Mercedes-Benz Grand Prix Limited saw a turnover of £475m and profits of £89m in 2022 despite failing to claim a Formula 1 title for the first time since 2014.
The company’s revenue jumped by 24% year-on-year to £474.5m aided by increases in F1 revenues, sponsorship deals and work carried out through its Applied Science Division.
51% of the team’s revenue was attributed to sponsorship and licensing and 30% from the F1 prize fund. Revenue also came through its Applied Science Division whose work includes development of Ineos Britannia’s America’s Cup sailboat.
Accounts submitted to the UK’s Companies House also showed that in March, Mercedes-Benz Grand Prix Limited approved a £75m dividend to shareholders including team principal Toto Wolff and the billionaire petrochemical tycoon Sir Jim Ratcliffe.
The team is equally owned by Mercedes-Benz AG, Wolff and a subsidiary of Ratcliffe’s Ineos.
As winners of the 2021 Constructors’ Championship, it is understood that prize money of about £71m is carried over into 2022’s financial report.
Mercedes also increased its average monthly workforce to 1,114 employees but was able to decrease wages by £14m annually to £82.1m last year.
Mercedes’ Group Strategic Report also noted the team’s target to recruit 25% of new starters from under-represented backgrounds, and even exceeded expectations with its Accelerate 25 initiative. 32% of new-starters are now from under-represented backgrounds while female employees rose from 14 to 16%.
Naturally, Mercedes’ cost of operations increased from £297m to £351m, reflecting increased expenditure on car development in preparation for the new era of F1 machinery, more fly-away races and inflation.
In 2022, the team also acquired ownership of the Brackley site it has occupied since 1999 with promises of upgrades to facilities by 2025.
Wolff commented that the purchase “will give a more secure, robust and autonomous business model for the future, and enable significant investment into cutting-edge, net-zero-carbon facilities as the campus is developed.”
After-tax, profits reached £89.7m, up from £68.8m in 2021, signifying how a successful team can survive in the cost-cap era of the sport.
Much like many other teams, Mercedes’ Applied Science division was set up to redeploy talent and offer services to clients.
The company is now “working with several key clients on exciting projects”, including a partnership with Ineos Britannia for the America’s Cup.
The growth of the bespoke division was described as a “positive step in the redeployment of resources enabled by the introduction of the financial regulations.”
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