DAVID Richards (pictured) toasted his return to Formula 1, claiming his Banbury-based Prodrive company have earned their move into motorsport's elite.

Prodrive were named as the 12th team on the 2008 grid yesterday by world governing body the FIA, who also accepted entries from all 11 current squads.

Richards feels Formula 1 is the natural next step for Prodrive, who already have a glittering history in other categories.

The Welshman said: "This is wonderful news for everyone in the company.

"We have won World Rally Championships, British Touring Car titles and the GT1 class at Le Mans, and have been saying for some time that we would also like to be in Formula 1 with our own Prodrive team. We are now one step closer."

Prodrive's F1 effort will be based at Banbury until a new state-of-the-art factory in Honiley is built.

FIA president Max Mosley was impressed by Prodrive's bid, which beat off stiff competition from the likes of Carlin Motorsport, the Jean Alesi-led Direxiv outfit and BAR co-founder Craig Pollock.

He revealed Prodrive have found the finances to support their bid, adding: "Prodrive have the best combination of financial backing, technical capability and motor sport experience and are well known to the FIA through their participation in the World Rally Championship.

"Also, Prodrive's chief executive, David Richards, has experience as a Formula 1 team principal with BAR & Benetton."

Prodrive were the one new applicant chosen from 11 hopefuls and Mosley believes that level of interest is a good sign for the future of the sport.

As recently as last year, Formula 1 was faced with the prospect of two teams Jaguar and Jordan folding before last-minute buyers were found but Mosley feels his cost-cutting plans have re-ignited interest.

Speaking about the high number of entrants, he said: "Formula 1 is the pinnacle of motor sport, and thanks to the new regulations, it is potentially open to more teams."