Aston Martin’s released financials for 2022 show large losses for the F1 team, despite an increase in income from sponsorship and prizes.
Aston Martin’s accounts for the financial year 2022 have been published through the UK’s Companies House, showing that the team made bigger financial losses last year as they went through significant expansion.
Year-on-year figures show turnover rose from £150 million to just under £188 million, thanks to increases in sponsorship investment as well as increased prize money. However, gross profit dropped from £42.7 million to £35.5 million.
Aston Martin’s financial figures for 2022 revealed
Gross profit figures took a dip due to the team’s ‘cost of sales’ rising from £107 million to £152 million – this is the figure that essentially reflects how much the team spent over the year in total, which also encompasses the budget cap figure of $140 million and inflationary buffers that were permitted by the FIA.
The team’s staff figures remained roughly the same as 2021, but did have some streamlining as administration staff were cut – there were 56 administrative employees in 2021, cut down to 29 in 2022.
However, there was an increase in staff falling under the header of design, production, and technical, climbing from 401 to 420. In total, Aston Martin declared 449 employees per average month in 2022, down from 457 in 2021, with staff costs rising nominally from £49.1 million to £51.4 million.
The directors, including Lawrence Stroll, received no remuneration from the company in 2022.
Overall, the statements show Aston Martin made a loss of £52.9 million in 2022, up from £43.3 million in 2021, taking into account other forms of income, such as UK government grants.
Accounts shed light on payment arrangement with Lance Stroll
Intriguingly, the accounts also shed some light on the financial arrangements Aston Martin have with race driver Lance Stroll – son of company director Lawrence.
Aston Martin engages in contract with Falcon Racing Inc., a company with which Lance has “significant influence over” to provide racing services. A net expense of $1.8 million was incurred with Falcon Racing in 2022, a decrease from $2 million in 2021, in the provision of these services.
Falcon Racing brought in $1.25 million in sponsorship that went to the team in 2022, an increase from none the previous year.
As of December 31st 2022, Falcon Racing owed Aston Martin $13,000, having owed $315,000 the previous year.
During 2022, Aston Martin also received marketing income totaling £19.2 million from Aston Martin Lagonda – the parent company of the F1 team. This is a decrease from £20 million in 2021.
Under the terms of the sponsorship agreement, the parent company provides one fleet vehicle to each racing driver free of charge – an arrangement that continues for the life of the contract.
Aviation costs for the F1 team totalled just over £4 million in the normal course of business.
Aston Martin addresses their 2022 financial figures
In their strategic report for the 2022 financial year, Aston Martin outlined the year from a company perspective.
“The Company’s success is measured by its performance in the Constructors’ and Drivers’ World Championships and by reference to the financial parameters defined by its shareholders,” stated its strategic report.
“The Company’s strategic objectives are to optimise its performance in the Constructors’ and Drivers’ World Championships, and to build a team capable of competing to win both Championships within the next five years.
“2022 saw a return to a disruption-free calendar following the global COVID-19 pandemic, with 22 races completed and full fan attendance at all race events. The year also saw the introduction of the new FIA Formula One Technical Regulations which marked a fundamental shift in how Formula One cars generate downforce. Consistent development of the car throughout the year led to a strong second half of the season resulting in a 7th-place finish in the Constructors’ Championship, level on points with the 6th-place team. Season highlights included three double-point finishes at the Singapore, Emilia Romagna, and Abu Dhabi Grands Prix.
“The year also marked a number of significant moments in the Company and team’s history. 100 years on from Aston Martin’s first Grand Prix entry at the 1922 French Grand Prix, the team saw one Formula 1 World Champion in Sebastian Vettel retire from the sport to be replaced by another World Champion Fernando Alonso. As a two-time Formula 1 World Champion, Fernando brings speed, determination, and experience, adding new energy to the team’s journey to compete at the sharp end of the grid in the years ahead. The team also welcomed current Formula E World Champion, Stoffel Vandoorne, as a reserve driver for 2023, alongside Brazilian Formula 2 Champion, Felipe Drugovich, further strengthening the driver squad.
“Away from the track the Company continued to progress, significantly increasing its revenue as the new partnerships entered into at the end of the previous year contributed to the financial results for the first time. In addition, the team welcomed numerous new partners during the year including BOSS, XP, and Porto Seguro.
“Work continued on the new Aston Martin F1 campus during 2022. Phase one of the development, delivering the first all-new headquarters building in Formula One in nearly twenty years is on track for completion in late Spring 2023. Phase 2, a state-of-the-art Windtunnel, will be completed during the Summer of 2024 and Phase 3, a class-leading Wellbeing, Simulation, and Heritage Centre will be complete by the end of 2024. This campus will represent a world-class facility and will further enhance the Company’s operational effectiveness
“The investment across every facet of the Company is building the foundations for sustainable success in the coming years.
“Turnover for the year was £188 million (2021 – £150 million) and the Company made a loss before taxation of £53 million (2021 – £43 million).
“In 2023 and beyond the Company will continue with its principal activity, namely to operate a successful Formula One racing team, including the design, development, manufacture, testing and racing of Formula 1 racing cars.”