Sports

Government investigation threatens to slow down McLaren profits

Sports car maker McLaren has warned investors that profits could take a hit this year due to a government investigation the company is involved in.

At the bottom of its annual report, the manufacturer confirmed that an unknown government department had approached it for information regarding a probe concerning "third party companies and executive and other persons who have been, or are currently, associated with the group".

Though the company is not the subject of the investigation, it told shareholders the investigation could have a second-hand impact on company finances.

Read more: The wilderness of Finland is transformed into McLaren's playground

"Any negative publicity surrounding assertions against executive persons who have been, or are currently,associated with the group could adversely affect the group's brand and reputation, and may consequently have a negative impact upon the financial performance of the group", McLaren's report reads.

McLaren Group declined to comment on the investigation for "legal reasons".

In its last set of results, the company said revenues had dropped three per cent to £871m as the firm reported a £66m pre-tax loss, down from a £1.3m profit.

Earlier this year, the McLaren's F1 team appointed a panel of business advisers, including the mastermind behind the London 2012 Olympics Lord Sebastian Coe, to help boost sponsorship income at the company to drive a turnaround in results.

Read more: McLaren F1 team taps top advisers to boost sponsorship income

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