McLaren announces profits, Turnover and income for the last business year, all is great.

McLaren Automotive accelerates to fourth consecutive year of profitability from record sales in 2016; confirms business plan on track with launch of new Super Series and Sports Series models

• Record 3,286 McLaren cars sold in 2016 drives 70% increase in profit before tax
• £65.8M operating profit for period is 180% gain on 2015 and fourth consecutive year of operating profit in only sixth year of selling cars
• Sales revenues of £649.8M in 2016, up by 44%
• Turnover of bespoke sales division, McLaren Special Operations, grows by 147% compared to 2015, with Aftersales revenue also increased, by 37%
•  Continued significant investment in Research and Development, at £129.1M (20% of turnover) in 2016
• Workforce grows by further 8%, to manage company growth and meet product demand
• Track22 Business Plan confirmed as on track to deliver ongoing success for McLaren Automotive as a manufacturer of luxury sportscars and supercars
• First car launched under Track22 was McLaren 720S, in March 2017; sold out for this year with 1,500 orders taken
• Second car is new McLaren 570S Spider, which makes world debut at Goodwood Festival of Speed as the first convertible in the McLaren Sports Series

British sportscar and supercar manufacturer, McLaren Automotive, today announces yet another record-breaking year in respect of vehicle sales and financial performance.

Profit before tax of £9.2M from an annual sales revenue of £649.8M in 2016 gave McLaren Automotive a fourth consecutive year of profitability in only six years, since start of sales in 2011.  This was an increase in profit before tax of 70% compared to the £5.4M reported in 2015.

Operating profit of £65.8M in 2016 was the company’s highest ever, standing at 10% of turnover and representing a 180% increase over 2015. The strong financial performance in 2016 was underpinned by record sales, with a total of 3,286 cars purchased; this was a 99% increase over 2015 and exceeded the company’s own expectations by almost 10%, with all geographic regions achieving sales growth. 

“The positive financial performance in 2016 was underpinned by a 44% increase in sales revenues and is further proof that McLaren Automotive’s growth plans are both achievable and sustainable,” said McLaren Automotive Chief Executive Officer, Mike Flewitt. ”Investment in R&D and future product during the period of £129.1M – 20% of turnover – reaffirms our commitment to the Track22 Business Plan that will produce 15 new models or derivatives by the end of 2022 and the focus going forwards will be on successfully delivering these new products and managing continued profitable growth.”

In its first full year of production, the Sports Series family accounted for 2,031 deliveries, the majority of which came from the recently-introduced McLaren 570GT and 570S models.  The Super Series also continued its success story thanks, in large part, to the McLaren 675LT Coupé and Spider models. Having both sold out in a matter of weeks, the limited production, even more driver-focused and higher-performance derivatives of the Super Series started production in mid-2015 but continued through 2016.  In total, 1,255 Super Series cars were sold in 2016.

In March 2017 the second-generation McLaren Super Series, the new McLaren 720S, was launched. The new car generated immediate customer interest and some 1,500 orders have been taken to date.  A new convertible Sports Series model, the 570S Spider, was announced on 14th June 2017 and makes its world debut this week in the UK at the Goodwood Festival of Speed.

“The McLaren Automotive business continues to perform strongly, with 2016 returning a fourth consecutive year of positive financial results,”  said McLaren Automotive Chief Financial Officer, Paul Buddin. ”Profit before tax was up by 70% to £9.2M, from our highest-ever operating profit of £65.8M, an increase of 180% over 2015. These results were driven by vehicle sales totalling 3,286 in 2016 – 99% up year-on-year and another record – and significant growth in revenues from McLaren Special Operations (MSO) and McLaren Automotive Aftersales operations.”

Sales increases in all regions

Geographically, in 2016 North America continued to be McLaren Automotive’s single largest market with deliveries of 1,139 cars, a 106% increase over 2015. Europe ended 2016 selling 996 cars in total, an increase of 153%, whilst the rapidly-developing market in China sold 228 cars in total.  The Asia Pacific region grew by 90% while the newly combined Middle East, Africa and Central and South America region grew by a notable 69%.  In addition, the global footprint of the McLaren retailer network continued apace in 2016, with new dealer facilities opened in Bristol (UK), Boston and Palm Beach (USA), Gold Coast (Australia) and Fukuoka in Japan.

