STRATEGIC REPORT PRINCIPAL RISK SUMMARY CONTINUED S TR VIABILITY STATEMENT A The Directors have carried out a robust review of the principal risks of In the event of one or more risks occurring which has a particularly TE G I the Group, which are set out on pages 65-68, identifying the nature and severe effect on the Group, the assessment assumed that all appropriate C potential impact of those risks on the viability of the Group, together actions would be taken in a timely manner by management to mitigate R E with the likelihood of them materialising. as far as possible the impact of the risks. Potential mitigating actions P O include constraining capital spending, seeking additional funding and/or R This analysis has then been used to carry out an assessment of the ability a number of other adjustments to operations in the normal course of T of the Group to continue in operation and meet its obligations. The business. assessment covers the five-year period from January 2024 to December G O 2028. This was considered appropriate by the Directors because it aligns In all scenarios it is assumed that any borrowings that mature in the VE with the business plan and the Group’s normal planning horizon and is review period will be renewed or replaced with facilities of similar size. R indicative of the investment and development cycle of new products in The projections show that, even in stressed conditions, the Group NAN the luxury car market. The assessment includes the costs anticipated in should be able to refinance these facilities on commercially acceptable C relation to our strategy and our views of the impact of climate change terms, assuming that debt markets continue to operate as currently. E (see note 1 of the Financial Statements). Inevitably, the degree of certainty decreases over this period. In addition, we have assumed that no additional legislative action will be F taken that impacts the sale of our products within the Viability I The assessment process consisted of stress testing the base case in the Statement timeframe. NAN business plan for scenarios designed to reflect the potential impact of C the principal risks materialising in a compound scenario, including the IAL The Directors have assessed the viability of the Group over the five-year following: period to 31 December 2028 and, based on this assessment and the S T – A severe but plausible reduction in sales volumes as a result of factors assumptions stated above, the Directors have a reasonable expectation A T such as a material reduction in the size of the luxury market due to that the Group will be able to continue in operation and meet its E M external factors (such as delayed product launches, a decrease in liabilities as they fall due over the period to 31 December 2028. E N demand from High Net Worth Individuals, increased direct and T indirect taxation and changes in consumer habits away from luxury S vehicles) F – Incremental fixed and variable costs U R – Incremental working capital requirements such as increased T H inventory during product launches reduced deposit inflows or E R increased deposit outflows INF – The impact of strengthening sterling:dollar exchange rates OR M A T I ON ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 70