Aston Martin’s reported free cash outflow of £299m left a dent in full-year earnings. The British luxury car manufacturer has been hit with rising cash interest costs and elevated investment activity which is expected to continue into FY 23. After years of supply chain disruptions and cash burn, there might be a “light at the end of the tunnel” according to management, with the release of a new range of sports cars which will boost volumes and carry a higher contribution margin.

Liquidity remains a big talking point however, as significant cash burn is expected in the first half of 2023. In today’s (01/03) earnings release, management forecasted that free cash outflow in H1 23 will mirror H1 22 — which was £234m. All else being equal, this cash outflow would materially reduce liquidity to £440m and place the group in an uncomfortable position if profitability didn’t turn a corner in H2. Analysts at Jefferies and HSBC have voiced their concerns too, stating that Aston Martin may need a further capital injection.