Aston Martin sees it shares plummet over a sixth of its market value, now down 90% over the past one-year period.

Shares in Aston Martin plummet over a sixth of its market value after the automaker slashed its annual guidance in regards to earnings and sales. Referencing higher expenses stemming from supply chain constraints.

The known sportscar maker sees its total wholesale volumes coming in at between 6,200-6,600 units, which is lower than the initial expectation of more than 6,600 units.

The full-year adjusted earnings before interest, taxes, depreciation and amortisation margin is also now estimated to rise in a range of 100-300 basis points.

Aston Martin announced that the revised adjustments are as a result of new logistical and supply chain issues it had to grapple with in the second half of the year. The automaker suffered costs of around £20 million as it moved to mitigate these disruptions.

The UK based firm warned that the supply chain will continue to have a prolonged impact on working capital than it initially expected.

Aston Martin in a statement, “we now expect the cash inflows from more normalised working capital dynamics to only become visible towards the end of Q4 2002 and into early 2023”.

Additionally, larger new investments and a £245 million setback from a non-cash revaluation of some of its US dollar denominated debt led to the company’s pre-tax loss enlarging to £225.9 million from £97.9 million in the third quarter. Net cash interest payments on debt were also reported totalling £65 million.

However, total wholesale volumes during the 3-monhs to Sept 30. enlarged by 3%. Nevertheless, Lawrence Stroll, executive chairman,  stated the supply chain disruptions delayed the delivery of more than 400 vehicles until the Q4, resulting in a loss of £106 million.

Mr Stroll added, “in the context of supply chain and logistics disruption as well as inflationary pressures impacting the broader automotive industry, over the last two quarters we have encountered  specific supply chain challenges that have delayed our ability to meet customer demand”.

Over the past one-year period, Aston Martin’s shares have plummeted more than 90%, despite the company attempting to solidify its finances and shred its £833.4 million stacked debt through a recent rights issues and a move to add Saudi Arabia’s Public Investment fund as a shareholder.

(Sources: investing.com, astonmartin.com, reuters.com)