Aston Martin ‘on knife-edge’ after crashing to £79m loss

The luxury carmaker blamed falling sales in Britain and Europe, as well as global “macroeconomic uncertainty”, for the poor performance, which sent its shares to a new low.

They closed at 498p, down 12 per cent and little more than a quarter of their £19 float price last October, continuing a woeful performance that has marked one of the worst initial public offerings of recent times. About 1,000 employees of the company that bought shares in the listing are among those nursing heavy losses.

Aston Martin sought to play down speculation that it could be forced to tap shareholders for more cash, suggesting that it would turn to debt markets if needed.

Max Warburton, an analyst at Bernstein, said that the company was “on a financial knife-edge” with “very, very little room for error or further external pressures”. He suggested that it consider suspending executive pay.

Aston Martin is one of the best-known names in British car manufacturing, thanks in no small part to its cars featuring in the James Bond film franchise. It has gone bust seven times in its 106-year history.

Andy Palmer, 56, chief executive, has been seeking to turn around its fortunes with plans to expand its range, including its first sports utility vehicle, the DBX, (pictured above) due to be launched next year.

However, the company has been dogged by doubts over its growth plans since its listing and last week it stunned the stock market by warning that it expected to sell between 6,300 and 6,500 cars to dealers this year, compared with the 6,441 it delivered last year and the 7,200 to 7,400 it had forecast when it was floated. It also warned that profit margins would fall from a forecast 13 per cent to 8 per cent.

Yesterday it reported a £79 million pre-tax loss for the first six months, down from £21 million profit in the same period a year earlier, as revenues fell by 4 per cent to £407 million.

“We are disappointed that our projections for wholesales have fallen short of our original targets, impacted by weakness in two of our key markets as well as continued macroeconomic uncertainty,” Mr Palmer said.

Mr Warburton said that management needed to “hope and pray the DBX can launch bang on time, and save the situation” and in the meantime the company should aggressively cut back costs, including potentially “suspending the top guys’ compensation for a period”.

He said the results showed that Aston Martin had burnt through cash more quickly than expected and that the position was “not comfortable”. Management appeared to be “ruling out an equity-raise”, but raising debt was likely to be announced soon and would be expensive, but was “somewhere between prudent and essential”.

Mark Wilson, 45, chief financial officer, said: “If we require additional financing from sources with which we are familiar and, in particular, in the debt markets to maintain that capacity, then, that’s what we’ll go out and do.” He added that Aston Martin had more cash than a year ago.

Retail landlords suffer £1bn loss after Intu hits record low

Almost £1 billion was wiped off the value of Britain’s biggest retail landlords yesterday after a shopping centre owner warned that it may need to raise equity in the face of fast-declining rental income and property values.

In the starkest sign yet of the fallout from the commercial pressures facing the retail sector, Intu Properties said that it was considering several “self-help” measures as it reported an £840 million first-half, pre-tax loss.

The owner of the Lakeside shopping centre in Essex and the Trafford Centre in Manchester said that net rental income had fallen by 18 per cent to £205.2 million in the six months to the end of June as a result of retailers falling into administration or using insolvency measures to close stores or cut rents.

The FTSE 250 group warned of more declines in rent in the second half of the year, before improving in 2020. The valuation of Intu’s shopping centres was reduced by 9.6 per cent, leading to a £872 million writedown, which in turn pushed it into the red.

The results shocked investors and its its shares fell 32 per cent to an all-time low of a little under 48p, wiping more than £300 million off its value.

Listed retail landlords were caught up in the sell-off. Hammerson, which this week reported a sharp fall in rental income and property values for its UK shopping centres, fell by 10 per cent; Capital & Counties fell 5.7 per cent; Newriver Reit, which owns shopping centres, retail parks and pubs, closed down 4.2 per cent. British Land and Landsec, FTSE 100 property companies with big retail holdings, lost 3.4 per cent and 3.5 per cent, respectively.

Intu was formed in 2010 from the demerger of Liberty International, which split its shopping centres business from its London property holdings. It owns 17 shopping centres in Britain and a handful in Spain, attracting 400 million shoppers a year.

It is trying to sell assets to reduce its £4.7 billion debt and limit the risk of it breaching its debt covenants because of falling valuations. It is also planning to introduce alternative uses to its shopping centres, including housing, hotels and flexible workspaces.

