Profits up 15% at Edgbaston as Warwickshire enjoy on and off-field success

SUCCESS on and off the field has helped Warwickshire County Cricket Club to a year-on-year increase in annual turnover and profit.

The Edgbaston club’s primary profitability measure, EBITDA, increased 15% from £1.43m to £1.66m for the year ending September 30, 2014. Turnover grew by 7% from £11.7m to £12.5m.  The operating result for the year was a profit of £230,000, up from £5,000 in 2013. The figures include a net depreciation charge of £1.4m relating to the stadium redevelopment in 2010/11.

WCCC chief executive, Colin Povey said: “The club continued to make solid progress in 2014 both on and off the field. Our strategic plan contains some ambitious targets but we are increasingly demonstrating the value of redeveloping the stadium and broadening our business model.
 
“At the end of 2014 we secured a valuable package of Major Matches from the International Cricket Council (ICC) and England & Wales Cricket Board (ECB) covering the period from 2017 to 2019. This will further underpin our business plan, particularly as we anticipate further Major Match awards in the spring.”
 
Craig Flindall, Finance Director of Warwickshire CCC, said 2014 had been a strong year for the club with most of its financial measurements showing improvement on the previous year.  EBITDA in particular, was the highest reported since 2009 – a year that included a lucrative Ashes Test Match.

This summer will see the return of Ashes cricket to the ground a decade after it staged one of the exciting games in the long history of the tournament and the club will be hoping for a similar financial return.

“Major Match ticket sales are always the most significant driver of our annual turnover and profitability and in 2014 we didn’t stage a Test Match for the second year in succession. Despite this, ticket sales for the Major Matches that we did host were largely in line with budget with NatWest T20 Blast Finals Day being the highlight for the Club both on the pitch, securing our first domestic t20 title, and in financial terms,” added Flindall.
 
“It is also pleasing to note the 34% and 39% increases in domestic t20 ticket sales and commercial partner revenues respectively, reflecting the club’s investment in its commercial operations over the last three years.”

Warwickshire rounded off its 2014 campaign by lifting the T20 trophy after a thrilling finals day victory over Lancashire in front of a packed home crowd.
 
Flindall said the club was feeling positive about the short to medium term future as the ground had secured a strong list of major games between 2017 and 2019, including an Investec Ashes Test Match and an ICC World Cup Semi Final in 2019, plus a series of games in the ICC Champions Trophy in 2017.

“This was essential for the club and ultimately reduces the financial risk the club faces in the medium term,” he said.

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