McLaren’s Ron Dennis sees profits leap but will Vettel and Alonso join the once legendary F1 team?

Turnover increased from £249m to £268m

McLaren boss Ron Dennis today declared his Formula 1 team may not  be having much successes on the track, but its finances have rarely been stronger.

The company reported a dramatic swing back into profit last year thanks to the rising revenues from the sport and sponsorship. From a loss of about £3m in 2012 due to increased research and development spend, McLaren Group raced to an £18.8m pre-tax profit last year. Turnover increased from £249m to £268m.

McLaren fans may be hoping that extra cash could hasten the arrival of new drivers for the team to replace the current pairing of Jenson Button and Kevin Magnussen. Speculation has had it that Sebastian Vettel and Fernando Alonso could be on the wish list.

Mr Dennis said: "Sadly, strong financial performance during 2013 was not matched by on-track success. However, McLaren has a proud and victorious record at the pinnacle of Formula 1 and I am confident the actions we are taking will enable the team to regain competitiveness in time."

A large part of that revolves around McLaren being reunited with Japanese car giant Honda in a double act last seen during the glory days of Ayrton Senna and Alain Prost, when the five-year collaboration between the two companies made for an unprecedented clean sweep of titles between 1988 and 1992.

Since 1995, McLaren has used Mercedes Benz engines and the German company even bought a 40 per cent stake in McLaren. The pair also built supercars for the road including the Mercedes-Benz SLR McLaren two-seater.

But the relationship became less easy as Mercedes wanted to push its own F1 team and supercars, while McLaren was planning its own new road models again too, with the 12C supercar hitting the streets in 2011.  McLaren Group profit figures out today do not include revenues from the roadcars arm, McLaren Automotive, which is a separate company.

Mercedes’ owner Daimler sold its stake and now has its own F1 team to compete with McLaren. The two companies will cease their partnership in 2015 when the new Honda venture begins.

Mr Dennis added: "Our growing revenue and robust financial position will ensure that McLaren Racing has the resources it requires to win races, while enabling us to develop and expand the entire McLaren Group as an internationally recognised technology company."

The company has increasingly been looking to diversify its revenues into other areas where its engineering and data management expertise can be applied. McLaren has for years employed highly advanced technology to monitor its race cars during races, with millions of bits of information being fed back to its so-called "mission control" centre in the UK for super-fast analysis and instructions for the pit team.

Those skills can be put to use in other businesses, from the National Air Traffic Service, where McLaren helps analyse data on managing flights in and out of Heathrow to medicines manufacture, where clients include GlaxoSmithKline. It also helped design and monitor the training schedules for the Team GB cycling, sailing, rowing and canoeing teams, while its designers were involved in creating the British skeleton bob that won gold in the Winter Olympics.

It may not come as much comfort for McLaren team fans watching its poor performance on the track in recent years, but the company also makes the on-board electronic systems for other teams. So, whatever the result at Monza this weekend, a bit of McLaren will be in the winning car.

Start your day with The Independent, sign up for daily news emails
Life and Style
Steve Shaw shows Kate how to get wet behind the ears and how to align her neck
healthSteven Shaw - the 'Buddha of Breaststroke' - applies Alexander Technique to the watery sport
Arts and Entertainment
The sight of a bucking bronco in the shape of a pink penis was too much for Hollywood actor and gay rights supporter Martin Sheen, prompting him to boycott a scene in the TV series Grace and Frankie
tv
Sport
footballShirt then goes on sale on Gumtree
Voices
Terry Sue-Patt as Benny in the BBC children’s soap ‘Grange Hill’
voicesGrace Dent on Grange Hill and Terry Sue-Patt
Arts and Entertainment
Performers drink tea at the Glastonbury festival in 2010
music
Arts and Entertainment
Twin Peaks stars Joan Chen, Michael Ontkean, Kyle Maclachlan and Piper Laurie
tvName confirmed for third series
Sport
Cameron Jerome
footballCanaries beat Boro to gain promotion to the Premier League
Arts and Entertainment
art
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Software Developer / C# Developer

£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...

Neil Pavier: Management Accountant

£45,000 - £55,000: Neil Pavier: Are you looking for your next opportunity for ...

Sheridan Maine: Commercial Accountant

£45,000 - £55,000: Sheridan Maine: Are you a newly qualified ACA/ACCA/ACMA qua...

Laura Norton: Project Accountant

£50,000 - £60,000: Laura Norton: Are you looking for an opportunity within a w...

Day In a Page

Abuse - and the hell that came afterwards

Abuse - and the hell that follows

James Rhodes on the extraordinary legal battle to publish his memoir
Why we need a 'tranquility map' of England, according to campaigners

It's oh so quiet!

The case for a 'tranquility map' of England
'Timeless fashion': It may be a paradox, but the industry loves it

'Timeless fashion'

It may be a paradox, but the industry loves it
If the West needs a bridge to the 'moderates' inside Isis, maybe we could have done with Osama bin Laden staying alive after all

Could have done with Osama bin Laden staying alive?

Robert Fisk on the Fountainheads of World Evil in 2011 - and 2015
New exhibition celebrates the evolution of swimwear

Evolution of swimwear

From bathing dresses in the twenties to modern bikinis
Sun, sex and an anthropological study: One British academic's summer of hell in Magaluf

Sun, sex and an anthropological study

One academic’s summer of hell in Magaluf
From Shakespeare to Rising Damp... to Vicious

Frances de la Tour's 50-year triumph

'Rising Damp' brought De la Tour such recognition that she could be forgiven if she'd never been able to move on. But at 70, she continues to flourish - and to beguile
'That Whitsun, I was late getting away...'

Ian McMillan on the Whitsun Weddings

This weekend is Whitsun, and while the festival may no longer resonate, Larkin's best-loved poem, lives on - along with the train journey at the heart of it
Kathryn Williams explores the works and influences of Sylvia Plath in a new light

Songs from the bell jar

Kathryn Williams explores the works and influences of Sylvia Plath
How one man's day in high heels showed him that Cannes must change its 'no flats' policy

One man's day in high heels

...showed him that Cannes must change its 'flats' policy
Is a quiet crusade to reform executive pay bearing fruit?

Is a quiet crusade to reform executive pay bearing fruit?

Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
The King David Hotel gives precious work to Palestinians - unless peace talks are on

King David Hotel: Palestinians not included

The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
More people moving from Australia to New Zealand than in the other direction for first time in 24 years

End of the Aussie brain drain

More people moving from Australia to New Zealand than in the other direction for first time in 24 years
Meditation is touted as a cure for mental instability but can it actually be bad for you?

Can meditation be bad for you?

Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

Australia's first-ever Eurovision entrant

Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine