McLaren Racing reports profits of £30 million for the 2023 term

McLaren Racing has announced a rise in profits as it continues to recover from the difficulties of the COVID-19 pandemic and efforts to return to the top of Formula 1.

The group, which includes efforts in F1, IndyCar, Extreme E and Formula E, has undergone a radical change since 2020.

Following the impact of the pandemic, McLaren laid off employees and sold the flagship McLaren Technology Center to Global Net Lease in 2021 to offset costs.

Further shares were sold in 2022 as part of an existing deal with MSP Sports Capital, before McLaren’s largest shareholder, Bahrain Sovereign Wealth Fund Mumtalakat, fully took over the group in March 2024.

The increased sponsorship was the reason for an increase in profits in 2022, even if the planned assets fell compared to 2021, but 2023 proved to be a far more profitable year.

McLaren Racing announced a 31% increase in profits from 2022 to 2023, earning a whopping £431m in the financial year as its competitive form improved dramatically.

The increase in performance led to more sponsorship, a factor that McLaren credits as a reason for the upswing that made the company a profitable business again.

After making a £9m loss in 2022, McLaren made a whopping £30.4m profit while its energy consumption fell from 20.7m kWh to 20.4m.

Despite these minor improvements, greenhouse gas emissions rose from 4,159 tonnes of CO2 to 4,264 in 2023, not an ideal statistic as motorsport struggles to become sustainable.

McLaren is currently leading the F1 constructors’ championship for the first time in 2014, while its Formula E team claimed its first victory earlier this year.