The Williams group of companies have reported lower revenue for the first half of 2019 compared to 2018, in statements released on Tuesday.
The Williams group of companies, known as Williams Grand Prix Holdings PLC, have revealed their interim results for the first half of 2019. This is the holding company for the Williams Advanced Engineering and Williams Grand Prix Engineering companies (WGPE being the Formula 1 team).
Group revenue has dropped to £77.8 million for this six month period, down from £82.6 for the same period in 2018.
Of concern for the group is the fact that the Formula 1 operation lost quite a bit of money. The documents state that earnings before interest, tax, depreciation and amortisation (EBITDA) losses widened to £18.8 million, a vast increase of a loss of £2.7 million in 2018. Revenue generation dropped to £46.3 million from £60.7 million, meaning a loss of £16.8 million compared to last year.
The Williams Advanced Engineering company, suppliers of engineering solutions to third parties like batteries in Formula E, increased their revenue to assuage some of those losses. Their revenue was £30.9 million compared to £21.5 million in 2018 with an EBITDA of £2.5m (2018: £2.2m).
“Our financial results reflect a challenging half year for our Formula One operations, yet also demonstrated continued growth in the Williams Advanced Engineering business” said Mike O’Driscoll, Group Chief Executive Officer.
“The Formula One financial results primarily reflect our finishing position in last year’s Constructors’ Championship and the consequent reduction in prize money (which is paid a year in arrears). There was also an overall reduction in partnership income compared to the first half of 2018, although we secured major new partnerships with ROKiT and Orlen.”
“Although we are enduring another tough season on track, we have seen some recent signs of improvement, and we continue to attract interest from potential partners as one of the longest standing Formula One teams. This is best demonstrated by the recent two-year extension to our title partnership deal with ROKiT who will now continue with us until at least 2023. Negotiations with Formula One management and Liberty Media regarding the future of the sport from 2021 have been productive and we believe, when finalised, will represent a much-needed opportunity for Williams to benefit from a more level financial playing field, as well as new technical regulations.”
“Williams Advanced Engineering continues to grow and attract new customers, following a robust performance in 2018. The significant growth in revenue during the first half of 2019 was generated across a diverse range of projects, reflecting an excellent reputation for outstanding programme delivery. The modest growth in EBITDA through the first half of the year is largely a function of timing. The focus remains on providing energy-efficient and technically advanced performance solutions in sectors as diverse as motorsport, aerospace, defence and healthcare.”
“Although we continue to face challenges in a very dynamic environment, we currently believe the majority of the impact on EBITDA for the full year has already been captured in these interim results. We continue to believe we are well placed to respond to the challenges ahead, with world class facilities and a strong and talented organisation.”