Force India made an operating loss in 2015 but the losses fell by S12.1 compared to 2014. In 2014 the team made a loss of $21.9m which fell to $9.8m in 2015.
The figures were boosted as the teams income rose from $86.4m to $92.7m last year. This is mainly thanks to the sponsorship brought by Sergio Perez and payments from FOM which have risen as the team has finished higher in the championship.
Last year’s fifth place in the constructor’s championship financial impact will be released in the 2016 results. The accounts noted that the team has going concern and that it “is still reliant on the continued support of its parent company Orange India Holdings Sarl and its shareholders”.
“management are confident that Orange India Holdings Sarl will continue to provide the company with sufficient funds to enable the company to meet its liabilities as they fall due for a period of 12 months from the date of signature of these financial statements [March 3].”
The team managed to pay of $5.6m loan to the Swiss bank Edmond de Rothschild and a $681,240 loan to Mexico’s America Movil was due to be repaid in April.
The results show how difficult it is for a small independent team to operate and how expensive it is to run a team in Formula One. They do appear to have good income but they could face problems if Vijay Mallya is detained as he still has the arrest warrant over him because of the $1.4 billion debt owed by his defunct Kingfisher Airlines. Which could turn investors off investing in the team.
It’s also revealed that average staffing levels rose from 376 in 2014 to 382 last season. Speaking to Motorsport.com Deputy team principal Bob Fernley says that the figures also reflect the fact that significant funds have been spent on building up the team over recent seasons.
“What we’ve been doing as a team is investing quite heavily in the technical capabilities of the team over the last seven years,” he told Motorsport.com.
“You’ve got to remember there was probably 10 years of under investment in the team when Vijay bought it.
“While we will never stop investing, that investment is slowing down a little now, and we can progress on balancing our programmes in order that we can stay competitive while doing it with a balanced budget.