Williams F1 team explains £20million losses so far in 2014

The Grove-based outfit announced its interim financial results on Friday, with losses of £20.7million for the F1 team and £18.8million for the entire group over the first six months of 2014.

But although the figures appear dramatic, Williams CEO Mike O'Driscoll said ahead of the Italian Grand Prix that the short-term pain of such figures was expected after the team elected to ramp up investment to turn around its poor F1 form.

"We had a couple of options at the end of last year, which was save our way in to success - which I think was eventually death - and painful," he said.

"The other was spend, but spend sensibly."

An increase of around £8 million in engine costs compared to what it paid for last year's Renault, plus the loss of Pastor Maldonado's PDVSA sponsorship revenue for this year after a settlement was completed in 2013, has left the team with increased costs and declining revenues.

However, hopes of fresh sponsorship on the back of its current form plus a potential £14million in increased F1 commercial rights revenue for finishing in the top four of the constructors' championship, offers big hope that Williams's financial situation will turn around.

O'Driscoll added: "When we decided as a board last year to press the reset button, we knew there was an investment cost associated with that.

"We made the decision, after a decade of decline until 2013, that enough was enough.

"And I think the results of our investment in people, in technology and marketing are now being vindicated.

"We are starting to see the results on the track, and the best calling card our engineering facility can have is a successful F1 organisation."