Formula One changes fuel PWR profit growth
Changes to the Formula 1 racing rules have driven an acceleration of earnings for Gold Coast cooling technology specialists PWR.
The Stapylton-based company, which was supplying cooling solutions to every Formula One team in the world, has reported its sales in the six months to the end of December jumped to $80.4 million while its net profit after tax was up $1.6 million to $5.7 million for the same period.
In a statement to the Australian Stock Exchange, PWR said motorsport revenue had increased 40 per cent in the period.
“Growth was driven by the new Formula 1 regulation cycle, with race testing commencing earlier than the prior period, providing incremental support to second quarter activity,’’ the company said.
“The F1 regulation changes contain technical changes of unprecedented complexity the impacts both power units and chassis cooling systems.
PWR, which was founded by Kees Weel and his son Paul Weel in 1998 and now employs more than 120 people in Australia, Europe and the USA, started life manufacturing performance radiators for racing cars.
PWR products are now commonly used in V8 Supercars, Indy Cars, Nascar and Formula One.
In 2020, the company made the decision to expand into the Aerospace and Defence sector.
In its statement to the stock exchange, the company said its Aerospace and Defence arm also delivered a 31 per cent increase in revenue.
Last month, PWR announced that it had won a $13.5 million extension to a mystery project with the US Government.
The company has not explained exactly what the deal involves, but it does fall under the company’s Aerospace and Defence division.
PWR said the contract extension followed the “ongoing successful delivery of the previous order” and “reinforces PWR’s position on this project as it progresses to full rate production”.
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