Aston Martin is adamant that its plans to return to Formula 1 next season remain unfazed despite concerns that the luxury British carmaker is facing severe financial strife.
Earlier this year, Racing Point team owner Lance Stroll led a consortium that bought a 16.7% stake in the company for a reported £182 million.
The team was set to then be rebranded as ‘Aston Martin’ for 2021, seeing out its current deal with Red Bull. But Aston Martin has been hit hard by the ongoing COVID-19 pandemic, with the company issuing a statement saying the team “does not have sufficient working capital” to remain operational for the next 12 months.
“Taking into account the proceeds of the capital raise, the Company is of the opinion that the Group does not have sufficient working capital to meet its requirements for 12 months following the publication of the Original Prospectus,” read the statement.
“This is due to the increased impact, since the Company published the First Supplementary Prospectus on 13 March, of COVID-19 and the ongoing and unquantifiable uncertainty it has created and continues to create.”
A General meeting on Monday approved the injection of £536 million through a combination of £262 million investment and an equity raise.
As reported by motorsport.com, the company may even have to delve into £150 million of loans to ensure it can see it through the next 12 months.
However, Stroll, who is due to become the executive chairman of the company within the next month, remains confident that the funds injected by his consortium will provide the company with the financial stability it needs.
Stroll also reassured that the plan to have his Racing Point team rebranded as Aston Martin remains on track.
“I, and my co-investors in the consortium, continue to believe passionately in the future of Aston Martin Lagonda,” Stroll said after the meeting.
“This is most clearly demonstrated by our investment of £262m which underpins the financial security of the company. This is a very significant capital raise of £536m – due to be made by my consortium and other shareholders at a very challenging time.
“This gives the necessary stability to reset the business for its long-term future. We have a clear plan to make this happen, including Aston Martin entering an F1 works team next season and I look forward to working with the Management team to deliver this programme.”