.0m of US Dollar SSNs.
In December 2024 the Group issued a further £100.0m of Sterling SSNs. At 31 December 2023, the Group held £980.3m of SSNs comprising First Lien SSNs
of $1,143.7m and Second Lien SSNs of $121.7m. In November 2023, the Group repurchased $121.7m of Second Lien SSNs. The redemption of the First Lien
and Second Lien SSNs in the year ended 31 December 2024 and early repayments of the Second Lien SSNs in the year ended 31 December 2023 resulted in
one off premium costs and the acceleration of transaction costs and discounts (see note 5). The Sterling SSNs and US Dollar SSNs in issue at 31 December
2024 are repayable in March 2029. The US dollar amounts have been converted to sterling equivalents for reporting purposes.
Attached to the new SSNs (2023: previous SSNs) is a £170.0m (2023: £90.6m) RCF of which £10.0m (2023: £90.0m) was drawn in cash at the reporting date.
The amount recorded in the Consolidated Statement of Financial Position is net of unamortised transaction costs. £5.9m (2023: £9.2m) of the RCF has been
reserved for letters of credit and guarantees. The RCF attached to the SSNs is available until December 2028.
23 FINANCIAL INSTRUMENTS CONTINUED
Liquidity risk continued
As part of the normal operating cycle of the Group, customers make advanced payments to secure their allocation of Special Vehicles produced in limited
numbers. The cash from these advance payments is primarily used to fund upfront costs of the Special Vehicle project, including raw materials and
components required in manufacture. In certain circumstances, according to the individual terms of the Special Vehicle contract and the position of the
customer in the staged deposit and vehicle specification process, the advanced payments are contractually refundable. At 31 December 2024, the Group
held refundable deposits of £82.1m (2023: £132.8m). The Special Vehicle programmes are typically oversubscribed and, in the event that a customer requests
reimbursement of their advanced payment, the newly created allocation is then given to an alternative customer, who is required to make an equivalent
advanced payment.
The maturity profile of the Group’s financial liabilities at 31 December 2024 based on contractual undiscounted payments, was as follows.
Less than 3 3 to 12 1 to 5 Contractual Cash
On demand months months years >5 years Flows Total
£m £m £m £m £m £m
Non-derivative financial liabilities
Bank loans and overdrafts
–
–
–
10.2
–
10.2
Senior Secured Notes
–
–
141.5
1,890.1
–
2,031.6
Trade and other payables
–
377.6
104.3
77.4
0.8
560.1
Refundable customer deposits and advances
82.1
–
–
–
–
82.1
Derivative financial liabilities
Forward exchange contracts
–
0.9
4.7
–
–
5.6
82.1
378.5
250.5
1,977.7
0.8
2,689.6
Included in the tables above and below are interest bearing loans and borrowings at a carrying value of £1,387.3m (2023: £1,069.7m). The liquidity profile
associated with leases accounted under IFRS 16 is detailed in note 16.
The maturity profile of the Group’s financial liabilities at 31 December 2023 based on contractual undiscounted payments, was as follows.
Less than 3 3 to 12 1 to 5 Contractual Cash
On demand months months years >5 years Flows Total
£m £m £m £m £m £m
Non-derivative financial liabilities
Bank loans and overdrafts
–
90.6
–
–
–
90.6
Senior Secured Notes
–
–
102.8
1,133.9
–
1,236.7
Trade and other payables
–
441.5
120.2
79.5
0.8
642.0
Refundable customer deposits and advances
132.8
–
–
–
–
132.8
Derivative financial liabilities
Forward exchange contracts
–
0.3
1.8
–
–
2.1
132.8
532.4
224.8
1,213.4
0.8
2,104.2
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
193
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 19317aXFinancialXStatements_v7.indd 193 13/03/2025 14:5513/03/2025 14:55
23 FINANCIAL INSTRUMENTS CONTINUED
Estimation of fair values
As at 31 December 2024
As at 31 December 2023
Nominal value Book value Fair value Nominal value Book value Fair value
£m £m £m £m £m £m
Included in assets
Level 2
Forward foreign exchange contracts
–
1.0
1.0
–
3.3
3.3
Investments
–
50.9
50.9
–
–
–
Other derivative contracts
–
23.2
23.2
–
–
–
Level 3
Investments
–
–
–
–
18.2
18.2
–
75.1
75.1
–
21.5
21.5
Included in liabilities
Level 1
$1,050.0, 10% US dollar Notes
837.7
826.2
820.0
–
–
–
£465.0m 10.375% GBP Notes
464.6
458.0
458.4
–
–
–
£100.0m 10.375% GBP Notes*
96.6
94.7
97.6
–
–
–
2023: $1,143.7m 10.5% US dollar
–
–
–
First Lien Notes
897.2
890.0
906.7
2023: $121.7m 15.0% US dollar
–
–
–
Second Lien Split Coupon Notes
95.4
90.3
103.6
Level 2
Forward exchange contracts
–
5.6
5.6
–
2.1
2.1
Derivative option over own shares
33.1
5.0
5.0
33.1
23.1
23.1
Other derivative contracts
–
23.2
23.2
–
–
–
1,432.0
1,412.7
1,409.8
1,025.7
1,005.5
1,035.5
* The £100.0m of GBP notes issued in November 2024 have a different ISIN to the other £465.0m of GBP notes and therefore a different quoted value, hence are presented separately in this table.
Under IFRS 7, such assets and liabilities are classified by the way in which their fair value is calculated. The interest-bearing loans and borrowings are considered
to be level 1 liabilities with forward exchange contracts being level 2 assets and liabilities. IFRS 7 defines each level as follows:
– Level 1 assets and liabilities have inputs observable through quoted prices.
– Level 2 assets and liabilities have inputs observable, other than quoted prices, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
– Level 3 assets and liabilities are those with inputs not based on observable market data.
Trade and other receivables, current borrowings and trade and other payables are deemed to have the same fair value as their book value and, as such, the
table above only includes assets and liabilities held at fair value, and borrowings. The forward currency contracts are carried at fair value based on pricing
models and discounted cash flow techniques derived from assumptions provided by third-party banks. The SSNs are all valued at amortised cost retranslated
at the year end foreign exchange rate. The fair value of these SSNs at the current and comparative period ends are determined by reference to the quoted
price on The International Stock Exchange Authority in St Peter Port, Guernsey. The fair value and nominal value exclude the impact of transaction costs.
The other derivative contract relates to one option for the Group to acquire a minority shareholding in AMR GP Holdings Limited (“AMR GP”) (see note 20).
The investment relates to an existing minority shareholding within AMG GP. The fair value of the investment in 2023 was established by applying the
proportion of equity represented by the shareholding to an assessment of the enterprise value of AMR GP, which was then adjusted to reflect marketability
and control commensurate with the size of the investment, and as such was a level 3 asset. As at 31 December 2024, the Group has measured the fair value of
its holding in line with the equity value implied by investments into AMR GP by a number of third parties during 2024. The implied equity value from the
transactions, alongside a continued absence of quoted prices, have led to the investment, being reassessed as a level 2 asset as at 31 December 2024.
The derivative option over own shares reflects the detachable warrants issued alongside the previous Second Lien SSNs (see borrowings section of note 23)
enabling the warrant holders to subscribe for a number of ordinary shares in the Company. The fair value is calculated using a binomial model and updated
at each period end, reflecting the latest market conditions. The inputs used in the valuation model include the quoted share price, market volatility, exercise
ratio and risk-free rate.
For all other receivables and payables, the carrying amount is deemed to reflect the fair value.
23 FINANCIAL INSTRUMENTS CONTINUED
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor and creditor confidence and to sustain the future development of the business.
Given this, the objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximise
shareholder value. The capital structure of the Group consists of debt which includes the borrowings disclosed in this note, cash and cash equivalents and
equity attributable to equity holders of the parent, comprising share capital and reserves as disclosed in the Consolidated Statement of Changes in Equity.
24 NET DEBT
The Group defines net debt as current and non-current borrowings in addition to inventory repurchase arrangements and lease liabilities, less cash and cash
equivalents including cash held not available for short-term use. The additional cash flow disclosures required under IAS 7 are made in note 28.
2024
£m
2023
£m
Cash and cash equivalents 359.6 392.4
Inventory repurchase arrangement (38.4) (39.7)
Lease liabilities – current (9.4) (8.8)
Lease liabilities – non-current (87.2) (88.5)
Loans and other borrowings – current – (89.4)
Loans and other borrowings – non-current (1,387.3) (980.3)
Net debt (1,162.7) (814.3)
Movement in net debt
Net decrease in cash and cash equivalents (32.8) (190.9)
Add back cash flows in respect of other components of net debt:
New borrowings (1,394.6) (11.5)
Proceeds from inventory repurchase arrangement (75.4) (38.0)
Repayment of existing borrowings 1,084.9 129.7
Repayment of inventory repurchase arrangement 80.0 40.0
Lease liability payments 9.5 7.9
Movement in cash held not available for short-term use – (0.3)
Transaction fees 24.3 –
Increase in net debt arising from cash flows (304.1) (63.1)
Non-cash movements:
Foreign exchange (loss)/gain on secured loan (14.1) 60.8
Interest added to debt (4.6) (14.2)
Unpaid transaction fees 1.7 –
Borrowing fee amortisation (18.5) (26.9)
Lease liability interest charge (4.2) (4.1)
Lease modifications (1.6) (0.6)
New leases (7.7) (5.8)
Foreign exchange gain and other movements 4.7 5.1
Increase in net debt (348.4) (48.8)
Net debt at beginning of the year (814.3) (765.5)
Net debt at the end of the yea
r
(1,162.7) (814.3)
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
194
17aXFinancialXStatements_v7.indd 19417aXFinancialXStatements_v7.indd 194 13/03/2025 14:5513/03/2025 14:55
23 FINANCIAL INSTRUMENTS CONTINUED
Estimation of fair values
As at 31 December 2024 As at 31 December 2023
Nominal value
£m
Book value
£m
Fair value
£m
Nominal value
£m
Book value
£m
Fair value
£m
Included in assets
Level 2
Forward foreign exchange contracts – 1.0 1.0 – 3.3 3.3
Investments – 50.9 50.9 – – –
Other derivative contracts – 23.2 23.2 – – –
Level 3
Investments – – – – 18.2 18.2
– 75.1 75.1 – 21.5 21.5
Included in liabilities
Level 1
$1,050.0, 10% US dollar Notes 837.7 826.2 820.0 – – –
£465.0m 10.375% GBP Notes 464.6 458.0 458.4 – – –
£100.0m 10.375% GBP Notes* 96.6 94.7 97.6 – – –
2023: $1,143.7m 10.5% US dollar
First Lien Notes
– – –
897.2 890.0 906.7
2023: $121.7m 15.0% US dollar
Second Lien Split Coupon Notes
– – –
95.4 90.3 103.6
Level 2
Forward exchange contracts – 5.6 5.6 – 2.1 2.1
Derivative option over own shares 33.1 5.0 5.0 33.1 23.1 23.1
Other derivative contracts – 23.2 23.2 – – –
1,432.0 1,412.7 1,409.8 1,025.7 1,005.5 1,035.5
* The £100.0m of GBP notes issued in November 2024 have a different ISIN to the other £465.0m of GBP notes and therefore a different quoted value, hence are presented separately in this table.
Under IFRS 7, such assets and liabilities are classified by the way in which their fair value is calculated. The interest-bearing loans and borrowings are considered
to be level 1 liabilities with forward exchange contracts being level 2 assets and liabilities. IFRS 7 defines each level as follows:
– Level 1 assets and liabilities have inputs observable through quoted prices.
– Level 2 assets and liabilities have inputs observable, other than quoted prices, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
– Level 3 assets and liabilities are those with inputs not based on observable market data.
Trade and other receivables, current borrowings and trade and other payables are deemed to have the same fair value as their book value and, as such, the
table above only includes assets and liabilities held at fair value, and borrowings. The forward currency contracts are carried at fair value based on pricing
models and discounted cash flow techniques derived from assumptions provided by third-party banks. The SSNs are all valued at amortised cost retranslated
at the year end foreign exchange rate. The fair value of these SSNs at the current and comparative period ends are determined by reference to the quoted
price on The International Stock Exchange Authority in St Peter Port, Guernsey. The fair value and nominal value exclude the impact of transaction costs.
The other derivative contract relates to one option for the Group to acquire a minority shareholding in AMR GP Holdings Limited (“AMR GP”) (see note 20).
The investment relates to an existing minority shareholding within AMG GP. The fair value of the investment in 2023 was established by applying the
proportion of equity represented by the shareholding to an assessment of the enterprise value of AMR GP, which was then adjusted to reflect marketability
and control commensurate with the size of the investment, and as such was a level 3 asset. As at 31 December 2024, the Group has measured the fair value of
its holding in line with the equity value implied by investments into AMR GP by a number of third parties during 2024. The implied equity value from the
transactions, alongside a continued absence of quoted prices, have led to the investment, being reassessed as a level 2 asset as at 31 December 2024.
The derivative option over own shares reflects the detachable warrants issued alongside the previous Second Lien SSNs (see borrowings section of note 23)
enabling the warrant holders to subscribe for a number of ordinary shares in the Company. The fair value is calculated using a binomial model and updated
at each period end, reflecting the latest market conditions. The inputs used in the valuation model include the quoted share price, market volatility, exercise
ratio and risk-free rate.
For all other receivables and payables, the carrying amount is deemed to reflect the fair value.
23 FINANCIAL INSTRUMENTS CONTINUED
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor and creditor confidence and to sustain the future development of the business.
Given this, the objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximise
shareholder value. The capital structure of the Group consists of debt which includes the borrowings disclosed in this note, cash and cash equivalents and
equity attributable to equity holders of the parent, comprising share capital and reserves as disclosed in the Consolidated Statement of Changes in Equity.
24 NET DEBT
The Group defines net debt as current and non-current borrowings in addition to inventory repurchase arrangements and lease liabilities, less cash and cash
equivalents including cash held not available for short-term use. The additional cash flow disclosures required under IAS 7 are made in note 28.
2024 2023
£m £m
Cash and cash equivalents
359.6
392.4
Inventory repurchase arrangement
(38.4)
(39.7)
Lease liabilities – current
(9.4)
(8.8)
Lease liabilities – non-current
(87.2)
(88.5)
Loans and other borrowings – current
–
(89.4)
Loans and other borrowings – non-current
(1,387.3)
(980.3)
Net debt
(1,162.7)
(814.3)
Movement in net debt
Net decrease in cash and cash equivalents
(32.8)
(190.9)
Add back cash flows in respect of other components of net debt:
New borrowings
(1,394.6)
(11.5)
Proceeds from inventory repurchase arrangement
(75.4)
(38.0)
Repayment of existing borrowings
1,084.9
129.7
Repayment of inventory repurchase arrangement
80.0
40.0
Lease liability payments
9.5
7.9
Movement in cash held not available for short-term use
–
(0.3)
Transaction fees
24.3
–
Increase in net debt arising from cash flows
(304.1)
(63.1)
Non-cash movements:
Foreign exchange (loss)/gain on secured loan
(14.1)
60.8
Interest added to debt
(4.6)
(14.2)
Unpaid transaction fees
1.7
–
Borrowing fee amortisation
(18.5)
(26.9)
Lease liability interest charge
(4.2)
(4.1)
Lease modifications
(1.6)
(0.6)
New leases
(7.7)
(5.8)
Foreign exchange gain and other movements
4.7
5.1
Increase in net debt
(348.4)
(48.8)
Net debt at beginning of the year
(814.3)
(765.5)
Net debt at the end of the yea
r
(1,162.7)
(814.3)
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
195
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 19517aXFinancialXStatements_v7.indd 195 13/03/2025 14:5513/03/2025 14:55
25 PROVISIONS
2024 2023
£m £m
Warrant
y
Total
Warrant
y
 Total
At the beginning of the year
43.9
43.9
41.1
41.1
Charge for the year
37.5
37.5
29.7
29.7
Utilisation
(34.2)
(34.2)
(27.4)
(27.4)
Effect of movements in exchange rates
(0.4)
(0.4)
0.7
0.7
Release to the Consolidated Income Statement
–
–
(0.2)
(0.2)
At the end of the year
46.8
46.8
43.9
43.9
Analysed as:
Current
19.7
19.7
20.2
20.2
Non-current
27.1
27.1
23.7
23.7
46.8
46.8
43.9
43.9
The warranty provision is calculated based on the level of historical claims and is expected to be substantially utilised within the next three years.
26 PENSION OBLIGATIONS
Defined contribution scheme
The Group opened a Defined Contribution scheme in June 2011. The total expense relating to this scheme in the year ended 31 December 2024 was £13.7m
(2023: £20.9m). The Group collects both the employee and employer contributions which are paid to the scheme in the following month. Outstanding
contributions at the 31 December 2024 were £2.3m (2023: £1.9m). Contributions are made by the Group to other pension arrangements for certain
employees of the Group.
Defined Benefit scheme
The Group operates a Defined Benefit Pension Scheme. During 2017, it was agreed and communicated to its members that the scheme’s benefits would be
amended from a final pensionable salary basis to a career average revalued earnings (CARE) basis with effect from 1 January 2018. The scheme was closed
to new entrants on 31 May 2011. The benefits of the existing members were not affected by the closure of the scheme. The assets of the scheme are held
separately from those of the Group. On 31 January 2022, the scheme was closed to future accrual resulting in a curtailment loss of £2.8m.
In constructing the investment strategy for the scheme, the Trustees take due account of the liability profile of the scheme along with the level of
disclosed surplus or deficit. The investment strategy is reviewed on a regular basis and, at a minimum, on a triennial basis to coincide with actuarial valuations.
The primary objectives are to provide security for all beneficiaries and to achieve long-term growth sufficient to finance any pension increases and ensure the
residual cost is held at a reasonable level.
The pension scheme operates under the regulatory framework of the Pensions Act 2004. The Trustee has the primary responsibility for governance of the
scheme. Benefit payments are from Trustee-administered funds and scheme assets are held in a Trust which is governed by UK regulation. The Trustee
comprises representatives of the Group and members of the scheme and an independent, professional Trustee.
The pension scheme exposes the Group to the following risks:
– Asset volatility – the scheme’s Statement of Investment Principles targets around 22% return-enhancing assets and 78% risk-reducing assets. The Trustee
monitors the appropriateness of the scheme’s investment strategy, in consultation with the Group, on an ongoing basis.
– Inflation risk – the majority of benefits are linked to inflation and so increases in inflation will lead to higher liabilities (although in most cases there are
caps in place which protect against extreme inflation).
– Longevity – increases in life expectancy will increase the period over which benefits are expected to be payable, which increases the value placed on the
scheme’s liabilities.
– Changes in bond yields – A decrease in corporate bond yields will increase the value placed on the Scheme liabilities, although this will be partially offset
by an increase in the value of the Scheme’s bond holdings.
The projected unit method has been used to determine the liabilities.
The pension cost is assessed in accordance with the advice of an independent qualified actuary. The latest completed actuarial valuation of the scheme had
an effective date of 6 April 2023. The assumptions that make the most significant effect on the valuation are those relating to the rate of return on investments,
the rate of future inflation-linked pension increases and expected longevity. It was assumed that the investment return would be based on the Bank of England
gilt curve plus 0.5% per annum and that future inflation would be based on the Bank of England inflation curve. At the 6 April 2023 actuarial valuation, the
actuarial value of the scheme assets was £202.6m, sufficient to cover 81% of the actuarial value of the benefits payable to members.
26 PENSION OBLIGATIONS CONTINUED
Defined Benefit scheme continued
On 5 July 2024, the Group agreed to pay recovery plan contributions of £8.0m per annum (reduced from £15.0m per annum prior to this date) effective from
1 July 2024 through to 30 November 2028.
The 6 April 2023 valuation was updated by an independent qualified actuary to 31 December 2024 for the 2024 year end disclosures in accordance with
IAS 19. The next triennial valuation as at 6 April 2026 is due to be completed by July 2027 in line with the scheme-specific funding requirements of the Pensions
Act 2004. As part of that valuation, the Trustee and the Group will review the adequacy of the contributions being paid into the scheme.
Following the High Court ruling in the case of Virgin Media Limited v NTL Pension Trustees II Limited and others in June 2023, it was held that section 37 of
the Pension Schemes Act 1993 operates to make void any amendment to the rules of a contracted out pension scheme without written actuarial confirmation
under Regulation 42(2) of the Occupational Pension Schemes (Contracting Out) Regulations 1996, insofar that the amendment relates to members’ section
9(2B) rights. On 25 July 2024, the court dismissed an appeal and confirmed section 9(2B) rights included both past service rights and future service rights.
The Trustees of the Scheme and the Plan (collectively the “Pension Schemes”) have confirmed that:
– The Pension Schemes were contracted out of the additional state pension between 1997 and 2016; and
– It was possible that amendments were made to the Pension Schemes that may have impacted on the members’ section 9(2B) rights.
The Trustees of the Scheme and the Directors work closely together and take appropriate legal and professional advice when making amendments to the
Pension Schemes. An initial assessment has been undertaken to determine whether any amendments to section 9(2B) rights were made to the Pension
Schemes that were not in accordance with section 37 of the Pension Schemes Act 1993 requirements, however as at 31 December 2024, the assessment is
ongoing and no final conclusions have been reached.
