McLaren will promote their stateoftheart Formula One headquarters and lease it again longterm to boost money and scale back the corporate’s debt, the workforce’s chief govt Zak Brown mentioned on Saturday.
- Last Updated: September 12, 2020, 4:52 PM IST
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LONDON: McLaren will promote their state-of-the-art Formula One headquarters and lease it again long-term to boost money and scale back the corporate’s debt, the workforce’s chief govt Zak Brown mentioned on Saturday.
The American advised reporters in a Zoom name forward of the Tuscan Grand Prix that it was a simple monetary train.
“Why have all this money tied up in real estate? We’re not a real estate company, we’re a racing team and an automotive company,” he mentioned of the Norman Foster-designed McLaren Technology Centre in Woking.
“We’ve got a lot of cash tied up in that building and that’s not a very productive use of funds when you’re looking to invest in your business.”
The McLaren Group appointed former Diageo boss Paul Walsh as govt chairman in March, when present shareholders raised 300 million kilos ($383.79 million) of extra fairness, to supervise a monetary restructuring.
The sportscar maker has been onerous hit by the COVID-19 pandemic, with gross sales plunging and manufacturing halted earlier within the yr.
The Group additionally secured a 150 million pound financing facility from the National Bank of Bahrain in June.
“We have a good chunk of debt and now Paul is starting to set a direction and take decisions to give us a stronger balance sheet, invest in the right areas, to ultimately grow our companies and be financially a much stronger company,” mentioned Brown.
McLaren, third within the F1 championship after eight races, had been “fine financially from a cash-flow standpoint”, he added.
“When COVID hit and that turned off our Formula One business, our automotive business and to a certain extent our technology business, that consumed an immediate amount of cash that we needed to call,” he defined.
“We’ve now done that and we’ve got plenty of runway to be able to make sound business decisions.”
Brown mentioned the corporate was braced for some additional COVID affect in 2021 however not on the stage of this yr and had been effectively ready for it.
($1 = 0.7817 kilos)