A lot of my private shareholdings are FTSE 250 shares. I consider the mid-cap index is residence to some nice UK companies. Nonetheless, there are no less than two FTSE 250 shares I’ve already determined I gained’t purchase in 2025.

Fantastic product, horrible enterprise?

I’ve by no means owned an Aston Martin Holdings‘ (LSE: AML) created automobile. However I’ve to confess I could be tempted if the chance arose. Name it a responsible secret.

One factor I don’t really feel responsible about is my choice to keep away from Aston Martin shares ever for the reason that firm listed in 2018. The inventory’s misplaced greater than 90% of its worth over this time.

The upmarket sports activities automobile maker has already gone bankrupt seven instances in its historical past. This time spherical it’s been stored afloat by billionaire chairman Lawrence Stroll’s skill to lift funds from new traders. However the image nonetheless isn’t fairly.

Though Aston Martin’s annual income has risen by 50% to £1.6bn since its itemizing in 2018, the corporate nonetheless hasn’t reported an annual revenue.

Money continues to stream out of the enterprise and web debt has reached £1.2bn. That appears scary to me. And Metropolis brokers anticipate the enterprise to report additional losses in 2024, 2025 and 2026.

Don’t get me unsuitable. Stroll’s technique of aiming upmarket and constructing unique high-end automobiles could but ship Ferrari-style revenue margins and massive good points for shareholders. In spite of everything, Aston Martin’s a storied identify whose automobiles additionally profit from entry to Mercedes-Benz expertise.

This story could (finally) have a contented ending. However nothing that might occur in 2025 will change my view that this carmaker’s just too dangerous for me.

These boots are made for strolling

My second choose is an organization whose merchandise are owned by members of my family and have been the peak of style once I was at college. Bootmaker Dr Martens (LSE: DOCS) can hint its historical past again to 1901, however has fallen on exhausting instances since its flotation on the UK inventory market in 2021.

The IPO was priced at a stage that steered progress would stay robust. Sadly, this didn’t occur. Dr Martens shares now commerce greater than 80% beneath their IPO price.

The droop in earnings may be traced to 2 primary issues. Firstly, client spending’s come below strain, limiting the corporate’s skill to go on greater prices.

On the similar time, a botched effort to ramp up US progress has left the corporate with an excessive amount of unsold inventory and a few large additional prices.

Pre-tax revenue peaked at £214m within the 21/22 monetary 12 months and has fallen yearly since. Metropolis analysts anticipate this 12 months’s determine to be simply £38m.

In equity, Dr Martens is a inventory I’d contemplate proudly owning in the appropriate circumstances. I reckon it’s a good model that might maintain performing. Metropolis analysts additionally anticipate its earnings to stage a restoration subsequent 12 months. They’ve pencilled in an 82% rise in earnings to five.6p per share. If the corporate hits that, the inventory may not be too costly.

For me, it’s too quickly to make a name given the dimensions of latest issues. I’ll monitor progress for no less than one other 12 months earlier than reviewing this inventory as a potential funding.