Further, it is not currently possible to reliably estimate any potential impact to the defined benefit obligations of the Pension Schemes if these amendments
were not in accordance with section 37 of the Pension Schemes Act 1993 requirements. The Directors continue to assess the extent of procedures required
to confirm if there is any indication of historic non-compliance.
Assumptions
The principal assumptions used by the actuary were:
31 December
2024
31 December
2023
Discount rate 5.65% 4.70%
Rate of increase in salaries N/A N/A
Rate of revaluation in deferment 2.55% 2.40%
Rate of increase in pensions in payment attracting Limited Price Indexation 2.95% 2.85%
Expected return on scheme assets 5.65% 4.70%
RPI Inflation assumption 3.00% 2.90%
CPI Inflation assumption 2.55% 2.40%
The Group’s inflation assumption reflects its long-term expectations and has not been amended for short-term variability. The mortality assumptions allow
for expected increases in longevity. The ‘current’ disclosures below relate to assumptions based on the longevity (in years) following retirement at each
reporting date, with “future” relating to an employee retiring in 2044 (2024 assumptions) or 2043 (2023 assumptions).
Projected life expectancy at age 65
Future Current Future Current
Currently
aged 45
2024
Currently
aged 65
2024
Currently
aged 45
2023
Currently
aged 65
2023
Male 22.8 21.5 22.3 21.1
Female 25.5 24.0 25.1 23.7
Years
Average duration of the liabilities in years as at 31 December 2024 17
Average duration of the liabilities in years as at 31 December 2023 19
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
196
17aXFinancialXStatements_v7.indd 19617aXFinancialXStatements_v7.indd 196 13/03/2025 14:5513/03/2025 14:55
25 PROVISIONS
2024
£m
2023
£m
Warrant
y
Total Warrant
y
Total
At the beginning of the year 43.9 43.9 41.1 41.1
Charge for the year 37.5 37.5 29.7 29.7
Utilisation (34.2) (34.2) (27.4) (27.4)
Effect of movements in exchange rates (0.4) (0.4) 0.7 0.7
Release to the Consolidated Income Statement – – (0.2) (0.2)
At the end of the year 46.8 46.8 43.9 43.9
Analysed as:
Current 19.7 19.7 20.2 20.2
Non-current 27.1 27.1 23.7 23.7
46.8 46.8 43.9 43.9
The warranty provision is calculated based on the level of historical claims and is expected to be substantially utilised within the next three years.
26 PENSION OBLIGATIONS
Defined contribution scheme
The Group opened a Defined Contribution scheme in June 2011. The total expense relating to this scheme in the year ended 31 December 2024 was £13.7m
(2023: £20.9m). The Group collects both the employee and employer contributions which are paid to the scheme in the following month. Outstanding
contributions at the 31 December 2024 were £2.3m (2023: £1.9m). Contributions are made by the Group to other pension arrangements for certain
employees of the Group.
Defined Benefit scheme
The Group operates a Defined Benefit Pension Scheme. During 2017, it was agreed and communicated to its members that the scheme’s benefits would be
amended from a final pensionable salary basis to a career average revalued earnings (CARE) basis with effect from 1 January 2018. The scheme was closed
to new entrants on 31 May 2011. The benefits of the existing members were not affected by the closure of the scheme. The assets of the scheme are held
separately from those of the Group. On 31 January 2022, the scheme was closed to future accrual resulting in a curtailment loss of £2.8m.
In constructing the investment strategy for the scheme, the Trustees take due account of the liability profile of the scheme along with the level of
disclosed surplus or deficit. The investment strategy is reviewed on a regular basis and, at a minimum, on a triennial basis to coincide with actuarial valuations.
The primary objectives are to provide security for all beneficiaries and to achieve long-term growth sufficient to finance any pension increases and ensure the
residual cost is held at a reasonable level.
The pension scheme operates under the regulatory framework of the Pensions Act 2004. The Trustee has the primary responsibility for governance of the
scheme. Benefit payments are from Trustee-administered funds and scheme assets are held in a Trust which is governed by UK regulation. The Trustee
comprises representatives of the Group and members of the scheme and an independent, professional Trustee.
The pension scheme exposes the Group to the following risks:
– Asset volatility – the scheme’s Statement of Investment Principles targets around 22% return-enhancing assets and 78% risk-reducing assets. The Trustee
monitors the appropriateness of the scheme’s investment strategy, in consultation with the Group, on an ongoing basis.
– Inflation risk – the majority of benefits are linked to inflation and so increases in inflation will lead to higher liabilities (although in most cases there are
caps in place which protect against extreme inflation).
– Longevity – increases in life expectancy will increase the period over which benefits are expected to be payable, which increases the value placed on the
scheme’s liabilities.
– Changes in bond yields – A decrease in corporate bond yields will increase the value placed on the Scheme liabilities, although this will be partially offset
by an increase in the value of the Scheme’s bond holdings.
The projected unit method has been used to determine the liabilities.
The pension cost is assessed in accordance with the advice of an independent qualified actuary. The latest completed actuarial valuation of the scheme had
an effective date of 6 April 2023. The assumptions that make the most significant effect on the valuation are those relating to the rate of return on investments,
the rate of future inflation-linked pension increases and expected longevity. It was assumed that the investment return would be based on the Bank of England
gilt curve plus 0.5% per annum and that future inflation would be based on the Bank of England inflation curve. At the 6 April 2023 actuarial valuation, the
actuarial value of the scheme assets was £202.6m, sufficient to cover 81% of the actuarial value of the benefits payable to members.
26 PENSION OBLIGATIONS CONTINUED
Defined Benefit scheme continued
On 5 July 2024, the Group agreed to pay recovery plan contributions of £8.0m per annum (reduced from £15.0m per annum prior to this date) effective from
1 July 2024 through to 30 November 2028.
The 6 April 2023 valuation was updated by an independent qualified actuary to 31 December 2024 for the 2024 year end disclosures in accordance with
IAS 19. The next triennial valuation as at 6 April 2026 is due to be completed by July 2027 in line with the scheme-specific funding requirements of the Pensions
Act 2004. As part of that valuation, the Trustee and the Group will review the adequacy of the contributions being paid into the scheme.
Following the High Court ruling in the case of Virgin Media Limited v NTL Pension Trustees II Limited and others in June 2023, it was held that section 37 of
the Pension Schemes Act 1993 operates to make void any amendment to the rules of a contracted out pension scheme without written actuarial confirmation
under Regulation 42(2) of the Occupational Pension Schemes (Contracting Out) Regulations 1996, insofar that the amendment relates to members’ section
9(2B) rights. On 25 July 2024, the court dismissed an appeal and confirmed section 9(2B) rights included both past service rights and future service rights.
The Trustees of the Scheme and the Plan (collectively the “Pension Schemes”) have confirmed that:
– The Pension Schemes were contracted out of the additional state pension between 1997 and 2016; and
– It was possible that amendments were made to the Pension Schemes that may have impacted on the members’ section 9(2B) rights.
The Trustees of the Scheme and the Directors work closely together and take appropriate legal and professional advice when making amendments to the
Pension Schemes. An initial assessment has been undertaken to determine whether any amendments to section 9(2B) rights were made to the Pension
Schemes that were not in accordance with section 37 of the Pension Schemes Act 1993 requirements, however as at 31 December 2024, the assessment is
ongoing and no final conclusions have been reached.
Further, it is not currently possible to reliably estimate any potential impact to the defined benefit obligations of the Pension Schemes if these amendments
were not in accordance with section 37 of the Pension Schemes Act 1993 requirements. The Directors continue to assess the extent of procedures required
to confirm if there is any indication of historic non-compliance.
Assumptions
The principal assumptions used by the actuary were:
31 December 31 December
2024 2023
Discount rate
5.65%
4.70%
Rate of increase in salaries
N/A
N/A
Rate of revaluation in deferment
2.55%
2.40%
Rate of increase in pensions in payment attracting Limited Price Indexation
2.95%
2.85%
Expected return on scheme assets
5.65%
4.70%
RPI Inflation assumption
3.00%
2.90%
CPI Inflation assumption
2.55%
2.40%
The Group’s inflation assumption reflects its long-term expectations and has not been amended for short-term variability. The mortality assumptions allow
for expected increases in longevity. The ‘current’ disclosures below relate to assumptions based on the longevity (in years) following retirement at each
reporting date, with “future” relating to an employee retiring in 2044 (2024 assumptions) or 2043 (2023 assumptions).
Projected life expectancy at age 65
Future
Current
Future
Current
Currently Currently Currently Currently
aged 45 aged 65 aged 45 aged 65
2024 2024 2023 2023
Male
22.8
21.5
22.3
21.1
Female
25.5
24.0
25.1
23.7
Years
Average duration of the liabilities in years as at 31 December 2024
17
Average duration of the liabilities in years as at 31 December 2023
19
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
197
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 19717aXFinancialXStatements_v7.indd 197 13/03/2025 14:5513/03/2025 14:55
26 PENSION OBLIGATIONS CONTINUED
Assumptions continued
The following table provides information on the composition and fair value of the assets of the scheme:
31 December
2024
Quoted
£m
31 December
2024
Unquoted
£m
31 December
2024
Total
£m
31 December
2023
Quoted
£m
31 December
2023
Unquoted
£m
31 December
2023
Total
£m
Asset class
Overseas equities 10.3 – 10.3 5.6 – 5.6
Private debt – 20.8 20.8 – 30.7 30.7
Asset-Backed Securities 10.3 – 10.3 4.3 – 4.3
Liability driven investment 86.0 15.7 101.7 133.3 3.3 136.6
Cash 44.8 – 44.8 30.9 – 30.9
Insurance policies 4.2 – 4.2 4.7 – 4.7
Total 155.6 36.5 192.1 178.8 34.0 212.8
The scheme assets and funded obligations at 31 December are summarised below:
2024 2023
£m £m
Total fair value of scheme assets
192.1
212.8
Present value of funded obligations
(185.9)
(215.9)
Funded status at the end of the year
6.2
(3.1)
Adjustment to reflect minimum funding requirements
(34.9)
(45.9)
Liability recognised in the Consolidated Statement of Financial Position
(28.7)
(49.0)
The adjustment to reflect minimum funding requirements represents the excess of the present value of contractual future recovery plan contributions,
discounted using the assumed scheme discount rate, over the funding status established through the actuarial valuation.
Amounts recognised in the Consolidated Income Statement during the year ended 31 December were as follows:
2024 2023
£m £m
Amounts charged to operating loss:
Current service cost
–
–
Past service cost
–
–
–
–
Amounts charged to finance expense:
Net interest expense on the net Defined Benefit liability
0.1
0.2
Interest expense on the adjustment to reflect minimum funding requirements
(2.1)
(2.9)
Total expense recognised in the Consolidated Income Statement
2.0
(2.7)
26 PENSION OBLIGATIONS CONTINUED
Assumptions continued
Changes in present value of the Defined Benefit pensions obligations are analysed as follows:
2024
£m
2023
£m
At the beginning of the year (215.9) (189.0)
Current service cost – –
Past service cost – –
Interest cost (10.0) (9.1)
Experience gains/(losses) 7.4 (20.4)
Actuarial gains/(losses) arising from changes in financial assumptions 28.7 (3.5)
Distributions 6.3 4.2
Actuarial (losses)/gains arising from changes in demographic assumptions (2.4) 1.9
Obligation at the end of the year (185.9) (215.9)
Changes in the fair value of plan assets are analysed below:
2024
£m
2023
£m
At the beginning of the year 212.8 187.0
Interest on assets 10.1 9.3
Employer contributions 12.1 15.0
Return on scheme assets excluding interest income (36.6) 5.6
Distributions (6.3) (4.1)
Fair value at the end of the year 192.1 212.8
2024
£m
2023
£m
Actual return on scheme assets (26.5) 14.9
Analysis of amounts recognised in the Consolidated Statement of Financial Position:
2024
£m
2023
£m
Liability at the beginning of the year (49.0) (61.2)
Net expense recognised in the Consolidated Income Statement (2.0) (2.7)
Employer contributions 12.1 15.0
Gain/(loss) recognised in Other Comprehensive Income 10.2 (0.1)
Liability recognised in the Consolidated Statement of Financial Position at the end of the year (28.7) (49.0)
Analysis of amount taken to Other Comprehensive Income:
2024
£m
2023
£m
Return on scheme assets excluding interest income (36.6) 5.6
Experience gains/(losses) arising on funded obligations 7.4 (20.4)
Gains/(losses) arising due to changes in financial assumptions underlying the present value of funded obligations 28.7 (3.5)
Gains arising as a result of adjustment made to reflect minimum funding requirements 13.1 16.3
(Losses)/gains arising due to changes in demographic assumptions (2.4) 1.9
Amount recognised in Other Comprehensive Income 10.2 (0.1)
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
198
17aXFinancialXStatements_v7.indd 19817aXFinancialXStatements_v7.indd 198 13/03/2025 14:5513/03/2025 14:55
26 PENSION OBLIGATIONS CONTINUED
Assumptions continued
The following table provides information on the composition and fair value of the assets of the scheme:
31 December
2024
Quoted
£m
31 December
2024
Unquoted
£m
31 December
2024
Total
£m
31 December
2023
Quoted
£m
31 December
2023
Unquoted
£m
31 December
2023
Total
£m
Asset class
Overseas equities 10.3 – 10.3 5.6 – 5.6
Private debt – 20.8 20.8 – 30.7 30.7
Asset-Backed Securities 10.3 – 10.3 4.3 – 4.3
Liability driven investment 86.0 15.7 101.7 133.3 3.3 136.6
Cash 44.8 – 44.8 30.9 – 30.9
Insurance policies 4.2 – 4.2 4.7 – 4.7
Total 155.6 36.5 192.1 178.8 34.0 212.8
The scheme assets and funded obligations at 31 December are summarised below:
2024
£m
2023
£m
Total fair value of scheme assets 192.1 212.8
Present value of funded obligations (185.9) (215.9)
Funded status at the end of the year 6.2 (3.1)
Adjustment to reflect minimum funding requirements (34.9) (45.9)
Liability recognised in the Consolidated Statement of Financial Position (28.7) (49.0)
The adjustment to reflect minimum funding requirements represents the excess of the present value of contractual future recovery plan contributions,
discounted using the assumed scheme discount rate, over the funding status established through the actuarial valuation.
Amounts recognised in the Consolidated Income Statement during the year ended 31 December were as follows:
2024
£m
2023
£m
Amounts charged to operating loss:
Current service cost – –
Past service cost – –
– –
Amounts charged to finance expense:
Net interest expense on the net Defined Benefit liability 0.1 0.2
Interest expense on the adjustment to reflect minimum funding requirements (2.1) (2.9)
Total expense recognised in the Consolidated Income Statement 2.0 (2.7)
26 PENSION OBLIGATIONS CONTINUED
Assumptions continued
Changes in present value of the Defined Benefit pensions obligations are analysed as follows:
2024 2023
£m £m
At the beginning of the year
(215.9)
(189.0)
Current service cost
–
–
Past service cost
–
–
Interest cost
(10.0)
(9.1)
Experience gains/(losses)
7.4
(20.4)
Actuarial gains/(losses) arising from changes in financial assumptions
28.7
(3.5)
Distributions
6.3
4.2
Actuarial (losses)/gains arising from changes in demographic assumptions
(2.4)
1.9
Obligation at the end of the year
(185.9)
(215.9)
Changes in the fair value of plan assets are analysed below:
2024 2023
£m £m
At the beginning of the year
212.8
187.0
Interest on assets
10.1
9.3
Employer contributions
12.1
15.0
Return on scheme assets excluding interest income
(36.6)
5.6
Distributions
(6.3)
(4.1)
Fair value at the end of the year
192.1
212.8
2024 2023
£m £m
Actual return on scheme assets
(26.5)
14.9
Analysis of amounts recognised in the Consolidated Statement of Financial Position:
2024 2023
£m £m
Liability at the beginning of the year
(49.0)
(61.2)
Net expense recognised in the Consolidated Income Statement
(2.0)
(2.7)
Employer contributions
12.1
15.0
Gain/(loss) recognised in Other Comprehensive Income
10.2
(0.1)
Liability recognised in the Consolidated Statement of Financial Position at the end of the year
(28.7)
(49.0)
Analysis of amount taken to Other Comprehensive Income:
2024 2023
£m £m
Return on scheme assets excluding interest income
(36.6)
5.6
Experience gains/(losses) arising on funded obligations
7.4
(20.4)
Gains/(losses) arising due to changes in financial assumptions underlying the present value of funded obligations
28.7
(3.5)
Gains arising as a result of adjustment made to reflect minimum funding requirements
13.1
16.3
(Losses)/gains arising due to changes in demographic assumptions
(2.4)
1.9
Amount recognised in Other Comprehensive Income
10.2
(0.1)
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
199
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 19917aXFinancialXStatements_v7.indd 199 13/03/2025 14:5513/03/2025 14:55
26 PENSION OBLIGATIONS CONTINUED
Sensitivity analysis of the principal assumptions used to measure scheme liabilities
At 31 December 2024 the present value of the benefit obligation was £185.9m (2023: £215.9m) and its sensitivity to changes in key assumptions were:
Present value Present value
of benefit of benefit
obligations at obligations at
31 December 31 December
Change in 2024 2023
assum
p
tion
£m £m
Discount rate
Decrease by 1%
220.3
260.3
Rate of inflation*
Increase by 0.25%
190.9
222.5
Life expectancy increased by approximately 1 year
Increase by one year
191.5
223.2
* This sensitivity allows for the impact on all inflation-related assumptions (salary increases, deferred revaluation and pension increases).
Funding levels are monitored on a regular basis by the Trustee and the Group to ensure the security of members’ benefits. The next triennial valuation, as at
6 April 2026, is due to be completed by July 2027 in line with the scheme-specific funding requirements of the Pensions Act 2004. As part of that valuation
the Trustee and the Group will review the adequacy of the contributions being paid into the scheme.
2024 2023
£m £m
Expected future benefit payments
Year 1 (2025/2024)
9.9
10.6
Year 2 (2026/2025)
10.2
10.9
Year 3 (2027/2026)
10.5
11.2
Year 4 (2028/2027)
10.8
11.6
Year 5 (2029/2028)
11.1
11.9
Years 6 to 10 (2030 to 2034/2029 to 2033)
59.6
63.7
History of scheme experience
2024
2023
Present value of the scheme liabilities (£m)
(185.9)
(215.9)
Fair value of the scheme assets (£m)
192.1
212.8
Surplus/(deficit) in the scheme before adjusting to reflect minimum funding requirements (£m)
6.2
(3.1)
Experience (losses)/gains on scheme assets excluding interest income (£m)
(36.6)
5.6
Percentage of scheme assets
(19.1)%
2.6%
Return on scheme liabilities (£m)
7.4
(20.4)
Percentage of the present value of the scheme liabilities
(4.0)%
9.4%
Total amount recognised in Other Comprehensive Income (£m)
10.2
(0.1)
Percentage of the present value of the scheme liabilities
(5.5)%
0.0%
27 SHARE CAPITAL AND OTHER RESERVES
Allotted, called u
p
and full
y
p
aid
Number of
shares
Nominal
value
£
Share
capital
£m
Share
premium
£m
Merger
reserve
£m
Capital
redemption
reserve
£m
Opening balance at 1 January 2023 698,757,075 69.9 1,697.4 143.9 9.3
Private placing
1
28,300,000 0.1 2.8 91.7 – –
Issuance of shares to SIP
2
1,017,505 0.1 0.1 – – –
Exercise of warrant options
3
8,990,975 0.1 0.9 14.1 – –
Placing
4
58,245,957 0.1 5.9 206.9 – –
Consideration shares
5
28,352,273 0.1 2.8 84.4 – –
Balance as at 31 December 2023 and 1 January 2024 823,663,785 82.4 2,094.5 143.9 9.3
Issuance of shares as part of vested long-term incentive plans
6
78,050 0.1 0.0 – – –
Issuance of shares to SIP
7
1,283,696 0.1 0.1 – – –
Non-pre-emptive Placing
8
111,249,416 0.1 11.1 98.1 – –
Closing balance at 31 December 2024 936,274,947 93.6 2,192.6 143.9 9.3
1. On 26 May 2023, the Company issued 28,300,000 ordinary shares by way of a private placing. The shares were issued at 335p raising gross proceeds of £94.8m with £2.8m recognised as share
capital and the remaining £92.0m recognised as share premium. Transaction fees of £0.3m were deducted from share premium.
2. On 30 May 2023, the Company issued 1,017,505 ordinary shares under the Company’s Share Incentive Plan at nominal value. A transfer from retained earnings of £0.1m took place, with £0.1m
recognised as share capital.
3. On 4 July 2023, 3,686,017 ordinary shares were issued to satisfy the redemption of certain warrant options. Further issuances of 3,980,921 ordinary shares on 12 July 2023 and 1,324,037 ordinary
shares on 31 July 2023 took place. These transactions resulted in the recognition of £0.9m of share capital with the balance of £14.1m being recognised as share premium.
4. On 3 August 2023, the Company issued a total of 58,245,957 ordinary shares comprising 56,750,000 placing shares, 1,078,168 retail offer shares and 417,789 Director subscription shares.
The shares were issued at 371p raising gross proceeds of £216.1m, with £5.9m recognised as share capital, the remaining £210.2m as share premium, offset by £3.3m of fees.
