BusinessCompany NewsJordan CFO says time not right to list

Jordan CFO says time not right to list

Present market conditions indicate that the time is not right for a Formula One racing team to list on the stock exchange, according to Jordan Grand Prix's chief financial officer.

Link: Chantrey Vellacott to audit F1 driver

Speaking to Accountancy Age, Richard O’Driscoll admitted it would be ‘icing on the cake’ for Jordan to go public, but said he did not think the stock market was ready for a Formula One racing team to list.

O’Driscoll said that, as a small cap company operating in the sports and advertising industry, Jordan was ‘not exactly flavour of the month’ with the markets at the moment – but he added that listing was something to think about in the future.

The team’s finance man also said there had been a lot of ‘negativities’ surrounding the motor racing industry as a whole, and added that the present environment does not allow teams to predict sustainable profitability.

O’Driscoll revealed that start-up costs for a new team entering the sport were around euro 160m (£112m), and said there was room for two new entrants in the sport, with only 10 of the 12 franchises currently operating.

He also said that reports in the press about Jordan’s near collapse in 2002 were ‘ill informed’ and said ‘proactive steps taken at the time’, including a reduction in staff numbers, were wrongly perceived as a sign of weakness.

‘We were pre-empting a downturn in the market and reducing our cost base appropriately. Teams that did not do so are not around to tell the tale,’ he said.

The full interview with Richard O’Driscoll will appear on the site tomorrow.

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