BOSSES at the company behind an Oxfordshire Formula 1 racing team are gearing up for further expansion, despite announcing significant losses.

Williams Grand Prix Holdings, based in Grove, unveiled a pre-tax loss of £5m for the year ended December 31 – down from a pre-tax profit of £7.4m in 2011.

But company spokesman James Francis said building work was still due to start on a new research and development unit at Station Road after it was recently granted planning permission by Vale of White Horse District Council.

Mr Francis added that the financial report did not include £9.4m the team received from Formula 1 Management – the business behind the sport – because of a technical clause.

He said: “If that figure had been included we would have turned a loss into a profit.

“It would have been a smaller profit, but a lot of investment has happened.”

The new research and development site – being built for an undisclosed sum – will house 150 advanced engineering workers who are involved in developing the commercial potential of F1 technology. It is due to be completed in November.

Mr Francis said the centre would be involved in continuing research into hybrid power using batteries as well as other technology, such as road safety simulators.

Founder and team principal, Sir Frank Williams, said; “2012 saw Williams make encouraging progress on and off the track and we are determined to continue that upward trend in 2013.

“There is still a way to go for the team to get to where we should be, but improvements on previous seasons are evident.”