Williams announces latest figures - slight profit increase but challenges ahead
Williams is the one F1 team that is listed on the stock market and so every six months its parent company Williams Group Holdings is obliged to iss...
Williams is the one F1 team that is listed on the stock market and so every six months its parent company Williams Group Holdings is obliged to issue its latest figures of revenue and profitability.
The news today is that Group revenue grew to £85.9m for the period, compared to £80.0m in the same period in 2016. Profits were up from £7.8m in 2016 to £10.4m in 2017.
The latest dispatch reveals that the F1 team had slightly higher revenues in the first six months of 2017, thanks in large part to the payment made to the team by Mercedes for the release of Valtteri Bottas from his contract. Profits were up too as a consequence.
In all, £65.5m of the revenues for the business were on the F1 side. The team receives only a small legacy payment from F1 Group compared to Ferrari, Mercedes, McLaren and Red Bull which receive between $40m and $100m each a year, on top of their prize money. Williams finished third in the 2014 world championship, but slid down to 5th position last season and is in the same spot now.
“The Formula One business generated both increased revenues and profit versus the first half of 2016, largely driven by non-recurring one off items and the revenues associated with project work within that period," said CEO Mike O' Driscoll.
"We are delighted to be celebrating our 40th year in Formula One during 2017, and we are confident that with recent additions to the team, coupled with investment in facilities we will accelerate our progress in the years ahead."
The other positive is that the Advanced Engineering division is also expanding and with its latest programmes around EV capability and the Jaguar Racing Formula E team, that growth is set to continue.
There are some headwinds though, as cost control in F1 has yet to be implemented, while the sponsorship market is tough and the rate card is down compared to the past.
Williams is still rebuilding after several years of underinvestment after BMW broke from the team in the mid 2000s.What do you think of the latest news from Williams? Leave your comment in the section below
The numbers behind Vettel's chance of beating Hamilton
Motorsport Debrief: Kvyat benched, as Gasly gets Toro Rosso chance