In parallel with the vehicle sales success, McLaren Automotive also saw substantial growth in non-car-related activities.  McLaren Special Operations (MSO), the company’s bespoke division, posted an increase in revenue of 147%, while the Aftersales function recorded turnover growth of 37% for the year.

”2016 was an extraordinary year for McLaren Automotive, with a near-doubling of sales and the completion of our 10,000th car,”  commented McLaren Automotive Executive Director – Global Sales and Marketing, Jolyon Nash. “While we will never again see another jump in sales volume of this magnitude, the reception to the new 720S and the new 570S Spider has been incredibly positive and initial orders for both are beyond our expectations. Having the new, second-generation Super Series and the first-ever Sports Series convertible in showrooms will give every one of the 80 McLaren retailers worldwide the opportunity to contribute strongly to another record year for the McLaren Automotive business in 2017.”

On-going investment in Research & Development and new products

During 2016, McLaren Automotive invested £129.1M in new projects, across the Sports Series, Super Series and Ultimate Series product families.  The Track22 Business Plan sees McLaren investing an industry-leading percentage of turnover (20% in 2016) in R&D activities over the period of the plan. This will take the company towards its objective of producing more than 4,500 vehicles annually by the end of 2022, with at least 50% of these cars featuring hybrid powertrain technology.  The Business Plan also includes the development of a fully-electric powertrain for a concept car to evaluate its possible use in a future Ultimate Series. In 2016, the early prototype stages of the development work commenced.

McLaren Automotive is also investing in senior management infrastructure to support its product development plans.  Dr Jens Ludmann was announced in May 2017 as the company’s new Chief Operating Officer.  Reporting to the CEO, Dr Ludmann will oversee the launch of 13 new models or derivatives during the next five years and focus on further developing internal working processes, relationships and disciplines across Product Development, Purchasing, Supplier Quality Assurance and Manufacturing.

A year of transition for the McLaren Production Centre

The McLaren Production Centre (MPC), the sole location for the hand-assembly of McLaren Automotive sportscars and supercars, underwent signficant operational changes during 2016 calendar year.  A second shift was implemented in January to meet demand for Sports Series models, leading to the creation of 250 new jobs within the manufacturing, quality and logistics departments. This strategic development took capacity at the MPC from 10 cars a day to 20, supporting annual production in the region of 5,000 units.

McLaren Composites Technology Centre to bring chassis production in-house

McLaren Automotive announced in February 2017 that it will construct a new Composites Technology Centre (MCTC) that will be responsible for the development and manufacture of the Monocell and Monocage carbon fibre chassis used in future McLaren models.  Located in Sheffield, UK, the MCTC project is a partnership between McLaren Automotive, the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC) and Sheffield City Council. Combined investment of approaching £50M will create the facility and more than 200 jobs.  When commissioned and running at full production from 2020, the MCTC is targeted to deliver cost savings of around £10M annually compared to today and the chassis supply will increase average percentage (by value) of a McLaren car sourced in the UK by around 8%, from its current average of around 50% (depending on model).

		2016	2015	% change
Deliveries to customers	Cars	3,286	1,654	99%
Employed	People	1,606	1,492	8%
Sales revenue	Million GBP	649.8	450.6	44%
Operating profit	Million GBP	65.8	23.5	180%
Operating profit as % of sales		10%	5%
Profit before tax	Million GBP	9.2	5.4	70%
Profit after tax	Million GBP	7.3	2.8	161%
Capitalised development costs	Million GBP	129.1	123.9	4%
Capitalised investments as a % of T/O		20%	27%

McLaren Automotive has just built it's 10,000th car, the 570S Coupe, to be retained by McLaren.

McLaren Automotive has today celebrated the manufacture of its 10,000^th car from the McLaren Production Centre in Woking, England. The 10,000^th car, a McLaren 570S finished in Ceramic Grey paintwork from the McLaren Special Operations ‘Defined’ palette, rolled out of the Production Centre just over five years after the first car, a McLaren 12C, was completed.

