McLaren Racing has reported a reduced loss in the latest accounts for the group’s division which includes its Formula 1 team.
The racing division lost £71.4 million in 2019, when it finished fourth in the world championship, down from £84.4 million the year before. Its turnover rose by more than £60m to £185m.
The team began the year with a shake-up at the top of its F1 operation which included the appointments of Andreas Seidl as team principal and James Key as technical director. McLaren also hired an all-new driver line-up: Carlos Sainz Jnr and Lando Norris arrived to replace Fernando Alonso and Stoffel Vandoorne.
As part of wider changes in the business McLaren Racing also took over marketing arm McLaren Marketing and licensing company Team McLaren at the beginning of 2019.
As in 2018 the racing division offloaded some of its heritage cars, bringing in £6.7 million. It sold more of its old chassis to McLaren Services during 2020.
The disruption caused to the 2020 championship by the Covid-19 pandemic presented significant financial challenges for many teams, including McLaren. It negotiated a £150 million loan from the National Bank of Bahrain before the postponed season began in July. In December it announced major new investment from MSP Sports Capital, bringing a further £150 million into the business, allowing it to clear its inter-company debt.
McLaren’s 2020 championship result should bring further financial benefits to the team in the shape of an increased share of F1’s prize money. Its third place in the constructors championship last season was the team’s best result since 2012.
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