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Aston Martin: A new start from a chequered past?

Aston Martin’s IPO brings to market an iconic brand with a history as chequered as a Grand Prix finish flag.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Aston Martin’s IPO brings to market an iconic brand with a history as chequered as a Grand Prix finish flag.

Founded in the early twentieth century, Aston Martin gained success in many of the world’s greatest motor racing events, from the Aston hill climb victory that gave the brand half of its name, to endurance races at Le Mans and the Nurburgring.

For some the company’s greatest claim to fame, and perhaps still its greatest asset, is that the makers of Goldfinger decided James Bond should drive an Aston Martin DB5.

Astons still feature in Bond movies to this day, providing the brand with publicity and cachet that most other car manufacturers can only dream of. No wonder Aston Martin is the world’s fastest growing automotive brand, rumoured to be worth up to £5bn.

An IPO is an exciting moment for the company. But there have been bumps along its journey. Not least that Aston’s gone bankrupt seven times in its 105-year history.

So has the company turned the corner?

A bright future?

Aston Martin has never been mass-market, even when owned by Ford. And even though it was once part of the David Brown tractor manufacturing group (explaining the DB initials that underpin the names of many of its models) they’re definitely not suitable for agricultural use!

What Aston Martins represent, like Ferrari and similar marques, is an exclusive lifestyle, luxurious and affluent, in which owners move swiftly in vehicles that project elegance and power.

Production peaked at 7,300 vehicles in 2007, but slumped when the financial crisis side-swiped the global economy two years later. Now with sales recovering to over 5,100 cars last year and the brand swinging back into profit, the group is coming to market.

Today, Aston Martin is owned by a consortium of investment firms and the IPO is set to coincide with an intense period of new model launches, broadening the range and potentially pushing sales significantly higher.

What to consider?

Aston Martin is unquestionably an iconic brand. But it’s important that potential investors concentrate on the company’s long-term financial prospects. For some, it could be far too easy to get carried away by the brand and the 007 dream.

We’ll be looking at the things to consider before investing as more information is released. Ultimately all investments can fall as well as rise in value and you could get back less than you invest.

If you’re new to investing, we have three guides to help you get started. A beginner’s guide to investing, a beginner’s guide to buying shares and guide on how to pick shares. These guides like our research and share dealing service are not personal advice but to help give you information to make informed decisions.

Read more on the Aston martin IPO

Past performance is not a guide to the future. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research disclosure for more information.

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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