How to handle work stress at the office

As many people already know, high stress levels can lead to all sorts of problems. However, people experience stress on a daily basis, and often the stress is related to work.

Huge numbers of people find it difficult to tackle workplace stress, and this has a negative impact on other areas of their lives.

It is important to ensure you familiarise yourself with ways to tackle stress at work, as failure to do this could have an impact on your work. It doesn’t matter what type of work you do, there is always the risk of your stress levels going through the roof while you are working. In this article, we will look at some of the ways in which you can tackle this.

Some Tips and Pointers to Help

There are plenty of ways in which you can relax and reduce stress levels when you are at home. For instance, you can take a warm bubble bath with aromatherapy oils. You may prefer to enjoy an invigorating shower with aromatherapy shower creams and a great shower head for maximum invigoration –view this product for an example.

You can also find ways to relax and de-stress at work, and this is something that can help you to avoid suffering from the many health problems that are related to stress. One of the things you need to do is track what makes you stressed, as there are often certain things that trigger the stress response. One way to do this is to keep a journal for a couple of weeks so you can look back and get a better idea of what caused you to become stressed.

Once you can see what is making you feel stressed, it is important to take action sooner rather than later. With work related stress, it is often something that can be tackled by speaking with a supervisor or superior. For instance, it could be your workload or certain types of work that make you stressed. It could be the actions of a colleague. Whatever it is, you will find that speaking with your manager is often the first step to getting it sorted.

Another thing you can do to help reduce stress at work is prioritise your workload. You may find that you are getting stressed because you seem to be working and working but getting nowhere. If you try to organise yourself more, create a daily list of tasks and put them in priority order, you can then get on with each task in order, which means you are far less likely to get stressed about your workload. If you find that there are not enough hours in the day, again you may need to speak with your supervisor.

One final thing that may help to reduce stress levels in the workplace is learning to say no. A lot of employees feel obligated to agree to do every task they are given from other team members or superiors. However, you cannot take on more than you can reasonably do, so if your plate is already full with other work, say no.

Seeking Advice

Sometimes workplace stress can really take its toll on your health, so if you feel things are getting too much and you are not getting the support you need at work, it may be worth speaking with your doctor. They may be able to provide further advice, offer treatment, and arrange for you to take some time off work.

Things to keep in mind when financing for a property

Buying property can be a very hectic task as it involves many different elements that should be kept in mind.

On paper, the process might look straightforward, but in reality, it involves a lot of stuff that you might not be familiar with. Before actually looking for a financer, you need to do a lot of research work and invest some time it. I have compiled together a few ideas that will create a basic mind map and help you choose a suitable financer.

Think Smartly

The outcome of any result highly depends on the time you have spent studying it. It’s better to do thorough research about a subject instead of regretting your decision in the future.  Your research needs to involve all the essential aspects such as the locality of the property, its importance in the coming future, and most importantly, the terms at which you are getting your funds or loans. You will be able to calculate if you are getting your money’s worth by keeping these things in mind.

Selecting the Right Loan or Mortgage

Buying property is not cheap. Most of the properties cost more than a person earns in a year, and require loans to cover the expense. The next step is choosing a loan that best meets your needs.

1.    Bridging Loans

Bridging loans leverage your current investment properties and give you cash. It is particularly beneficial when you need to buy a property in a short period. The most important thing to look for is the best possible deal. Property Finance Partners – Bridging Loans offers one of the lowest rates in the market and provide very helpful guidance.

2.    Private Lending

Privately lending money is becoming more and more popular because of the recent awareness programs. Private lending is finding individuals that will lend you money rather than going to banks or funding firms. The only thing that concerns most people is the trust that an investor and a lender have to put in each other.

3.    Mini-Perm Loans

These are medium-term loans needed to renovate a property or acquire an apartment. These loans have a high-interest rate and are used as a sub-let until better term loans can be secured.

Finding the Right People

The most important step is choosing a financer who is best in the business and trustworthy. Someone who will put your interests before theirs, get you the best possible deals you can imagine. You need a financer who has a team qualified enough to look into all intricate details which can be easily overlooked otherwise. They might also help you by creating a profitability study which will give you an overall idea of how successful your venture will turn out to be.

In the venture of being a real estate developer, you will be indebted to a lot of people for their help and resources. Instead of getting tangled up with the wrong company, choose someone who truly cares for you. You can click the Property Finance Partner website, one of the most respected firm, to get in touch with its team. Don’t let someone inexperienced handle your property. A good financing group at your side can help you become a successful real estate developer in no time.

