The Force India Formula One team have reported a £6.8M loss in their 2015 submission of accounts to Companies House. Whilst on the face of the loss appears significant the situation is a significant improvement compared to the teams position in 2014 in which a loss of £15.4M was reported.
It should be noted that Formula One Management (FOM) prize funds are paid out based on Constructors Championship performance in the previous year, as such with Force India finishing a best ever 5th in the 2015 Constructors Championship they can expect a far healthy balance sheet in the 2016 submission of accounts.
The team took the opportunity of their accounts submission to emphasis a dependency on FOM revenue and sponsorship, a business model teams such as Williams and Mclaren have sought to move away from in recent years through creating B2B partnerships and developing new applications for technology advances first seen in Formula One.
Team headcount has increased from 376 to 382 from 2014 -2015 with the growth being seen in both the production and design team.
Force India have highlighted the importance the development and retention of partners such as Hype, Quakerstate, Skull Candy, and Interprotection, and go on to provide details of a loan issued to the team from sponsor America Movil of £470K, which was presumably required following a request to FOM for early release of prize funds. Accounts confirm the United Breweries provided £2.4 in sponsorship revenue to the team in 2015.
The report also confirms that payments of £1,9M were made to key management personnel through the year. The report does not and would not be expected to make any comment around any change in shareholding for the team.
The complete report can be seen here through the team’s annual submission of accounts to Companies House.