McLaren Technology Group profit underscores ambitious diversification strategy
A long term strategy for growth, focused on commercialising motor racing technologies and IP (intellectual property) across a range of industry sectors, has contributed to a profit turnaround for the McLaren Technology Group Ltd.
Interim company figures published today show that McLaren Technology Group will make a pre-tax profit of over £6m for 2015, a £28m turnaround on its 2014 published result.
McLaren Racing, which runs the McLaren-Honda Formula 1 team, has long been a mainstay of McLaren Technology Group; but, working across sectors as diverse as energy, transport and healthcare, as well as consumer products and electronics, McLaren Applied Technologies is fast becoming the major growth engine of the Group.
With satellite offices established in key markets such as the United States and Singapore, McLaren Applied Technologies has forged global long-term relationships with sector leaders including GlaxoSmithKline and also KPMG, with which it has an alliance to co-create analytical tools designed to improve business and operational performance.
The posting of this financial result follows January's announcement of two key executive appointments, part of an internal re-structure designed to expedite the delivery of McLaren Technology Group’s aggressive expansion ambitions.
The highly regarded Jost Capito will become Chief Executive Officer of McLaren Racing later this year, at which time McLaren Racing Acting CEO Jonathan Neale will assume the role of Chief Operating Officer of McLaren Technology Group.
The renowned McLaren Technology Campus, in Woking, United Kingdom, houses all of the McLaren branded businesses – representing a combined workforce of over 3,000 employees. Accordingly, planning approval has been secured to expand McLaren’s facilities by half a million square feet - representing a 50% increase - to accommodate its projected future growth.
Founded in 1961, McLaren has grown to be one of the world’s most respected motorsport and high performance car brands. Under the stewardship of Ron Dennis, Chairman of both McLaren Technology Group and McLaren Automotive, the brand has ambitiously diversified beyond its motorsport heritage, and today enjoys an equity value in excess of £1.2 billion.
Ron Dennis, Executive Chairman & Chief Executive Officer, McLaren Technology Group Ltd and Chairman, McLaren Automotive Ltd said:
"As Chairman, I am hugely encouraged by the latest Group figures, which show we are now delivering against the objective we set ourselves a number of years ago to re-invest for the long-term in order to diversify and expand our already impressive capabilities.
“Today’s challenging industrial landscape characterised by slow economic growth, currency volatility and a recessed commodity sector makes even more gratifying the decisions we took some years back to bolster and ensure our future growth.
"While I predicted a swift return to profit last year, we continue to prioritise our investment in the long-term performance of our businesses over short-term fluctuations in racing prize-money related income.
“Having personally overseen the recent strengthening of key management positions, I am confident our ambitious expansion strategy will lead to the creation of new, high-quality jobs, attracting both the brightest technical talent, and the very best STEM [science, technology, engineering and maths] graduates to our business.
“That will provide not only a boost to the regional economy but will also enhance McLaren’s reputation as a beacon of world-beating British innovation and technology excellence for many years to come.”