5. On 6 November 2023, the Company issued consideration shares to Lucid Group, Inc. in part payment for access to technology. The fair value of technology was evaluated (see note 12) which
determined the issue price of the shares. £2.8m was recognised as share capital with an initial £85.8m as share premium. £1.4m of transaction fees were then deducted from share premium.
6. On 6 March 2024, the Company issued 78,050 ordinary shares to satisfy the vesting of the 2021 Long Term Incentive Plan and buyout award. The shares were issued at nominal value and resulted
in the recognition of <£0.1m of share capital and no impact upon share premium.
7. On 13 May 2024, the Company issued 1,283,696 ordinary shares under the Company’s Share Incentive Plan at nominal value. A transfer from retained earnings of £0.1m took place, with £0.1m
recognised in share capital.
8. On 29 November 2024, the Company issued a total of 111,249,416 ordinary shares comprising 109,000,000 placing shares, 1,249,416 retail offer shares and 1,000,000 Director subscription
shares by way of a non-pre-emptive placing. The shares were issued at 100p, raising gross proceeds of £111.2m, with £11.1m recognised as share capital and the remaining £100.1m recognised
as share premium. Transaction fees of £2.0m were deducted from share premium.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
200
17aXFinancialXStatements_v7.indd 20017aXFinancialXStatements_v7.indd 200 13/03/2025 14:5513/03/2025 14:55
26 PENSION OBLIGATIONS CONTINUED
Sensitivity analysis of the principal assumptions used to measure scheme liabilities
At 31 December 2024 the present value of the benefit obligation was £185.9m (2023: £215.9m) and its sensitivity to changes in key assumptions were:
Change in
assum
p
tion
Present value
of benefit
obligations at
31 December
2024
£m
Present value
of benefit
obligations at
31 December
2023
£m
Discount rate Decrease by 1% 220.3 260.3
Rate of inflation* Increase by 0.25% 190.9 222.5
Life expectancy increased by approximately 1 year Increase by one year 191.5 223.2
* This sensitivity allows for the impact on all inflation-related assumptions (salary increases, deferred revaluation and pension increases).
Funding levels are monitored on a regular basis by the Trustee and the Group to ensure the security of members’ benefits. The next triennial valuation, as at
6 April 2026, is due to be completed by July 2027 in line with the scheme-specific funding requirements of the Pensions Act 2004. As part of that valuation
the Trustee and the Group will review the adequacy of the contributions being paid into the scheme.
2024
£m
2023
£m
Expected future benefit payments
Year 1 (2025/2024) 9.9 10.6
Year 2 (2026/2025) 10.2 10.9
Year 3 (2027/2026) 10.5 11.2
Year 4 (2028/2027) 10.8 11.6
Year 5 (2029/2028) 11.1 11.9
Years 6 to 10 (2030 to 2034/2029 to 2033) 59.6 63.7
History of scheme experience
2024 2023
Present value of the scheme liabilities (£m) (185.9) (215.9)
Fair value of the scheme assets (£m) 192.1 212.8
Surplus/(deficit) in the scheme before adjusting to reflect minimum funding requirements (£m) 6.2 (3.1)
Experience (losses)/gains on scheme assets excluding interest income (£m) (36.6) 5.6
Percentage of scheme assets (19.1)% 2.6%
Return on scheme liabilities (£m) 7.4 (20.4)
Percentage of the present value of the scheme liabilities (4.0)% 9.4%
Total amount recognised in Other Comprehensive Income (£m) 10.2 (0.1)
Percentage of the present value of the scheme liabilities (5.5)% 0.0%
27 SHARE CAPITAL AND OTHER RESERVES
Capital
Nominal Share Share Merger redemption
Number of value capital premium reserve reserve
Allotted, called u
p
and full
y
p
aid
shares £ £m £m £m £m
Opening balance at 1 January 2023
698,757,075
69.9
1,697.4
143.9
9.3
Private placing
1
28,300,000
0.1
2.8
91.7
–
–
Issuance of shares to SIP
2
1,017,505
0.1
0.1
–
–
–
Exercise of warrant options
3
8,990,975
0.1
0.9
14.1
–
–
Placing
4
58,245,957
0.1
5.9
206.9
–
–
Consideration shares
5
28,352,273
0.1
2.8
84.4
–
–
Balance as at 31 December 2023 and 1 January 2024
823,663,785
82.4
2,094.5
143.9
9.3
Issuance of shares as part of vested long-term incentive plans
6
78,050
0.1
0.0
–
–
–
Issuance of shares to SIP
7
1,283,696
0.1
0.1
–
–
–
Non-pre-emptive Placing
8
111,249,416
0.1
11.1
98.1
–
–
Closing balance at 31 December 2024
936,274,947
93.6
2,192.6
143.9
9.3
1. On 26 May 2023, the Company issued 28,300,000 ordinary shares by way of a private placing. The shares were issued at 335p raising gross proceeds of £94.8m with £2.8m recognised as share
capital and the remaining £92.0m recognised as share premium. Transaction fees of £0.3m were deducted from share premium.
2. On 30 May 2023, the Company issued 1,017,505 ordinary shares under the Company’s Share Incentive Plan at nominal value. A transfer from retained earnings of £0.1m took place, with £0.1m
recognised as share capital.
3. On 4 July 2023, 3,686,017 ordinary shares were issued to satisfy the redemption of certain warrant options. Further issuances of 3,980,921 ordinary shares on 12 July 2023 and 1,324,037 ordinary
shares on 31 July 2023 took place. These transactions resulted in the recognition of £0.9m of share capital with the balance of £14.1m being recognised as share premium.
4. On 3 August 2023, the Company issued a total of 58,245,957 ordinary shares comprising 56,750,000 placing shares, 1,078,168 retail offer shares and 417,789 Director subscription shares.
The shares were issued at 371p raising gross proceeds of £216.1m, with £5.9m recognised as share capital, the remaining £210.2m as share premium, offset by £3.3m of fees.
5. On 6 November 2023, the Company issued consideration shares to Lucid Group, Inc. in part payment for access to technology. The fair value of technology was evaluated (see note 12) which
determined the issue price of the shares. £2.8m was recognised as share capital with an initial £85.8m as share premium. £1.4m of transaction fees were then deducted from share premium.
6. On 6 March 2024, the Company issued 78,050 ordinary shares to satisfy the vesting of the 2021 Long Term Incentive Plan and buyout award. The shares were issued at nominal value and resulted
in the recognition of <£0.1m of share capital and no impact upon share premium.
7. On 13 May 2024, the Company issued 1,283,696 ordinary shares under the Company’s Share Incentive Plan at nominal value. A transfer from retained earnings of £0.1m took place, with £0.1m
recognised in share capital.
8. On 29 November 2024, the Company issued a total of 111,249,416 ordinary shares comprising 109,000,000 placing shares, 1,249,416 retail offer shares and 1,000,000 Director subscription
shares by way of a non-pre-emptive placing. The shares were issued at 100p, raising gross proceeds of £111.2m, with £11.1m recognised as share capital and the remaining £100.1m recognised
as share premium. Transaction fees of £2.0m were deducted from share premium.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
201
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 20117aXFinancialXStatements_v7.indd 201 13/03/2025 14:5513/03/2025 14:55
28 ADDITIONAL CASH FLOW INFORMATION
Reconciliation of movements of select liabilities to cash flows arising from financing activities
The tables below reconcile movements of liabilities classified within net debt (note 24) to cash flows arising from financing activities for the years ended
31 December 2024 and 2023.
Other
borrowings and $1,184.0m 10.5% $335m 15% $1,050m 10% £565m 10.375%
inventory Lease First Lien Second Lien Senior Secured Senior Secured
arrangements Liabilities Notes Notes Notes Notes Total
Liabilities £m £m £m £m £m £m £m
At 1 January 2024
129.1
97.3
890.0
90.3
–
–
1,206.7
Changes from financing cash flows
Interest paid
(6.2)
(4.2)
(36.6)
(3.3)
(45.0)
(26.7)
(122.0)
Principal lease payment
–
(9.5)
–
–
–
–
(9.5)
Proceeds from new borrowings
10.0
–
–
–
823.6
561.0
1,394.6
Repayment of existing borrowings
(90.0)
–
(897.2)
(97.7)
–
–
(1,084.9)
Premium paid on the early redemption of Senior
Secured Notes
–
–
(28.1)
(7.6)
–
–
(35.7)
Inventory repurchase repayment
(80.0)
–
–
–
–
–
(80.0)
Inventory repurchase drawdown
75.4
–
–
–
–
–
75.4
Total changes from financing cash flows
(90.8)
(13.7)
(961.9)
(108.6)
778.6
534.3
137.9
Effect of changes in exchange rates
–
(0.5)
–
–
14.1
–
13.6
New leases under IFRS 16
–
7.7
–
–
–
–
7.7
Modifications to existing leases
–
1.6
–
–
–
–
1.6
Interest expense
15.3
4.2
56.2
16.9
61.6
37.1
191.3
Movement in accrued interest
(0.6)
–
15.7
1.4
(14.0)
(8.8)
(6.3)
Transaction costs incurred
(2.0)
–
–
–
(14.1)
(9.9)
(26.0)
Financing expense in the Consolidated Income
Statement classified as operating cash flow
(4.2)
–
–
–
–
–
(4.2)
Balance at 31 December 2024
46.8
96.6
–
–
826.2
552.7
1,522.3
Other borrowings $335m 15%
and inventory Lease $1,184.0m 10.5% Second Lien
arrangements Liabilities First Lien Notes Notes Total
Liabilities £m £m £m £m £m
At 1 January 2023
145.3
99.8
935.0
169.0
1,349.1
Changes from financing cash flows
Interest paid
(3.6)
(4.1)
(97.9)
(16.9)
(122.5)
Principal lease payment
–
(7.9)
–
–
(7.9)
Proceeds from new borrowings
11.5
–
–
–
11.5
Repayment of existing borrowings
(30.0)
–
–
(99.7)
(129.7)
Premium paid on the early redemption of Senior Secured Notes
–
–
–
(8.0)
(8.0)
Inventory repurchase repayment
(40.0)
–
–
–
(40.0)
Inventory repurchase drawdown
38.0
–
–
–
38.0
Total changes from financing cash flows
(24.1)
(12.0)
(97.9)
(124.6)
(258.6)
Effect of changes in exchange rates
–
(1.0)
(54.0)
(6.8)
(61.8)
New leases under IFRS 16
–
5.8
–
–
5.8
Modifications to existing leases
–
0.6
–
–
0.6
Interest expense
11.0
4.1
106.4
51.4
172.9
Movement in accrued interest
(0.6)
–
0.5
1.3
1.2
Financing expense in the Consolidated Income Statement classified
as operating cash flow
(2.5)
–
–
–
(2.5)
Balance at 31 December 2023
129.1
97.3
890.0
90.3
1,206.7
29 SHARE-BASED PAYMENTS
Long-term incentive schemes
On 4 June 2024, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive Plan
(“2024 LTIP”). On 5 November 2024, the CEO was granted share awards under the 2024 LTIP. On 9 December 2024, additional employees were granted
conditional share awards under an extension to the same plan. The total charge recognised in the Consolidated Income Statement in relation to this scheme
was £2.8m.
On 24 May 2023, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive Plan
(“2023 LTIP”). On 12 December 2023, additional employees were granted conditional share awards under an extension to the same plan. The total charge
recognised in the Consolidated Income Statement in relation to this scheme was £2.8m (2023: £3.4m).
On 13 and 14 June 2022, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive
Plan (“2022 LTIP”). On 15 December 2022, additional employees were granted conditional share awards under an extension to the same plan. The total credit
recognised in the Consolidated Income Statement in relation to this scheme was £1.9m (2023: charge of £1.6m).
On 14 June 2021, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive Plan
(“2021 LTIP”). On 14 December 2021, additional employees were granted conditional share awards under an extension to the same plan. The total charge
recognised in the Consolidated Income Statement in relation to this scheme was £0.1m (2023: £nil). A total of 80,800 shares vested under the scheme, of
which 9,644 were exercised at nil cost.
The fair value of equity-settled share options and share awards granted is estimated at the date of grant using share option valuation models. The schemes
are valued using the Monte Carlo model.
The following tables list the inputs to the models for share-based payment costs in the year:
2024 grant
of 2024 LTIP
2023 grant
of 2023 LTIP
2022 grant
of 2022 LTIP
Aggregate fair value at measurement date (£m) 17.4 18.6 6.1
Exercise price (p) £nil £nil £nil
Expected volatility (%) 65.0% 70.0% 50.0%
Dividend yield (%) N/A N/A N/A
Risk free interest rate (%) 4.34% 4.25% 2.16%
The expected volatility is wholly based on the historical volatility of the Company’s share price over a period from listing in 2018 to date.
The following table details the outstanding options under the LTIP schemes:
2024
Number
2023
Numbe
r
Options outstanding at 1 January 12,684,126 5,267,164
Granted 16,855,644 8,329,424
Forfeited (3,898,537) (499,228)
Lapsed due to non-attainment of conditions (3,603,841) (413,234)
Exercised (9,644) –
Options outstanding at 31 December 22,027,748 12,684,126
Free employee shares
On 5 June 2024, all UK employees of the Group were awarded up to 500 free shares in the Company under a Share Incentive Plan. A total of 1,283,696 shares
were issued to the Aston Martin Employee Share Trust and immediately vested (see note 27). Employees must remain employed for a period of three years
to earn the shares, otherwise they are forfeited. Employees within the Group not domiciled in the UK were awarded 500 free options under the LTIP rules.
A total of 83,049 options were granted to these employees. Provided those employees remain employed by the Company for three years, the nil-cost options
will vest with no other performance conditions.
On 19 May 2023, all UK employees of the Group were awarded up to 425 free shares in the Company under a Share Incentive Plan. A total of 1,017,505 shares
were issued to the Aston Martin Employee Share Trust and immediately vested (see note 27). Employees must remain employed for a period of three years
to earn the shares, otherwise they are forfeited. Employees within the Group not domiciled in the UK were awarded 425 free options under the LTIP rules.
A total of 57,322 options were granted to these employees. Provided those employees remain employed by the Company for three years, the nil-cost options
will vest with no other performance conditions.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
202
17aXFinancialXStatements_v7.indd 20217aXFinancialXStatements_v7.indd 202 13/03/2025 14:5513/03/2025 14:55
28 ADDITIONAL CASH FLOW INFORMATION
Reconciliation of movements of select liabilities to cash flows arising from financing activities
The tables below reconcile movements of liabilities classified within net debt (note 24) to cash flows arising from financing activities for the years ended
31 December 2024 and 2023.
Liabilities
Other
borrowings and
inventory
arrangements
£m
Lease
Liabilities
£m
$1,184.0m 10.5%
First Lien
Notes
£m
$335m 15%
Second Lien
Notes
£m
$1,050m 10%
Senior Secured
Notes
£m
£565m 10.375%
Senior Secured
Notes
£m
Total
£m
At 1 January 2024 129.1 97.3 890.0 90.3 – – 1,206.7
Changes from financing cash flows
Interest paid (6.2) (4.2) (36.6) (3.3) (45.0) (26.7) (122.0)
Principal lease payment – (9.5) – – – – (9.5)
Proceeds from new borrowings 10.0 – – – 823.6 561.0 1,394.6
Repayment of existing borrowings (90.0) – (897.2) (97.7) – – (1,084.9)
Premium paid on the early redemption of Senior
Secured Notes –
– (28.1) (7.6) – – (35.7)
Inventory repurchase repayment (80.0) – – – – – (80.0)
Inventory repurchase drawdown 75.4 – – – – – 75.4
Total changes from financing cash flows (90.8) (13.7) (961.9) (108.6) 778.6 534.3 137.9
Effect of changes in exchange rates – (0.5) – – 14.1 – 13.6
New leases under IFRS 16 – 7.7 – – – – 7.7
Modifications to existing leases – 1.6 – – – – 1.6
Interest expense 15.3 4.2 56.2 16.9 61.6 37.1 191.3
Movement in accrued interest (0.6) – 15.7 1.4 (14.0) (8.8) (6.3)
Transaction costs incurred (2.0) – – – (14.1) (9.9) (26.0)
Financing expense in the Consolidated Income
Statement classified as operating cash flow (4.2) – – – – – (4.2)
Balance at 31 December 2024 46.8 96.6 – – 826.2 552.7 1,522.3
Liabilities
Other borrowings
and inventory
arrangements
£m
Lease
Liabilities
£m
$1,184.0m 10.5%
First Lien Notes
£m
$335m 15%
Second Lien
Notes
£m
Total
£m
At 1 January 2023 145.3 99.8 935.0 169.0 1,349.1
Changes from financing cash flows
Interest paid (3.6) (4.1) (97.9) (16.9) (122.5)
Principal lease payment – (7.9) – – (7.9)
Proceeds from new borrowings 11.5 – – – 11.5
Repayment of existing borrowings (30.0) – – (99.7) (129.7)
Premium paid on the early redemption of Senior Secured Notes – – – (8.0) (8.0)
Inventory repurchase repayment (40.0) – – – (40.0)
Inventory repurchase drawdown 38.0 – – – 38.0
Total changes from financing cash flows (24.1) (12.0) (97.9) (124.6) (258.6)
Effect of changes in exchange rates – (1.0) (54.0) (6.8) (61.8)
New leases under IFRS 16 – 5.8 – – 5.8
Modifications to existing leases – 0.6 – – 0.6
Interest expense 11.0 4.1 106.4 51.4 172.9
Movement in accrued interest (0.6) – 0.5 1.3 1.2
Financing expense in the Consolidated Income Statement classified
as operating cash flow (2.5) – – – (2.5)
Balance at 31 December 2023 129.1 97.3 890.0 90.3 1,206.7
29 SHARE-BASED PAYMENTS
Long-term incentive schemes
On 4 June 2024, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive Plan
(“2024 LTIP”). On 5 November 2024, the CEO was granted share awards under the 2024 LTIP. On 9 December 2024, additional employees were granted
conditional share awards under an extension to the same plan. The total charge recognised in the Consolidated Income Statement in relation to this scheme
was £2.8m.
On 24 May 2023, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive Plan
(“2023 LTIP”). On 12 December 2023, additional employees were granted conditional share awards under an extension to the same plan. The total charge
recognised in the Consolidated Income Statement in relation to this scheme was £2.8m (2023: £3.4m).
On 13 and 14 June 2022, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive
Plan (“2022 LTIP”). On 15 December 2022, additional employees were granted conditional share awards under an extension to the same plan. The total credit
recognised in the Consolidated Income Statement in relation to this scheme was £1.9m (2023: charge of £1.6m).
On 14 June 2021, Executive Directors and certain other employees were granted conditional share awards under the Company’s Long-Term Incentive Plan
(“2021 LTIP”). On 14 December 2021, additional employees were granted conditional share awards under an extension to the same plan. The total charge
recognised in the Consolidated Income Statement in relation to this scheme was £0.1m (2023: £nil). A total of 80,800 shares vested under the scheme, of
which 9,644 were exercised at nil cost.
The fair value of equity-settled share options and share awards granted is estimated at the date of grant using share option valuation models. The schemes
are valued using the Monte Carlo model.
The following tables list the inputs to the models for share-based payment costs in the year:
2024 grant 2023 grant 2022 grant
of 2024
LTIP
of 2023
LTIP
of 2022
LTIP
Aggregate fair value at measurement date (£m)
17.4
18.6
6.1
Exercise price (p)
£nil
£nil
£nil
Expected volatility (%)
65.0%
70.0%
50.0%
Dividend yield (%)
N/A
N/A
N/A
Risk free interest rate (%)
4.34%
4.25%
2.16%
The expected volatility is wholly based on the historical volatility of the Company’s share price over a period from listing in 2018 to date.
The following table details the outstanding options under the LTIP schemes:
2024 2023
Number
Numbe
r
Options outstanding at 1 January
12,684,126
5,267,164
Granted
16,855,644
8,329,424
Forfeited
(3,898,537)
(499,228)
Lapsed due to non-attainment of conditions
(3,603,841)
(413,234)
Exercised
(9,644)
–
Options outstanding at 31 December
22,027,748
12,684,126
Free employee shares
On 5 June 2024, all UK employees of the Group were awarded up to 500 free shares in the Company under a Share Incentive Plan. A total of 1,283,696 shares
were issued to the Aston Martin Employee Share Trust and immediately vested (see note 27). Employees must remain employed for a period of three years
to earn the shares, otherwise they are forfeited. Employees within the Group not domiciled in the UK were awarded 500 free options under the LTIP rules.
A total of 83,049 options were granted to these employees. Provided those employees remain employed by the Company for three years, the nil-cost options
will vest with no other performance conditions.
On 19 May 2023, all UK employees of the Group were awarded up to 425 free shares in the Company under a Share Incentive Plan. A total of 1,017,505 shares
were issued to the Aston Martin Employee Share Trust and immediately vested (see note 27). Employees must remain employed for a period of three years
to earn the shares, otherwise they are forfeited. Employees within the Group not domiciled in the UK were awarded 425 free options under the LTIP rules.
A total of 57,322 options were granted to these employees. Provided those employees remain employed by the Company for three years, the nil-cost options
will vest with no other performance conditions.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
203
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 20317aXFinancialXStatements_v7.indd 203 13/03/2025 14:5513/03/2025 14:55
29 SHARE-BASED PAYMENTS CONTINUED
Free employee shares continued
The total charge recognised in the Consolidated Income Statement in relation to the free employee shares schemes was £1.0m (2023: £0.4m).
