NOVEMBER 22, 2001
Arrows files accounts
THE Arrows Formula 1 team has recently filed its accounts for the year 2000 at Companies House and, as has long been rumored, the team is in need of more money. The accounts for the Arrows Autosport Ltd. company, which is the holding company for the group, revealed that the team made a loss in 2000 of around $15m, and had to carry over a loss of around $63m from 1999. In total the team has debts of around $95m, largely in unsecured long-term loans. The majority of the money is not due until January 2006.
Part of the loss was because the team's engine division Arrows Engines Ltd. failed to secure a customer in 2000 and ceased trading.
Arrows Grand Prix International Ltd. spent close to $70m but had income of only $44m.
There are several other companies in the group but they had minimal influence. Arrows Racing Organisation for example had only one function, which was to lease assets to Arrows Grand Prix International Ltd..
The company share structure has also been revealed with the overall shareholding being 45% for Tom Walkinshaw, 45% for Morgan Grenfell Private Equity and 10% for Prince Malik ado Ibrahim. However the shares were divided into three different classes with Walkinshaw owning all the voting shares.
The company accountants concluded that the team was a going concern but added that more money needs to be found in the year ahead to service the loans.
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