Mclarenfanboy wrote: ↑19 May 2023, 11:39
Just read the Corporate Credit Ratings for the Group in 2022, so corporate credit ratings are as follows:
B- Stable (Fitch), Caa1 Negative (Moody’s), CCC Credit Watch Negative (S&P). So it s junk I guess. Thank God they have rich shareholders, that like their expensive and shiny toy, or they would not last a month in the real world. Here is to the power of the brand. There is absoultely nothing fueling Mclaren to stay afloat except the power of its name.
Yes, the name that they believe will bring it back to profit and why it is worth putting money into it!
I did have a look at their accounts, they are on the right track. Expect the 22 accounts when released in December to show a strong profit for the F1 team which will mitigate the Auto's losses a little. but even then their losses will drop, so it's not looking too bad.
The issue is that the team probably can't handle another economic hit. if sales grow, even slowly, then they will slowly pay off their debt. Part of the reason for their losses is their debt payments plus the supply chain issues, including Brexit, but these will come down as they are paying off more than they borrow, plus cash injections from sales of property and the cars, plus shares in the F1 group will be registered in the next set of accounts.
They are OK for now, and if you go into the accounts and read the auditors notes, they have expressed no issues whatsoever with this company as a going concern or its strategic direction.
