But Grove oufit expecting far stronger end-of-year results for 2015
Monday 27 April 2015 14:02, UK
Williams have reported a loss of £34.3m for 2014, although are expecting next year's results to be "materially more favourable" in the wake of their on-track renaissance over the past 12 months.
The former world champions enjoyed their most competitive season for a decade last year as they finished third in the Constructors’ Championship in the wake of an inspired switch to Mercedes engines for the start of the sport’s new turbo era and an overhaul of the team’s key personal and structures.
Investment in that turnaround strategy, including the increase in customer engine fees, and the fact that the prize money for finishing third last season won’t be included until their 2015 accounts, means that the finances of Williams Grand Prix Holdings, the umbrella company which includes the F1 team, took a hit in 2014.
A decrease in group revenues, from £130.4m to £90.2m, was attributed in part to the fact that their 2013 accounts contained a one-off sponsorship payment – the severance fee paid by PDVSA, the personal sponsor of their former driver Pastor Maldonado – and lower commercial income from finishing ninth in the Constructors’ Championship in 2013.
However, with the team’s coffers having since been boosted by their strong form over the past year both on the track and in recruiting new sponsors, Williams are expecting their strategy to pay off over the longer-term.
“The decision to invest in the team has been more than validated, with a third place finish in the 2014 Constructors’ Championship, up from ninth in 2013,” said Williams group chief executive officer Mike O’Driscoll.
“Mid-way through 2013 we set out on an ambitious turnaround strategy to reinvigorate the Formula 1 team, create a strong and profitable Advanced Engineering business, and divest non-core activities. In 2014 we made very good progress against those objectives, investing significantly in people, facilities, and technology which we believe will provide a solid foundation for the future.
“The Formula 1 team’s leadership and structure was thoroughly overhauled, with the singular objective of reversing a decade of deteriorating performance. As a consequence of our actions we made a significant improvement in our on-track performance in 2014, which has been sustained into 2015. Our Advanced Engineering activities were also consolidated as we relocated operations into a new facility at our Grove HQ. We have put a new and experienced leadership team in place across the organization, and are now well placed to grow in the years ahead.
“The financial performance of the Group in 2014 reflected the poor on-track results of the prior three years, which resulted in a marked deterioration in commercial rights and sponsorship income. Last year was also adversely impacted by the costs of relocating our Advanced Engineering activities. Our much improved performance in the 2014 Championship will be seen in higher commercial rights and sponsorship income in 2015, coupled with improved performance from our Advanced Engineering division.
"Our ambition in 2015 is to consolidate the progress we made last year, continue building the necessary foundations for future sporting and commercial success, and consequently to materially improve our financial results for the coming years.”
Following the first four races of 2015, Williams again hold third in the Constructors’ Championship with a pair of fourth-place finishes their best results so far.