Commenting on the moment that the car left the Production Centre, McLaren Automotive Chief Executive Officer, Mike Flewitt, said: “The production of the 10,000^th McLaren is a significant milestone in the short history of the company. 

The fact that it took us 42 months to build our 5,000^th car and just 22 months to build the next 5,000 speaks volumes about the pace of development of the company. Much of that development is thanks to the introduction of the Sports Series family of cars and it’s therefore fitting that the 10,000^th car is a McLaren 570S.”

In early 2016, a second shift was introduced into the McLaren Production Centre to cater for the increased volume thanks to the introduction of the Sports Series family, today comprising the 540C, 570S and 570GT. This took capacity at the Production Centre from 10 cars per day to 20 cars per day. 

2016 also marked the announcement of the company’s third year of profitability in the first five years it has been producing cars – unprecedented in the automotive industry. McLaren is also on target to almost double its sales this year  compared to 2015, from 1,654 cars last year to over 3,000 cars in 2016, of which over 90% will be exported. 

This volume increase is thanks, in large part, to the ramp up in production and success of the Sports Series models.

Like the McLaren Technology Centre, the McLaren Production Centre was designed by Foster + Partners and took 14 months to build, from breaking ground until the 18 July 2011 when the first car, a McLaren 12C, was approved for shipping. 

Since then, the McLaren Production Centre has been the only location where McLaren cars have been built, from the initial 12C and 12C Spider, through to the 650S and 675LT in the Super Series, as well as each of the 375 highly-bespoke McLaren P1^TM cars. 

Today, the McLaren Production Centre employs around 750 people out of a total of approximately 1,750 employed by McLaren Automotive.

The 10,000^th car will be retained by the company in its Heritage Collection.

McLaren Automotive now offers an extended warranty upto 12 years on its cars.

The McLaren Extended Warranty launched in 2014 can now be renewed up to the car’s 12th birthday. The enhancement recognises the increasing number of McLaren cars on the road, with more than 3,000 vehicles today having passed their third birthday, as well as the desire of many owners to retain ownership of their cars.

The policy, which previously could only be extended up to the car’s seventh birthday, covers the majority of factory-fitted components, giving customers the peace of mind that their McLaren will continue to perform in the same way as it was first created.

The McLaren Extended Warranty, available for Sports and Super Series vehicles, comes with a wide range of benefits including unlimited mileage cover, roadside assistance in selected markets and, in the event of claim, guaranteed use of McLaren Genuine Parts fitted by fully trained McLaren technicians.  The scheme is available for all new, existing and approved-used McLaren Qualified vehicles that have covered less than 100,000 miles and have been owned for a minimum of 90 days.  

Carl Whipp, Aftersales Director at McLaren Automotive commented:  “Owners want the reassurance that their car will still be looked after to the same standards with which it was built.  And they want to continue to enjoy their McLaren without worry.  Sometimes daily.  It’s for them that we launched the Extended Warranty and now with this further enhancement to the coverage period, it will continue to give complete peace of mind … right up to the car’s 12^th birthday.”

The McLaren Extended Warranty can be purchased directly from McLaren retailers*, and the cover can be acquired at any point in the vehicle’s life prior to the 10^th anniversary and for the duration of 12 or 24 months. 

*The policy is currently not available in Australia and China but plans are in place to launch the policy in these markets in 2017.

The following items are excluded from the McLaren Extended Warranty:

• General maintenance, scheduled servicing, and routine adjustments required by normal wear and tear and/or recommended by McLaren Automotive Limited, including any replacement parts and assemblies or other materials (including but not limited to, spark plugs, wiper blades, bulbs, filters, belts, coolant hoses, brake pads, lubricants, fluids, and filters) used in such services and adjustments
• Batteries, tyres, wheels, wheel balancing or alignment
• Paintwork, trim and upholstery or the deterioration of any other part, assembly or component as a consequence of wear and tear or exposure to the elements
• After market accessories or non-original equipment, components and systems not installed by a McLaren Retailer are specifically excluded from the coverage
• Any damage caused to any components by the use of incorrect or contaminated fuel
• The renewal of any clutch component due to incorrect adjustment, misuse or general wear and tear
• Water Ingress
• Software upgrades (unless part of a valid repair).