The following table details the outstanding shares under both the UK and non-UK scheme combined:
2024 2023
Number
Numbe
r
Awards/options outstanding at 1 January
1,024,416
–
Granted
1,366,745
1,074,827
Forfeited
(49,466)
(50,411)
Awards/options outstanding at 31 December
2,341,695
1,024,416
Other share-based payments
On 5 June 2024 the CEO was awarded a combined 109,677 nil-cost options under the Deferred Share Bonus Plan(“DSBP”). These options vest on 5 June 2027.
The total expense arising from equity-settled share-based payments is as follows:
2024 2023
£m £m
2024
LTIP share option charge
2.8
–
2023
LTIP share option charge
2.8
3.4
2022
LTIP share option charge
(1.9)
1.6
2021
LTIP share option charge
0.1
–
Employee Share Incentive Plan
1.0
0.4
4.8
5.4
30 CAPITAL COMMITMENTS
Property, plant and equipment expenditure contracts to the value of £34.3m (2023: £37.3m) have been committed but not provided for as at 31 December 2024.
Contracts to the value of £27.8m (2023: £61.3m) have been committed for the acquisition of intangible assets but not provided for as at 31 December 2024.
Certain contracts contain financial commitments, in particular purchase commitments and guarantees, which are of a magnitude typical for the industry.
31 RELATED PARTY TRANSACTIONS
Transactions between Group undertakings, which are related parties, have been eliminated on consolidation and accordingly are not disclosed.
Transactions with Directors and related undertakings
Transactions during 2024
During the year ended 31 December 2024, a net marketing expense amounting to £18.9m of sponsorship has been incurred in the normal course of business
with AMR GP Limited ("AMR GP"), an entity indirectly controlled by a member of the Group's Key Management Personnel ("KMP"). AMR GP and its legal
structure is separate to that of the Group and the Group does not have control or significant influence over AMR GP or its affiliates. £0.9m remains due from
AMR GP at 31 December 2024 relating to these transactions. Under the terms of the sponsorship agreement the Group is required to provide one fleet vehicle
to each of the two AMR GP racing drivers free of charge. This arrangement is expected to continue for the life of the contract and is not expected to materially
affect the financial position and performance of the Group. One of the racing drivers is an immediate family member of one of the Group's KMP.
In addition, the Group incurred costs of £5.1m associated with engineering design on two upcoming vehicle programmes from Aston Martin Performance
Technologies Limited ("AMPT") of which £1.3m is outstanding to AMPT at 31 December 2024. AMPT is an associated entity of AMR GP.
During the year ended 31 December 2024, Classic Automobiles Inc. purchased a vehicle for £3.3m of which £nil was outstanding at 31 December 2024.
Classic Automobiles Inc. is controlled by a member of the Group's KMP.
During the year ended 31 December 2024, the Group incurred a rental expense of £1.3m from Michael Kors (USA), Inc., a Company which is owned
by Capri Holdings Limited. A member of the Group's KMP and Non-Executive Director is also a member of Capri Holdings Limited KMP.
During the year ended 31 December 2024, the Group incurred expenses of £3.8m from Lucid, Inc relating to the implementation work for the technology
purchased in 2023. £0.6m was outstanding as at 31 December 2024. An outstanding cash liability of £71.7m relating to the technology supply arrangement
entered in 2023 remains as at 31 December 2024, all of which is due in 2025 or later. The supply arrangement commits to an effective future minimum spend
with Lucid on powertrain components of £177.0m. The arrangement is considered a Related Party Transaction owing to the substantial ownership of Lucid
by the Public Investment Fund (“PIF”). PIF are a substantial shareholder of the Group, and two members of the Group's KMP & Non-Executive Directors are
members of PIF's KMP.
31 RELATED PARTY TRANSACTIONS CONTINUED
Transactions with Directors and related undertakings continued
Transactions during 2024 continued
During the year ended 31 December 2024, the Group incurred costs of £0.4m for safety testing services from companies within the Geely Holding Group
of companies. A further £0.6m of expense was incurred relating to a feasibility study for vehicle development. Owing to the nature of such a study, there is
no comparable market offering. A member of the Group's KMP and Non-Executive Director is also a member of Zhejiang Geely Holding Group Co.,
Limited KMP. £nil is outstanding as at 31 December 2024.
Transactions during 2023
During the year ended 31 December 2023, a net marketing expense amounting to £19.4m of sponsorship has been incurred in the normal course of business
with AMR GP Limited (“AMR GP”), an entity indirectly controlled by a member of the Group’s Key Management Personnel (“KMP”). AMR GP and its legal
structure is separate to that of the Group and the Group does not have control or significant influence over AMR GP or its affiliates. £0.7m remains due from
AMR GP at 31 December 2023 relating to these transactions.
During the year ended 31 December 2023 the Group extended its sponsorship arrangements with AMR GP for a further period of five years commencing
in 2026. Amounts under this arrangement are due within each financial year from 2026. The Group also exercised its primary warrant option and subscribed
for reward shares under the terms of the original sponsorship arrangement giving the Group a minority stake in AMR GP Holdings Limited, the immediate
parent company of AMR GP limited. The Group paid nominal value for the shares of which £nil was outstanding at year end. Further detail is included in notes
15 and 20. Under the terms of the sponsorship agreement the Group is required to provide one fleet vehicle to the two AMR GP racing drivers free of charge.
This arrangement is expected to continue for the life of the contract and is not expected to materially affect the financial position and performance of the
Group. One of the racing drivers is an immediate family member of one of the Group’s KMP. A separate immediate family member of one of the Group's KMP
incurred costs of less than £0.1m relating to the export and transport of a vehicle. The services were provided by a Group company. £nil was outstanding at
31 December 2023.
In addition, the Group incurred costs of £8.5m associated with engineering design on two upcoming vehicle programmes from Aston Martin Performance
Technologies Limited (“AMPT”) of which £2.8m is outstanding to AMPT at 31 December 2023. AMPT is an associated entity of AMR GP.
During the year ended 31 December 2023, Classic Automobiles Inc. purchased a vehicle for £1.8m of which £nil was outstanding at 31 December 2023.
Classic Automobiles Inc. is controlled by a member of the Group’s KMP.
During the year ended 31 December 2023, a separate member of the Group’s KMP and Non-executive Director purchased a vehicle for £1.8m, having paid
a deposit to the Group in the first half of the year. £nil was outstanding at 31 December 2023.
On 26 June 2023, the Group announced a strategic supply arrangement with Lucid Group, Inc. (“Lucid”) for future access to powertrain components for future
BEV models. The arrangement is considered a Related Party Transaction owing to the substantial ownership of Lucid by the Public Investment Fund (“PIF”).
PIF are also a substantial shareholder of the Group and two members of the Group’s KMP & Non-executive Directors are members of PIF’s KMP. The Group
recognised an asset of £188.5m in relation to the supply agreement. The agreement is part-settled in equity, which was issued to Lucid in November 2023.
An outstanding cash liability of £71.7m relating to the supply arrangement remains at 31 December 2023, all of which is due in more than one year. The supply
arrangements, commit to an effective future minimum spend with Lucid on powertrain components of £177.0m.
During the year ended 31 December 2023, the Group incurred costs of £2.0m for design and engineering work from Pininfarina S.p.A. A member of the
Group’s KMP and Non-executive Director is also a member of Pininfarina S.p.A’s KMP. As of 19 May 2023 the individual ceased to be a member of the Group’s
KMP and therefore any future spend under the contract will not be disclosed as a related party transaction. £nil is outstanding as at 31 December 2023.
During the year ended 31 December 2023, the Group incurred a rental expense of £1.2m from Michael Kors (USA), Inc., a Company which is owned by
Capri Holdings Limited. A member of the Group’s KMP and Non-executive Director is also a member of Michael Kors (USA), Inc.’s KMP.
During the year ended 31 December 2023, the Group incurred consultancy costs of £0.2m from a member of the Group’s KMP and Non-executive Director in
relation to the oversight of two significant legal claims which the Group has been party to. £0.1m was outstanding as at 31 December 2023. Owing to the unique
experience of the individual involved and the specifics of the legal claims, no detailed market price assessment was performed when engaging this service.
During the year ended 31 December 2023, an immediate family member of the Group’s KMP & Non-executive Director provided event services at the opening
of Q New York totalling less than £0.1m of expense. £nil was outstanding at 31 December 2023. No detailed market price assessment was performed when
engaging this service.
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
204
17aXFinancialXStatements_v7.indd 20417aXFinancialXStatements_v7.indd 204 13/03/2025 14:5513/03/2025 14:55
29 SHARE-BASED PAYMENTS CONTINUED
Free employee shares continued
The total charge recognised in the Consolidated Income Statement in relation to the free employee shares schemes was £1.0m (2023: £0.4m).
The following table details the outstanding shares under both the UK and non-UK scheme combined:
2024
Number
2023
Numbe
r
Awards/options outstanding at 1 January 1,024,416 –
Granted 1,366,745 1,074,827
Forfeited (49,466) (50,411)
Awards/options outstanding at 31 December 2,341,695 1,024,416
Other share-based payments
On 5 June 2024 the CEO was awarded a combined 109,677 nil-cost options under the Deferred Share Bonus Plan(“DSBP”). These options vest on 5 June 2027.
The total expense arising from equity-settled share-based payments is as follows:
2024
£m
2023
£m
2024 LTIP share option charge 2.8 –
2023 LTIP share option charge 2.8 3.4
2022 LTIP share option charge (1.9) 1.6
2021 LTIP share option charge 0.1 –
Employee Share Incentive Plan 1.0 0.4
4.8 5.4
30 CAPITAL COMMITMENTS
Property, plant and equipment expenditure contracts to the value of £34.3m (2023: £37.3m) have been committed but not provided for as at 31 December 2024.
Contracts to the value of £27.8m (2023: £61.3m) have been committed for the acquisition of intangible assets but not provided for as at 31 December 2024.
Certain contracts contain financial commitments, in particular purchase commitments and guarantees, which are of a magnitude typical for the industry.
31 RELATED PARTY TRANSACTIONS
Transactions between Group undertakings, which are related parties, have been eliminated on consolidation and accordingly are not disclosed.
Transactions with Directors and related undertakings
Transactions during 2024
During the year ended 31 December 2024, a net marketing expense amounting to £18.9m of sponsorship has been incurred in the normal course of business
with AMR GP Limited ("AMR GP"), an entity indirectly controlled by a member of the Group's Key Management Personnel ("KMP"). AMR GP and its legal
structure is separate to that of the Group and the Group does not have control or significant influence over AMR GP or its affiliates. £0.9m remains due from
AMR GP at 31 December 2024 relating to these transactions. Under the terms of the sponsorship agreement the Group is required to provide one fleet vehicle
to each of the two AMR GP racing drivers free of charge. This arrangement is expected to continue for the life of the contract and is not expected to materially
affect the financial position and performance of the Group. One of the racing drivers is an immediate family member of one of the Group's KMP.
In addition, the Group incurred costs of £5.1m associated with engineering design on two upcoming vehicle programmes from Aston Martin Performance
Technologies Limited ("AMPT") of which £1.3m is outstanding to AMPT at 31 December 2024. AMPT is an associated entity of AMR GP.
During the year ended 31 December 2024, Classic Automobiles Inc. purchased a vehicle for £3.3m of which £nil was outstanding at 31 December 2024.
Classic Automobiles Inc. is controlled by a member of the Group's KMP.
During the year ended 31 December 2024, the Group incurred a rental expense of £1.3m from Michael Kors (USA), Inc., a Company which is owned
by Capri Holdings Limited. A member of the Group's KMP and Non-Executive Director is also a member of Capri Holdings Limited KMP.
During the year ended 31 December 2024, the Group incurred expenses of £3.8m from Lucid, Inc relating to the implementation work for the technology
purchased in 2023. £0.6m was outstanding as at 31 December 2024. An outstanding cash liability of £71.7m relating to the technology supply arrangement
entered in 2023 remains as at 31 December 2024, all of which is due in 2025 or later. The supply arrangement commits to an effective future minimum spend
with Lucid on powertrain components of £177.0m. The arrangement is considered a Related Party Transaction owing to the substantial ownership of Lucid
by the Public Investment Fund (“PIF”). PIF are a substantial shareholder of the Group, and two members of the Group's KMP & Non-Executive Directors are
members of PIF's KMP.
31 RELATED PARTY TRANSACTIONS CONTINUED
Transactions with Directors and related undertakings continued
Transactions during 2024 continued
During the year ended 31 December 2024, the Group incurred costs of £0.4m for safety testing services from companies within the Geely Holding Group
of companies. A further £0.6m of expense was incurred relating to a feasibility study for vehicle development. Owing to the nature of such a study, there is
no comparable market offering. A member of the Group's KMP and Non-Executive Director is also a member of Zhejiang Geely Holding Group Co.,
Limited KMP. £nil is outstanding as at 31 December 2024.
Transactions during 2023
During the year ended 31 December 2023, a net marketing expense amounting to £19.4m of sponsorship has been incurred in the normal course of business
with AMR GP Limited (“AMR GP”), an entity indirectly controlled by a member of the Group’s Key Management Personnel (“KMP”). AMR GP and its legal
structure is separate to that of the Group and the Group does not have control or significant influence over AMR GP or its affiliates. £0.7m remains due from
AMR GP at 31 December 2023 relating to these transactions.
During the year ended 31 December 2023 the Group extended its sponsorship arrangements with AMR GP for a further period of five years commencing
in 2026. Amounts under this arrangement are due within each financial year from 2026. The Group also exercised its primary warrant option and subscribed
for reward shares under the terms of the original sponsorship arrangement giving the Group a minority stake in AMR GP Holdings Limited, the immediate
parent company of AMR GP limited. The Group paid nominal value for the shares of which £nil was outstanding at year end. Further detail is included in notes
15 and 20. Under the terms of the sponsorship agreement the Group is required to provide one fleet vehicle to the two AMR GP racing drivers free of charge.
This arrangement is expected to continue for the life of the contract and is not expected to materially affect the financial position and performance of the
Group. One of the racing drivers is an immediate family member of one of the Group’s KMP. A separate immediate family member of one of the Group's KMP
incurred costs of less than £0.1m relating to the export and transport of a vehicle. The services were provided by a Group company. £nil was outstanding at
31 December 2023.
In addition, the Group incurred costs of £8.5m associated with engineering design on two upcoming vehicle programmes from Aston Martin Performance
Technologies Limited (“AMPT”) of which £2.8m is outstanding to AMPT at 31 December 2023. AMPT is an associated entity of AMR GP.
During the year ended 31 December 2023, Classic Automobiles Inc. purchased a vehicle for £1.8m of which £nil was outstanding at 31 December 2023.
Classic Automobiles Inc. is controlled by a member of the Group’s KMP.
During the year ended 31 December 2023, a separate member of the Group’s KMP and Non-executive Director purchased a vehicle for £1.8m, having paid
a deposit to the Group in the first half of the year. £nil was outstanding at 31 December 2023.
On 26 June 2023, the Group announced a strategic supply arrangement with Lucid Group, Inc. (“Lucid”) for future access to powertrain components for future
BEV models. The arrangement is considered a Related Party Transaction owing to the substantial ownership of Lucid by the Public Investment Fund (“PIF”).
PIF are also a substantial shareholder of the Group and two members of the Group’s KMP & Non-executive Directors are members of PIF’s KMP. The Group
recognised an asset of £188.5m in relation to the supply agreement. The agreement is part-settled in equity, which was issued to Lucid in November 2023.
An outstanding cash liability of £71.7m relating to the supply arrangement remains at 31 December 2023, all of which is due in more than one year. The supply
arrangements, commit to an effective future minimum spend with Lucid on powertrain components of £177.0m.
During the year ended 31 December 2023, the Group incurred costs of £2.0m for design and engineering work from Pininfarina S.p.A. A member of the
Group’s KMP and Non-executive Director is also a member of Pininfarina S.p.A’s KMP. As of 19 May 2023 the individual ceased to be a member of the Group’s
KMP and therefore any future spend under the contract will not be disclosed as a related party transaction. £nil is outstanding as at 31 December 2023.
During the year ended 31 December 2023, the Group incurred a rental expense of £1.2m from Michael Kors (USA), Inc., a Company which is owned by
Capri Holdings Limited. A member of the Group’s KMP and Non-executive Director is also a member of Michael Kors (USA), Inc.’s KMP.
During the year ended 31 December 2023, the Group incurred consultancy costs of £0.2m from a member of the Group’s KMP and Non-executive Director in
relation to the oversight of two significant legal claims which the Group has been party to. £0.1m was outstanding as at 31 December 2023. Owing to the unique
experience of the individual involved and the specifics of the legal claims, no detailed market price assessment was performed when engaging this service.
During the year ended 31 December 2023, an immediate family member of the Group’s KMP & Non-executive Director provided event services at the opening
of Q New York totalling less than £0.1m of expense. £nil was outstanding at 31 December 2023. No detailed market price assessment was performed when
engaging this service.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
205
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 20517aXFinancialXStatements_v7.indd 205 13/03/2025 14:5513/03/2025 14:55
31 RELATED PARTY TRANSACTIONS CONTINUED
Terms and conditions of transactions with related parties
Sales and purchases between related parties were made at normal market prices unless otherwise stated. Outstanding balances with entities other
than subsidiaries are unsecured and interest free and cash settlement is expected within 60 days of invoice. Terms and conditions for transactions with
subsidiaries are the same, with the exception that balances are placed on inter-company accounts. The Group has not provided or benefited from any
guarantees for any related party receivables or payables.
32 CONTINGENT LIABILITIES
In the normal course of the Group’s business, claims, disputes, and legal proceedings involving customers, dealers, suppliers, employees or others are pending
or may be brought against Group entities arising out of current or past operations. There is presently a dispute between the Group and the other shareholders
of one of its subsidiary entities, which is ongoing and from which a future obligation may arise. The Group denies the claims made and is working to resolve
the matter.
33 GROUP COMPANIES
In accordance with Section 409 of the Companies Act 2006, a full list of entities in which the Group has an interest of greater than or equal to 20%, the
registered office and effective percentage of equity owned as at 31 December 2024 are disclosed below.
Investments in subsidiary undertakings
Proportion of
voting rights
Subsidiar
y
undertakin
g
s
Holdin
g
and shares held
Nature of business
Aston Martin Holdings (UK) Limited*
Ordinary
100%
Dormant company
Aston Martin Capital Holdings Limited**◊
Ordinary
100%
Financing company holding the Senior Secured Notes
Aston Martin Investments Limited**
Ordinary
100%
Holding company
Aston Martin Capital Limited**◊
Ordinary
100%
Dormant company – financing company that held Senior
Secured Notes that were repaid in 2017
Aston Martin Lagonda Group Limited**
Ordinary
100%
Holding company
Aston Martin Lagonda of North America Incorporated**^
Ordinary
100%
Luxury sports car distributor
Lagonda Properties Limited**
Ordinary
100%
Dormant company
Aston Martin Lagonda Pension Trustees Limited**
Ordinary
100%
Trustee of the Aston Martin Lagonda Limited
Pension Scheme
Aston Martin Lagonda Limited**
Ordinary
100%
Manufacture and sale of luxury sports cars, the sale of
parts, brand licensing and motorsport activities
AM Brands Limited**◊
Ordinary
100%
Non-trading company
Aston Martin Lagonda of Europe GmbH**>
Ordinary
100%
Provision of engineering and sales and marketing services
AML Overseas Services Limited**
Ordinary
100%
Dormant company
Aston Martin Lagonda (China) Automobile Distribution Co., Ltd**√
Ordinary
100%
Luxury sports car distributor
AM Nurburgring Racing Limited**
Ordinary
100%
Dormant company
Aston Martin Japan GK**<<
Ordinary
100%
Operator of the sales office in Japan and certain other
countries in the Asia Pacific region
Aston Martin Lagonda – Asia Pacific PTE Limited**>>
Ordinary
100%
Operator of the sales function in Singapore and certain
other countries in the Asia Pacific region
AMWS Limited**◊ (liquidated on 25 September 2024)
Ordinary
0%***
Holding company
Aston Martin Works Limited**
Ordinary
50%***
Sale, servicing and restoration of Aston Martin cars
All subsidiaries are incorporated in England and Wales unless otherwise stated.
◊ Incorporated in Jersey (tax resident in the UK)
^ Incorporated in the USA
> Incorporated in Germany
<< Incorporated in Japan
>> Incorporated in Singapore
√ Incorporated in the People’s Republic of China
* Held directly by Aston Martin Lagonda Global Holdings plc
** Held indirectly by Aston Martin Lagonda Global Holdings plc
*** The Group exercises management control of these legal entities and therefore the results, assets and liabilities have been wholly included in the Consolidated Financial Statements. The individual
results, aggregate assets and aggregate liabilities included within the Consolidated Financial Statements are summarised on pages 154–158.
