LONDON - Williams made a loss of 21.4 million pounds ($38.76 million) in 2007 compared to a deficit of 27.7 million pounds (S$55.1 million) the previous year, according to accounts filed by the Formula One team on Tuesday.
Winners of 113 grands prix and nine constructors' championships since 1979, Williams are the only team in the sport not to be owned either wholly or in part by a car manufacturer or billionaire.
The 2007 and 2006 figures compare against a registered profit of 36 million pounds in 2005.
However that figure was inflated by deferred taxation and a one-off compensation payment for releasing British driver Jenson Button to Honda.
Williams chief executive Adam Parr told Reuters the 2005 and 2006 figures needed to be taken together to show a more normal break-even over the period.
"Given the greater resources of our competitors we aim to maximise revenues and then match our budget to that number. Right now we cannot afford to make a profit any more than a loss," he said.
Williams reported turnover of 66.8 million pounds, an increase of 15 percent on 2006, which they said was due largely to improved sponsorship income. Turnover also includes prize monies.
However the team, fourth overall in last year's constructors' championship and co-owned by founders Frank Williams and Patrick Head, also increased bank borrowings.
BUSINESS PLAN
"The decision to increase net debt to support a return to competitive on-track performance was driven by a strong long-term business plan," Williams Grand Prix Engineering said in the directors' report.
Auditors Grant Thornton said Williams had available total borrowing facilities of around 33.75 million pounds, adding "there is a reasonable expectation the company has adequate resources to continue operating for the foreseeable future".
Parr said 2007 had been tough but 2008, despite turmoil in global financial markets, would see a reduction in debt.
"In 2008...we are actually spending substantially more but we are also repaying a substantial amount of the debt we built up in 2007," he said. "Our debt is coming off its peak and we are paying it off.
"The debt facility is perfectly secure and has been for 18 months so we are not in the position of having to negotiate a new loan. No one would want to be doing that right now."
Williams are eighth in the championship, five points behind sixth-placed Toro Rosso and two adrift of Red Bull with three races remaining.
The team have twice finished on the podium in 2008, with Germany's Nico Rosberg second in the night-time Singapore Grand Prix at the weekend.
