Has Formula 1 hit the headlines for the right reasons? Losses at Williams were recently announced at £21.4m for 2007 compared to a deficit of £27.7m the previous year. Williams are the only team in the sport not to be owned either wholly or in part by a car manufacturer or billionaire. The 2007 and 2006 figures compare against a registered profit of £36m in 2005.
Williams chief executive Adam Parr told Reuters the 2005 and 2006 figures needed to be taken together to show a more normal break-even over the period.
The team co-owned by founders Frank Williams and Patrick Head, also increased bank debt.
The decision to increase net debt to support a return to competitive on-track performance was driven by a strong long-term business plan.
Parr said 2007 had been tough but 2008, despite turmoil in global financial markets, would see a reduction in debt. Our debt is coming off its peak and we are paying it off. The debt facility is perfectly secure and has been for 18 months so we are not in the position of having to negotiate a new loan. No one would want to be doing that right now.
