RE: Profits and revenue up for McLaren
Thursday 25th June 2015
It won't surprise you to learn that a McLaren press statement on financial results features very many numbers. Of course this type of release will always feature plenty of figures but McLaren loves a stat and the models of course use them too. Apologies in advance if this becomes a little confusing...
Last one of these built by 2016The important data first. McLaren is in profit for the second consecutive year having only opened its first dealer four years ago. In 2014 it sold 1,649 cars, up 18 per cent on 2013's total of 1,395. Of these 1,401 were of the core McLaren range - 650S Coupe and Spider - with another 248 P1s. The last 91 P1s (36 were delivered in 2013) are to be produced later this year; P1 GTR production has just begun.
Profits and revenue up for McLaren
2014 financial results show record profitability for Woking, with plans afoot for another!
Last one of these built by 2016
More cars means more money, as indicated by an operating profit of £20.8m and a profit before tax of £15m. For 2013 those figures were £12.4m and £4.5m respectively. Turnover grew in the 12 months from £285.4m to £475.5m.
McLaren is predicting high demand for the recently launched Sport Series models as well; with a second bodystyle due next year and a third the year after, 4,000 sales per annum are forecast from 2017.
Even staff numbers are up, with McLaren now employing 1,283 people compared to 1,027 in 2013. So everything looks pretty rosy for McLaren Automotive. Now if they could just sort this F1 operation out...
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Discussion
wemorgan said:
Sorry to sound negative, but a 1% profit margin does not look so healthy to me, if I've read that correctly.
Indeed. Unfortunately you haven't read it correctly. The 4m profit was 2013s result. 15m was 2014s. You've also got to bear in mind that they are still in the very early stages as an OEM. They will still be riding the colossal costs of start up.The 'good news' aspect is not the outright figures, but the distinct upward trend. 70% turnover growth, and threefold increase in pretax profits.
Should spend a bit of that on not being s
t in F1.Edited by xxChrisxx on Thursday 25th June 17:40
Turnover will drop once all the P1's have been delivered for 2015/16 then.
Out of the 475m turnover for 2014 200m of that was P1 cars alone (assuming £800k per car). So like for like with 2013 turnover is actually pretty flat, and not much extra profit has been made from the 248 P1's sold?
Or am I reading that wrong too?!
Out of the 475m turnover for 2014 200m of that was P1 cars alone (assuming £800k per car). So like for like with 2013 turnover is actually pretty flat, and not much extra profit has been made from the 248 P1's sold?
Or am I reading that wrong too?!
xxChrisxx said:
Indeed. Unfortunately you haven't read it correctly. The 4m profit was 2013s result. 15m was 2014s. You've also got to bear in mind that they are still in the very early stages as an OEM. They will still be riding the colossal costs of start up.
The 'good news' aspect is not the outright figures, but the distinct upward trend. 70% turnover growth, and threefold increase in pretax profits.
Should spend a bit of that on not being st in F1.
Spot on. We're not talking about starting up a car washing business. Profit for them is good news and a small percentage must be in context to the industry they're in and the age of the business. The 'good news' aspect is not the outright figures, but the distinct upward trend. 70% turnover growth, and threefold increase in pretax profits.
Should spend a bit of that on not being s
t in F1.Edited by xxChrisxx on Thursday 25th June 17:40
Maff said:
Turnover will drop once all the P1's have been delivered for 2015/16 then.
Out of the 475m turnover for 2014 200m of that was P1 cars alone (assuming £800k per car). So like for like with 2013 turnover is actually pretty flat, and not much extra profit has been made from the 248 P1's sold?
Or am I reading that wrong too?!
Out of the 475m turnover for 2014 200m of that was P1 cars alone (assuming £800k per car). So like for like with 2013 turnover is actually pretty flat, and not much extra profit has been made from the 248 P1's sold?
Or am I reading that wrong too?!
That's where good business strategy comes in. They don't just end P1 production and wonder what to do next. The entry level model is due for launch soon.
Fragile business still, and we are in the best of times for luxury cars. However, I do wish they succeed and come up with a "911" alternative.
Although didn't Porsche get into trouble in the late 80's, early 90's because of their reliance on the 911 ( & not so good manufacturing processes)?
Although didn't Porsche get into trouble in the late 80's, early 90's because of their reliance on the 911 ( & not so good manufacturing processes)?
I think building a brand new car, which is arguably as good or better than anything Ferrari, Porsche or any thing else at VAG group has, with the latest technology and materials, then selling over 1500 in a year. All whilst making a profit, and within 4 years is absolutely remarkable. All the design and machining would have cost many millions, so now they can deliver more cars on the same platform, profits should increase even more.
Great success story for British automotive manufacture and the 1200 people working there.
Great success story for British automotive manufacture and the 1200 people working there.
RTH said:
What was the start up cost, the buildings, equipment design & R&D costs ? Before they even sold one, the way they do things , I should think substantial and how many years profits will be needed to pay that down? .
I suspect that's already in the numbers as cappex over 10/15 years.The ebitda is still fragile at 3% and I read an additional 250 employees as a negative not a positive. Just more bottom line cost!
Yes, you need to know their underlying set of "accounting assumptions" before these figures mean too much. The tax treatment of R&D write-down can be complex - and I'm sure they have plenty of "Start-up" expenditure which can be classed as R&D - qualifying.
A balance sheet and a cash-flow statement to go with these published figures would be more informative.
A balance sheet and a cash-flow statement to go with these published figures would be more informative.
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