LONDON -- Williams Grand Prix Holdings (OTC: WPRXF) today announced its interim results for the six months ended June 30, with turnover of 74.3 million pounds, an increase of 57% on the previous year. Net profit increased to 6.6 million pounds from 1.9 million pounds, and earnings per share advanced to 68.55 pence from 19.31 pence in 2011. The core business drove the results, with a turnover of 73 million pounds and net profit of 8.5 million pounds.
The company includes Williams Grand Prix Engineering Limited and Williams Hybrid Power Limited. The wider group's revenues are derived from its Formula One business -- including commercial sponsorships and the team's share of the Formula One commercial rights income -- and from the commercial application of its technology.
The efforts to becoming a championship-winning Formula One team may not be firing on all cylinders just now, although good progress has been made to become much more competitive this season. The aim of generating steady returns for shareholders, however, does seem to be an achievable one.
The impressive increases in half-year turnover and profit are largely because of Williams' diversification strategy, as well as the recent receipt of a one-off payment following a new Formula One commercial agreement. Full-year results are expected to show the continued stability of the business, with double-digit growth expected in turnover and net profit.
Founder and Team Principal Sir Frank Williams said:
Williams is at a very exciting stage in its history and these promising results are indicative of this. We have made good progress on track this year, thanks in part to a new technical team, which has seen us pick up our first win in eight years. Our diversification strategy is also gaining momentum, positioning us as a leader in the development of cutting edge technology in areas such as sustainability and safety.
No mention was made of the potential risks of having Pastor Maldonado in the driver line-up.
The shares of Williams have rallied from a low of 12 euros to 23 euros since August last year, suggesting the fast-paced world of Formula One can provide fast-paced investment gains to ordinary shareholders.
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