Performance in 2017 was one of progress at the core accompanied by a sharp reduction in net debt, aided by significant property sales proceeds. Progress is apparent in Williams Advanced Engineering (WAE) but the Formula One (F1) racing team remains the heart of the business. Performance on the track is a key determinant of group financial returns, but the changes to produce a more equal distribution of commercial rights are only likely in the medium term. Until then, progress will probably remain volatile, especially as competition on the track has intensified.
FY17 delivered good core progress
Williams Grand Prix Holdings (BE:WGF1G) delivered a robust 2017 at its core. However, EBITDA fell 30% to £10.8m on a flat sales performance due to the non-recurrence of a highly profitable one-off project that added £14m to other revenues in 2016. A property disposal delivered a £7.3m exceptional profit that boosted profit before tax and reduced net debt to £17.5m at the year end. Maintaining fifth place in the 2017 F1 Constructors’ Championship was an important achievement, although points became harder to win as competitors improved during the year. Nevertheless, both the F1 operations and WAE grew revenues by over 7% with strong EBITDA increases.
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