Silverstone chief issues profit warning to shareholders

BRITISH grand prix race circuit Silverstone has issued a profits warning to shareholders after a year of falling ticket sales.

According to reports, Silverstone chairman, John Grant, has sent a letter to shareholders saying that the track will make a loss because “ticket revenues were well down compared with last year’s strong performance.”

The letter continued: “With an ever-increasing hosting fee, this means that the Grand Prix’s contribution to profit will be less than last year, so that we now expect to make a loss for the year and miss the year-two target of [our] three-year plan.”

Earlier this year there were rumours that the Northamptonshire circuit was on the verge of being sold to Jaguar Land Rover.

Around 139,000 supporters saw Lewis Hamilton race to victory in the British Grand Prix this year, but this was offset by reduced ticket prices, which started at £99.

Silverstone’s chances of turning its financial year around appear slim, say reports, as the British Grand Prix accounts for half of its parent company’s £54.7m annual revenue.

Silverstone is owned by the British Racing Drivers Club (BRDC), a group of 850 shareholders which includes former champions Sir Jackie Stewart and Nigel Mansell. In the five years to 2015, BRDC made losses of £55.9m.

F1 supremo Bernie Ecclestone has in the past threatened to pull the Silverstone race from the calendar, saying there is a clause in his contract which will allow him to drop it with immediate effect.

BRDC is currently looking to raise funds by selling a 3249-year lease on Silverstone.