Williams F1 Looks to Long-Term Strategy as Losses Revealed

Williams Grand Prix Holdings PLC has announced its interim results for the six months to 30 June 2014 with losses toppling overthe £20 million mark.

The Grove-based outfit announced its interim financial results on Friday, cheap with losses of £20.7million for the F1 team and £18.8million for the entire group over the first six months of 2014.

Overall Group income for the period was £46.6m (2013: £56.4m), discount with EBIT of £(17.1)m (2013: £(2.7)m). The year over year reduction in revenue and earnings is accounted for by the recognition in 2013 of a special non-recurring sponsorship payment for 2014 within last year’s accounts.

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.

“Williams Advanced Engineering is also evolving, as it completes its move into a new £8m facility that opened in the second quarter of 2014. This new base of operations will provide the business with the opportunity to increase its project portfolio and we are seeing a strong pull from the market for the company’s unique offering of energy efficient performance technologies.

“These financial results are in line with the Board’s expectation of what is required to rebuild and reinvigorate the team and we believe that they reflect the transitionary period that we must continue to work through if we are to realise the potential of the Group.”

Sir Frank Williams, Founder and Team Principal, added, “Our on track performance through the first half of this season is evidence that we have started to build a solid foundation for the future. Our long-term financial prosperity will of course always be a reflection, both directly and indirectly, of our Formula One performance. The impressive upturn in our performance this season is validating our approach.”