Discussion
McLaren re-organize..
https://www.nytimes.com/2018/08/31/sports/autoraci...
Although after reading it there seems to be no new news .. just Zak Brown grabbing a few newpaper column inches.
https://www.nytimes.com/2018/08/31/sports/autoraci...
Although after reading it there seems to be no new news .. just Zak Brown grabbing a few newpaper column inches.
Edited by rev-erend on Friday 31st August 13:19
Pat Fry returns to McLaren.
https://www.autosport.com/f1/news/138499/fry-retur...
Joe Saward says that James Key is to join later as Technical Director.
https://www.autosport.com/f1/news/138499/fry-retur...
Joe Saward says that James Key is to join later as Technical Director.
Edited by carinaman on Tuesday 4th September 13:59
1H 2018 results were released last week.
Lots more information being communicated compared to the past - another clue that points towards eventual flotation.
Improved results from the Automotive business but sharp decline in income from the Racing business (down 27%).
Positive talk about Operating Profit and EBITDA (earnings before interest, tax, depreciation and amortisation) but bottom line losses are accelerating as the cost of servicing the accumulated debt increases and the development costs of the 570 are written off.
Loss after Tax in 2017 £49.6m
Loss after Tax in Q1 2018 £21.3m
Loss after Tax in Q2 2018 £51.1m
I still find the rate of cash burn to be quite scary. £29.1m positive cash flow in Q2 compared to £58.7m negative cash flow in Q1 but that was after £100m capital injection by Latifi. The good news is that there is another £100m to come by May 19 but what happens after that?
My impression is that the investors are betting the farm on the Automotive business eventually producing good margins and positive cash flow to get the Group stable enough for a public flotation. The future of the Racing business seems to be pinned on Liberty managing to apply a cost cap a more equitable distribution of TV revenue (although as McLaren benefit from an additional bonus fund payment an equitable distribution would not significantly change how much they get, could even result in them getting less).
Lots more information being communicated compared to the past - another clue that points towards eventual flotation.
Improved results from the Automotive business but sharp decline in income from the Racing business (down 27%).
Positive talk about Operating Profit and EBITDA (earnings before interest, tax, depreciation and amortisation) but bottom line losses are accelerating as the cost of servicing the accumulated debt increases and the development costs of the 570 are written off.
Loss after Tax in 2017 £49.6m
Loss after Tax in Q1 2018 £21.3m
Loss after Tax in Q2 2018 £51.1m
I still find the rate of cash burn to be quite scary. £29.1m positive cash flow in Q2 compared to £58.7m negative cash flow in Q1 but that was after £100m capital injection by Latifi. The good news is that there is another £100m to come by May 19 but what happens after that?
My impression is that the investors are betting the farm on the Automotive business eventually producing good margins and positive cash flow to get the Group stable enough for a public flotation. The future of the Racing business seems to be pinned on Liberty managing to apply a cost cap a more equitable distribution of TV revenue (although as McLaren benefit from an additional bonus fund payment an equitable distribution would not significantly change how much they get, could even result in them getting less).
carinaman said:
Pat Fry returns to McLaren.
https://www.autosport.com/f1/news/138499/fry-retur...
Joe Saward says that James Key is to join later as Technical Director.
Indeed. The question is just how much "later" James Key will join.https://www.autosport.com/f1/news/138499/fry-retur...
Joe Saward says that James Key is to join later as Technical Director.
Edited by carinaman on Tuesday 4th September 13:59
DanielSan said:
Possibly but let's face it. Next years car won't bring any miracles.
I think that depends on what has been the cause of their problems this year.If, as has been suggested, they made some fundamental flaw which can't be corrected mid-season then maybe they could leap up the grid.
ralphrj said:
I think that depends on what has been the cause of their problems this year.
If, as has been suggested, they made some fundamental flaw which can't be corrected mid-season then maybe they could leap up the grid.
That's been happening for the last 3 seasons, it was going to happen this year as the Honda engine was the cause of all performance problems... How anyone still has any faith McLaren will just jump up the grid genuinely baffles me now.If, as has been suggested, they made some fundamental flaw which can't be corrected mid-season then maybe they could leap up the grid.
Anythings possible. If there was a wind tunnel to real world correlation issue that certain elements in the team (now gone) wouldn't face up to then it's not hard to imagine that they could move up the grid next year. What they won't do is jump from where they are now to be the 3rd or 4th best team on the grid. Cracking the top 4 will take years.
Kraken said:
Anythings possible. If there was a wind tunnel to real world correlation issue that certain elements in the team (now gone) wouldn't face up to then it's not hard to imagine that they could move up the grid next year. What they won't do is jump from where they are now to be the 3rd or 4th best team on the grid. Cracking the top 4 will take years.
With regulation stability, I think you are right.DanielSan said:
ralphrj said:
I think that depends on what has been the cause of their problems this year.
If, as has been suggested, they made some fundamental flaw which can't be corrected mid-season then maybe they could leap up the grid.
That's been happening for the last 3 seasons, it was going to happen this year as the Honda engine was the cause of all performance problems... How anyone still has any faith McLaren will just jump up the grid genuinely baffles me now.If, as has been suggested, they made some fundamental flaw which can't be corrected mid-season then maybe they could leap up the grid.
At least now, with a handful of sister Renault cars running they can kinda leave the engine side of things to Renault and get on with the chassis.
DanielSan said:
ralphrj said:
I think that depends on what has been the cause of their problems this year.
If, as has been suggested, they made some fundamental flaw which can't be corrected mid-season then maybe they could leap up the grid.
That's been happening for the last 3 seasons, it was going to happen this year as the Honda engine was the cause of all performance problems... How anyone still has any faith McLaren will just jump up the grid genuinely baffles me now.If, as has been suggested, they made some fundamental flaw which can't be corrected mid-season then maybe they could leap up the grid.
2019 will be no different. Arse-covering is so deeply ingrained into the team that he whole organisation needs stripping down and rebuilding.
Jacobyte said:
Is very, very sad. They're stuffed at the moment. Too many people, too many inexperienced people, too much indecisiveness, no control or controls, all leading to too many schoolboy errors. And they genuinely are schoolboy errors, mostly unprintable on a public forum.
2019 will be no different. Arse-covering is so deeply ingrained into the team that he whole organisation needs stripping down and rebuilding.
I agree - it's a total mess right now! 2019 will be no different. Arse-covering is so deeply ingrained into the team that he whole organisation needs stripping down and rebuilding.
And Williams are a huge disappointment given that at least they have a decent engine - what has gone wrong?
Mika Hakkinen did some demo laps yesterday at Suzuka in the MP4-13 in which he one his first World Championship 20 years ago.
It made me wonder - was this the last McLaren that you could confidently say was the absolute class of the field?
That might sound odd when you consider that McLaren drivers have won two titles since then but it was the last year that McLaren won the Constructors Championship.
It made me wonder - was this the last McLaren that you could confidently say was the absolute class of the field?
That might sound odd when you consider that McLaren drivers have won two titles since then but it was the last year that McLaren won the Constructors Championship.
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