33 GROUP COMPANIES CONTINUED
Aston Martin
Works Limited
2024
£m
AMWS Limited
2024
£m
Aston Martin
Works Limited
2023
£m
AMWS Limited
2023
£m
Total assets 28.6 – 45.3 –
Total liabilities (3.5) – (4.1) –
Net assets 25.1 – 41.2 –
Revenue 33.8 – 42.0 –
Profit/(loss) before tax 0.5 (0.6) 2.5 –
Group’s share of profit/(loss) 0.3 (0.3) 1.3 –
Registered addresses
Aston Martin Holdings (UK) Limited Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Capital Holdings Limited 28 Esplanade, St Helier, JE2 3QA, Jersey
Aston Martin Investments Limited Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Capital Limited 28 Esplanade, St Helier, JE2 3QA, Jersey
Aston Martin Lagonda Group Limited Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Lagonda of North America Incorporated Floor 22, 11 West 42nd Street, New York, NY, 10036-8002, United States of America
Lagonda Properties Limited Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Lagonda Pension Trustees Limited Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Lagonda Limited Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
AM Brands Limited 28 Esplanade, St Helier,JE2 3QA, Jersey
Aston Martin Lagonda of Europe GmbH Gottlieb-Daimler-Strasse 30, 53520 Meuspath, Germany
AML Overseas Services Limited Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Lagonda (China) Automobile Distribution Co., Ltd Unit 2901, Raffles City Office Tower, No. 268 Xi Zang Middle Road, Huangpu District,
Shanghai, China 200001
AM Nurburgring Racing Limited Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Japan GK 1-2-3 Kita-Aoyama, Minato-ku, Tokyo 107-0061, Japan
Aston Martin Lagonda – Asia Pacific PTE Limited Baker & McKenzie Singapore – 8 Marina Boulevard, #05-02 Marina Bay Financial
Centre, Singapore 018981
AMWS Limited 28 Esplanade, St Helier, JE2 3QA, Jersey
Aston Martin Works Limited Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
206
17aXFinancialXStatements_v7.indd 20617aXFinancialXStatements_v7.indd 206 13/03/2025 14:5513/03/2025 14:55
31 RELATED PARTY TRANSACTIONS CONTINUED
Terms and conditions of transactions with related parties
Sales and purchases between related parties were made at normal market prices unless otherwise stated. Outstanding balances with entities other
than subsidiaries are unsecured and interest free and cash settlement is expected within 60 days of invoice. Terms and conditions for transactions with
subsidiaries are the same, with the exception that balances are placed on inter-company accounts. The Group has not provided or benefited from any
guarantees for any related party receivables or payables.
32 CONTINGENT LIABILITIES
In the normal course of the Group’s business, claims, disputes, and legal proceedings involving customers, dealers, suppliers, employees or others are pending
or may be brought against Group entities arising out of current or past operations. There is presently a dispute between the Group and the other shareholders
of one of its subsidiary entities, which is ongoing and from which a future obligation may arise. The Group denies the claims made and is working to resolve
the matter.
33 GROUP COMPANIES
In accordance with Section 409 of the Companies Act 2006, a full list of entities in which the Group has an interest of greater than or equal to 20%, the
registered office and effective percentage of equity owned as at 31 December 2024 are disclosed below.
Investments in subsidiary undertakings
Subsidiar
y
undertakin
g
s Holdin
g
Proportion of
voting rights
and shares held Nature of business
Aston Martin Holdings (UK) Limited* Ordinary 100% Dormant company
Aston Martin Capital Holdings Limited**◊ Ordinary 100% Financing company holding the Senior Secured Notes
Aston Martin Investments Limited** Ordinary 100% Holding company
Aston Martin Capital Limited**◊ Ordinary 100% Dormant company – financing company that held Senior
Secured Notes that were repaid in 2017
Aston Martin Lagonda Group Limited** Ordinary 100% Holding company
Aston Martin Lagonda of North America Incorporated**^ Ordinary 100% Luxury sports car distributor
Lagonda Properties Limited** Ordinary 100% Dormant company
Aston Martin Lagonda Pension Trustees Limited** Ordinary 100% Trustee of the Aston Martin Lagonda Limited
Pension Scheme
Aston Martin Lagonda Limited** Ordinary 100% Manufacture and sale of luxury sports cars, the sale of
parts, brand licensing and motorsport activities
AM Brands Limited**◊ Ordinary 100% Non-trading company
Aston Martin Lagonda of Europe GmbH**> Ordinary 100% Provision of engineering and sales and marketing services
AML Overseas Services Limited** Ordinary 100% Dormant company
Aston Martin Lagonda (China) Automobile Distribution Co., Ltd**√ Ordinary 100% Luxury sports car distributor
AM Nurburgring Racing Limited** Ordinary 100% Dormant company
Aston Martin Japan GK**<< Ordinary 100% Operator of the sales office in Japan and certain other
countries in the Asia Pacific region
Aston Martin Lagonda – Asia Pacific PTE Limited**>> Ordinary 100% Operator of the sales function in Singapore and certain
other countries in the Asia Pacific region
AMWS Limited**◊ (liquidated on 25 September 2024) Ordinary 0%*** Holding company
Aston Martin Works Limited** Ordinary 50%*** Sale, servicing and restoration of Aston Martin cars
All subsidiaries are incorporated in England and Wales unless otherwise stated.
◊ Incorporated in Jersey (tax resident in the UK)
^ Incorporated in the USA
> Incorporated in Germany
<< Incorporated in Japan
>> Incorporated in Singapore
√ Incorporated in the People’s Republic of China
* Held directly by Aston Martin Lagonda Global Holdings plc
** Held indirectly by Aston Martin Lagonda Global Holdings plc
*** The Group exercises management control of these legal entities and therefore the results, assets and liabilities have been wholly included in the Consolidated Financial Statements. The individual
results, aggregate assets and aggregate liabilities included within the Consolidated Financial Statements are summarised on pages 154–158.
33 GROUP COMPANIES CONTINUED
Aston Martin Aston Martin
Works Limited AMWS Limited Works Limited AMWS Limited
2024 2024 2023 2023
£m £m £m £m
Total assets
28.6
–
45.3
–
Total liabilities
(3.5)
–
(4.1)
–
Net assets
25.1
–
41.2
–
Revenue
33.8
–
42.0
–
Profit/(loss) before tax
0.5
(0.6)
2.5
–
Group’s share of profit/(loss)
0.3
(0.3)
1.3
–
Registered addresses
Aston Martin Holdings (UK) Limited
Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Capital Holdings Limited
28 Esplanade, St Helier, JE2 3QA, Jersey
Aston Martin Investments Limited
Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Capital Limited
28 Esplanade, St Helier, JE2 3QA, Jersey
Aston Martin Lagonda Group Limited
Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Lagonda of North America Incorporated
Floor 22, 11 West 42nd Street, New York, NY, 10036-8002, United States of America
Lagonda Properties Limited
Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Lagonda Pension Trustees Limited
Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Lagonda Limited
Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
AM Brands Limited
28 Esplanade, St Helier,JE2 3QA, Jersey
Aston Martin Lagonda of Europe GmbH
Gottlieb-Daimler-Strasse 30, 53520 Meuspath, Germany
AML Overseas Services Limited
Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Lagonda (China) Automobile Distribution Co., Ltd
Unit 2901,
Raffles
City Office Tower, No. 268 Xi Zang Middle Road, Huangpu District,
Shanghai, China 200001
AM Nurburgring Racing Limited
Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
Aston Martin Japan GK
1-2-3 Kita-Aoyama, Minato-ku, Tokyo 107-0061, Japan
Aston Martin Lagonda – Asia Pacific PTE Limited
Baker & McKenzie Singapore – 8 Marina Boulevard, #05-02 Marina Bay Financial
Centre, Singapore 018981
AMWS Limited
28 Esplanade, St Helier, JE2 3QA, Jersey
Aston Martin Works Limited
Banbury Road, Gaydon, Warwickshire, CV35 0DB, England
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
207
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 20717aXFinancialXStatements_v7.indd 207 13/03/2025 14:5513/03/2025 14:55
34 ALTERNATIVE PERFORMANCE MEASURES
In the reporting of financial information, the Directors have adopted various Alternative Performance Measures (‘APMs’). The Directors exercise judgement
in determining the adjustments to apply to IFRS measurements in order to derive suitable APMs. The Directors believe that these APMs assist in providing
useful information on the underlying performance of the Group, enhance the comparability of information between reporting periods, and are used internally
by the Directors to measure the Group's performance.
The key APMs that the Group focuses on are as follows:
i) Adjusted EBT is the profit/(loss) before tax and adjusting items as shown in the Consolidated Income Statement.
ii) Adjusted EBIT is operating profit/(loss) before adjusting items.
iii) Adjusted EBITDA removes depreciation, profit/(loss) on sale of fixed assets and amortisation from adjusted EBIT.
iv) Adjusted operating margin is adjusted EBIT divided by revenue.
v) Adjusted EBITDA margin is Adjusted EBITDA (as defined above) divided by revenue.
vi) Adjusted earnings per share is profit/(loss) after tax before adjusting items as shown in the Consolidated Income Statement, divided by the weighted
average number of ordinary shares in issue during the reporting period.
vii) Net debt is current and non-current borrowings in addition to inventory repurchase arrangements and lease liabilities, less cash and cash equivalents and
cash held not available for short-term use as shown in the Consolidated Statement of Financial Position.
viii) Adjusted leverage is represented by the ratio of net debt to the last 12 months (LTM) Adjusted EBITDA.
ix) Free cash flow is represented by cash inflow/(outflow) from operating activities less the cash used in investing activities (excluding interest received and
cash generated from disposals of investments) plus interest paid in the year less interest received.
The adjusted financial measures above (EBT, EBIT, EBITDA, operating margin, EBITDA margin, and earnings per share) are also used by securities analysts and
investors to monitor progress of the business against its core operating objectives after removing the separately disclosed adjusting items. EBITDA gives an
insight into the Group’s operating performance by excluding investing and financing activity. EBIT represents the returns available from the business without
financing charges and therefore can be used to model potential shareholder returns were the capital structure of the Group to change. Net debt
provides a view of the total indebtedness of the Group which includes certain liabilities presented in alternative captions of the accounts, such as lease
liabilities, in one single place to aid easier understanding to users of the accounts. Adjusted leverage forms the basis for the Group’s covenant test, and
therefore year on year progress in this metric is useful to analysts and investors. Finally, free cash flow is used to measure potential surplus cash flows from
operating activities after investment in future products and debt servicing which could be used by the Group to repay debt, return to shareholders, or be used
for other investing activities.
All APMs disclosed are consistent with the prior year except for the definition of the Free cash flow APM, which has been amended to exclude proceeds from
the disposal of investments (note 15) which is a new transaction type for the Group in 2024. This change has no impact on the amount disclosed in previous
financial periods. The change has been made to ensure all APMs continue to reflect the underlying performance of the group and provide ongoing
comparability of information across both past and future reporting periods by removing from the performance measure a transaction which is not related to
the core activities of the Group.
Consolidated Income Statement
2024 2023
£m £m
Loss before ta
x
(289.1)
(239.8)
Adjusting operating expenses (note 5)
16.7
31.5
Adjusting finance income (notes 5, 7)
(18.8)
–
Adjusting finance expense (notes 5, 8)
35.7
36.5
Adjusted loss before tax (EBT)
(255.5)
(171.8)
Adjusted finance income (note 7)
(7.1)
(74.3)
Adjusted finance expense (note 8)
179.8
166.4
Adjusted operating loss (EBIT)
(82.8)
(79.7)
Adjusted operating margin
(5.2%)
(4.9%)
Reported depreciation
84.4
99.6
Reported amortisation
269.3
283.4
Loss on sale/scrap of property, plant and equipment
0.1
2.6
Adjusted EBITDA
271.0
305.9
Adjusted EBITDA margin
17.1%
18.7%
34 ALTERNATIVE PERFORMANCE MEASURES CONTINUED
Earnings per ordinary share
2024
£m
2023
£m
Adjusted earnings per ordinary share
Loss available for equity holders (£m) (323.5) (228.1)
Adjusting items (note 5)
Adjusting items before tax (£m) 33.6 68.0
Tax on adjusting items (£m) – –
Adjusted loss (£m) (289.9) (160.1)
Basic weighted average number of ordinary shares (million) 832.4 748.2
Adjusted loss per ordinary share (pence) (34.8p) (21.4p)
Adjusted diluted earnings per ordinary share
Adjusted loss (£m) (289.9) (160.1)
Diluted weighted average number of ordinary shares (million) 832.4 748.2
Adjusted diluted loss per ordinary share (pence) (34.8p) (21.4p)
Net debt
2024
£m
2023
£m
Opening cash and cash equivalents 392.4 583.3
Cash inflow from operating activities 123.9 145.9
Cash outflow from investing activities (374.8) (383.4)
Cash inflow from financing activities 215.8 59.7
Effect of exchange rates on cash and cash equivalents 2.3 (13.1)
Cash and cash equivalents at 31 Decembe
r
359.6 392.4
Borrowings (1,387.3) (1,069.7)
Lease liabilities (96.6) (97.3)
Inventory repurchase arrangement (38.4) (39.7)
Net debt (1,162.7) (814.3)
Adjusted EBITDA 271.0 305.9
Adjusted leverage 4.3
x
2.7x
Free cash flow
2024
£m
2023
£m
Net cash inflow from operating activities 123.9 145.9
Cash used in investing activities (excluding interest received and cash generated from disposal of investments) (400.6) (396.9)
Interest paid less interest received (114.9) (109.0)
Free cash flo
w
(391.6) (360.0)
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
208
17aXFinancialXStatements_v7.indd 20817aXFinancialXStatements_v7.indd 208 13/03/2025 14:5513/03/2025 14:55
34 ALTERNATIVE PERFORMANCE MEASURES
In the reporting of financial information, the Directors have adopted various Alternative Performance Measures (‘APMs’). The Directors exercise judgement
in determining the adjustments to apply to IFRS measurements in order to derive suitable APMs. The Directors believe that these APMs assist in providing
useful information on the underlying performance of the Group, enhance the comparability of information between reporting periods, and are used internally
by the Directors to measure the Group's performance.
The key APMs that the Group focuses on are as follows:
i) Adjusted EBT is the profit/(loss) before tax and adjusting items as shown in the Consolidated Income Statement.
ii) Adjusted EBIT is operating profit/(loss) before adjusting items.
iii) Adjusted EBITDA removes depreciation, profit/(loss) on sale of fixed assets and amortisation from adjusted EBIT.
iv) Adjusted operating margin is adjusted EBIT divided by revenue.
v) Adjusted EBITDA margin is Adjusted EBITDA (as defined above) divided by revenue.
vi) Adjusted earnings per share is profit/(loss) after tax before adjusting items as shown in the Consolidated Income Statement, divided by the weighted
average number of ordinary shares in issue during the reporting period.
vii) Net debt is current and non-current borrowings in addition to inventory repurchase arrangements and lease liabilities, less cash and cash equivalents and
cash held not available for short-term use as shown in the Consolidated Statement of Financial Position.
viii) Adjusted leverage is represented by the ratio of net debt to the last 12 months (LTM) Adjusted EBITDA.
ix) Free cash flow is represented by cash inflow/(outflow) from operating activities less the cash used in investing activities (excluding interest received and
cash generated from disposals of investments) plus interest paid in the year less interest received.
The adjusted financial measures above (EBT, EBIT, EBITDA, operating margin, EBITDA margin, and earnings per share) are also used by securities analysts and
investors to monitor progress of the business against its core operating objectives after removing the separately disclosed adjusting items. EBITDA gives an
insight into the Group’s operating performance by excluding investing and financing activity. EBIT represents the returns available from the business without
financing charges and therefore can be used to model potential shareholder returns were the capital structure of the Group to change. Net debt
provides a view of the total indebtedness of the Group which includes certain liabilities presented in alternative captions of the accounts, such as lease
liabilities, in one single place to aid easier understanding to users of the accounts. Adjusted leverage forms the basis for the Group’s covenant test, and
therefore year on year progress in this metric is useful to analysts and investors. Finally, free cash flow is used to measure potential surplus cash flows from
operating activities after investment in future products and debt servicing which could be used by the Group to repay debt, return to shareholders, or be used
for other investing activities.
All APMs disclosed are consistent with the prior year except for the definition of the Free cash flow APM, which has been amended to exclude proceeds from
the disposal of investments (note 15) which is a new transaction type for the Group in 2024. This change has no impact on the amount disclosed in previous
financial periods. The change has been made to ensure all APMs continue to reflect the underlying performance of the group and provide ongoing
comparability of information across both past and future reporting periods by removing from the performance measure a transaction which is not related to
the core activities of the Group.
Consolidated Income Statement
2024
£m
2023
£m
Loss before ta
x
(289.1) (239.8)
Adjusting operating expenses (note 5) 16.7 31.5
Adjusting finance income (notes 5, 7) (18.8) –
Adjusting finance expense (notes 5, 8) 35.7 36.5
Adjusted loss before tax (EBT) (255.5) (171.8)
Adjusted finance income (note 7) (7.1) (74.3)
Adjusted finance expense (note 8) 179.8 166.4
Adjusted operating loss (EBIT) (82.8) (79.7)
Adjusted operating margin (5.2%) (4.9%)
Reported depreciation 84.4 99.6
Reported amortisation 269.3 283.4
Loss on sale/scrap of property, plant and equipment 0.1 2.6
Adjusted EBITDA 271.0 305.9
Adjusted EBITDA margin 17.1% 18.7%
34 ALTERNATIVE PERFORMANCE MEASURES CONTINUED
Earnings per ordinary share
2024 2023
£m £m
Adjusted earnings per ordinary share
Loss available for equity holders (£m)
(323.5)
(228.1)
Adjusting items (note 5)
Adjusting items before tax (£m)
33.6
68.0
Tax on adjusting items (£m)
–
–
Adjusted loss (£m)
(289.9)
(160.1)
Basic weighted average number of ordinary shares (million)
832.4
748.2
Adjusted loss per ordinary share (pence)
(34.8p)
(21.4p)
Adjusted diluted earnings per ordinary share
Adjusted loss (£m)
(289.9)
(160.1)
Diluted weighted average number of ordinary shares (million)
832.4
748.2
Adjusted diluted loss per ordinary share (pence)
(34.8p)
(21.4p)
Net debt
2024 2023
£m £m
Opening cash and cash equivalents
392.4
583.3
Cash inflow from operating activities
123.9
145.9
Cash outflow from investing activities
(374.8)
(383.4)
Cash inflow from financing activities
215.8
59.7
Effect of exchange rates on cash and cash equivalents
2.3
(13.1)
Cash and cash equivalents at 31 Decembe
r
359.6
392.4
Borrowings
(1,387.3)
(1,069.7)
Lease liabilities
(96.6)
(97.3)
Inventory repurchase arrangement
(38.4)
(39.7)
Net debt
(1,162.7)
(814.3)
Adjusted EBITDA
271.0
305.9
Adjusted leverage
4.3
x
 2.7x
Free cash flow
2024 2023
£m £m
Net cash inflow from operating activities
123.9
145.9
Cash used in investing activities (excluding interest received and cash generated from disposal of investments)
(400.6)
(396.9)
Interest paid less interest received
(114.9)
(109.0)
Free cash flo
w
(391.6)
(360.0)
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
209
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 20917aXFinancialXStatements_v7.indd 209 13/03/2025 14:5513/03/2025 14:55
Parent Company Statement of Financial Position
as at 31 December 2024
Notes
31 December 2024
£m
31 December 2023
£m
Non-current assets
Investments 3 897.7 1,051.5
Other receivables: amounts falling due after one year 4 1,806.6 1,699.7
Total assets 2,704.3 2,751.2
Current liabilities
Trade and other payables: amounts falling due within one year 5 (194.9) (212.8)
Net assets 2,509.4 2,538.4
Capital and reserves
Share capital 6 93.6 82.4
Share premium 2,192.6 2,094.5
Capital redemption reserve 9.3 9.3
Capital reserve 6 2.0 2.0
Merger reserve 6 143.9 143.9
Retained earnings 68.0 206.3
Shareholder equit
y
2,509.4 2,538.4
The Financial Statements were approved by the Board of Directors on 25 February 2025 and were signed on its behalf by
ADRIAN HALLMARK DOUG LAFFERTY
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
Company Number: 11488166
The loss on ordinary activities after taxation amounts to £143.0m (2023: profit of £438.7m).
