McLaren's 1st Half 2020 results and outlook

[SSO]

I just finished a blog looking at McLaren's 1st half 2020 results:

https://karenable.com/mclarens-1st-half-2020-results/

Comments?

[RobYob]

Always interesting to hear the story behind the marques finances.

[SSO]

Always interesting to hear the story behind the marques finances.

The £600 million in un-amortized new product development costs is a bit of a nasty surprise......

[Pete_]

Really interesting analysis!

[RobYob]

[mention]SSO[/mention] what's you take on this?

https://jalopnik.com/mclaren-wants-to-s ... oking site

I don't have a finance hat to wear but with engineers hat on I'd say it's mental unless they plan a short-medium term move to cheaper premises.

A lot of their test work happens at IDIADA and they've a centre there already so I suppose moving more development to Spain would be a gain for efficiency and costs.

Manufacturing could go East?

[Simon]

If that's about the plan to sell off Woking HQ, it's a simple sale and leaseback arrangement. Just like, if you remember, MG-Rover did "so successfully" in their last years...

It frees up cash instantly but costs you more in the long run.

[mik]

Link broken Rob

[Sundayjumper]

https://jalopnik.com/mclaren-wants-to-s ... 1845013006

Just like those dodgy equity release schemes.

[SSO]

@SSO what's you take on this?

https://jalopnik.com/mclaren-wants-to-s ... oking site

I don't have a finance hat to wear but with engineers hat on I'd say it's mental unless they plan a short-medium term move to cheaper premises.

A lot of their test work happens at IDIADA and they've a centre there already so I suppose moving more development to Spain would be a gain for efficiency and costs.

Manufacturing could go East?

It's actually not that unusual. Many big multinationals don't own their HQs or factories. It frees up cash and the lease costs get written off as an expense on the P&L.