Williams has announced its interim results for 2015, with group revenues up almost £20million.
Williams Grand Prix Holdings PLC (WGPH) is the holding company of the Williams Group of companies, which includes the F1 team (Williams Grand Prix Engineering Limited). In the six months to June 2015, the overall group revenue for the period was £63.2m, up from £44.1m for the same period in 2014.
The group also announced a clear decrease in losses, with earnings before interest, tax, depreciation and amortisation (EBITDA) seeing a loss of £1.4m compared to £19.6m a year ago.
For the F1 team, revenue was up from £34.6m in 2014 to £51.8m this year, with an EBITDA of £2.5m, down from £19.8m last year. Williams invested significant funds to turn around a dramatic slide in performance which saw the team finish ninth in the constructors' championship in 2013, recovering to third place in 2014.
Mike O’Driscoll, Group Chief Executive Officer, said the improved performance on track was reflected in the financial results so far this year, but warned the expenditure required to be competitive in F1 would continue to make the coming years challenging for the group.
“Our first half results represent a significant improvement over the same period in 2014, with strong revenue growth and positive cash flow. We made a small EBITDA loss through the first half of the year, which was in line with our expectations.
“Mid-way through 2013 we set out on an ambitious turnaround strategy to reinvigorate the Formula One team, create a strong and profitable Advanced Engineering business, and divest non-core activities. In 2014 we made excellent progress against those objectives, with a third place finish in the Formula One Constructors Championship, and an expansion of our Advanced Engineering division. This progress has been sustained into 2015.
“The improved performance of our Formula One team on the track is now reflected in both higher commercial rights income and increased sponsorship revenue, bolstering our financial results. We will prioritise technological innovation, but simultaneously continue to balance our investment, with strong controls, during a time of rising costs for all Constructors.
“Williams Advanced Engineering has demonstrated continued progress, with revenue and EBITDA increasing, albeit modestly. We anticipate that this trend will continue, while we build up our capabilities in new sectors, primarily aerospace and defence. The announcement of a recent multi-year contract with global defence contractor General Dynamics is evidence of the progress we are making in this division.
“Overall, these interim results are encouraging, and represent very good progress. However, we face continued cost pressures due to the spending levels of our major Formula One competitors, and this challenging environment will undoubtedly continue in the near term. We remain determined to build the necessary foundations for future sporting and commercial success, both on and off the track.”
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