British engineering and technology firm McLaren "revealed that it reversed" from a $19M net profit to a $24.6M net loss last year on revenue "which was down slightly" at $412.3M, according to Christian Sylt for FORBES. The fall in profits was driven by a downturn in the performance of its Formula 1 team "after it lost British superstar Lewis Hamilton to rival Mercedes." The McLaren Technology Group, which changed its name from McLaren Group earlier this year, "owns stakes in 18 companies." They include "a motorsport electronics firm, catering company Absolute Taste, an applied technology business and 3.7% of supercar manufacturer McLaren Automotive." The group "is 25% owned by the Saudi TAG Group with 25% in the hands of its CEO Ron Dennis and the remainder held by Bahrain’s Mumtalakat sovereign wealth fund." Costs accelerated 22.8% to $332.9M as McLaren had to pay a one-off severance and restructuring fee of $54M to Daimler for "switching from its Mercedes engines to rival Honda this year." So far it "hasn’t paid off as McLaren is currently experiencing the worst season in its 49-year history." Revenue at the F1 team declined 6.8% to $277.6M and, according to its CEO Jonathan Neale, this was "predominantly due to decreased prize monies and sponsorship" (FORBES, 11/8).