Parent Company Statement of Changes in Equity
for the year ended 31 December 2024
Com
p
an
y
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Capital
reserve
£m
Merger
reserve
£m
Retained
earnings
£m
Total
equity
£m
At 1 January 2024 82.4 2,094.5 9.3 2.0 143.9 206.3 2,538.4
Total comprehensive income
for the yea
r
Loss for the year – – – – – (143.0) (143.0)
Total comprehensive loss for the yea
r
– – – – – (143.0) (143.0)
Transactions with owners recorded
directly in equit
y
Issuance of new shares 11.1 98.1 – – – – 109.2
Issuance of new shares to SIP 0.1 – – – – (0.1) –
Group share-based payment cost – – – – – 4.8 4.8
Total transactions with owners 11.2 98.1 – – – 4.7 114.0
At 31 December 2024 93.6 2,192.6 9.3 2.0 143.9 68.0 2,509.4
Com
p
an
y
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Capital
reserve
£m
Merger
reserve
£m
Retained
earnings
£m
Total
equity
£m
At 1 January 2023 69.9 1,697.4 9.3 2.0 143.9 (256.3) 1,666.2
Total comprehensive income
for the yea
r
Profit for the year – – – – – 438.7 438.7
Total comprehensive income
for the yea
r
– – – – – 438.7 438.7
Transactions with owners recorded
directly in equit
y
Issuance of new shares 11.5 383.0 – – – – 394.5
Issuance of new shares to SIP 0.1 – – – – (0.1) –
Warrant options exercised 0.9 14.1 – – – 18.6 33.6
Group share-based payment cost – – – – – 5.4 5.4
Total transactions with owners 12.5 397.1 – – – 23.9 433.5
At 31 December 2023 82.4 2,094.5 9.3 2.0 143.9 206.3 2,538.4
FINANCIAL STATEMENTS
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
210
17aXFinancialXStatements_v7.indd 21017aXFinancialXStatements_v7.indd 210 13/03/2025 14:5513/03/2025 14:55
Parent Company Statement of Financial Position
as at 31 December 2024
Notes
31 December 2024
£m
31 December 2023
£m
Non-current assets
Investments 3 897.7 1,051.5
Other receivables: amounts falling due after one year 4 1,806.6 1,699.7
Total assets 2,704.3 2,751.2
Current liabilities
Trade and other payables: amounts falling due within one year 5 (194.9) (212.8)
Net assets 2,509.4 2,538.4
Capital and reserves
Share capital 6 93.6 82.4
Share premium 2,192.6 2,094.5
Capital redemption reserve 9.3 9.3
Capital reserve 6 2.0 2.0
Merger reserve 6 143.9 143.9
Retained earnings 68.0 206.3
Shareholder equit
y
2,509.4 2,538.4
The Financial Statements were approved by the Board of Directors on 25 February 2025 and were signed on its behalf by
ADRIAN HALLMARK DOUG LAFFERTY
CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER
Company Number: 11488166
The loss on ordinary activities after taxation amounts to £143.0m (2023: profit of £438.7m).
Parent Company Statement of Changes in Equity
for the year ended 31 December 2024
Com
p
an
y
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Capital
reserve
£m
Merger
reserve
£m
Retained
earnings
£m
Total
equity
£m
At 1 January 2024 82.4 2,094.5 9.3 2.0 143.9 206.3 2,538.4
Total comprehensive income
for the yea
r
Loss for the year – – – – – (143.0) (143.0)
Total comprehensive loss for the yea
r
– – – – – (143.0) (143.0)
Transactions with owners recorded
directly in equit
y
Issuance of new shares
11.1 98.1 – – – – 109.2
Issuance of new shares to SIP
0.1 – – – – (0.1) –
Group share-based payment cost – – – – – 4.8 4.8
Total transactions with owners 11.2 98.1 – – – 4.7 114.0
At 31 December 2024 93.6 2,192.6 9.3 2.0 143.9 68.0 2,509.4
Com
p
an
y
Share
capital
£m
Share
premium
£m
Capital
redemption
reserve
£m
Capital
reserve
£m
Merger
reserve
£m
Retained
earnings
£m
Total
equity
£m
At 1 January 2023 69.9 1,697.4 9.3 2.0 143.9 (256.3) 1,666.2
Total comprehensive income
for the yea
r
Profit for the year – –
–
– – 438.7 438.7
Total comprehensive income
for the yea
r
– – – – – 438.7 438.7
Transactions with owners recorded
directly in equit
y
Issuance of new shares
11.5 383.0 – – – – 394.5
Issuance of new shares to SIP
0.1 – – – – (0.1) –
Warrant options exercised
0.9 14.1 – – – 18.6 33.6
Group share-based payment cost – – – – – 5.4 5.4
Total transactions with owners 12.5 397.1 – – – 23.9 433.5
At 31 December 2023 82.4 2,094.5 9.3 2.0 143.9 206.3 2,538.4
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
211
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 21117aXFinancialXStatements_v7.indd 211 13/03/2025 14:5513/03/2025 14:55
Notes to the Parent Company Financial Statements
1 ACCOUNTING POLICIES
Authorisation of Financial Statements and statement of compliance
with FRS 101
The Parent Company Financial Statements of Aston Martin Lagonda Global
Holdings plc (the “Company”) for the year were authorised for issue by the
Board of Directors on 25 February 2025 and the Statement of Financial
Position was signed on the Board’s behalf by Adrian Hallmark and Doug
Lafferty. The Company is a public limited company incorporated and
domiciled in the UK. The Company’s ordinary shares are traded on
the London Stock Exchange and it is not under the control of any
single shareholder.
An overview of the business activities of Aston Martin Lagonda Global
Holdings plc, including a review of the key business risks that the Group faces,
is given in the Strategic Report on pages 2–63. The debt facilities available to
the Group and the maturity profile of this debt are shown in note 23 to the
Group Financial Statements.
Going concern
The Group meets its day-to-day working capital requirements and medium
term funding requirements through a mixture of $1,050.0m SSNs at 10.0%
and £565.0m of SSNs at 10.375% both of which mature in March 2029, a
revolving credit facility (RCF) (£170.0m) which matures on 31 December
2028, facilities to finance inventory, a bilateral RCF facility and a wholesale
vehicle financing facility (as described in note 18). Under the RCF, the Group
is required to comply with a leverage covenant tested quarterly. Leverage is
calculated as the ratio of adjusted EBITDA to net debt, after certain
accounting adjustments are made. Of these adjustments, the most significant
is to account for lease liabilities under “frozen GAAP”, i.e. under IAS17
rather than IFRS 16. Details of this adjustment are included in note 16.
The Group has complied with its covenant requirements for the year ended
31 December 2024 and expects to do so for the Going Concern period.
The amounts outstanding on all the borrowings are shown in note 23.
The directors have developed trading and cash flow forecasts for the period
from the date of approval of these Financial Statements through 30 June
2026 (the “going concern review period”). These forecasts show that the
Group has sufficient financial resources to meet its obligations as they fall due
and to comply with covenants for the going concern review period.
The forecasts reflect the Group’s ultra-luxury performance-oriented
strategy, balancing supply and demand and the actions taken to improve cost
efficiency and gross margin. The forecasts include the costs of the Group's
environmental, social and governance ("ESG") commitments and make
assumptions in respect of future market conditions and, in particular,
wholesale volumes, average selling price, the launch of new models, and
future operating costs. The nature of the Group's business is such that there
can be variation in the timing of cash flows around the development and
launch of new models. In addition, the availability of funds provided through
the vehicle wholesale finance facility changes as the availability of credit
insurance and sales volumes vary, in total and seasonally. The forecasts take
into account these factors to the extent that the Directors consider them to
represent their best estimate of the future based on the information that is
available to them at the time of approval of these Financial Statements.
The Group directors have considered a severe but plausible downside
scenario that includes considering the impact of a 20% reduction in DBX
volumes and a 10% reduction in sports volumes from forecast levels
covering, although not exclusively, operating costs higher than the base plan,
incremental working capital requirements such as reduced deposit inflows or
increased deposit outflows and the impact of the strengthening of the
sterling-dollar exchange rate.
The Group plans to make continued investment for growth in the period and,
accordingly, funds generated through operations are expected to be
reinvested in the business mainly through new model development and other
capital expenditure. To a certain extent such expenditure is discretionary and,
in the event of risks occurring which could have a particularly severe effect on
the Group, as identified in the severe but plausible downside scenario, actions
such as constraining capital spending, working capital improvements,
reduction in marketing expenditure and the continuation of strict and
immediate expense control would be taken to safeguard the Group’s
financial position.
In addition, we also considered the circumstances which would be needed to
exhaust the Group’s liquidity over the assessment period; a reverse stress test.
This would indicate that vehicle sales would need to reduce by more than
40% from forecast levels without any of the above mitigations to result in
having no liquidity. The likelihood of these circumstances occurring is
considered remote both in terms of the magnitude of the reduction and that
over such a long period, management could take substantial mitigating
actions, such as reducing capital spending to preserve liquidity.
Accordingly, after considering the forecasts, appropriate sensitivities, current
trading and available facilities, the Directors have a reasonable expectation
that the Group has adequate resources to continue in operational existence
for the foreseeable future and to comply with its financial covenants,
therefore, the Directors continue to adopt the going concern basis in
preparing the Financial Statements.
Basis of preparation
The Parent Company Financial Statements are presented in sterling.
These Financial Statements have been prepared in accordance with
Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (“FRS
101”). No Income Statement is presented for the Company as permitted
by Section 408 of the Companies Act 2006. There were no gains or losses
in the year (2023: £nil) in Other Comprehensive Income.
The Parent Company Financial Statements have been prepared in
accordance with FRS 101, as applied in accordance with the provisions of the
Companies Act 2006. FRS 101 sets out a reduced disclosure framework for a
‘qualifying entity’ as defined in the standard which addresses the financial
reporting requirements and disclosure exemptions in the individual Financial
Statements of qualifying entities that otherwise apply this recognition,
measurement and disclosure requirements of UK adopted IFRS.
FRS 101 sets out amendments to UK adopted IFRS that are necessary
to achieve compliance with the Companies Act and related Regulations.
The following disclosures have not been included as permitted by FRS 101:
1 ACCOUNTING POLICIES CONTINUED
Basis of preparation continued
– A Cash Flow Statement and related notes as required by IAS 7 ‘Statement
of Cash Flows’.
– Disclosures in respect of transactions with wholly-owned subsidiaries
a required by IAS 24 ‘Related Party Disclosures’.
– Disclosures in respect of capital management as required by paragraphs
134 to 136 of IAS 1 ‘Presentation of Financial Statements’.
– The effects of new but not yet effective IFRSs as required by paragraphs
30 and 31 of IAS 8 ‘Accounting Policies, Changes in Accounting Estimates
and Errors’.
– Disclosures in respect of the compensation of key management personnel
as required by paragraph 17 of IAS 24 ‘Related Party Disclosures’.
– The requirements of paragraphs 88C and 88D of IAS 12 Income Taxes
in respect of the impact of Pillar Two legislation.
As the Financial Statements of the Group include the equivalent disclosures,
the Company has also taken the exemptions under FRS 101 available in
respect of the following disclosures:
– The requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 ‘Share-
based Payment’ in respect of group-settled shared based payments.
– The requirements of paragraphs 91 to 99 of IFRS 13 ‘Fair Value
Measurement’ and the disclosures required by IFRS 7 ‘Financial
Instruments: Disclosures’.
The accounting policies set out herein have, unless otherwise stated, been
applied consistently to all periods presented in these Financial Statements.
Investments
The Company recognises investments in subsidiaries at cost less impairment in
its individual Financial Statements. The Company assesses at each reporting
date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the
Company makes an estimate of the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cash-generating unit’s fair
value less costs to sell and its value-in-use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets.
Where the carrying amount of an asset exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.
In assessing value-in-use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset.
Impairment losses on continuing operations are recognised in the Income
Statement in those expense categories consistent with the function of the
impaired asset.
Where an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset (or cash-generating unit)
in prior periods. A reversal of an impairment loss is recognised as
income immediately.
Management have further considered the impact of climate change on a
number of key estimates within the Financial Statements and has not found
climate change to have a material impact on the conclusions reached.
Climate change considerations have been factored into the Directors’
impairment assessments of the carrying value of non-current assets (such as
the parent company investment) through usage of a pre-tax discount rate
which reflects the individual nature and specific risks relating to the business
and the market in which the Group operates.
Amounts due to Group undertakings
Amounts due to Group undertakings are initially recognised at fair value.
Subsequent to initial recognition they are measured at amortised cost using
the effective interest method.
Amounts due from Group undertakings
Amounts due from Group undertakings are initially recognised at fair value
and subsequently measured at amortised cost on an effective interest basis.
The Company assess the loans for recoverability from surplus undiscounted
cashflows from the operating Group and determined no loss provision
necessary. The Company does not expect to receive payment within the next
12 months and therefore presents the loan as non-current.
Financial assets and liabilities
Financial assets are cash or a contractual right to receive cash or another
financial asset from another entity or to exchange financial assets or liabilities
with another entity under conditions that are potentially favourable to the
entity. In addition, contracts that result in another entity delivering a variable
number of its own equity instruments are financial assets.
Derivative financial instruments including equity options are held at fair value.
All other financial instruments are held at amortised cost.
Auditor remuneration
Auditor remuneration has been included in the group accounts. The Group
accounts are required to comply with regulation 5(1)(b) of the Companies
(Disclosure of Auditor Remuneration and Liability Limitation Agreements)
Regulations 2008. The fee relating to the audit of these Financial Statements
of £0.3m was borne by a subsidiary of the Company (2023: £0.3m).
Critical accounting assumptions and key sources of estimation
uncertainty estimates
The preparation of Financial Statements requires management to make
estimates and assumptions that affect the amounts reported for assets and
liabilities as at the reporting date and the amounts reported for revenues and
expenses during the period. The nature of estimation means that actual
outcomes could differ from those estimates.
In the process of applying the Company’s accounting policies, which are
described in this note, management have made estimates. Other than as set
out below, variations in the remaining estimates are not considered to give
rise to a significant risk of a material adjustment to the carrying amounts of
assets and liabilities within the next financial year. The Company considers it
appropriate to identify the nature of the estimates used in preparing the
individual Financial Statements and the main source of estimation uncertainty
is in relation to the impairment of investments.
Impairment of investments
The recoverable amount is estimated when there is an indication that the
asset is impaired.
The result of the calculation of the value-in-use is sensitive to the
assumptions made and is a subjective estimate (note 3).
FINANCIAL STATEMENTS
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
212
17aXFinancialXStatements_v7.indd 21217aXFinancialXStatements_v7.indd 212 13/03/2025 14:5513/03/2025 14:55
Notes to the Parent Company Financial Statements
1 ACCOUNTING POLICIES
Authorisation of Financial Statements and statement of compliance
with FRS 101
The Parent Company Financial Statements of Aston Martin Lagonda Global
Holdings plc (the “Company”) for the year were authorised for issue by the
Board of Directors on 25 February 2025 and the Statement of Financial
Position was signed on the Board’s behalf by Adrian Hallmark and Doug
Lafferty. The Company is a public limited company incorporated and
domiciled in the UK. The Company’s ordinary shares are traded on
the London Stock Exchange and it is not under the control of any
single shareholder.
An overview of the business activities of Aston Martin Lagonda Global
Holdings plc, including a review of the key business risks that the Group faces,
is given in the Strategic Report on pages 2–63. The debt facilities available to
the Group and the maturity profile of this debt are shown in note 23 to the
Group Financial Statements.
Going concern
The Group meets its day-to-day working capital requirements and medium
term funding requirements through a mixture of $1,050.0m SSNs at 10.0%
and £565.0m of SSNs at 10.375% both of which mature in March 2029, a
revolving credit facility (RCF) (£170.0m) which matures on 31 December
2028, facilities to finance inventory, a bilateral RCF facility and a wholesale
vehicle financing facility (as described in note 18). Under the RCF, the Group
is required to comply with a leverage covenant tested quarterly. Leverage is
calculated as the ratio of adjusted EBITDA to net debt, after certain
accounting adjustments are made. Of these adjustments, the most significant
is to account for lease liabilities under “frozen GAAP”, i.e. under IAS17
rather than IFRS 16. Details of this adjustment are included in note 16.
The Group has complied with its covenant requirements for the year ended
31 December 2024 and expects to do so for the Going Concern period.
The amounts outstanding on all the borrowings are shown in note 23.
The directors have developed trading and cash flow forecasts for the period
from the date of approval of these Financial Statements through 30 June
2026 (the “going concern review period”). These forecasts show that the
Group has sufficient financial resources to meet its obligations as they fall due
and to comply with covenants for the going concern review period.
The forecasts reflect the Group’s ultra-luxury performance-oriented
strategy, balancing supply and demand and the actions taken to improve cost
efficiency and gross margin. The forecasts include the costs of the Group's
environmental, social and governance ("ESG") commitments and make
assumptions in respect of future market conditions and, in particular,
wholesale volumes, average selling price, the launch of new models, and
future operating costs. The nature of the Group's business is such that there
can be variation in the timing of cash flows around the development and
launch of new models. In addition, the availability of funds provided through
the vehicle wholesale finance facility changes as the availability of credit
insurance and sales volumes vary, in total and seasonally. The forecasts take
into account these factors to the extent that the Directors consider them to
represent their best estimate of the future based on the information that is
available to them at the time of approval of these Financial Statements.
The Group directors have considered a severe but plausible downside
scenario that includes considering the impact of a 20% reduction in DBX
volumes and a 10% reduction in sports volumes from forecast levels
covering, although not exclusively, operating costs higher than the base plan,
incremental working capital requirements such as reduced deposit inflows or
increased deposit outflows and the impact of the strengthening of the
sterling-dollar exchange rate.
The Group plans to make continued investment for growth in the period and,
accordingly, funds generated through operations are expected to be
reinvested in the business mainly through new model development and other
capital expenditure. To a certain extent such expenditure is discretionary and,
in the event of risks occurring which could have a particularly severe effect on
the Group, as identified in the severe but plausible downside scenario, actions
such as constraining capital spending, working capital improvements,
reduction in marketing expenditure and the continuation of strict and
immediate expense control would be taken to safeguard the Group’s
financial position.
In addition, we also considered the circumstances which would be needed to
exhaust the Group’s liquidity over the assessment period; a reverse stress test.
This would indicate that vehicle sales would need to reduce by more than
40% from forecast levels without any of the above mitigations to result in
having no liquidity. The likelihood of these circumstances occurring is
considered remote both in terms of the magnitude of the reduction and that
over such a long period, management could take substantial mitigating
actions, such as reducing capital spending to preserve liquidity.
Accordingly, after considering the forecasts, appropriate sensitivities, current
trading and available facilities, the Directors have a reasonable expectation
that the Group has adequate resources to continue in operational existence
for the foreseeable future and to comply with its financial covenants,
therefore, the Directors continue to adopt the going concern basis in
preparing the Financial Statements.
Basis of preparation
The Parent Company Financial Statements are presented in sterling.
These Financial Statements have been prepared in accordance with
Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (“FRS
101”). No Income Statement is presented for the Company as permitted
by Section 408 of the Companies Act 2006. There were no gains or losses
in the year (2023: £nil) in Other Comprehensive Income.
The Parent Company Financial Statements have been prepared in
accordance with FRS 101, as applied in accordance with the provisions of the
Companies Act 2006. FRS 101 sets out a reduced disclosure framework for a
‘qualifying entity’ as defined in the standard which addresses the financial
reporting requirements and disclosure exemptions in the individual Financial
Statements of qualifying entities that otherwise apply this recognition,
measurement and disclosure requirements of UK adopted IFRS.
FRS 101 sets out amendments to UK adopted IFRS that are necessary
to achieve compliance with the Companies Act and related Regulations.
The following disclosures have not been included as permitted by FRS 101:
1 ACCOUNTING POLICIES CONTINUED
Basis of preparation continued
– A Cash Flow Statement and related notes as required by IAS 7 ‘Statement
of Cash Flows’.
– Disclosures in respect of transactions with wholly-owned subsidiaries
a required by IAS 24 ‘Related Party Disclosures’.
– Disclosures in respect of capital management as required by paragraphs
134 to 136 of IAS 1 ‘Presentation of Financial Statements’.
– The effects of new but not yet effective IFRSs as required by paragraphs
30 and 31 of IAS 8 ‘Accounting Policies, Changes in Accounting Estimates
and Errors’.
– Disclosures in respect of the compensation of key management personnel
as required by paragraph 17 of IAS 24 ‘Related Party Disclosures’.
– The requirements of paragraphs 88C and 88D of IAS 12 Income Taxes
in respect of the impact of Pillar Two legislation.
As the Financial Statements of the Group include the equivalent disclosures,
the Company has also taken the exemptions under FRS 101 available in
respect of the following disclosures:
– The requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 ‘Share-
based Payment’ in respect of group-settled shared based payments.
– The requirements of paragraphs 91 to 99 of IFRS 13 ‘Fair Value
Measurement’ and the disclosures required by IFRS 7 ‘Financial
Instruments: Disclosures’.
The accounting policies set out herein have, unless otherwise stated, been
applied consistently to all periods presented in these Financial Statements.
Investments
The Company recognises investments in subsidiaries at cost less impairment in
its individual Financial Statements. The Company assesses at each reporting
date whether there is an indication that an asset may be impaired. If any such
indication exists, or when annual impairment testing for an asset is required, the
Company makes an estimate of the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or cash-generating unit’s fair
value less costs to sell and its value-in-use and is determined for an individual
asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets.
Where the carrying amount of an asset exceeds its recoverable amount, the
asset is considered impaired and is written down to its recoverable amount.
In assessing value-in-use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset.
Impairment losses on continuing operations are recognised in the Income
Statement in those expense categories consistent with the function of the
impaired asset.
Where an impairment loss subsequently reverses, the carrying amount of the
asset (or cash-generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount does not
exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset (or cash-generating unit)
in prior periods. A reversal of an impairment loss is recognised as
income immediately.
Management have further considered the impact of climate change on a
number of key estimates within the Financial Statements and has not found
climate change to have a material impact on the conclusions reached.
Climate change considerations have been factored into the Directors’
impairment assessments of the carrying value of non-current assets (such as
the parent company investment) through usage of a pre-tax discount rate
which reflects the individual nature and specific risks relating to the business
and the market in which the Group operates.
Amounts due to Group undertakings
Amounts due to Group undertakings are initially recognised at fair value.
Subsequent to initial recognition they are measured at amortised cost using
the effective interest method.
