Williams may be struggling on the track but the team has reported an improved financial performance in its half-yearly results.
Turnover and earnings per share of Williams Grand Prix Holdings are up compared with the same period in 2010. The team says that “full year results are expected to show revenue growth of around 12% to 20% over 2010 as a result of new business development and activity in Williams Hybrid Power. Overall profit before tax is expected to be in line with 2010 despite investment in Williams Hybrid Power and Williams Technology Centre, Qatar.”
“The first half of 2011 shows momentum in our diversified growth, building on the foundations we laid in 2010,” said Frank Williams. “We have upgraded and extended existing partners Randstad and Oris, and added Interbrand as a new partner. Our new partnership with Jaguar Land Rover was followed by an exciting alliance announced with Renault, which will further strengthen our medium term performance both on and off the track.”
Chairman Adam Parr added: “We are pleased to report interim results that demonstrate further progress of our Group strategy. Our core business has performed in line with expectations, with greater costs incurred in the first half. We have made several senior new appointments in engineering and aerodynamics, bolstering both our team devoted to improving track-side performance, and supporting our Jaguar Land Rover partnership.
“The June 2011 results benefit from full period ownership of Williams Hybrid Power, which has reported its first significant revenues, where we are ramping up commercial flywheel production following success with motorsport OEMs. We have also accelerated the development of Williams Technology Centre Qatar, where efforts to secure our first customer are progressing.”
Former Jaguar boss Mike O’Driscoll and banker Edward Charlton have joined as non-executive directors.
For the record, the numbers as reported by Williams are as follows:
• Turnover up 5% to £47.3 million (1H10: £45m)
• Core EBITDA up 21% to £4.7 million (1H10: £3.9m)
• Core profit before tax up to £2.9 million (1H10: £1.5m) due to increased revenue and reduced financing costs
• Reported profit before tax up 37% to £1.7m (1H10: £1.3m), after investment of £1.1 million in Williams Hybrid Power and Williams Technology Centre Qatar
• Earnings per share up 49% to 19.31p (1H10: 12.98p)
• Net cash significantly increased to £11.6 million (1H10: net debt of £0.5m)
• Interest expense down 69% to £83k, due to late-2010 debt reduction, supported by strong cash flows
• No tax charge for the period. Estimated carry-forward losses for taxation purposes of approximately £90 million
In addition the team reports the following developments:
• Partnership announced with Jaguar Land Rover to jointly develop the C-X75 supercar
• Historic Renault partnership renewed through an alliance to supply its championship-winning F1 engines for the 2012 and 2013 seasons
• WHP’s development of commercial flywheel production continues apace, following its success in the Porsche 911 GT3 R Hybrid
• Additional non-executive directors appointed to the Board