McLaren optimistic on prospects for Automotive, says Walsh By Reuters

© Reuters. FILE PHOTO: The McLaren logo is seen on the McLaren 765LT at its launch at the McLaren headquarters in Woking

© Reuters. FILE PHOTO: The McLaren logo is seen on the McLaren 765LT at its launch at the McLaren headquarters in Woking

LONDON (Reuters) – The McLaren Group is optimistic about the prospects for its luxury sportscar maker after the COVID-19 pandemic dealt a big hit to revenues this year, executive chairman Paul Walsh said on Sunday. McLaren’s third-quarter results published in November showed group revenues up 60% on the previous quarter but down 61% on the corresponding period of last year. McLaren Automotive represents the majority of group revenues. “The way to look at McLaren is that we have a highly profitable cash-flow positive automotive business,” Walsh told reporters on a video call after McLaren Racing announced U.S.-based MSP Sports Capital was taking a significant minority shareholding in the F1 team. “Yes, we have had temporary setbacks as all companies did during the pandemic, but already we’re starting to see a revival in demand. “That’s probably been led by activity in Asia, but I see that coming through to Europe and then progressively the U.S. so we’re optimistic around our prospects for Automotive. McLaren Group, which includes Automotive and Racing divisions as well as an applied technologies unit, is majority-owned by Bahrain’s sovereign wealth fund Mumtalakat. “What we have now done is fundamentally ring-fence Racing. So the cash requirements of the next two to three years, McLaren Group does not have to worry about. That’s in essence what this transaction does for us,” Walsh said. Plans to sell and lease back McLaren’s global headquarters in Woking remained unaffected by Sunday’s announcement, he said.
“We will have to refinance our debt… I don’t like a lot of debt, so if we can get a very efficient piece of capital put in place through the sale and leaseback with our long-term commitment to stay there, why wouldn’t we do that?,” he said.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Source link