Date published: September 11 2019
Despite an increase in revenue last season Renault have announced a £7.4m loss for their F1 team in 2018.
Turnover rose from £136.3m in 2017 to £146.6m last year, boosted by their rise from P9 in the Constructors’ Championship in 2016 to P6 in 2017. This created a financial benefit for the following 2018 season and bumped up sponsorship income.
A small profit of £1.1m was recorded for 2017, but despite the increasing income a £7.4m loss has now been recorded for 2018.
As quoted by Motorsport.com, Renault claim that the weak pound was one of two main causes, saying that “despite the continued growth in turnover, financial results have deteriorated for the first time in three years, primarily driven by two factors.
“Expected turnover was negatively impacted by the strength of the British pound versus the Euro and the US dollar. Almost all turnover is denominated in Euro and US dollar, whilst the majority of costs are sterling denominated.”
The battle to finish P4 in the 2018 Constructors’ Championship, which Renault achieved, also meant “extra resources were added to in-season car development”.
The average number of employees increased from 606 in 2017 to 676 in 2018, creating an increase of over £9.4m in annual staff costs.
£10.6m of fixed assets were also added following upgrades to the Enstone factory infrastructure – £34.6m had already been invested for this purpose by Renault in 2016-’17.
The spending isn’t done yet as Renault noted that “whilst the major investment required initially is now complete there are major projects in the pipeline for 2019, and beyond, to achieve Renault’s long-term aim of winning the constructors’ championship.”
One issue it seems we cannot escape is Brexit, and over at Renault it’s no different as “the company continues to monitor Brexit developments and to put plans in place for different scenarios, including whether the impact can be mitigated by utilising the operations the group has in the European Union.”