The Williams F1 Team has blamed investment in ensuring it moved toward the front of the Formula 1 grid for losses of more than £20 million ($32m) in the first six months of 2014.
The team, as part of Williams Grand Prix Holdings, released its interim financial results on Friday which revealed big losses for the company.
In the opening six months of this year, the F1 team recorded a loss of £20.7m ($33.8m), whilst the group as a whole lost £18.8m ($31m) on income of £46.6m ($76m).
The losses aren’t a major concern however, as CEO Mike O’Driscoll explains that they were expected after the team took a conscious decision to invest heavily in its F1 operation to ensure it was more competitive when compared to recent years.
“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.”
The teams costs have risen as a result of the 2014 power units which cost an estimated £8m more than the V8 engines, whilst the loss of Pastor Maldonado’s sponsorship package is also taken into account.
The team currently sit fourth in the championship standings, just ten points behind Ferrari. If they finish fourth, they stand to land a £15m bonus in F1 prize money compared to 2013 when they finished just ninth.
