Williams Reports 2015 Annual Results; Significant Improvements in Revenue and EBITDA
Williams Grand Prix Holdings PLC (WGPH, Ticker: WGF1) today announced the Group’s financial results for the year ended 31 December 2015. WGPH is the holding company of the Williams group of companies, which includes Williams Grand Prix Engineering Limited.
Group revenue increased from £90.2m in 2014 to £125.6m last year. EBITDA improved from a loss of £37.0m in 2014 to a loss of £3.3m in 2015. The Group generated operating free cash flow of £2.7m for the full year. The increase in revenue is primarily due to increased commercial rights and sponsorship income following a significant improvement in on-track performance during the 2014 Formula One season.
The Formula One business generated revenues of £101.5m (2014: £70.2m), with an EBITDA of £0.2m (2014: loss of £31.5m). Williams Advanced Engineering generated revenues of £21.3m (2014: £17.8m) with an EBITDA of £2.1m (2014: £1.5m).
Mike O’Driscoll, Group Chief Executive Officer, said; “Our 2015 financial results represent a major improvement, with strong revenue growth and positive cash flow. Over the past two years we have completely restructured our business, and our results reflect significant progress, both operationally and financially. We were able to continue our resurgence on the track, and balance revenue and expenditure, despite enormous levels of competitive spending in what is sport’s most challenging financial environment. Williams Advanced Engineering continues to make excellent progress and contributes to our overall results.
“Our Formula One team achieved third place in the Constructors’ Championship for the second successive season in 2015, illustrating the clear step change we have made in our racing competitiveness since we began our restructuring. Commercial rights income is paid a year in arrears, and these accounts reflect our much improved third place in the 2014 Constructors’ Championship. Our improved performance on the race track has also enhanced our power in the sponsorship market, with major brands such as Unilever, Avanade, BT and Hackett joining the WILLIAMS MARTINI RACING team during the period. We have also seen a number of our partners increase their commitments to the team, which demonstrates the continued strength of our brand.
“Williams Advanced Engineering continued to build and strengthen its customer base in 2015, and also began to diversify into new market sectors, notably aerospace and defence. Its project portfolio has expanded significantly over the past twelve months, and there has also been an encouraging trend towards longer term contracts, enabling more robust planning. Williams Advanced Engineering has a solid platform for continued growth and we are encouraged by the progress of this exciting business.
“These financial results show that we are continuing to build a solid foundation for future sporting and commercial success.”