26/04/2020
NEWS STORY
Latest accounts reveal that McLaren has received a £300m cash injection from shareholders.
The money, which was secured in February and March, was originally intended to "protect the long-term strength of the brand in the luxury automotive market" as it scaled back production of its supercars from 4,662 to 4,000 this year.
However, according to This is Money, the cash has now been "diverted" in the wake of the coronavirus pandemic.
The privately owned company's biggest shareholder is Bahrain’s Mumtalakat sovereign wealth fund, which holds a stake of 57.7 per cent, while Michael Latifi, who recently loaned Williams at least £50m, holds 10% following his investment of £200m and the Saudi TAG Group holds 14.7%.
"The new equity has been deployed to support the group during this period of unprecedented shutdown," state the accounts.
McLaren, which has placed a significant proportion of its workforce on furlough, is understood to be talking to third parties about further increasing its working capital.
In the year ending December 31, 2019, McLaren's revenue rose 18.2 per cent to £1.5bn, driven in part by a rise in prize money and sponsorship for its F1 team, which finished fourth in the team standings, and an increase in sales of its top of the range models.
The filings report that the F1 team enjoyed a £52.9m boost in 2019, "primarily in prize money", thereby giving it revenue of £185.7m.
However, it warns "a reduction to prize money in 2020 is anticipated but it has been assumed that the Formula One season will commence in H2 2020".