The Renault Formula One team have revealed a UK£7.4 million (US$9.1 million) loss for 2018.
An improved showing in the constructors’ championship in 2017, which saw them rise from ninth to sixth in the standings, helped increase subsequent turnover, which rose from UK£136.3 million (US$168 million) in 2017 to UK£146.8 million (US$181 million) last year. But despite the boost in income, the UK£7.4 million loss has now been recorded for 2018. In comparison, the team had a small profit of UK£1.1 million (US$1.4 million) in 2017.
Renault blamed the weak British pound as one of the main reasons, noting that it was the first in three years financial results had deteriorated.
The team, as quoted by Motorsport.com, said: "Expected turnover was negatively impacted by the strength of the British pound versus the Euro and the US dollar. Almost all turnover is denominated in Euro and US dollar, whilst the majority of costs are sterling denominated.
Renault added that "extra resources were added to in-season car development," which increased costs.
The team’s accounts also highlighted the extensive rebuilding project undertaken by Renault as it looks to challenge the upper echelons of Formula One.
Motorsport.com reports that the number of employees rose from 606 in 2017 to 676 in 2018, resulting in an increase of more than UK£9.4 million (US$11.6 million) in annual staff costs.
Additionally, UK£10.6 million (US$13.1 million) of fixed assets were added, reflecting improvements to Renault’s Enstone base.
Spending does not appear to show any signs of slowing, with Renault adding that "whilst the major investment required initially is now complete there are major projects in the pipeline for 2019, and beyond, to achieve Renault's long-term aim of winning the constructors' championship."
The team also made it clear that it is closely monitoring the potential impact of Brexit on team finances, saying they have “put plans in place for different scenarios, including whether the impact can be mitigated by utilising the operations the group has in the European Union."
Going into the Singapore Grand Prix on 22nd September, Renault currently lie fifth in the constructors’ championship.