McLaren Group has posted a substantial year-on-year reduction in revenue for the first quarter, with its Formula 1 team also suffering, ostensibly due to the coronavirus pandemic.
McLaren Group is composed of Automotive, Applied and Racing, with its Formula 1 team operating in the latter of the three.
The Group revenues for Q1 2020, released on Thursday, stand at £109m, a reduction on £284 compared to the same period in 2019.
Its reported EBITDA now stands at -£81m, down from £22m while post-tax losses increased from £20m to £110m.
McLaren Racing’s revenues were down £4.4m on Q1 2019, a figure the team attributed to the lower Formula 1 prize fund due to the season having yet to start, as well as last year’s figure being swelled by the sale of three heritage cars.
It noted that this loss has been partially offset by a year-on-year increase of £4.1m in sponsorship.
It was confirmed earlier this week that the Group will be making over a quarter of its 4,000-strong staff redundant, with approximately 70 of these personnel being axed from the Formula 1 team.
The company has outlined further cost-saving initiatives, including a reduced spend in sales and marketing, events, motorsport and travel.
Staff that have not been furloughed under the UK government’s scheme have been asked to take a reduced salary, while no bonuses will be paid for 2020.
The company is also working with suppliers in order to help its cash flow during the Q2 2020 period.
A corporate restructure process is also underway in order to safeguard the company’s future.
It has warned that its Q2 figures are “expected to be in line with Q1” and is optimistic of stronger Q3 and Q4 results that will be “dependant on global recovery from Covid-19.”