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Formula E, the electrically powered racing series, revealed its pre-tax loss widened by 26.7 percent to £ 22.6 million last year, a combined loss of £ 142.2 million of books since his first race in 2014.
Formula E Operations is based in London and its main shareholder is Liberty Global, owner of Virgin Media, with a 23.9% stake. The series includes cars that are powered by a 250 kW engine, which gives them a top speed of 280 km / h. They are 25% slower than Formula 1 cars but, unlike their older brothers and sisters, they produce little noise and no emissions.
Builders use it to show their ecological values and this has drawn Audi, BMW, Jaguar and Nissan, with the arrival of Porsche and Mercedes later this year.
Far from the track, the results of Formula E remained stuck in the slow lane. The accounts for the year ended July 31, 2018 show that sales increased by £ 33.5 million to £ 114.5 million, thanks to a new title sponsorship by the Swiss engineering group ABB. That was, however, surpbaded by a £ 38.4m increase in costs as Formula E increased its workforce and developed a new car that could last a whole race without having to pay.
In total, 78% of Formula E revenues come from licenses and accommodation fees for races organized in city centers. There are 13 on the calendar, including New York, Paris, Rome and Monaco, which will take place next weekend. The Formula E has recently announced its intention to add a race around the Excel Exhibition Center in the London Docklands from next year.
According to reports, the trend is on the rise, as more than 476,000 spectators attended the races in 2018, compared with 220,000 the year before. They add: "Some new sponsors such as Bosch and Heineken have also joined the Formula E Championship since the end of the year, demonstrating the growing popularity of the series."
However, its loss fueled a 12.8% increase in net liabilities to £ 132.5 million and the accounts indicate that 'the solvency of the company depends on the support of its parent company'.
The amount owed by the company to its Hong Kong-based parent company, Formula E Holdings, increased by £ 14.4 million to stand at £ 138.5 million last year. Its shareholders include Swiss bank Julius Baer and New-Wave, the ultimate parent company of Weibo, the Chinese response to Twitter.
The accounts add that in 2018 "the group has successfully closed a new round of financing, raising around € 10.5m (£ 9m) in equity (€ 33m in 2017). The counterparty was used partly to buy part of the basic shares from the Group's CEO for € 5 million ".
Formula E is run by Spanish businessman Alejandro Agag, who in May last year offered £ 515 million to wrest control of the company from its owners. They gave the red light and seven months later, they announced that they were looking for a new boss, as Agag would let him become president of Formula E.
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