McLaren Automotive announces strategic retailer appointment for the Kingdom of Bahrain.

• McLaren Automotive announces strategic retailer appointment for the Kingdom of Bahrain
• McLaren Bahrain to be operated by market leading automotive retailer, Kanoo Motors S.P.C., offering a full range of servicing and sales of the complete McLaren range, including the latest Sports Series models, the 570S and 570GT
• Official appointment announced as part of the McLaren P1™ GTR Driver Programme, the world’s most exclusive drivers club, which recently made its debut in the Kingdom at the Bahrain International Circuit, the Home of Motorsport in the Middle East
• McLaren P1™ GTR Driver Programme Mentor and ex-Formula 1™ driver Bruno Senna was also present at partnership appointment announcement
• The relationship between the British brand and Bahraini conglomerate provides an example of the two countries’ historic ties, which are being celebrated in 2016 with ‘BahrainUK200’ – an initiative marking 200 years of bilateral relations

McLaren Automotive has enhanced its retail network in the Middle East, Africa and Latin America region with the appointment of Kanoo Motors S.P.C. as the retail partner for the Kingdom of Bahrain. 

The appointment was announced by McLaren Automotive Chief Executive Officer, Mike Flewitt and Kanoo Motors Directors, Ebrahim M. Kanoo and Talal F. Kanoo at the Bahrain International Circuit.

Customers and fans will be able to see the range of luxury handcrafted sports and super series cars from McLaren at the McLaren Bahrain showroom next to Moda Mall at the World Trade Centre, while McLaren Service and Aftersales care is now available at the state-of–the-art Kanoo Performance Centre located in Tubli, Road 118 (previously the Kanoo Vehicle Leasing building) opposite to Toyota Plaza, with technicians already fully trained by McLaren to ensure the highest standards of aftercare for McLaren owners in Bahrain.

Currently available from McLaren Bahrain is the Super Series, comprising the groundbreaking McLaren 650S in Coupé and Spider derivatives. Both models incorporate a range of Formula 1™ technologies such as carbon fibre MonoCell, active aerodynamics and the state-of-the-art ProActive Chassis Control, providing the ultimate control on both road and track.

The McLaren range completes with the more attainable and multi award-winning Sports Series conceived to introduce McLaren DNA and performance credentials to the sports car segment. With a road-biased nature, yet still honing race derived technologies to offer supercar levels of performance, the new Sports Series provides enhanced all round usability and promises an exhilarting and fun driving experience. 

The critically-acclaimed Sports Series range includes the McLaren 570S Coupé and 570GT.  Deliveries to customers in Bahrain of each derivative have now started and customers wishing to test drive a vehicle or book a service appointment will be able to find the McLaren Bahrain contact details at: www.bahrain.mclaren.com.

Andreas Bareis, Managing Director McLaren Automotive Middle East, Africa and Latin America, commented on the agreement: ‘I am incredibly proud that McLaren is partnering with such a highly regarded and prestigious business as Kanoo Motors.  Whilst the Sports Series opens up McLaren to an entirely new audience, this retailer appointment unlocks a new audience across our entire model range in Bahrain.’

Bareis continued: ‘The state-of-the-art facilities at the Kanoo Performance Centre, that will be at the forefront of all McLaren service interactions with our customers in Bahrain, highlights the customer focused nature of our new partner, which we are very proud and excited to be working with.’

Mike Flewitt, McLaren Automotive Chief Executive Officer commented: ‘We recently outlined our strategy for McLaren over the next six years, revealing details of the Track22 Business Plan, which represents an investment of £1 billion and will see us continue to focus on building the world’s finest two-seater sports and super cars.  Kanoo Motors undoubtedly shares the same level of ambition and commitment to supporting this plan with the delivery of outstanding levels of customer service to McLaren owners in Bahrain, which can already be seen through their exceptional service facilities that are truly world class.’

