Williams has reported a substantial loss following the release of its 2014 financial results. The group, which includes the Formula 1 team and its engineering business, made a loss of £34.4 million ($52m).
The results are disappointing for the business, considering it made a loss of just £11.9m ($18m) in 2013.
However the drop in revenue from £130.4m ($197m) to £90.2m ($136.3m) can be explained by the loss of “a one-off sponsorship payment” which likely relates to Pastor Maldonado’s PDVSA deal, which the team received in 2013 before he switched to Lotus.
The loss can also be attributed to Williams poor results in 2013 before an upsurge in performance last year, which led to them finishing third in the championship. With F1 prize money paid a year in arrears, they will receive a substantial payout at the end of the current season.
Therefore Williams group chief executive officer Mike O’Driscoll remains upbeat about the future of the team and the group as a whole.
“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,” he said.
“Mid-way through 2013 we set out on an ambitious turnaround strategy to reinvigorate the Formula One 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 One 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.
“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,” he added.
“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.”
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