04/09/2015
NEWS STORY
Williams Grand Prix Holdings PLC today announced its interim results for the six months to 30 June 2015. WGPH is the holding company of the Williams Group of companies, which includes Williams Grand Prix Engineering Limited.
Overall Group revenue for the period was £63.2m (2014: £44.1m), with EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of (£1.4m) (2014: (£19.6m)). The Group's operating free cash flow saw a strong increase compared to 2014 of £7.0m (2014: (£18.7m)).
The Formula One division has reported revenues of £51.8m (2014: £34.6m), with an EBITDA of (£2.5m) (2014: (£19.8m)). Williams Advanced Engineering, the division that commercialises Formula One derived technology and know-how, generated revenues of £10.9m (2014: £7.8m) with an EBITDA of £1.0m (2014: £0.8m).
"Our first half results represent a significant improvement over the same period in 2014," said Group Chief Executive Officer, Mike O'Driscoll, "with strong revenue growth and positive cash flow. We made a small EBITDA loss through the first half of the year, which was in line with our expectations.
"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 excellent progress against those objectives, with a third place finish in the Formula One Constructors Championship, and an expansion of our Advanced Engineering division. This progress has been sustained into 2015.
"The improved performance of our Formula One team on the track is now reflected in both higher commercial rights income and increased sponsorship revenue, bolstering our financial results. We will prioritise technological innovation, but simultaneously continue to balance our investment, with strong controls, during a time of rising costs for all Constructors.
"Williams Advanced Engineering has demonstrated continued progress, with revenue and EBITDA increasing, albeit modestly. We anticipate that this trend will continue, while we build up our capabilities in new sectors, primarily aerospace and defence. The announcement of a recent multi-year contract with global defence contractor General Dynamics is evidence of the progress we are making in this division.
"Overall, these interim results are encouraging, and represent very good progress. However, we face continued cost pressures due to the spending levels of our major Formula One competitors, and this challenging environment will undoubtedly continue in the near term. We remain determined to build the necessary foundations for future sporting and commercial success, both on and off the track."