Amounts due from Group undertakings
Amounts due from Group undertakings are initially recognised at fair value
and subsequently measured at amortised cost on an effective interest basis.
The Company assess the loans for recoverability from surplus undiscounted
cashflows from the operating Group and determined no loss provision
necessary. The Company does not expect to receive payment within the next
12 months and therefore presents the loan as non-current.
Financial assets and liabilities
Financial assets are cash or a contractual right to receive cash or another
financial asset from another entity or to exchange financial assets or liabilities
with another entity under conditions that are potentially favourable to the
entity. In addition, contracts that result in another entity delivering a variable
number of its own equity instruments are financial assets.
Derivative financial instruments including equity options are held at fair value.
All other financial instruments are held at amortised cost.
Auditor remuneration
Auditor remuneration has been included in the group accounts. The Group
accounts are required to comply with regulation 5(1)(b) of the Companies
(Disclosure of Auditor Remuneration and Liability Limitation Agreements)
Regulations 2008. The fee relating to the audit of these Financial Statements
of £0.3m was borne by a subsidiary of the Company (2023: £0.3m).
Critical accounting assumptions and key sources of estimation
uncertainty estimates
The preparation of Financial Statements requires management to make
estimates and assumptions that affect the amounts reported for assets and
liabilities as at the reporting date and the amounts reported for revenues and
expenses during the period. The nature of estimation means that actual
outcomes could differ from those estimates.
In the process of applying the Company’s accounting policies, which are
described in this note, management have made estimates. Other than as set
out below, variations in the remaining estimates are not considered to give
rise to a significant risk of a material adjustment to the carrying amounts of
assets and liabilities within the next financial year. The Company considers it
appropriate to identify the nature of the estimates used in preparing the
individual Financial Statements and the main source of estimation uncertainty
is in relation to the impairment of investments.
Impairment of investments
The recoverable amount is estimated when there is an indication that the
asset is impaired.
The result of the calculation of the value-in-use is sensitive to the
assumptions made and is a subjective estimate (note 3).
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
213
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 21317aXFinancialXStatements_v7.indd 213 13/03/2025 14:5513/03/2025 14:55
2 DIRECTORS’ REMUNERATION
The Company has no employees other than the Directors. Full details of the Directors’ remuneration is given in the Directors’ Remuneration Report.
3 INVESTMENTS
£m
Cost
At 1 January 2023 957.4
Additions 94.1
At 31 December 2023 and 1 January 2024 1,051.5
Additions 4.8
At 31 December 2024 1,056.3
Impairment
At 1 January 2023 (460.1)
Reversal of impairment 460.1
At 31 December 2023 and 1 January 2024 –
Impairment (158.6)
At 31 December 2024 (158.6)
Carrying value
At 31 December 2023 1,051.5
At 31 December 2024 897.7
The Company directly owns 100% of the share capital of Aston Martin Holdings (UK) Limited, a non-trading intermediate holding company registered in
England and Wales. A full list of subsidiary and other related undertakings is given in note 33 to the Group Financial Statements. Additions in 2023 represent
£88.7m for the issuance of shares to Lucid Group, Inc. in respect of the Technology sharing agreement and £5.4m in relation to Group share-based payment
charges for which the Company will issue shares on behalf of employees in subsidiary companies. Additions in 2024 of £4.8m are in relation to Group share-
based payment charges for which the Company will issue shares on behalf of employees in subsidiary companies.
Impairment testing
The Company reviews the carrying amount of its investment when events and circumstances indicate that an asset may be impaired. As the net assets of the
Company exceed the market capitalisation of the Group there is an indicator of impairment and as such, an impairment test is performed. Impairment tests
are performed by comparing the carrying amount and the recoverable amount of the assets. The recoverable amount is the higher of the assets’ fair value
less costs of disposal and its value-in-use.
In assessing the value-in-use, the estimated future cash flows relating to the forecast usage period of the investment are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks. In performing this analysis the Company’s
value-in-use calculation does not support the full recoverability of the Company’s investment in subsidiary undertakings and therefore an impairment is
recognised in the current year. Although the Group forecast and business plan as at 31 December 2024 give an increased cash flow when compared to twelve
months ago, a higher external debt of the Group results in the recognition of an impairment.
Key assumptions used in value-in-use calculations
The calculation of value-in-use for the investment includes the following assumptions:
– Cash flows are projected based on actual operating results and the current five-year plan.
– Discount rates are calculated using a weighted average cost of capital approach. They reflect the individual nature and specific risks relating to the
business and the market in which the Group operates. The pre-tax discount rate used was 15.0% (2023: 14.0%).
– A long-term growth rate of 2% (2023: 2%).
Sensitivity analysis
– The assumption with the greatest level of sensitivity is the discount rate. As at 31 December 2024 if the discount rate increased by 1%, the impairment
recognised would have increased by £255.5m.
4 RECEIVABLES
2024
£m
2023
£m
Amounts due from Group undertakings 1,806.6 1,699.7
Total 1,806.6 1,699.7
Analysed as:
Non-current 1,806.6 1,699.7
1,806.6 1,699.7
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. The Company does not
expect to receive repayment of the loan due from Group undertakings within the next 12 months and has therefore presented the loan as non-current.
5 PAYABLES
2024
£m
2023
£m
Amounts due to Group undertakings 187.9 187.9
Accrued expenses 2.0 1.8
Derivative option over own shares 5.0 23.1
194.9 212.8
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Share warrants
As part of the issue of the Second Lien SSNs by Aston Martin Capital Holdings Limited, the Company issued share warrants enabling warrant holders to
subscribe for a number of ordinary shares in the Company at the subscription price of £1.67 per share (previously £10 per share prior to the rights issue in
September 2022). The warrants can be exercised from 1 July 2021 through to 7 December 2027. The fair value of the warrants is determined at each period
end. A credit to the Income Statement of £18.1m has been recognised in the year ended 31 December 2024 (2023: charge of £19.0m). No warrants were
exercised in the year ended 31 December 2024 (2023: 29,969,927).
6 CAPITAL AND RESERVES
Allotted, called u
p
and full
y
p
aid
2024
£m
2023
£m
936,274,947 shares of 10.0p each (2023: 823,663,785 ordinary shares of 10.0p each) 93.6 82.4
A full reconciliation of the Company’s movement in share capital is presented in note 27 of the Group accounts.
Merger reserve
On 26 June 2020, the Company issued 304.0m ordinary shares through a non-pre-emptive placing and retail offer. The shares were issued at 50p raising gross
proceeds of £152.1m, with £2.7m recognised as share capital and the remaining £149.3m recognised as merger reserve. The merger reserve is used where
more than 90% of the shares in a subsidiary are acquired and the consideration includes the issue of new shares by the Company, thereby attracting merger
relief under the Companies Act 2006. The merger reserve value was reduced by £5.4m of transaction costs associated with the equity raise.
Capital reserve
The capital reserve of £2.0m arose from the share-for-share exchange on the acquisition of the entire share capital of Aston Martin Holdings (UK) Limited
in 2018.
FINANCIAL STATEMENTS
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
214
17aXFinancialXStatements_v7.indd 21417aXFinancialXStatements_v7.indd 214 13/03/2025 14:5513/03/2025 14:55
2 DIRECTORS’ REMUNERATION
The Company has no employees other than the Directors. Full details of the Directors’ remuneration is given in the Directors’ Remuneration Report.
3 INVESTMENTS
£m
Cost
At 1 January 2023 957.4
Additions 94.1
At 31 December 2023 and 1 January 2024 1,051.5
Additions 4.8
At 31 December 2024 1,056.3
Impairment
At 1 January 2023 (460.1)
Reversal of impairment 460.1
At 31 December 2023 and 1 January 2024 –
Impairment (158.6)
At 31 December 2024 (158.6)
Carrying value
At 31 December 2023 1,051.5
At 31 December 2024 897.7
The Company directly owns 100% of the share capital of Aston Martin Holdings (UK) Limited, a non-trading intermediate holding company registered in
England and Wales. A full list of subsidiary and other related undertakings is given in note 33 to the Group Financial Statements. Additions in 2023 represent
£88.7m for the issuance of shares to Lucid Group, Inc. in respect of the Technology sharing agreement and £5.4m in relation to Group share-based payment
charges for which the Company will issue shares on behalf of employees in subsidiary companies. Additions in 2024 of £4.8m are in relation to Group share-
based payment charges for which the Company will issue shares on behalf of employees in subsidiary companies.
Impairment testing
The Company reviews the carrying amount of its investment when events and circumstances indicate that an asset may be impaired. As the net assets of the
Company exceed the market capitalisation of the Group there is an indicator of impairment and as such, an impairment test is performed. Impairment tests
are performed by comparing the carrying amount and the recoverable amount of the assets. The recoverable amount is the higher of the assets’ fair value
less costs of disposal and its value-in-use.
In assessing the value-in-use, the estimated future cash flows relating to the forecast usage period of the investment are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks. In performing this analysis the Company’s
value-in-use calculation does not support the full recoverability of the Company’s investment in subsidiary undertakings and therefore an impairment is
recognised in the current year. Although the Group forecast and business plan as at 31 December 2024 give an increased cash flow when compared to twelve
months ago, a higher external debt of the Group results in the recognition of an impairment.
Key assumptions used in value-in-use calculations
The calculation of value-in-use for the investment includes the following assumptions:
– Cash flows are projected based on actual operating results and the current five-year plan.
– Discount rates are calculated using a weighted average cost of capital approach. They reflect the individual nature and specific risks relating to the
business and the market in which the Group operates. The pre-tax discount rate used was 15.0% (2023: 14.0%).
– A long-term growth rate of 2% (2023: 2%).
Sensitivity analysis
– The assumption with the greatest level of sensitivity is the discount rate. As at 31 December 2024 if the discount rate increased by 1%, the impairment
recognised would have increased by £255.5m.
4 RECEIVABLES
2024
£m
2023
£m
Amounts due from Group undertakings 1,806.6 1,699.7
Total 1,806.6 1,699.7
Analysed as:
Non-current 1,806.6 1,699.7
1,806.6 1,699.7
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. The Company does not
expect to receive repayment of the loan due from Group undertakings within the next 12 months and has therefore presented the loan as non-current.
5 PAYABLES
2024
£m
2023
£m
Amounts due to Group undertakings 187.9 187.9
Accrued expenses 2.0 1.8
Derivative option over own shares 5.0 23.1
194.9 212.8
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Share warrants
As part of the issue of the Second Lien SSNs by Aston Martin Capital Holdings Limited, the Company issued share warrants enabling warrant holders to
subscribe for a number of ordinary shares in the Company at the subscription price of £1.67 per share (previously £10 per share prior to the rights issue in
September 2022). The warrants can be exercised from 1 July 2021 through to 7 December 2027. The fair value of the warrants is determined at each period
end. A credit to the Income Statement of £18.1m has been recognised in the year ended 31 December 2024 (2023: charge of £19.0m). No warrants were
exercised in the year ended 31 December 2024 (2023: 29,969,927).
6 CAPITAL AND RESERVES
Allotted, called u
p
and full
y
p
aid
2024
£m
2023
£m
936,274,947 shares of 10.0p each (2023: 823,663,785 ordinary shares of 10.0p each) 93.6 82.4
A full reconciliation of the Company’s movement in share capital is presented in note 27 of the Group accounts.
Merger reserve
On 26 June 2020, the Company issued 304.0m ordinary shares through a non-pre-emptive placing and retail offer. The shares were issued at 50p raising gross
proceeds of £152.1m, with £2.7m recognised as share capital and the remaining £149.3m recognised as merger reserve. The merger reserve is used where
more than 90% of the shares in a subsidiary are acquired and the consideration includes the issue of new shares by the Company, thereby attracting merger
relief under the Companies Act 2006. The merger reserve value was reduced by £5.4m of transaction costs associated with the equity raise.
Capital reserve
The capital reserve of £2.0m arose from the share-for-share exchange on the acquisition of the entire share capital of Aston Martin Holdings (UK) Limited
in 2018.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
215
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
17aXFinancialXStatements_v7.indd 21517aXFinancialXStatements_v7.indd 215 13/03/2025 14:5513/03/2025 14:55
FURTHER INFORMATION
Methodology and scope
SCOPE OF REPORTING
The Aston Martin Lagonda 2024 Sustainability Report for the period
1 January 2024 to 31 December 2024 covers the activities of Aston Martin
Lagonda Group Holdings plc and its subsidiaries – all of which are outlined in
the Aston Martin Lagonda Group Holdings plc Annual Report, available on
our website, along with this report, at www.astonmartin.com/corporate.
Aston Martin Lagonda is a global business with operations in the following
jurisdictions:
China
Germany
Japan
United Kingdom
United States
Our reporting boundaries are defined by operational control where the
Company can influence resource use. Sites are only included for reporting
where they have been operational at year-end. Unless otherwise stated, data
includes all global sites. Where we have mentioned manufacturing sites,
unless otherwise stated, this includes Gaydon, St Athan and Wellesbourne
(Unit 1, 2 and 8).
REPORTING STANDARDS AND FORMATS
In this Report, we set out our sustainability strategy and the initiatives
taken during the 2024 calendar year. The Report was drafted by the
Sustainability team at Aston Martin under the supervision of the Company’s
Chief Financial Officer. Aston Martin has reported the information cited
in the Global Reporting Initiative (‘GRI’) content index for the period
1January 2024 to 31December 2024 with reference to the GRI Standards
(GRI: Foundation 2021).
DATA QUALIT Y
We believe it’s important for both the business and readers of our
Sustainability Report to track performance over time. If new information
changes previously reported figures by 5% or more, we will restate prior
years’ data to ensure comparability.
Our sustainability data is subject to detailed scrutiny and analysis by relevant
internal subject matter experts, as well as checks by external advisors.
Selected performance data in this Report is subject to limited assurance. The
Independent Limited Assurance Report is included within the Sustainability
Report (pages 65 and 66).
RACING. GREEN. TARGETS
We have set several key targets within our Racing. Green. strategy to measure
our progress against our strategy pillars. Below we set out our targets and
how we measure against them.
Targets: Reduce absolute Scope 1, 2 and 3 greenhouse gas emissions
42% and 90% by 2030 and 2050, respectively, from a 2022 base year
We have committed to near- and long-term emission reductions in line with
science-based net zero with SBTi and are currently waiting for validation of
these targets.
Target: Improve Biodiversity at our manufacturing sites (as measured
through the Biodiversity Index)
Improve the Biodiversity Metric score, which is referred to as the Biodiversity
Index, of our sites Gaydon and St Athan against the previous year’s figure.
Target: 30% reduction in water consumption per car by 2030
Reduction in water consumed at our manufacturing sites per car produced,
using passed to sales figures, against our base year of 2022.
Target: Zero waste to landfill
Yearly target from to avoid all waste being sent to landfill covering all sites
where we have operational control.
Target: Reduce the amount of waste per car built by 3% each year
Reduction in total waste produced at our manufacturing sites per car built,
using passed to sales figures, by 3% each year, from our base year of 2022.
Target: Zero accidents in our business
Yearly target from to achieve zero accidents across all of our operating sites.
Target: Aim for women in 30% of leadership positions by 2030
Aim for 30% of female employees to hold leadership positions, which
includes ‘Other leadership’, ‘Senior leadership’ or ‘Senior management’
bythe end of the 2030 reporting period.
Target: Secure and maintain accreditation as a Great Place to Work®
by2025
Secure the Great Place to Work® accreditation by achieving 65% or more in
the Trust Index™ employee survey by the end of the 2025 reporting period
and maintaining every year.
Target: In line with international best practice on business ethics, 100% of
employees complete Aston Martin’s annual Code of Conduct training
Target for all eligible employees to complete the annual Code of Conduct
internal training, which is mandatory for all staff and new joiners to complete
within their probation period (see page 221 for methodology and scope).
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
216
18XFurtherXinformation_v48.indd 21618XFurtherXinformation_v48.indd 216 13/03/2025 14:5513/03/2025 14:55
Scope: we aim to collect aggregate data from all sites covering 100% of
the total headcount that are site based in the year from 1 January to
31 December 2024.
Units: tonnes of CO
2
e (tCO
2
e).
Method: GHG emissions are accounted for in line with GHG protocol
as follows:
Scope 1: multiplying energy and refrigerant loss data by appropriate
available emission factors from DEFRA (2024). Refrigerant loss data is
currently only sourced from our two largest sites, Gaydon and St Athan,
UK.
Scope 2 location-based: multiplying energy data by appropriate
available emission factors from DEFRA (2024) and the International
Energy Agency (IEA) Emissions from electricity generation data (2024).
Scope 2 market-based: multiplying energy data by supplier specific
emission factors where renewable energy is purchased. For remaining
energy, we use residual mix factors from the Association of Issuing
Bodies (AIB) European Residual Mix AIB (2023) and Green-E (2023)
where available or IEA data otherwise.
Pro-rated and uprated energy data was used for the GHG calculations.
Source: energy consumption collected directly from sites through utility
bills, meter readings and a fuel card system.
Parameter: Scope 3 GHG emissions
As per the GHG Protocol, Scope 3 covers all indirect emissions (not included
in Scope 2) that occur in the value chain of the Company, including
both upstream and downstream emissions. We began by assessing the
15categories outlined in the GHG Protocol Corporate Value Chain (Scope 3)
Standard to determine which were relevant to our business. Categories 8, 10,
13, and 15 were deemed irrelevant and therefore excluded from our Scope 3
footprint, while the remaining categories were included. To calculate our
Scope 3 GHG emissions, we used a combination of actual data, activity data,
and financial data. Last year, we published our baseline total Scope 3 GHG
emissions for 2022. This year, we have disclosed our 2023 emissions,
reinforcing our commitment to transparency and progress. Scope 3
emissions remain a key focus for us, and we look forward to sharing more
details in the future.
TACKLING CLIMATE CHANGE
Energy use
Parameter: Energy consumption
Definition: total amount of energy consumed within all our assets. This is
reported as follows:
Energy consumption split by
UK, rest of world and total.
Diesel
Electricity
LPG
Natural gas
Petrol
Propane
Scope: we aim to collect aggregate data from all sites covering 100% of
the total headcount that are site based in the year from 1 January to
31December 2024.
Units: megawatt hour (MWh)
Method: sum of energy data reported per site, converting to kWh
(subsequently MWh) where not already reported in that unit. UK
Government’s DEFRA Greenhouse Gas Conversion Factors for Company
Reporting (2024) fuel property values were used for conversions. Where we
were not able to collect data for the full 12-month period for a site that was
functional for the full 12-month period, we pro-rated the data to compensate
for the missing information. We then estimate for 100% of site-based staff,
by calculating an up-rated value for sites where actual data is not available.
We first attempt to up-rate based on the consumption and headcount of a
site in the same country or, if unavailable, Company-wide values. Headcount
data is from HR as of 31 December 2024.
Source: collected directly from sites through utility bills, meter readings and
a fuel card system.
GHG Emissions
Parameter: Scope 1 and 2 GHG emissions
Definition: amount of carbon dioxide equivalent (CO
2
e) emitted through the
energy used within all our assets. This is reported as follows:
Scope 1 (direct) emissions from energy used in Company-owned or
controlled facilities and vehicles. This includes diesel, LPG, natural gas,
petrol, propane and refrigerant gas losses.
Scope 2 (indirect) location-based emissions from purchased electricity.
Scope 2 (indirect) market-based emissions from purchased electricity.
Scope 1 and Scope 2 (location-based) GHG emissions, split by UK, rest
of world and total.
GHG emissions per manufactured volume (units). This is defined as the
total absolute Scope 1 and 2 emissions (tonnes CO
2
e) divided by the total
volume of manufactured units.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
217
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
18XFurtherXinformation_v48.indd 21718XFurtherXinformation_v48.indd 217 13/03/2025 14:5513/03/2025 14:55
FURTHER INFORMATION
METHODOLOGY AND SCOPE CONTINUED
INVESTING IN PEOPLE
For the purposes of this report, unless otherwise stated, ‘employees’ refer to
all workers who are employed by and directedly paid by Aston Martin
Lagonda, regardless of location.
Parameter: Employees by gender
Definition: number of employees recorded by management level and
gender (female and male), as well as percentage of female employees as at
31 December 2024.
Management level is split by ‘Senior management team’, ‘Senior leadership’,
‘Other leadership’ and ‘Other employees’. Senior management team refers
to our Executive Committee Members (‘Chiefs’). Senior leadership team
refers to our ‘Director and SP3’ population, which sits below the senior
management population. Other leadership includes employees in a
managerial position that sit below Directors, such as Senior managers and
Managers. Other employees refer to all other grades of the organisation
excluding Chiefs and Directors, Senior Managers, and Managers – this
includes SP2 & SP1 Experts, grades 4–9 and technician grades A–C,
Graduates, Industrial Placements and Apprentices.
Scope: all employees in Aston Martin Lagonda on 31 December 2024.
Units: number of employees, percentage (%).
Method: sum of female employees by management level (same applies for
male). Sum of female employees by management level as a percentage of
the total employee number in that management level.
Source: extracted from the Company’s HR system.
Parameter: Employees by region
Definition: number of employees recorded by region and gender as a
number, as well as a percentage of female employees as at 31 December
2024. Region refers to employee’s working location and are reported as
follows: Asia Pacific, EMEA, UK and Americas.
