McLaren Racing have announced reduced losses for 2019, with a shortfall of £71.4million compared to £84.4million the previous year.
The latest figures cover a season in which McLaren finished fourth in the F1 World Championship, up two places from 2018 as their points total increased from 62 to 145.
The losses cover the racing division as a whole, with turnover having risen in 2019 by more than £60million to £185million as reported by RaceFans. This was aided by increased sponsorship and prizemoney income.
At the start of 2019 there was a shake-up among the leading F1 personnel at McLaren as team principal Andreas Seidl and technical director James Key came on board.
They also had a new driver line-up as Carlos Sainz and Lando Norris replaced Fernando Alonso and Stoffel Vandoorne.
Among wider changes in the business, McLaren Racing also took over marketing arm McLaren Marketing and licensing company Team McLaren at the start of 2019.
As had been the case in 2018, the racing division offloaded some of its heritage cars to “specialist collectors around the world”, bringing in £6.7million.
It sold more of its old chassis to McLaren Services during 2020 and is reported to still hold some 159 cars in its heritage collection, valued at £60.9million.
— McLaren (@McLarenF1) February 10, 2021
The disruption caused to the 2020 World Championship by the global health pandemic presented significant financial challenges for many teams, including McLaren.
They negotiated a £150million loan from the National Bank of Bahrain before the delayed season’s start in early July.
In December, McLaren announced major new investment from MSP Sports Capital, bringing a further £150million into the business for a 15% stake – which could rise to a maximum of 27% by next year – and allowing it to clear its inter-company debt.
A smaller 7% stake was sold to UBS O’Connor LLC and Caspian for £35m, which will reduce to 6% by the end of next year.
McLaren’s 2020 World Championship performance should bring further financial benefits to the team by way of an increased share of F1’s prizemoney.
At the final race of the season in Abu Dhabi, McLaren clinched third place in the constructors’ World Championship – their best result as a team since 2012.
For 2021, the team will be hoping to be even more competitive in races having reunited with Mercedes for their engine supply, while Daniel Ricciardo has joined as Norris’ team-mate following Sainz’s move to Ferrari.