McLaren increase revenues amid poor F1 season

Ron Dennis

Ron Dennis

The McLaren Group achieved strong financial performance in 2013, recording an £18.8m pre-tax profit, resulting from increased revenues of £268m.

The Group made significant progress towards becoming a global and increasingly diversified high technology company. It is on a solid financial footing, is continuing to invest heavily in R&D and is well placed to deliver future growth.

McLaren Group revenues grew by 7.5% in 2013 as the businesses continued to apply its cutting-edge technologies into new markets, while also increasing income from sponsorship and Formula 1 prize money.

The McLaren Mercedes Formula 1 team continued to be extremely well supported by its partners, who include blue chip companies such as SAP, ExxonMobil, Santander, Hugo Boss, GSK, Hilton, AkzoNobel, Tag Heuer and Diageo, many of whom have partnered with McLaren for decades.

During 2013 McLaren engaged in exciting technology projects, including participating in a deep technology partnership with GSK, supporting Team GB in its build up to the Winter Olympics and supplying electronic systems to all teams in Formula 1, Nascar and IndyCar.

In May 2013 Honda Motor Company announced its planned re-entry into F1 with McLaren in 2015.  This signals a significant transition for McLaren from its arrangements with Daimler to its new and exciting partnership with Honda.

McLaren operates a unique F1 business model achieving high revenues from both prize monies and sponsorship.  Remaining independent whilst maintaining a strong partnership with a global automotive OEM has been key to the company’s success and will continue to be so in future.

Discussing the results, Ron Dennis CBE, Chief Executive and Chairman of the McLaren Group said: “McLaren has a long-term strategy to diversify the business by capitalising upon our world-class expertise and technology to target a wide range of industries outside Formula 1.  That approach is already helping us to increase revenues and, combined with improved income from Formula 1, demonstrates that McLaren is on a solid financial footing and is well placed to achieve significant long-term growth.”

He added: “Sadly, strong financial performance during 2013 was not matched by on track success. However, McLaren has a proud and victorious record at the pinnacle of Formula 1 and I am confident that the actions we are taking will enable the team to regain competitiveness in time.  Our growing revenue and robust financial position will ensure that McLaren Racing has the resources it requires to win races, while enabling us to develop and expand the entire McLaren Group as an internationally recognised technology company.”

Key statistics

  • Total Group turnover increased from £249m in 2012 to £268m in 2013
  • Revenue up 7.5%
  • Pre-tax profit of £18.8m in 2013
  • Operating profit increased to £22.5m in 2013
  • The Group is well placed to achieve long-term growth