Kanoo Motors Director, Ebrahim M. Kanoo added: ‘We are absolutely delighted to be partnering with McLaren Automotive in Bahrain. As one of the leading companies in the Kingdom with a long established track record, we always look to partner with the most progressive and forward-thinking brands that will add value to our business. McLaren Automotive fits that bill perfectly and we look forward to many successful years of cooperation together.’

The announcement of the relationship between this British brand and Bahraini conglomerate provides no better example of the wider and more historical dimension which the two countries are currently celebrating throughout 2016 with ‘BahrainUK 200’, an initiative which marks the 200th anniversary of the bilateral relationship between the United Kingdom and Bahrain, and consists of a year-long series of events showcasing the UK-Bahraini relationship across a wide range of areas including culture, business, arts, sport and education.

H.E. Simon Martin, UK Ambassador to the Kingdom of Bahrain commented: ‘The strategic partnership between a progressive British brand like McLaren Automotive and successful Bahraini entities such as Kanoo Motors can be seen as a new chapter in this ongoing, mutually beneficial relationship and further cements ties between our two nations that have been in place for 200 years.’

This important partnership agreement was completed by McLaren Automotive and Kanoo Motors at an official ceremony held at the Bahrain International Circuit during the debut of the McLaren P1™ GTR Driver Programme in Bahrain.

Former Formula 1™ and McLaren P1™ GTR Driver Programme Mentor, Bruno Senna was also present.  Senna works closely with each of the owners taking part in the McLaren P1™ GTR Driver Programme, ensuring optimum performance for each of the cars and drivers around some of the world’s most iconic and challenging circuits.

The appointment is of further importance to McLaren Automotive, as Bahrain is a key market for the British luxury sports and super car manufacturer, with the Kingdom being home to both the McLaren Automotive regional headquarters for the Middle East, Africa and Latin America region and also to the majority shareholder, Bahrain Mumtalakat Holding Company.

McLaren Automotive posts operational profit Record sales of 1,654 cars in 2015, expected to double in 2016.

• Mclaren Automotive celebrates fifth anniversary with record sales and financial results.
• Third year of profitability.
• Increases in research and development. investment and new shareholding.

• Five years since the first McLaren 12C left the McLaren Production Centre.
• McLaren Automotive posts operational profit 
• Record sales of 1,654 cars in 2015, expected to double in 2016.
• Investment in Research and Development increases to nearly 30% of turnover.
• Employee numbers increase by 16% to manage ongoing development and demand.
• McLaren Automotive welcomes a new investment and shareholder as a sign of future confidence.
• Track22 business plan points to successful future as an independent manufacturer of two-seater sports and supercars.

McLaren Automotive, the British manufacturer of luxury handcrafted sports and supercars, has celebrated the fifth anniversary of the first car rolling off the production line with another record-breaking year. 

Operating profits increased to £23.5M – the company’s third successive year of profitability - from revenues of £450.6M, with revenue projected to increase by 50% over the next two years and double by the end of 2022 – an unprecedented performance in the early years of a car company.  

2015 also marked the fifth successive year of increasing global car sales to 1,654 cars, supported by the launch of no less than five new models.

INDUSTRY-LEADING RESEARCH AND DEVELOPMENT 

2015 was another year of investment for the future of McLaren Automotive with a record amount of £123.9M spent on Research and Development. Similar levels of investment in previous years spawned, in 2015, a total of five new cars and the establishment of the three-tier product family – Sports Series, Super Series and Ultimate Series.

NEW SHAREHOLDER BRINGS EQUITY INVESTMENT TO FUND TECHNOLOGY DEVELOPMENT

The McLaren Automotive annual report also confirms an equity transaction of £49 million.  The new equity represents a total of 6.3% investment in McLaren Automotive from McKal Ltd. The Chairman of McKal Ltd is well-known to McLaren Automotive as an owner of two examples of the McLaren P1^TM as well as a frequent visitor to McLaren track events.

AN UNPRECEDENTED YEAR OF PRODUCT LAUNCHES

With a total of five new cars launched, and the unveiling of the Sports Series, Super Series and Ultimate Series product families, 2015 was an unprecedented year of growth for McLaren Automotive. It was also a transition year with the final McLaren P1^TM produced at the same time as the start of production of the new Sports Series models.

