McLaren receives £300m.......
Discussion
SSO said:
Going back to the main subject. I just posted up an analysis of McLaren's Q3 results and 2021 outlook. Assuming they can restructure the existing long term debt, they should be in decent shape for at least the next 1-2 years.
That’s a big ‘assuming”...........With £840m of un-amortisation new product development costs, on which accountants are getting more aggressive, and £650m of “long term” debt, the holders of which sometimes aren’t very friendly or helpful, they’re going to need to pull off something special.
What will happen when UK bans all new cars runnning on petrol? The UK market for McLaren will shrink.
Except for the export market and national market for the hopefully all electric derivate of 570.
Will be a difficult time for all Sportscar manufacturers. Ferrari will be selling zero cars in UK.
If they not are powered with electricity. And that is only one example.
Exiting Times. I am happy to not own anything in this industry.
Except for the export market and national market for the hopefully all electric derivate of 570.
Will be a difficult time for all Sportscar manufacturers. Ferrari will be selling zero cars in UK.
If they not are powered with electricity. And that is only one example.
Exiting Times. I am happy to not own anything in this industry.
Ferruccio said:
SSO said:
Going back to the main subject. I just posted up an analysis of McLaren's Q3 results and 2021 outlook. Assuming they can restructure the existing long term debt, they should be in decent shape for at least the next 1-2 years.
That’s a big ‘assuming”...........With £840m of un-amortisation new product development costs, on which accountants are getting more aggressive, and £650m of “long term” debt, the holders of which sometimes aren’t very friendly or helpful, they’re going to need to pull off something special.
SSO said:
Te £840m of un-amortisation new product development costs is a P&L but not a cash flow problem which helps on the debt side. The unwind of the Ultimate series deposits which will not be replaced is a major cash flow issue which doesn't help with debt service. Net net, while they do need to restructure the debt, what they really need is a major equity infusion which allows them to retire a large percentage of the debt. I think the something special has to involve getting the Bahrains to step forward with a large check again.
To get the necessary new equity, they’ll obviously need a credible plan that shows a good IRR on that equity over 5-7 years. Any investor will be sceptical given what has gone before and with AML.
Even then not an easy call for Bahrain, given other issues,
Ferruccio said:
SSO said:
Te £840m of un-amortisation new product development costs is a P&L but not a cash flow problem which helps on the debt side. The unwind of the Ultimate series deposits which will not be replaced is a major cash flow issue which doesn't help with debt service. Net net, while they do need to restructure the debt, what they really need is a major equity infusion which allows them to retire a large percentage of the debt. I think the something special has to involve getting the Bahrains to step forward with a large check again.
To get the necessary new equity, they’ll obviously need a credible plan that shows a good IRR on that equity over 5-7 years. Any investor will be sceptical given what has gone before and with AML.
Even then not an easy call for Bahrain, given other issues,
Gassing Station | McLaren | Top of Page | What's New | My Stuff