Scope: all employees in Aston Martin Lagonda on 31 December 2024.
Units: number of employees, percentage (%).
Method: sum of female employees in each region (same applies for males).
Sum of female employees by region as a percentage of the total employee
number in that region.
Source: extracted from the Company’s HR system.
Parameter: Average employee tenure by gender
Definition: average years of service for employees as at 31 December 2024,
recorded by gender.
Scope: all employees in Aston Martin Lagonda on 31 December 2024.
Units: years.
Method: sum of years of service for all employees divided by total number
of employees. Sum of all female employees divided by total number of
female employees (same applies for males).
Source: extracted from the Company’s HR system.
CREATING A BETTER ENVIRONMENT
Waste
Parameter: Total waste
Definition: total amount of waste produced in our UK Operations by
destination. This is reported as follows under non-hazardous and hazardous
headings:
Reuse
Recycled
Recovered (waste to energy)
Incineration (not recovered)
Treatment
Landfill
Newport Pagnell reports under
Recycled, Recovery Landfill and
Non-landfill destinations due to
different waste collectors
Scope: all UK Operations (including Newport Pagnell), excluding HPL in the
year from 1 January to 31 December 2024.
Units: tonnes (UK).
Method: sum of waste reported for all our sites in the UK.
Source: waste data collected by our main waste contractor provider for all
UK Operations. For Newport Pagnell, waste data is collected directly from
waste collection invoices and consignment notes.
Water
Parameter: Water consumption
Definition: total amount of water consumed within all our assets.
Scope: we aim to collect aggregate data from all sites covering 100% of
the total headcount that are site based in the year from 1 January to
31 December 2024.
Units: cubic metres (m
3
)
Method: sum of water use data reported for each asset. Where data did not
cover the full 12-month period for a site that was functional for this time, we
pro-rated the data to compensate. Where no data on usage was available,
we up-rated based on Company-wide water values and headcount of the
site. Headcount data is from HR as of 31 December 2024.
Source: collected directly from sites through utility bills and meter readings.
Biodiversity
Parameter: Biodiversity metric
Definition: biodiversity metric, measuring the biodiversity value of habitats.
Scope: Gaydon and St Athan UK sites
Units: habitat units.
Method: calculating the number of biodiversity units using UK Government’s
DEFRA Biodiversity Metric 1.03 Ecological Baseline Condition Assessment.
Source: a ssessment conducted by ex ternal a sessor as part of an independent
Annual Monitoring Review.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
218
18XFurtherXinformation_v48.indd 21818XFurtherXinformation_v48.indd 218 13/03/2025 14:5513/03/2025 14:55
Apprentices
Apprentice refers to anyone on a four-year fixed term contract who spends
20% off the job working towards an academic qualification.
Parameter: New apprentices recruited
Definition: total number of Apprentices who have been recruited.
Scope: all employees in an Apprentice position in Aston Martin Lagonda
infrom 1 January to 31 December 2024.
Units: number of employees.
Method: sum of Apprentices who were recruited in the year.
Source: extracted from the Company’s HR system.
Parameter: Apprentices completed training
Definition: total number of apprentices completing the requirements of
their apprenticeship agreement and receiving a relevant qualification award
from the associated training provider.
Scope: all employees in an Apprentice position in Aston Martin Lagonda in
the year from 1 January to 31 December 2024.
Units: number of employees.
Method: sum of Apprentices who completed training in the year.
Source: collected from internal systems, managed by HR and the Company’s
HR system.
Graduates
Parameter: New graduate trainees recruited
Definition: total number of graduates who have been recruited. Graduate
refers to anyone on a two-year programme with rotations across business
functions.
Scope: all employees in a Graduate position in Aston Martin Lagonda in the
year from 1 January to 31 December 2024.
Units: number of employees.
Method: sum of Graduates who were recruited in the year.
Source: extracted from the Company’s HR system.
Parameter: Students joined on industrial placements
Definition: total number of students on industrial placement who have been
recruited. Industrial placements refer to students completing the university
industrial placement scheme.
Scope: all employees in an Industrial Placement position in Aston Martin
Lagonda.
Units: total number of employees.
Method: sum of Industrial Placements who were recruited in the year from
1January to 31 December 2024.
Source: extracted from the Company’s HR system.
Parameter: Average employee turnover by gender
Definition: percentage of employees who have left the Company (voluntarily
and involuntarily).
Scope: all employees in Aston Martin Lagonda in the year from 1 January to
31 December 2024.
Units: percentage (%).
Method: sum of employees who have left the Company divided by the total
employee number. Sum of female employees who have left the Company
divided by the total female employee number (same applies for males).
Source: extracted from the Company’s HR system.
Parameter: Newly-hired employees
Definition: total number of employees hired in the Company.
Scope: all employees in Aston Martin Lagonda in the year from 1 January
to31 December 2024.
Units: number of employees.
Method: sum of employees who were hired in the year.
Source: extracted from the Company’s HR system.
Gender pay gap
Parameter: gender pay gap favouring men
Definition: gender pay gap in hourly pay as a percentage of men’s pay at the
snapshot date of 5 April 2024, reported as mean pay and median pay gap.
The mean pay gap shows the difference between the average hourly pay of
men and women in UK-based roles at Aston Martin. The median pay gap
shows the difference in hourly pay between the ‘middle’ man and the ‘middle’
woman, if all employees in the UK were ranked in order of their pay.
Scope: UK permanent employees only as per regulatory requirements on
5April 2024.
Units: percentage (%).
Method: mean hourly pay gap is calculated by adding up the hourly pay of all
full-pay relevant male and female employees and dividing by the total
number of males and females respectively. The median hourly pay gap is
calculated by identifying the middle hourly pay value for all full-pay relevant
male and female employees. In both cases, the gap is calculated as the
percentage difference between the two numbers.
Source: extracted from the Company’s HR system.
Collective bargaining
Parameter: Employees covered by collective bargaining agreements
Definition: percentage of employees covered by collective bargaining
agreements.
Scope: all employees in Aston Martin Lagonda in the year 1 January to
31 December 2024.
Units: percentage (%).
Method: sum of employees covered by collective bargaining agreement as
a percentage of the total employee number.
Source: extracted from the Company’s HR system.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
219
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
18XFurtherXinformation_v48.indd 21918XFurtherXinformation_v48.indd 219 13/03/2025 14:5513/03/2025 14:55
STEM
Parameter: Visits to schools, colleges and universities
Definition: total number of visits to schools, colleges and universities. Visits
to schools, colleges and universities refer to any science, technology,
engineering and mathematics (STEM) related engagements completed.
Scope: all reported STEM related engagements with schools, colleges and
universities involving Aston Martin employees in the year from 1 January to
31 December 2024.
Units: number of visits.
Method: sum of visits to schools, colleges and universities.
Source: collected from internal systems, managed by Aston Martin HR
andSustainability.
Training
Parameter: Hours of training delivered
Definition: total number of hours spent on training by employees.
Scope: all training completed by employees on Aston Martin’s learning
management system, in the year from 1 January to 31 December 2024.
Units: number of hours.
Method: sum of hours spent of training.
Source: extracted from the Company’s learning management system.
Parameter: Hours of EV-related instructor-led training delivered
Definition: total number of hours on IMI Level 2 & 3 instructor-led training
inEV Safety delivered to eligible employees.
Scope: all instructor-led training delivered to eligible employees for IMI
Level 2 & 3 in the year from 1 January to 31 December 2024.
Units: number of hours (rounded to the nearest hour).
Method: sum of hours of training delivered.
Source: managed by Aston Martin Training and extracted from the
Company’s learning management system.
Parameter: Dealer employees trained in classroom courses
Definition: total number of dealer employees registered in the training
academy who completed classroom courses.
Scope: all dealer employees who had access to and were registered in the
training academy in the year from 1 January and 31 December 2024.
Units: number of dealer employees.
Method: sum of dealer employees completing training in classroom
courses.
Source: extracted from internal systems, managed by Aston Martin Global
Dealer Training.
Health & Safety
Parameter: Accident Frequency Rate (‘AFR’)
Definition: total number of recordable injuries (any injury resulting inmedical
treatment beyond first aid, lost time, or restricted work duties for
GR403 standard), sustained by full-time equivalent (‘FTE’) per 200,000
hours worked (equivalent to 100 employees).
Scope: recordable injuries as per GRI403 for all UK-based FTEs in the year
1January to 31 December 2024.
Units: accidents per 100 workers.
Method: sum of recordable injuries divided by sum of worked hours
(including overtime) based on monthly FTE headcount multiplied number of
working days in month multiplied contracted working hours, adjusting for
paid time off.
Source: data extracted from internal systems managed by Aston Martin
Health & Safety and from the Company’s HR system.
Parameter: Lost Time Accidents (‘LTAs’)
Definition: total number of workplace accidents that resulted in a worker
being unable to perform their duties for at least one full day after the day of
the incident. Lost days refer to the total number of workdays that are lost
because of the worker injury or illness.
Scope: all accidents which result in LTAs for all UK-based FTEs in the year
1January to 31 December 2024.
Units: number of LTAs and days lost.
Method: sum of accidents that result in LTA and sum of lost days due to LTAs.
Source: collected from internal systems managed by Aston Martin Health
&Safety and the Company’s HR system.
Parameter: Reporting of Injuries, Diseases and Dangerous Occurrences
(‘RIDDOR’)
Definition: total number of incidents which meet the UK RIDDOR reporting
standard.
Scope: all RIDDOR incidents for all UK-based FTEs in the year 1 January to
31December 2024.
Units: number of reported incidents under RIDDOR.
Method: sum of RIDDOR incidents.
Source: collected from internal systems managed by Aston Martin Health
&Safety and the Company’s HR system.
FURTHER INFORMATION
METHODOLOGY AND SCOPE CONTINUED
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
220
18XFurtherXinformation_v48.indd 22018XFurtherXinformation_v48.indd 220 13/03/2025 14:5513/03/2025 14:55
RESPONSIBLE BUSINESS
Training – Code of Conduct
Parameter: Employees completing Code of Conduct training
Definition: percentage of eligible employees completing the Code of
Conduct internal training. This is phase one of our new mandatory training,
rolled out annually via a training campaign and to any new joiners to
complete within their probation period. For the first campaign, this ran from
14 October 2024 to 21 February 2025.
Scope: all eligible employee who are setup on the learning management
system, excluding employees who are within their probation period when
the reporting period ends and employees on long-term absence over the
reporting period.
Units: percentage (%).
Method: sum of number of employees completing training type divided by
total number of in scope employees at the end of the 2024 campaign.
Source: extracted from the Company’s learning management system and
from the Company’s HR system.
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
221
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
18XFurtherXinformation_v48.indd 22118XFurtherXinformation_v48.indd 221 13/03/2025 14:5513/03/2025 14:55
ADJUSTED EBITDA
Removes depreciation, loss/(profit) on sale of fixed assets and amortisation
from adjusted operating profit/(loss)
ADJUSTED EBITDA MARGIN
Adjusted EBITDA divided by revenue
ADJUSTED EBT
Profit/(loss) before tax and adjusting items as
shown in the Consolidated Income Statement
ADJUSTED EARNINGS PER SHARE
Profit/(loss) after income tax before adjusting items,divided by the weighted
average number of ordinary shares in issue during the reporting period
ADJUSTED OPERATING MARGIN
Adjusted operating profit/(loss) divided by revenue
ADJUSTED OPERATING PROFIT/(LOSS)
Profit/(loss) from operating activities before adjusting items
AGM
Annual General Meeting
APM
Alternative Performance Measures; for detail ofthemeasures adopted
see note 34 to the Financial Statements
ASP
Average selling price
BEV
Battery Electric Vehicle
CARBON NEUTRAL
Carbon neutrality is achieved when a company’s activities result in no net
increase in global GHG emissions over a specific period, often by offsetting
emissions through carbon credit purchases
CORE
The Company’s models in ongoing production excluding Specials.
Thesecurrently comprise Vantage, DB12, Vanquish and DBX
EBITDA
Earnings before interest, tax, depreciation andamortisation
EPS
Earnings per share
ERP
Enterprise resource planning
ESG
Environmental, social and governance
EY
Ernst & Young LLP, the Company’s current ExternalAuditor
FIXED MARKETING OR FM
Explicit marketing costs incurred directly by theCompany, such as hosting
launch events and Formula One® Sponsorship
FRC
Financial Reporting Council
FREE CASH FLOW
Cash inflow/(outflow) from operating activities less the cash used in investing
activities (excluding interest received and cash generated from disposals of
investments) plus interest paid in the year less interest received
FTSE
Financial Times Stock Exchange
FY
Financial year, full year
GHG
Greenhouse gases
GPG
Gender Pay Gap
GPTW
Great Place To Work® certification recognises employers via a two step process
including a staff survey and workplace questionnaire
GT
Grand Tourer, a sports car with two front seats
plus smaller rear seats
UHNWI
Ultra High Net Worth Individual
HY
Half year
ICE
Internal combustion engine
IFRS
International Financial Reporting Standards
KPI
Key Performance Indicator
FURTHER INFORMATION
Glossary
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
222
18XFurtherXinformation_v48.indd 22218XFurtherXinformation_v48.indd 222 13/03/2025 14:5513/03/2025 14:55
LTIP
Long Term Incentive Plan
MATERIALITY ASSESSMENT
An assessment which determines an organisation’s material sources of
environmental, social and governance risk and opportunity to inform
sustainability reporting processes
MBAG
Mercedes-Benz AG
NED
Non-executive Director
NET DEBT
Current and non-current borrowings in addition toinventory financing
arrangements and lease liabilities recognised following the adoption of IFRS16,
less cash and cash equivalents, cash held not available for short term use
NET POSITIVE BIODIVERSITY
Impacts on biodiversity caused by a project are outweighed by the actions taken
to avoid and reduce such impacts, rehabilitate affected species/landscapes and
any residual impacts offset
NET-ZERO
Achieved when a company reduces its value chain GHG emissions to near-zero
(defined as at least 90% reduction) in line with the goal of limiting global
temperature rise to 1.5 °C and permanently neutalises any residual emissions
atthe net-zero target year
PHEV
Plug-in Hybrid Electric Vehicle
PIK
Payment-in-kind interest, whereby interest on abond is paid by scrip issuance
offurther bonds, rather than in cash
R&D
Research and development
RCF
Revolving Credit Facility
RELATIONSHIP AGREEMENTS
Relationship Agreements between the Company and the Yew Tree Consortium
dated 27 February 2020, MBAG dated 27 October 2020, the Public Investment
Fund dated 29 July 2022 and Geely dated 18 May 2023 which govern the
relationship between the Company and each of these shareholder groups
RETAILS
A volume measure of unit sales of vehicles by dealers to customers; and
Company sales ofcertain Specials direct to customers
SBTI
Science Based Targets initiative
SECTION 172 OR S.172
Section 172 of the Companies Act 2006 requires theBoard to consider a number
of factors in itsdecision-making, including the interests ofitsstakeholders
SID
Senior Independent Director
SONIA
Sterling Overnight Index Average
SPECIALS
Vehicles produced in limited numbers
V8, V12
An eight-cylinder internal combustion engine; atwelve-cylinder internal
combustion engine
WHOLESALES
A volume measure of unit sales of vehicles by theCompany to dealers;
andcompany sales ofcertain specials direct to customers
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
223
STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS FURTHER INFORMATION
18XFurtherXinformation_v48.indd 22318XFurtherXinformation_v48.indd 223 13/03/2025 14:5513/03/2025 14:55
GENERAL SHAREHOLDER ENQUIRIES
Enquiries relating to shareholdings, such as the transfer of shares, change of
name or address, lost share certificates or dividend cheques, should be
referred to the Company’s registrar:
Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA,
United Kingdom.
Equiniti offers a range of shareholder information and services online at
www.shareview.co.uk.
SHARE WARRANTS
The Company issued warrants granting rights to subscribe for ordinary
shares in accordance with the terms of the Warrant Instrument dated
7December 2020. Warrants are exercisable during the period starting on
1July 2021 and ending on 7 December 2027. No warrants were exercised
in2024.
Further information on the warrants is set out in the combined prospectus
and circular dated 18 November 2020.
ANNUAL GENERAL MEETING
Information on the Annual General Meeting, together with the Notice of
Meeting containing details of the business to be conducted, will be posted
on our website, www.astonmartin.com/corporate.
The voting results for the 2025 Annual General Meeting will also be
accessible on www.astonmartin.com/corporate shortly after the meeting.
ELECTRONIC COMMUNICATION
Shareholders may at any time choose to receive all shareholder
documentation in electronic form via the internet, rather than in paper
format. Shareholders who decide to register for this option will receive an
email each time a shareholder document is published on the internet.
Shareholders who wish to receive documentation in electronic form should
register online at www.shareview.co.uk.
SHARE DEALING
Aston Martin Lagonda Global Holdings plc shares can be traded through
most banks, building societies or stockbrokers. Equiniti offers a telephone
and internet dealing service. Terms and conditions and details of the
commission charges are available on request.
For telephone dealing, please telephone 03456 037 037 between 8.00am
and 4.30pm, Monday to Friday, and for internet dealing visit www.shareview.
co.uk/dealing.
Shareholders will need their reference number which can be found on their
share certificate.
SHAREGIFT
Shareholders with a small number of shares, the value of which makes
themuneconomic to sell, may wish to consider donating their shares
tocharity through ShareGift, a donation scheme operated by
The Orr Mackintosh Foundation.
A ShareGift donation form can be obtained from Equiniti. Further information
is available at www.sharegift.org or by telephone on020 7930 3737.
SHARE PRICE INFORMATION
The latest Aston Martin Lagonda Global Holdings plc share price is available
on the Company’s website at www.astonmartin.com/corporate.
UNAUTHORISED BROKERS (BOILER ROOM SCAMS)
Shareholders are advised to be very wary of any unsolicited advice, offers to
buy shares at a discount or offers of free company reports. These are
typically from overseas-based ‘brokers’ who target UK shareholders
offering to sell them what often turn out to be worthless or high-risk shares
in US or UK investments.
These operations are commonly known as boilerrooms.
If you receive any unsolicited investment advice, get the correct name of the
person and organisation, and check that they are properly authorised by the
FCA before proceeding any further. This can be done by visiting www.fca.
org.uk/register/.
If you deal with an unauthorised firm, you will not be eligible to receive
payment under the Financial Services Compensation Scheme if things go
wrong. If you think you have been approached by an unauthorised firm, you
should contact the FCA consumer helpline on 0800 111 6768.
More detailed information can be found on the FCA website at
www.fca.org.uk/consumers/protect-yourself/unauthorised-firms.
REGISTERED OFFICE
Aston Martin Lagonda Global Holdings plc, Banbury Road, Gaydon Warwick,
CV35 0DB, United Kingdom.
Registered in England and Wales Registered Number: 11488166
www.astonmartin.com/corporate.
WEBSITE
This Annual Report and other information about Aston Martin Lagonda
Global Holdings plc, including share price information anddetails of results
announcements, are available at www.astonmartin.com/corporate.
Shareholder Information
FURTHER INFORMATION
ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2024
224
18XFurtherXinformation_v48.indd 22418XFurtherXinformation_v48.indd 224 13/03/2025 14:5513/03/2025 14:55
DISCLAIMER
The purpose of this Annual Report is to provide information to
themembers of Aston Martin Lagonda Global Holdings plc.
Thisdocument contains certain statements with respect to the
operations, performance and financial condition of the Group
including, among other things, statements about expected
revenues, margins, earnings per share or other financial or other
measures. Forward-looking statements appear in a number of
places throughout this document and include statements regarding
our intentions, beliefs or current expectations and those of our
officers, Directors and employees concerning, among other things,
our results of operations, financial condition, liquidity, prospects,
growth, strategies and the business weoperate. By their nature,
these statements involve uncertainty and are subject to a number of
risks since future events and circumstances can cause actual results
and developments to differ materially from those anticipated.
The forward-looking statements reflect knowledge and information
available at the date of preparation of this document and, unless
otherwise required by applicable law, the Company undertakes no
obligation to update or revise these forward-looking statements.
Nothing in this document should be construed as a profit forecast.
Allmembers, wherever located, should consult any additional
disclosures that the Company may make in any regulatory
announcements or documents which it publishes. The Company
andits Directors accept no liability to third parties in respect of this
document save as would arise under English law. This document
does not constitute an invitation to underwrite, subscribe for or
otherwise acquire or dispose of any Aston Martin Lagonda Global
Holdings plc shares, in the UK, orin the USA, or under the USA
Securities Act 1933 or any otherjurisdiction.
This document is printed on Symbol Tatami White, a paper
containing fibresourced from responsible FSC® certified forests and
other controlled sources. The pulp used in this product is bleached,
using an elemental chlorine free (ECF) process.
Printed in the UK by PurePrint Group, a CarbonNeutral® company,
certificated to Environmental Management System 14001
Designed and produced by Conran Design Group
www.conrandesigngroup.com
18XFurtherXinformation_v48.indd 22518XFurtherXinformation_v48.indd 225 13/03/2025 14:5613/03/2025 14:56
ASTONMARTIN.COM/CORPORATE
By Appointment to
His Majesty The King
Motor Car Manufacturer
Aston Martin Lagonda Global Holdings plc
Gaydon
18XFurtherXinformation_v48.indd 22618XFurtherXinformation_v48.indd 226 13/03/2025 14:5613/03/2025 14:56