The McLaren Group - including the Formula 1 team - has suffered a £175 million drop in revenue through the first quarter of 2020, revealing the impact of the COVID-19 pandemic.

McLaren’s collective revenues reduced to £109m in Q1, down from £284 at the same stage last year, as the British sportscar maker announced its latest financial results on Thursday.

The Woking-based group recorded a significant drop in car sales to 307 units between January and March, having sold 953 units during the equivalent timeframe in 2019.

Is Carlos Sainz the right choice for Ferrari? |

Production has been interrupted amid the ongoing coronavirus pandemic, which has caused the 2020 F1 season to be put on ice and forced the opening 10 races of the campaign to be called off.

All racing activity has been suspended until July at the earliest, when F1 bosses hope to kick the season off with a series of behind closed doors races beginning in Austria on July 5.

The extended winter break and F1 hiatus has also impacted on the hit suffered by the McLaren Group, given the loss of race income from the usual broadcast and sponsorship deals.

It comes after McLaren announced it will slash its workforce by more than a quarter in reaction to the coronavirus crisis.

McLaren currently employs 4,000 individuals but is set to make 1,200 of those redundant, which includes around 70 people being cut from its 800-strong F1 staff.

McLaren Racing CEO Zak Brown hailed the impending introduction of a radical cost-cutting package, which includes a lower $145m budget cap for 2021, as a “crucially important moment” for F1.

“F1 has been financially unsustainable for some time, and inaction would have risked the future of F1 and its participants, who are to be commended for resolving this issue collectively and determinedly,” he added.

Sky News recently reported that McLaren is considering mortgaging its Woking headquarters and part of its collection of historic F1 cars in a bid to raise up to £275m to see it through the COVID-19 crisis.

McLaren expects its second quarter figures to be in line with Q1.