NOTES TO THE FINANCIAL STATEMENTS CONTINUED S S 20 OTHER FINANCIAL ASSETS CONTINUED TR21 TRADE AND OTHER PAYABLES CONTINUED TR The fair value of the warrant equity option above has been established by applying the proportion of equity represented by the derivative to an assessment ACustomer deposits and advances are recognised in revenue when the performance obligation, principally the supply of a Limited-Edition vehicle or service A of the enterprise value of AMR GP Limited, which is then adjusted to reflect marketability and control commensurate with the size of the investment. TEof a vehicle, is met by the Group. As part of the operating cycle of Special Vehicle projects, to which these customer deposits primarily relate, the Group TE G G I I C expects to derecognise a significant proportion over the next three years with approximately £167.1m expected to be recognised in 2024. This unwind C There is a further embedded derivative in the agreement in respect of an additional economic interest in the equity of AMR GP Holdings Limited which was Rrelates to the balance held as at 31 December 2023 and does not take into consideration any additional deposits and advances arising during 2024. R assessed as having a carrying value of £nil at inception. This derivative entitled the Group to subscribe for further share capital in AMR GP Limited in the E E P P event that the sponsorship agreement is extended for a further five-year period. The fair value movement in this derivative for the year ended 31 December OIn the year ended 31 December 2023, a finance expense of £7.7m (see note 8) was recognised as a significant financing component on contract liabilities O R R 2023 was a £3.8m increase (2022: £0.7m increase) and is recognised within the Consolidated Income Statement in administrative expenses. The movement Theld for greater than 12 months (2022: £8.0m). Upon satisfaction of the linked performance obligation, the liability is released to revenue so that the total T in the value of this derivative has been estimated using the same method as the warrant equity option disclosed above. There is no corresponding liability amount taken to the Consolidated Income Statement reflects the sales price the customer would have paid for the vehicle at that point in time. recorded as it is a non-option embedded derivative. G The Group applies a practical expedient for short-term advances received from customers whereby the advanced payment is not adjusted for the effects of G O O The Group exercised its option and subscribed for equity in AMR GP Holdings Limited during the year ended 31 December 2023. The Group holds one VEa significant financing component. According to the individual terms of the Special Vehicle contract and the position of the customer in the staged deposit VE further warrant which is exercisable in the event of the Group agreeing a third period of sponsorship for the period 2031 to 2035. The fair value of this Rand vehicle specification process, some deposits are contractually refundable. At 31 December 2023, the Group held £132.8m of contractually refundable R warrant option is currently assessed as £nil owing to the uncertainty that the sponsorship will be renewed so far in the future. NANdeposits (before the impact of significant financing components) (2022: £102.9m). The Special Vehicle programmes are typically oversubscribed and, in the NAN event that a customer requests reimbursement of their advanced payment, the newly created allocation is then given to an alternative customer who is 21 TRADE AND OTHER PAYABLES C C Current trade and other payables Erequired to make an equivalent advanced payment. The cumulative significant financing component associated with a reimbursed advance payment is E 2023 2022 credited in arriving at the net significant finance charge for the year. Further liquidity risk considerations are disclosed in note 23. £m £m (restated*) F Deferred service package income is recognised in revenue over the service package period. F I I Trade payables 143.2 151.2 NANNon-current trade and other payables NAN Repurchase liability 39.7 38.2 C 2023 2022 C Customer deposits and advances 272.1 335.7 IAL £m £m (restated*) IAL Accruals and other payables 356.5 346.0 STrade payables** 71.7 – S T T Deferred income – tax relief* 13.8 14.9 ADeferred income – tax relief* 42.0 34.1 A T T E E Deferred income – service packages 4.7 5.2 MDeferred income – service packages 7.8 8.5 M E E Deferred income – other 10.4 – NOther payables 0.8 0.6 N T T 840.4 891.2 S 122.3 43.2 S * Detail on the restatement is disclosed in note 2 * Detail on the restatement is disclosed in note 2 ** Trade payables consists of discounted deferred payments relating to technology purchases in the year (see note 12). F F U U Trade payables are non-interest bearing, and it is the Group’s policy to settle the liability within 90 days. R R T T H 22 OTHER FINANCIAL LIABILITIES H Accruals and other payables consist of product development and capital accruals of £115.4m (2022: £135.7m), sales and marketing accruals of £70.4m E 2023 2022 E R R (2022: £59.0m), manufacturing accruals of £44.4m (2022: £40.7m) and administrative and other accruals of £126.3m (2022: £110.6m). INF £m £m INF Forward currency contracts held at fair value (see note 23) 2.1 0.7 At 31 December 2023, a repurchase liability of £39.7m including accrued interest of £1.7m, has been recognised in trade and other payables and net debt OROther derivative contracts (see note 20) – 2.9 OR (see note 24). In 2023, £31.4m of parts for resale, service parts and production stock were sold for £38.0m (gross of indirect tax) and subsequently M M A Derivative option over own shares (see note 23) 23.1 22.6 A repurchased. Under this repurchase agreement, the Group will repay a total of £40.0m (gross of indirect tax). As part of the arrangement, legal title to the T T I I parts was surrendered, however, control remained with the Group. During 2023, £40.0m had been repaid relating to the liability of £38.2m as at 31 ON 25.2 26.2 ON December 2022 following further interest accrual. Contract liabilities Analysed as: Changes in the Group’s contract liabilities during the year are summarised as follows: Current 25.2 26.2 Significant Non-current – – financing 25.2 26.2 Additional Amounts component for Amounts amounts arising recognised which an interest returned At 31 At 1 January during the within charge is and other December 2023 period revenue recognised changes 2023 £m £m £m £m £m £m Customer deposits and advances 335.7 122.7 (156.1) 7.7 (37.9) 272.1 Deferred income – service packages 13.7 4.2 (5.2) – (0.2) 12.5 Significant financing Additional Amounts component for Amounts amounts arising recognised which an interest returned At 31 At 1 January during the within charge is and other December 2022 period revenue recognised changes 2022 £m £m £m £m £m £m Customer deposits and advances 342.6 108.5 (111.0) 8.0 (12.4) 335.7 Deferred income – service packages 14.9 3.2 (4.7) – 0.3 13.7 ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 175