GreenBkk.com Formula 1 | Parr: Long-term security, not short-term cash

Parr: Long-term security, not short-term cash

Williams chairman Adam Parr insists the team is in "good financial health" despite plans to float Williams F1 on the stock exchange.

The team, which lost several key backers at the end of 2010, revealed on Friday that Sir Frank Williams is considering a flotation on the stock market in a bid to ensure the team remains in F1 and as an independent Constructor.

This sparked some concerns over Williams' financial situation, although Parr is adamant the team has the funds, thanks largely to their recent deal with Venezuelan oil company PDVSA, to see out the 2011 Championship.

"It's very important to state that we are not, as a company, seeking to raise funds," Parr said.

"This would not, if it goes ahead, involve any new equity or fund-raising. The company is in good financial health.

"I suppose a question you might ask is can you float a company like this in an industry like ours? Perhaps it may please you to know that not only do we think that we could do that, but we've always run the company on sound financial principles.

"We have never had the luxury of a shareholder wanting to pump money in and therefore we have had to run within our means. In fact, in 2008 and 2009, we recorded a profit.

"We will do the same for 2010 and I am pleased to say that our budget for 2011 is fully contracted.

"Like other teams, we have cut our costs. We have had to trim a few people, but we will have something like 470 in our F1 business in 2011 and then on top of that we have our new businesses in Williams Hybrid Power and Qatar.

"So, overall we are in good financial health. We have made profits for the past three years and we believe that's a very sound basis should we intend to proceed with this."

Parr added that the proposal was not motivated by a need for short-term capital, rather it would be for the long-term benefit of the team.

"We have to think about the long-term future of the team," he said. "You can't do it overnight and you can't do it in a rush. Frank, Patrick (Head) and Toto (Wolff)'s view is that it is better to plan now, to prepare for the future.

"If we were to go to the market, it would create a basis for future transactions so I think it's about succession-planning and future-proofing."

Williams is F1's third-most successful team after Ferrari and McLaren with 113 victories in 565 races. But it hasn't won a grand prix since 2004 and finished sixth in the Constructors' Championship last season.

Credit: PlanetF1.com (www.planetf1.com)