- McLaren Automotive records second consecutive year of profitability just four years after opening its first retailer
- 2014 sales increased 18 percent over 2013, another year of growth
- Already a sustainable business investing in its future and people
- An expanding range of luxury sports cars designed, engineered and made in the UK...and intending to stay that way
- More than 1,200 people employed, most in the UK, with 50 percent of parts UK sourced, and 92 percent of output exported
The
incredible story of McLaren Automotive continues with the announcement
of a second consecutive year of profitability four years since the
company opened its first retailer. The achievement is considered
unprecidented in today’s motor industry. The company has also recorded
its fourth year of sales growth and is predicting more following the
launch this year of a quartet of new models – two of which are already
sold out – and the establishment of a three tier product structure
reinforcing its future as a British based manufacturer of luxury sports
cars, and only luxury sports cars.
Led by Chief Executive Officer Mike Flewitt, in 2014, the company generated an operating profit of £20.8m (2013: £12.4m, + 68 percent) and a profit before tax of £15.0m (2013: £4.5m +233 percent). These profits were generated from turnover that grew from £285.4m in 2013 to £475.5m in 2014.
The
company ended 2014 with record sales as it has done every year since it
first began producing its current range of cars in 2010. A total of
1,649 vehicles were delivered to customers around the world, an increase
of 18 percent over 2013. Following the introduction of the 650S in
Coupé and Spider form at the 2014 Geneva Motor Show where the two models
were launched simultaneously, strong demand for the core McLaren model
range saw sales reach 1,401 units. In addition, 248 examples of the
McLaren P1™ (2013: 36) were delivered – around two thirds of car’s total 375 unit production run.
McLaren
Automotive has continued to focus on developing new product. During
2014 the Company invested £91.8m in R&D, up from £67m in 2013, which
represents almost 20 percent of turnover. Looking forward, this
percentage is expected to be maintained in 2015 as the company continues
development of its model range. Crucial to this is the new Sports
Series. The 570S Coupé is the first model and was revealed at the
beginning of April 2015 at the New York Auto Show. This has already
been followed by a second, the 540C Coupé, which was launched a few
weeks later in Shanghai. Together they take McLaren into a new segment
and put the brand within reach of a whole new audience.
A
second body-style will be introduced in 2016 followed by another in
2017, by which time the Sports Series is forecast to more than double
the production output of McLaren Automotive to around 4,000 units per
annum. This number, while deliberately small in industry terms, will
allow McLaren to thrive and is in line with the wish of its clients that
its products should forever remain a rare sight to protect not just the
brand’s exclusivity but also the investment of owners.
The
core McLaren range, the Super Series, continues to find new audiences.
The track focused 675LT was launched in March at the International
Geneva Motor Show. Limited to just 500 units globally, these all found
buyers in just a couple of months. Production commences in July
alongside the 650S Coupé and 650S Spider which is currently the only
open roofed, mid-engined sports car available globally that is capable
of more than 200mph.
The
final and 375th example of the McLaren P1™ is due to be produced later
this year. It sits alongside the track only McLaren P1™ GTR, production
of which has just begun, in the third and most exclusive McLaren
product tier, the Ultimate Series. To be produced in even more limited
numbers, the McLaren P1™ GTR is a 1,000PS technological showcase for the
brand and was displayed in production ready form earlier this year at
the International Geneva Motor Show. Owners will be offered the
opportunity to join the McLaren P1™ GTR Driver Programme which has its
first meeting at the Circuit de Catalunya, Spain, later this year. From
October, the McLaren Production Centre will concentrate on production
of the Super Series and new Sports Series, orders for which already take
production well into 2016.
RETAIL NETWORK AND REGIONAL SALES SUCCESS
The
network of McLaren retailers grew to cover 30 markets with the
additions of Chile, Scotland and Thailand. New sales outlets were also
opened in existing markets bringing the total number of outlets to 71.
More development is planned in 2015.
Growth
was recorded across all four of the McLaren regional business units.
The Asia-Pacific region saw the biggest rise with sales increasing by 80
percent over 2013 with 11 new retail locations across the region
helping to fuel this growth. The North American market remained the
largest market for McLaren accounting for more than 30 percent of
overall sales, while sales in both Europe and the Middle East grew
year-on-year by 10 percent and nine percent respectively.
EMPLOYMENT GROWTH
As
well as investing in new products, McLaren Automotive continues to care
for another important asset: its people. The number of employees based
across its global facilities increased by 25 percent against 2013 to a
total of 1,283 employees. Of these, 33 percent are employed in
engineering. This is an increase from 2013 reflecting a focus on
creating a sustainable future for the brand through the constant
development of new and exciting product. As production rises further,
the number of people employed globally by the brand will grow even more.
Commenting on the 2014 year end performance, Mike Flewitt, Chief Executive Officer of McLaren Automotive explained: ‘These
latest results highlight that McLaren Automotive continues to push
boundaries and are testament to the energy and professionalism of the
teams in Woking and around the world, including our retail partners and
suppliers. We have seen the third consecutive year of growth for the
brand, and a second year of profitability, which is a fantastic
achievement and perhaps unprecedented in the modern automotive industry.
‘Since
the opening of the first retailer in June 2011, McLaren has established
a world-class network of retailers, with 14 key locations added in
2014. Add to this a range of groundbreaking models, to which four have
already been added this year, and 2015 looks set to bring another strong
result for McLaren.’
