Pastor Maldonado, Williams, Istanbul, 2011

Resource Restriction Agreement helps Williams increase earnings

2011 F1 seasonPosted on | Author Keith Collantine

Pastor Maldonado, Williams, Istanbul, 2011
Pastor Maldonado, Williams, Istanbul, 2011

Williams reported a 25% increase in earnings in their 2010 annual results, released today.

The team said the Resource Restriction Agreement introduced in 2009 caused a “substantial” reduction in costs.

Head of finance Louise Evans said: “During 2009 we entered into a number of new rules and new agreements which affected the cost base of the sport.

“We limited the number of engines which, together with the move from Toyota to Cosworth, dropped our cost base around engines.

“We also entered into the Resource Restriction Agreement during 2009, which has limited the cost drivers of the sport.

“The main things it has limited are external expenditure on F1 chassis activity, our headcount, on-track testing, wind tunnel usage, CFD usage and so on.

“This can be seen as a substantial drop in our overall cost base. We expect this to go forward into 2011 as well.”

Williams reported a 25% increase in earnings before interest, tax, depreciation and amortisation (EBITDA) to ?Ú?˙12m.

However the savings made under the Resource Restriction Agreement will be reduced by the reintroduction of KERS in 2011.

The team also confirmed details of the advance on 2011 earnings it received last year.

Evans said: “We are holding ?Ú?˙27.2m of cash at balance sheet date. This includes around ?Ú?˙28.6m of revenue receive in respect of 2011 that was received during 2010. This is obviously reflected in deferred revenue under current liabilities.”

Williams also received an advance in 2009.

Frank Williams said: ?ˇďÚ╝?˘Commercially, 2010 has given Williams a solid foundation from which to grow.

“Amidst one of the harshest sponsorship environments for a long time, we signed Petroleos de Venezuela S.A. (PDVSA) and upgraded and extended existing partners, Randstad and Oris.

“This year has seen us build on that with our joint venture with Jaguar Land Rover and we are looking forward to further developments with our new businesses, Williams Hybrid Power and Williams Technology Centre Qatar.”

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