McLaren’s revenue accelerates 36% in the first half of 2019

McLaren’s revenue accelerates 36% in the first half of 2019

McLaren’s revenue accelerates 36% in the first half of 2019 as sales of its £750,000 Senna supercar take off

Sales of the 211mph Senna supercar rocketed to 217 units in the first half of 2019As a result, McLaren Automotive revenue increased by £176.7millionSales across McLaren’s entire range increased 7% to 2,335 cars

British manufacturer McLaren has revealed that its revenue accelerated 36.4 per cent to £697.6m in the six months to the end of June this year, driven largely by a surge in sales of its top-of-the-range 211mph supercar.

The £750,000 Senna, which is named after three-time Formula One champion Ayrton Senna, launched in March 2018 and over the second half of last year McLaren sold just 10 of them. 

However, sales rocketed to 217 in the first half of 2019, fuelling a £176.7m increase in the revenue of McLaren’s automotive division.

Supercar surge: Sales of the £750,000 McLaren Senna have helped McLaren revenue in the first half of the year increase by more than a third

Supercar surge: Sales of the £750,000 McLaren Senna have helped McLaren revenue in the first half of the year increase by more than a third

Sales across McLaren’s entire range increased seven per cent to 2,335 cars.

The biggest boost came from the US market, which grew by around a third to comprise almost half of all the orders. 

As the sales were weighted towards McLaren’s more expensive ‘Ultimate’ range, which includes the Senna, it led to the rise in revenue far outstripping the increase in the number of cars the manufacturer shifted.

According to company documents, ‘this trend is expected to continue to the full year where, despite the guidance on volume being to deliver a similar number to 2018, it is expected that the mix will contribute to an improved financial performance over 2018’.

The higher-priced cars incur a greater amortisation charge than the others in McLaren’s range, with its total amortisation bill rising 25.6 per cent to £69.4m. 

It also had £33.2m of finance costs on debt used to fund the development of new models. 

This left the British brand with a £21.7m pre-tax loss though it narrowed by £53.8m on 2018.

The £750,000 Senna - named after three-time F1 champion Ayrton Senna - launched in March 2018. Some 217 were bought in in the first half of this year The £750,000 Senna - named after three-time F1 champion Ayrton Senna - launched in March 2018. Some 217 were bought in in the first half of this year

The £750,000 Senna – named after three-time F1 champion Ayrton Senna – launched in March 2018. Some 217 were bought in in the first half of this year

Higher-priced cars incur a greater amortisation charge than the others in McLaren's range, with its total amortisation bill rising 25.6% to £69.4m Higher-priced cars incur a greater amortisation charge than the others in McLaren's range, with its total amortisation bill rising 25.6% to £69.4m

Higher-priced cars incur a greater amortisation charge than the others in McLaren’s range, with its total amortisation bill rising 25.6% to £69.4m

Last year McLaren delivered 4,829 cars, a target which it previously said it expected to hit in 2022. 

On reaching this milestone it increased it to 6,000 cars annually by 2025 and the documents state that it is ‘on plan to deliver the targets’. 

The growth will be partly driven by new models and in the first half of 2019 alone it invested £151m predominantly in developing its product range.

Earlier this year McLaren launched convertible ‘Spider’ editions of its 600LT and 720S two-seaters and another car will be added to its Ultimate range next year. 

It will cost even more than the Senna and be limited to just 399 units. 

McLaren space age Norman Foster-designed headquarters in Woking, Surrey McLaren space age Norman Foster-designed headquarters in Woking, Surrey

McLaren space age Norman Foster-designed headquarters in Woking, Surrey

All of McLaren’s cars are built at its space age Norman Foster-designed factory in Surrey which is also home to its Formula One team.

It currently lies in fourth place in the F1 championship, which is its best result since 2012. 

Over the first six months of this year the team’s revenue rose 9.2 per cent to £75.9m driven by income from new sponsors such as Coca-Cola and British American Tobacco as well as higher prize money. 

In contrast, in 2018 the team’s revenue reversed 36.5% to £132.8m as its performance hadn’t yet hit top gear.

The team represents 10.9 per cent of McLaren’s revenue with 84.8 pe rcent coming from automotive and the remainder made by its applied technologies division. 

The group is controlled by Bahrain’s Mumtalakat sovereign wealth fund, which has a 57.7 per cent stake in it, with 14.7 per cent owned by the Saudi TAG Group, 10 per cent in the hands of Canadian tycoon Michael Latifi and the remainder held by minority investors.

SAVE MONEY ON MOTORING

Logo L&C

Advertisement

Original Article Source

To view the original article and author, click on the link above. Thanks!

Close Menu
Do NOT follow this link or you will be banned from the site!