Williams has reported a rise in profits in the first six months of 2011.
Williams floated on the Frankfurt stock exchange at the beginning of 2011. In its interim results for the first half of the year, Williams claimed an increase in profit before tax of 37% to £1.7m.
During that time Williams confirmed an F1 engine supply deal with Renault for 2012 and 2013 and announced a partnership with Jaguar Land Rover to develop a supercar.
Williams reported a 5% increase in turnover to £47.3m and expects revenue growth of 12-20% over the full year.
Frank Williams said: “The first half of 2011 shows momentum in our diversified growth, building on the foundations we laid in 2010.
“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.”
Two new non-executive directors have joined the Williams board: Mike O’Driscoll, former managing director of Jaguar Cars, and Edward Charlton, a senior advisor at Citibank International.
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Image © Williams/LAT
Prisoner Monkeys (@prisoner-monkeys)
7th September 2011, 8:44
So they score just five points in twelve races – perhaps their worst season in history – and they post profits in the first six months? Has Sir Frank worked out how to divide by zero? I can’t work out any other explanation for the team’s ability to fail upwards.
Widowfactory
7th September 2011, 9:05
Williams has a lot more going on than just F1 racing. It manufactures F2 cars, rents out it’s windtunnels, does consultancy for all kinds of other companies, etc, etc.
Personally i’m just glad they are making a profit, it would be a great shame if they had to leave F1.
Prisoner Monkeys (@prisoner-monkeys)
7th September 2011, 9:11
Given their abysmal season so far, maybe that’s what they should be concentrating on right now …
Keith Collantine (@keithcollantine)
7th September 2011, 9:15
Indeed. The press releases describes them as “one of the most vertically-integrated of Formula 1 teams” which is a phrase so horrible I just had to share it with you.
Prisoner Monkeys (@prisoner-monkeys)
7th September 2011, 9:32
Reminds me of something Alec Baldwin might say on 30 Rock. In fact, I’m pretty sure there was an entire episode about vertical integration.
ScuderiaVincero (@scuderiavincero)
7th September 2011, 12:34
Reminds me of Miami Vice, to be honest. The 2006 film, not the series. :)
Not so related question, is the Formula 1 car considered the product of a team? Here I am studying management and I keep relating stuff I see to F1.
bosyber
7th September 2011, 13:09
That article from the round-up a couple of days ago about how desperate Williams must be, and how much their stock lost still claimed their biggest source of income was prize money. (I don’t recall from where it came).
Guess that article wasn’t only one sided, but also plain wrong. Surely Williams doesn’t yet have any prize money, and they look to get less this year than last (or maybe we’ll see that reflected in the end of year results?).
Well, it seems to mean they maybe finally are getting good results from looking for other revenue streams (maybe the hybrid technology deal with Porch too?). Perhaps there is a future for them then. Sad it has to come with buzz word heavy press releases, but that’s reality at the moment.
Alex W
8th September 2011, 0:56
They get prize money for former WCC as well as points wins.
@HoHum (@hohum)
8th September 2011, 17:05
“Vertically integrated” and in tune with gravity.
BasCB (@bascb)
7th September 2011, 21:33
Giving they had a minimal positive result last year, its not a supprise it went up by a large percentage. But 1.7 million is still pretty meagre on a 100 million+ budget.
@HoHum (@hohum)
8th September 2011, 17:08
I reckon another pay-driver could give them a huge increase in profits, percentage-wise.
vjanik
7th September 2011, 10:14
wow. that sounds like a corporate memo. From Williams!
how low will they sink?
I am a fan of the privateer teams. Those that have nothing else than F1. Thier existance is F1. Williams used to be one of them. But now they are turning into the Toyotas, Hondas, BMWs. teams that are a company first (maximizing earnings per share) and an F1 team second (winning). When things get tough these are the first to quit the sport, as it is just another line in the profit&loss account.
The above announcement is not something Frank Williams would say, especially the dismal results this year. Shouldnt they be using the profits to invest in their team and car? Instead of paying out dividends?
It feels like the passion has left Williams. Big shame.
vjanik
7th September 2011, 10:17
ok scrath that.
Frank Williams said: “The first half of 2011 shows momentum in our diversified growth, building on the foundations we laid in 2010.
its worse than i thought then
Klon (@)
8th September 2011, 1:44
Passion is a unaffordable indulgence these days. And I rather have a passionless Williams than no Williams at all.
wasiF1 (@wasif1)
7th September 2011, 10:26
Good to see that they are making profit but I also hope that they bring in some performance.
Dutch_Alex
7th September 2011, 10:33
Shame that money != performance. I really hope they can turn their fortunes around next year (in the racing department that is, good that they’re at least making a profit).
OzF
7th September 2011, 10:35
They will be back with Renault engines as of next year. This will no doubt provide a huge boost for the team in horsepower stakes.
lachy
7th September 2011, 12:35
didnt really seem to help lotus this year
Electrolite
7th September 2011, 10:51
They’re making profit?
Valentino
7th September 2011, 11:29
Going public pays out, but frank Williams won’t make all the money, but split it with the rest of the shareholders.
DC (@dc)
7th September 2011, 13:30
Going public on a stock exchange is, historically, the kiss of death for professional racing. Does anyone remember when Champ Cars / CART were on the NYSE with the memorable ticker “MPH”? After that they declared bankruptcy. Twice.
I really hope Williams can make it work. I’ve always liked that team, but I thought it was a bad omen when I heard they were going to list.
N008
7th September 2011, 16:44
A fast driver who brings sponsors…what else would a team want!?
N008
7th September 2011, 16:45
sorry wrong page
David-A (@david-a)
7th September 2011, 19:41
We know. Williams don’t have fast drivers.
@HoHum (@hohum)
8th September 2011, 17:11
No, right page.
AndrewTanner (@andrewtanner)
7th September 2011, 22:28
Good news! I wouldn’t expect them to fair up too badly but things certainly sound better than I thought.
Really hope they get their act together next year.
Toby Bushby
8th September 2011, 4:22
Though this is spun a bit, it’s no different to Ferrari movies for Shell, McLaren for Vodafone or Santander, or even the Renault and Red Bull roadshows. It’s a big-up for investors of one kind or another.
I don’t know where the “passionless” part comes into it. Probably from ignorance. McLaren have “diversified”. Sometimes it seems that Ron Dennis invented words like that. Does McLaren lack passion? Does the energy drinks team lack passion? What about it’s little sister? And Ferrari – well, they sell cars – they sell a brand – they even sometimes sell themselves and buy it back again. What’s the difference?
Williams spreading themselves around business-wise is a sound investment that puts money in the bank, gets them in touch with invaluable partners, both technically and financially, and in my opinion, this can only help them on the track.
Once they shore up the business side of the team, they can concentrate on fixing the real problem with the team – staffing. Who designs, builds, checks and upgrades the car – and who oversees all that. If they fix this, the rest will take care of itself.
Argent
8th September 2011, 5:53
Right now the only numbers that the Williams team should care about are the ones being spit out by their CFD computers and how they correlate to the real world results with the car on the track. Luckily Frank Williams still has controlling interest of the team, or who knows what might happen in the endless hunt for the buck.