26/12/2017
NEWS STORY
The good news is that in 2016, according to the most recent accounts filed, as of 31 December 2016, Mercedes saw its revenue increase by 35.7% to £289.4m, the Brackley-based outfit benefitting from its 2015 prize money.
However, due to the regulation changes for 2017, the bulk of which were reflected in the 2016 accounts when the car was being designed and built, costs increased by 10.7% to £274.9m.
Meanwhile, the Brixworth-based engine division, which not only provides the title winning engines for the works team, but also the power units for Force India and Williams, recorded a net profit of £1.5m, despite a tax bill of around £11.4m.
All of which means that in total, after the F1 team paid its own £15.9m tax bill, its net loss, when combined with the £1.5m profit recorded by the engine division, meant an overall loss of £2.3m.
According to the accounts, "the company now employs 571 staff members and contributes over 88pc of its total expenditure within the United Kingdom", what with staff costs accounting for £42.6m and R&D a further £73.5m, not to mention the estimated 1,500 UK-based suppliers to the German team, including equipment and component manufacturers.
With an eye on that £2.3m loss however, despite the fact the team has gone on to with both titles once again this season, the fact that the proposed engine rules for 2021 mean the company will need to concurrently run two engine programmes goes some way to explaining why the German manufacturer is against the proposal.