The Geneva Motorshow in March 2015 saw the revival of the famous Long Tail name from McLaren’s illustrious motor racing history with the introduction of the limited-volume McLaren 675LT Coupé in the Super Series. The Coupé was joined in December by a Spider variant. Like the Coupé, the Spider is limited to 500 cars and was sold out in just two weeks.

Following on from the iconic McLaren P1^TM, the Geneva Motorshow in March 2015 also saw the introduction of the track-only McLaren P1^TM GTR. Conceived in direct response to feedback from existing McLaren P1^TMowners, the McLaren P1^TM GTR was designed as the ultimate track car. Almost all of the limited run of McLaren P1^TM GTR cars were built in 2015, with a handful finishing construction in early 2016.

The reveal of the new Sports Series at the New York Autoshow in April 2015 was a pivotal moment in the short history of McLaren Automotive. Charged with more than doubling the company’s global sales volume in the coming years, the McLaren 570S Coupé was launched in New York and was closely followed by the McLaren 540C Coupé at the Shanghai Autoshow in April. The 570GT was added to the Sports Series family at the Geneva Motorshow in March 2016. In 2016, the Sports Series should support the overall company sales growth to a volume of more than 3,000 cars.

GROWTH IN RETAILER NETWORK AND EMPLOYMENT

To cater for the future demand, both the McLaren retailer network and its own employment grew in 2015. The McLaren global retailer network expanded to over 80 retailers covering 30 markets.  Twelve new retailers opened in 2015 covering important territories such as Seoul and Houston. 

Employment at McLaren Automotive also kept pace with sales developments with a total of 1,492 people employed at the end of 2015, an increase of 16% on the 1,283 working at the end of the previous year. The 1,492 headcount increased again substantially to about 1,750 in the early months of 2016 with the introduction of a second shift at the McLaren Production Centre and a further 250 new roles being created in the Production, Quality and Logistics departments. The second shift started in February 2016 with the new roles adding approximately 40 percent to the existing headcount in the Production Centre, and will take production rates from the previous 10 cars per day up to 20 cars per day by mid-2016.

TRACK22 DRIVES TOWARDS A SUCCESSFUL FUTURE

Looking forwards, McLaren Automotive has revealed details of its Track22 Business Plan, taking it through to 2022. With a continued focus on building the world’s finest two-seater sports and super cars, the business plan reiterates a commitment to its industry-leading 20-25 percent of turnover invested in Research and Development for future products and technology.  Over the six-year Business Plan period, this represents an investment of £1B and will lead to the launch of 15 all-new cars or derivatives. Of these cars, at least 50 percent will feature hybrid technology by the end of the Business Plan period and the company is also in the early prototype stages of the development of a fully-electric powertrain to evaluate its possible use in a future generation of an Ultimate Series car.

Chief Executive Officer of McLaren Automotive, Mike Flewitt, said of the financial results: ‘2015 was a critical year in the development of McLaren Automotive. The launch of the Sports Series opens McLaren up to an entirely new audience and will be pivotal in developing our sales volumes from the 2015 levels of 1,600 to nearly triple that number by 2020. For this to be achievable, we need to remain profitable but also continue to invest in our future product portfolio. In 2015, this amounted to £124M, nearly 30% of revenues. This level of commitment to investing in future products is core to our business strategy, as highlighted by the recently-announced Track22 business plan that commits us to investing £1B in research and development, delivering no less than 15 all-new cars or derivatives by 2022.’

		2015	2014	% change
Deliveries to customers	Cars	1,654	1,649	0.06%
Employed	People	1,492	1,283	16%
Sales revenue	Million GBP	450.6	475.5	(5.2%)
Operating profit	Million GBP	23.5	20.7	13.5%
Operating profit as % of sales	%	5.2%	4.4%
Profit before tax	Million GBP	5.4	14.9*	(63.8%)
Profit (loss) after tax	Million GBP	2.8	8.4*	(66%)
Capitalised development costs	Million GBP	123.9	91.9	35%
Capitalised investments as a %age of T/O		27.5%	19.3%

*as presented in the 2014 Statutory Accounts before changes in the UK generally accepted accounting provisions (GAP)