Williams F1 racing revival widens financial losses

Posted by Unknown on Friday, September 5, 2014


The company, founded by Sir Frank Williams, said that overall group income was £46.6m pounds in the first half, down from £56.4m in the same period last year. For Williams this added up to an earnings before interest and tax loss of £17.1m, versus a £2.7m loss a year ago.




Group Chief Executive Officer Mike O'Driscoll said: "At the beginning of the second half of last year we began an ambitious strategy to rebuild the Formula One organisation, develop a strong Advanced Engineering division, and divest non-core operations. We have already made substantial progress towards our objectives.




This strategy has required significant investment, as illustrated by our first half results, and it is anticipated that this will also impact the full year results. After a number of disappointing seasons, our Formula One team has been significantly strengthened across all key functions. Our long-term power unit supply agreement with Mercedes provides strength and stability. As a consequence we have made a significant step-change in our on-track performance. We have also made great progress commercially, underscored by our title partnership agreement with Martini," he said.


By contrast, McLaren has struggled in F1 this year but the company's financial performance has rebounded, with the group making a £18.8m pre-tax profit last year.


In April, the parent of the Williams F1 team, sold its hybrid power unit, which makes a flywheel that improves fuel economy in public transport, to GKN. The British engineering company paid £8m for Williams Hybrid Power, with further payments based on future sales and licences. Under the terms of the deal, Williams would receive a 3.5pc share of the company's sales over the next five years and 1.5pc for the five years after that.


Williams bought the start-up hybrid unit in 2010 for £1.5m after it helped it develop a flywheel that recouped energy from braking for its 2009 Formula One racing car that was driven by Nico Rosberg.





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