Lotus F1 team claims it will post reduced losses this year

The Lotus Formula 1 team claims it will post dramatically reduced losses when its accounts are published in the coming weeks

Lotus F1 team claims it will post reduced losses this year

According to accounts lodged by Lotus F1 at Companies House, the team made losses of £64.9 million during 2013 and £55.3 million in 2012.

But substantial cuts in expenditure, driven by new CEO Matthew Carter, have reduced the losses over the first six months of this year to "about six million".

Carter says that figures prepared internally indicate a loss of £823,000 prior to depreciation, interest and exceptional costs being taken into account.

These additions include payments of around £1.6 million for staff redundancies at the start of the year, taking the overall figure to the region of six million.

"It's obviously a step in the right direction in terms of where we are in terms of being a financially sustainable business," Carter told AUTOSPORT.

"The reason I was brought in was to look at things from a business point of view as opposed to an F1 and a sport point of view as we needed to re-evaluate income versus expenditure.

"We are not short of sponsors by any stretch of the imagination, so it wasn't as tricky a job [as might be expected], but in F1 things sometimes get a little bit out of hand and people are always chasing the extra seconds."

CUTS NOT TO BLAME FOR POOR SEASON

Lotus lies eighth in the constructors' championship and has scored only eight points, with little chance of improving on that position.

But Carter does not believe that the cuts required to get the team onto more stable financial footing have harmed its long-term competitiveness.

"We are still 470 people in Enstone, so we are still a substantial size," said Carter.

"On track, it's easy to blame Renault for everything, which is not the case, but obviously we were at a massive disadvantage at the start of the season.

"Being brutally honest, we have not been as good in terms of our aerodynamic development during the season as we should have been.

"Ultimately, we started off behind and never really caught up."

Finishing four places lower in the constructors' championship will have financial implications for the team's FOM money in 2015.

But Carter is confident that the team can make up for the shortfall in other areas.

"We got our sponsors on side and our sponsors are committed long-term," he said.

"We have managed, in terms of our budget and the way that we have accounted for things to plug the gap of the FOM money we're not going to get.

"Assuming performance is better next year, which I fully believe it will be, we should be OK going forward."

shares
comments
Ferrari F1 boss Mattiacci says Monza exposed team deficit
Previous article

Ferrari F1 boss Mattiacci says Monza exposed team deficit

Next article

Analysis: Sochi hosts first race meeting ahead of F1 grand prix

Analysis: Sochi hosts first race meeting ahead of F1 grand prix
Load comments
The Schumacher trait that will give Haas hope in F1 2022 Plus

The Schumacher trait that will give Haas hope in F1 2022

Mick Schumacher’s knack of improving during his second season in a championship was a trademark of his junior formula career, so his progress during his rookie Formula 1 campaign with Haas was encouraging. His target now will be to turn that improvement into results as the team hopes to reap the rewards of sacrificing development in 2021

The “glorified taxi” driver central to F1’s continued safety push Plus

The “glorified taxi” driver central to F1’s continued safety push

As the driver of Formula 1’s medical car, Alan van der Merwe’s job is to wait – and hope his skills aren’t needed. JAMES NEWBOLD hears from F1’s lesser-known stalwarts

Formula 1
Jan 15, 2022
When BMW added F1 'rocket fuel' to ignite Brabham's 1983 title push Plus

When BMW added F1 'rocket fuel' to ignite Brabham's 1983 title push

There was an ace up the sleeve during the 1983 F1 title-winning season of Nelson Piquet and Brabham. It made a frontrunning car invincible for the last three races to see off Renault's Alain Prost and secure the combination's second world title in three years

Formula 1
Jan 13, 2022
How “abysmal” reliability blunted Brabham’s first winner Plus

How “abysmal” reliability blunted Brabham’s first winner

Brabham’s first world championship race-winning car was held back by unreliable Climax engines – or so its creators believed, as STUART CODLING explains

Formula 1
Jan 10, 2022
The steps Norris took to reach a new level in F1 2021 Plus

The steps Norris took to reach a new level in F1 2021

Lando Norris came of age as a grand prix driver in 2021. McLaren’s young ace is no longer an apprentice or a quietly capable number two – he’s proved himself a potential winner in the top flight and, as STUART CODLING finds out, he’s ready to stake his claim to greatness…

Formula 1
Jan 9, 2022
The original F1 maestro who set the bar for Schumacher and Hamilton Plus

The original F1 maestro who set the bar for Schumacher and Hamilton

Juan Manuel Fangio, peerless on track and charming off it, established the gold standard of grand prix greatness. NIGEL ROEBUCK recalls a remarkable champion

Formula 1
Jan 8, 2022
How Russell sees his place in the Mercedes-Hamilton F1 superteam Plus

How Russell sees his place in the Mercedes-Hamilton F1 superteam

George Russell joining Lewis Hamilton at Mercedes this year gives it arguably the best line-up in Formula 1 – if it can avoid too many fireworks. After serving his apprenticeship at Williams, Russell is the man that Mercedes team believes can lead it in the post-Hamilton era, but how will he fare against the seven-time champion? Autosport heard from the man himself

Formula 1
Jan 6, 2022
How F1 pulled off its second pandemic season and its 2022 implications Plus

How F1 pulled off its second pandemic season and its 2022 implications

OPINION: The Formula 1 season just gone was the second to be completed under the dreaded shadow of the COVID-19 pandemic, but in many ways it was much more ‘normal’ than 2020. Here’s the story of how the championship’s various organisers delivered a second challenging campaign, which offers a glimpse at what may be different next time around

Formula 1
Jan 5, 2022