Uses of machine learning in finance

If you wonder whether to implement AI and Machine Learning into your financial business or not, this is an article for you.

We will discuss here the advantages and disadvantages of this solution. Machine Learning is ideal for the financial service’s industry because there is always an enormous database to operate and the more data you have the better for you because due to that the AI can learn faster.

Yes, investing in Machine Learning requires some significant amount of money which often is a major concern but the payback is quick to be noticed. Here are some examples of what Machine Learning is capable of doing.

Automation of customer service

The use of Machine Learning saves your company’s energy, money and time. It can even replace regular employees by taking over the whole part of the company responsible for customer service. AI can answer e-mails and phone calls, and can also respond to requests via chat on a website. The program can teach itself to answer more and more accurately, and eventually become the master of customer service. Machine Learning can also provide the company with improved training for employees and even perform it.

But then, these solutions are obvious and do not regard only financial businesses. Well, when it comes specifically to the field of finance, AI has also a lot to offer. For example, it is very effective in detecting fraud, helping to make the best trading decisions and instantly predicting a level of credit risk.

Detecting fraud

It is sometimes hard to see small anomalies in the financial habits of customers and to be honest no one can monitor all their clients all the time. AI, on the other hand, can. It processes tons of information every second and detects those anomalies in an instance. What is more, it can not only detect but also immediately prevent fraud because of how fast and accurate it operates. Preventing fraud results in blocking suspicious operations, transactions, and accounts. Of course, if there is enough percent chance of them being abusive.

Processing information on credit risk

Automation of analyzing the solvency and credit risk of any customer benefits companies greatly. There is a really small chance of any mistake and there are no emotions involved in the process which unfortunately is essential in financial services. Generally speaking, AI protects your company from making bad financial decisions that can hurt your business. It considers many factors, some of which could seem irrelevant to a human being but all in all, make a great difference.

Analyzing the stock market

AI is capable of analyzing thousands of data all day and all night to track patterns and predict the state of the market. That is something that no human could ever achieve. Nevertheless, the results of those operations are very desirable. Every little change that has been predicted can save or earn lots of money within seconds.

Read more: https://addepto.com/finance/

6 tips on the effective use of prototypes

One of the most underused ‘tools’ in almost every industry today is the use of prototypes.

While every product designer wants a working model to show potential partners, manufacturers and/or buyers, there is much more to a prototype than that.

Did you know that most prototypes go through several incarnations before they actually become a scaled, working model? Well, that’s the truth and there are more uses for a prototype than those mentioned above, but we’ll get into a bit more depth on those uses as well. Let’s look at the following tips on how to effectively develop and use prototypes to their best advantage.

1. To Get a Look at Initial Designs

Most often design begins with a sketchpad or a CAD (Computer-Aided Design) program, however, that leaves a lot to be desired when you are building a complex tool or piece of machinery. There’s always something lacking in a two-dimensional representation of the product you are designing and often it takes one or more prototypes to get that stage right. What you will need is a company capable and willing to take on low volume production so that you don’t need large minimum orders at this stage of development.

2. Help with Scaling to Size

Sometimes it takes a few attempts to make the adjustments necessary when scaling to size. Imagine a pocket-sized driverless vehicle with all the technology built into the ‘real thing’ and you will see that sometimes scaled prototypes don’t have the capabilities required to send products to testing and quality control. By contracting a company that offers prototyping services, you may be able to begin scaling up to size as development progresses.

3. When Working Models Are Needed

Speaking of the technology involved in self-driving vehicles, you will begin to understand how some products need to move on to the ‘to scale’ prototype. Although you may not be developing a product anywhere near as technologically advanced or quite as large, you can understand just how important that to-scale working model can be. As each stage moves on, you will want rapid prototyping services to test each adjustment or addition made warranted by the previous prototype.

4. To Realize That All Prototyping Services Are Not Created Equal

Another aspect of using prototypes effectively is to realize that not all prototyping services are created equal. Some have more advanced technology than others and some have been using CAD and CAM (Computer Assisted Manufacturing) throughout their processes. Of note here would be, Chinese prototype manufacturers, Rapid Direct, that saw a need more than a decade ago and were pioneers in the field of hi-tech CAD/CAM prototype manufacturing. When it comes to rapid prototyping China excels and this company, Rapid Direct, leads the pack. They can offer a wide range of prototyping services, from metal fabrication to injection molding.

