- Luxury carmaker Aston Martin said it expected earnings to be second-half weighted amid a proposal to raise £500m to 'reset' the business via deeply-discounted right issue after reporting wider annual losses.

The company also announced that Mark Wilson would step down as chief financial officer.

'2020 is the year in which the business will be reset in order that it can start to operate as a true luxury car brand,' the company said.

As part of efforts to turnaround performance, the luxury carmaker detailed plans to raise cash via a deeply-discounted 14-to-25 rights issue.

New shares in Aston Martin would be issued at 207p each to raise around £318m, representing a 47% discount to their closing price on Wednesday. Adjusted earnings (EBITDA) in 2020 was 'expected to be almost entirely second-half weighted due to initial deliveries of the DBX and specials and as first-half revenues are expected to decline as wholesales are managed,' it added.

For 2019, pre-tax losses widened to £104.3m from £68.2m on-year and revenue fell 9% to £997.m.

The company blamed the decline in revenue on wholesale volume - sales to dealers - declines, costs of supported retail growth, and lower average selling prices following a shift in core mix to its sports car brand, Vantage. Retail sales - dealer sales to customers - rose 12% year-on-year, but wholesales were down 9%.

Looking ahead, the company flagged a number of uncertainties, including plans to lower sports car production to regain price positioning and the impact of the coronavirus. 'Sports car wholesales for 2020 are planned to be materially lower than in 2019 as the company focuses on further reducing dealer inventories to a luxury norm,' Aston Martin said.

The coronavirus had not yet stalled production in China, but the outbreak had the potential to impact both the supply chain and customer demand in China and other markets, it added. Story provided by