McLaren, renowned supercar manufacturer, faces £375m impairment charge | Business News

McLaren Group, the British supercar maker and Formula One team-backer, has reported a record loss of £873m in the previous year but has now informed bondholders that it returned to profit in the first quarter of 2024. The Woking-based company faced financial challenges due to a £375m impairment charge, which led to the significant loss in the 2023 financial year.

However, McLaren has shown signs of improvement in its financial performance, with an underlying profit of £3m in the first quarter of 2024. The company’s revenues also saw a substantial increase of 52% during this period. Mumtalakat, Bahrain’s sovereign wealth fund, has taken full ownership of the group and is currently in discussions about potential technology partnerships that could result in the sale of a minority equity stake in McLaren.

Paul Walsh, McLaren’s executive chairman, expressed optimism about the company’s future, citing strong demand for their luxury sports cars and the positive outlook following major transformation actions. McLaren has also expanded its retail network by opening dealerships in Australia, Japan, and Dubai to drive sales growth.

The company’s restructuring efforts during the COVID-19 pandemic included job cuts, equity and debt raises, and the sale of McLaren Applied Technologies. Founded in 1963, McLaren has a rich history in motorsport, winning multiple championships and races in Formula One. With a focus on becoming a hybrid and electric vehicle company, McLaren is poised for future growth and partnerships in the automotive industry.