Warwickshire Announce Annual Financial Results for 2012
2011/12 was the Club’s first full year of operating the business within the redeveloped stadium and its diversified business model. In overall terms, given the Major Match schedule was severely affected by the poor summer weather, the Club is satisfied with the results.
Turnover was slightly down on 2011 (£11.7m) at £11.5m. This in part reflected the lesser appeal of a West Indies Test Match relative to the India fixture in the prior year. The Club’s primary profitability measure, EBITDA*, of £755,000 was £254,000 lower than in 2011 reflecting the overall match schedule and the anticipated higher overhead costs associated with operating the redeveloped stadium for a full year. The operating result was a loss of £668,000 compared to a profit in 2011 of £327,000, however this position reflects a full year’s depreciation of £1.4m being charged on the redeveloped assets (2011: £682,000).
In a year that saw Warwickshire crowned LV= County Champions for the seventh time, four out of the seven Major Match days that were due to be staged at Edgbaston were completely washed out, in addition to the sold out Friends Life t20 match against local rivals Worcestershire. However, the Edgbaston conference and events business continued to trade successfully with year-on-year revenue growth of 50% reported for the second year in succession.
Craig Flindall, Financial Director at Warwickshire CCC, said: “It is always very difficult to compare our year on year financial results given the popularity of the Major Match fixture list from one year to the next. The relative attractiveness of staging the Test Match against India in 2011, compared with the West Indies in 2012 meant that a reduction in revenue and profits was always expected and budgeted for. The exceptionally bad weather did nothing to improve this situation, however, the Club mitigated the impact of the weather by reducing costs where possible and taking out insurance to cover the catering revenue for the ODI and international t20 matches.
“Our conference and events business had another successful year. The results of this revenue stream combined with the guarantee of 24 days of Major Match cricket in the next four years, serve to validate our Business Plan which underpins the investment in the stadium. Edgbaston is now an all year round business operation that is less reliant on cricket revenues.
“2012 was also the first year where we accounted for the full year impact of the redevelopment, including depreciation and loan interest. Both costs were fully budgeted, but given the level of investment we have made, the Club will need to generate significant EBITDA to report both operating and retained profits.”
Colin Povey, Chief Executive added: “2012 was a year that presented us with significant operational challenges but this result shows a growing resilience in our operations. We have made considerable progress in recent times but we need to continue that trend in the years ahead. We already have a clear strategy and solid operational plans in place for 2013 and beyond."
Edgbaston hosts the Final of the prestigious ICC Champions Trophy in June; the first time that the final of a major international men’s tournament has been staged outside of London. The initial ticket allocations for The Final together with two of the four group matches to be played at Edgbaston (England v Australia and India v Pakistan) have already sold out.
Additionally in 2013, Edgbaston hosts domestic cricket’s biggest day, Friends Life t20 Finals Day, as well as a floodlit NatWest Series ODI between England and Australia.
*EBITDA – Earnings before interest, tax, depreciation and amortisation.