5. To Build Enthusiasm in Your Market

As mentioned early on, one of the ways in which prototypes have been historically used is to create and build enthusiasm with a product or company’s market. It could be to gain financial backing or it could be to introduce a product line to build enthusiasm within a potential customer base. However, when it comes to using prototypes for this purpose, it is vital to find low volume manufacturing because you will almost always be working with a scaled model. Yes, sometimes you will be working with a model manufactured in its final form and size, but for larger products, you will typically see smaller versions. The company you choose should have the capacity to manufacture within as little as 24 hours and get that order out to you immediately. That’s another benefit of working with Rapid Direct because that’s a huge part of what they can offer.

6. To Benefit from Collaboration

When you have your prototype manufactured by a company like Rapid Direct with more than 150 engineers on staff specializing in everything from appearance to reverse engineering, you get the benefit of collaboration. These professionals can often spot flaws in designs or aspects which could perform better with a few minor tweaks.

This is collaboration at its finest and an invaluable resource only available when contracting with the right prototype manufacturers.

In summing up, your key takeaway should be that prototypes can be worth so much more than you give them credit for. They are obviously important for that last minute checks and balances necessary before going into major production and as a marketing and financing tool but they can also be a great way to get input from other professionals who may see something you’ve missed.

They say that two heads are better than one and when it comes to the development of prototypes, this adage becomes doubly important. With rapid production and the invaluable expertise of engineers, you can have a working prototype that solves almost any issue you are faced with. That’s what prototypes should be all about!

5 marketing tips for boutique hotels

Marketing is everything in the hospitality industry. If people don’t know about your hotel, the chances are you won’t get many bookings.

Unlike the large brand-name hotels who have an endless pot of cash to spend on their marketing and advertising, boutique hotels tend to be small privately-owned businesses, which can feel overwhelming when it comes to competing with large resorts and international brands. Here are five marketing tips for boutique hotels, helping to attract new visitors to your brand.

Use SEO

First things first, if someone is checking out hotels in your local area, it’s likely that they will use Google, Yahoo, or Bing to complete their search. Guests will want to research into rates, amenities, and attractions nearby, so if you’ve just started running your boutique hotel, there’s a chance your business listing won’t show up in immediate search results, therefore, using SEO (search engine optimisation) can help market your brand and have it appear higher in search results. Make sure to use specific keywords which will allow your website to climb up the Google search ranks.

Use Social Media

We all know how popular social media platforms like Facebook are. With millions of users from across the globe using such websites every day, using social media to market your boutique hotel can do wonders for your business. Whether it be setting up a business page on Facebook or creating an Instagram account to appeal to a younger demographic, the more people who see what your boutique hotel is all about, the better.

Offer Discounts

We all love a knocked down price, so to get more people through the door, why not offer special discounts? It can be a fine line between reducing the price too much and still making money for your business, so you will need to work out how much you can afford to knock off. There are plenty of websites such as Groupon that you can use to promote discounts for you. Word of mouth can make or break a business, so providing incentives and exclusive perks to new and regular customers can see your boutique hotel flourish.

Create Your Own Blog

As a way to engage with your customers, creating your own blog can be a great way for guests to get to know you on a personal level. While you should already have a website in place, keeping your viewers updated with the latest developments in your boutique hotel can show guests how dedicated you are to your business. There are all sorts of platforms you can use to set up your own blog, such as WordPress.

Digital Signage

Keeping up with the times and using digital signage in your boutique hotel is important. Whether it be information points, interactive kiosks, or menus, there are lots of ways on how you can vastly improve your guests’ experience, which is essential when it comes to marketing. You may be interested in using digital signage software by Cenareo who are specialists when it comes to providing digital signage for the hospitality sector, helping to increase customer engagement, sales, and brand loyalty. Cenareo can help your guests have a comfortable stay at your boutique hotel and show them how to navigate the different areas.

Whether you use SEO, social media platforms, digital signage, or create your own blog, there are lots of things you can do to market your boutique hotel. What’s more, many of the options listed are completely free to use, meaning you don’t have to have lots of cash in order to attract more guests to your brand. As with any business, make sure that you have a marketing strategy in place first which can give you more direction on what you need to do to get more guests through the door.