Aston Martin F1 posts £53m loss despite revenue increase

The Aston Martin Formula 1 team reported a £53 million loss for its fiscal year 2022, an increase of £9 million compared to the deficit incurred by the Silverstone-based outfit in the previous year.

Aston’s larger loss has come despite the team boosting its overall revenue by more than £32 million thanks to increased sponsorship and prize money.

But a significant general rise in costs in 2022 linked to F1’s regulation overhaul has more than offset the team’s improved turnover.

Following a restructuring, the team now operates under the name of AMR GP Limited, a subsidiary of AMR GP Holdings Limited.

Figures revealed that the team's total revenue in 2022 amounted to £188,728,000, compared to £150,438,000 in 2021.

However, the cost of sales, indicating the actual expenditure of the team's racing activities, saw a jump to £152,046,00 from its 2021 figure of £107,735,000.

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Factoring in administrative expenses and other income sources such as government grants, the overall loss amounted to £52,915,000 for the year 2022, as opposed to the £43,332,000 loss reported in 2021.

Total staff costs for the group were recorded as £54,983,000, representing an approximate 10% increase compared to the previous year.

AMR GP reported a total headcount of 504 individuals, comprising 81 personnel in administrative roles and 423 engaged in "design, production, and technical" functions. This figure marked an increase from 401 employees in 2021, underscoring the team's continuous expansion efforts.

With regard to the significant investment made in Aston’s new facilities at Silverstone, the company pointed out that as of December 31, 2021, the group had committed to a capital expenditure totaling $64,985,490, a number earmarked for the development of the Aston Martin F1 Campus.

The marketing contribution to the F1 team from the Aston Martin Lagonda road car company for the year 2022 amounted to £19,208,000. This figure represented a decrease of £844,000 compared to the previous year.

AMR GP also states that the team disbursed $1,835,000 to Falcon Racing Services Inc in 2022 for the provision of Lance Stroll's racing services, which actually marked a reduction of $225,000 compared to 2021. In return, Falcon contributed $1,125,000 in sponsorship income in 2022.

The company also made it clear that, like other F1 teams, it is diversifying its scope with the newly established Aston Martin Performance Technologies division.

This division "leverages insights gained from the racetrack to address real-world challenges."

Furthermore, it mentioned that the new entity "secured its inaugural contract in the year 2022 and has a robust pipeline of opportunities as part of its future growth strategy."

In addition to the Aston Martin F1 team releasing its 2022 numbers, Aston Martin Lagonda announced that billionaire backer Lawrence Stroll’s Yew Tree Consortium has increased its stake in the business.

Yew Tree agreed a deal to purchase 26 million more ordinary shares, Aston Martin told shareholders. It means that the consortium has increased its stake by 3.27% to 26.23% of the firm.

It remains short of the 30% threshold at which significant shareholders need to declare whether they intend to launch a takeover offer for a company.

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