Mercedes Formula 1 team believes it is on course to break even

Figures revealed in the financial accounts up to the end-of-2015 of Mercedes-Benz Grand Prix Ltd, the company name of the Mercedes F1 team, showed an increase in turnover of £66.3million and a reduced post-tax loss of £22.3m.

It represented a significant improvement on the previous year's accounts, in which the outfit reported a post-tax loss of £76.1m.

It is believed Mercedes has grown turnover by 86% since 2011, a year after it returned to F1, which bucks the market trend in a difficult sponsorship climate.

Mercedes is in-line for an annual bonus from F1's commercial rights holder from 2016 onwards after meeting its agreed target of two world championships in '14 and '15.

Motorsport boss Toto Wolff says the key to the outfit's success has been owner Daimler's understanding of F1 as a business and how it takes time to make it work.

"In any business, you need a clear-sighted analysis of what makes you successful," said Wolff.

"In Formula 1, there are a number of key factors: the drivers, the chassis, the power unit, the right technology, the necessary budget and the best people.

"You need to make the right decisions in these areas and make sure they are all aligned.

"But there is one factor that money cannot buy: time. Our key stakeholders have given us the time for the building blocks to come together and gel. That has been a vital factor in our success."

"We are in a very fortunate position because our key stakeholders understand our business.

"They know that if you try and run an F1 team like a corporate multi-national, it doesn't go.

"You need to be independent, agile and capable of taking quick decisions. The board of Daimler, led by Dieter Zetsche, understood that."

Wolff conceded the challenge of 2017, when new aerodynamic rules will be introduced, threatens Mercedes' run of success but insists it is well-placed to react accordingly.

"No team is static - an organisation is something dynamic and you need to adapt to your competitive environment," he said.

"You need to know what makes you successful and then be agile to tackle challenges from your competitors or a new regulatory environment.

"We will face that challenge for 2017: under new rules, we need to find a way to begin a new cycle of success.

"There are new objectives to be achieved and new challenges to be faced."