Virgin Racing stake yields a loss for Lloyds

Lloyds has made a huge loss on its stake in the Virgin Racing Formula One team, according to the latest accounts of its parent company, Manor HoldCo.

The team, part-owned by Sir Richard Branson's Virgin Group, was driven to a £35.3m pre-tax loss in the 14 months to 31 December 2010 following a disastrous £17.6m investment in a computer-aided car design system.

Unlike other F1 teams, its car was designed using only computer simulations, rather than being tested in a wind tunnel.