Minutes of the Annual General Meeting held via video conference on Thursday 22 September 2020 Present Mr J L Faragher (Chairman), Mr I Patterson (Treasurer), Mr P Northfield (Deputy Chairman), Mr D Bowden (Chief Executive) and 171 Members of the Club

1. Welcome and apologies for absence The Chairman announced that we dreamed, we dared, we delivered. We are one, this is Team Essex. He wished all a good evening, welcomed everyone to the 2020 Annual General Meeting (AGM) and advised that the apologies for absence had been recorded.

2. Minutes of the Annual General Meeting held on 09 April 2019 The Chairman advised that the minutes, which had been previously circulated, were taken as read. The minutes were duly agreed to be signed as a true record of the meeting.

3. Chairman’s Report The Chairman noted it was strange to be talking about the 2019 season as we approached the end of our severely bruised and damaged 2020 campaign. He thanked the Members for their patience and acceptance of the situation. Covid 19 had an unprecedented impact on the global economy and the lives of thousands of people. At Essex County Club, our thoughts were with those Members, supporters and friends who had lost loved ones during the crisis.

On a business front at the Club, there had been many changes. It had not been easy and in going forward, tough decisions would have to be taken, the Chairman assured he had every confidence that together, we would come through this crisis and be prepared for cricket next season. It was anticipated that the next AGM would be held around the start date of the 2021 campaign. Since the current meeting was not interactive, it was made known that there would be a virtual Members’ Forum via Zoom, on Tuesday 06 October starting at 6pm.

The Chairman continued by saying that in 2016 we had a dream of where we would like to be in the coming years and 2019 would go down in the history books as a very special season at Essex. Without doubt we knew that the unrivalled success of the previous two seasons, 2019 was always going to be tough. Some might argue that in previous years we underperformed in the white ball competition and in all honesty that was how it was looking for 2019 but we all know that just about anything can happen in T20 and despite an indifferent performance in the qualifying round, we found ourselves in the Quarter Finals against Lancashire. It was in this game against the tournament favourites that we really showed some steel, coming from behind to win the game in very difficult conditions. It was on to Finals Day and what a memorable day that turned out to be for us. In lifting the T20 trophy, we again demonstrated just how good we are and that and the team deserved that success. Worthy Champions indeed. Let’s be clear about our ambitions at the start of the season, it was to win all three competitions but firstly we needed to consolidate our position in Division One. Our first Championship match against Hampshire did not quite go to plan but after that, the message to other Division One counties was very clear; Essex are here not only to stay, but to win. Throughout the season we played positive and exciting cricket, the trademark of Essex Club.

Going into the last game of the season was an anxious occasion for the squad. We always knew it would be difficult to get the result we needed at Taunton. It was fair to say the was, at best, interesting. The last hour was as tense as anything experienced in the whole season and in this particular game, Sir Alastair showed us all how to play on interesting using the skills he developed playing in the Indian sub-continent. We managed to get the draw we needed, and the trophy was again on its way to Chelmsford. The first county to achieve the double, the County Championship and the , a truly fantastic performance. Not only did we demonstrate the strength and entertainment value of good county cricket, we showed that we can adapt our game to the shorter format and continue to entertain our Members and supporters.

Under the outstanding leadership of , Simon Harmer and Anthony McGrath, the players and coaching staff showed a passion and determination to win. By believing in and supporting each other, they continued to push back the boundaries in our achievements. Some of the highlights from the season include with 100 first class appearances, ’s 300 first class wickets for Essex, ’s 500 first class runs, Sam Cook had career-best figures of 7/23 against Kent, his first 10 wicket haul in the season, and Simon Harmer taking five wickets or more on 10 separate occasions. We congratulate and thank Ryan, who decided to step down as Club , for his inspiring leadership both on and off the field. In parallel, we congratulate on being appointed Club Captain and wish him every success in his new role.

It is always difficult when we part company with players, particularly anyone who has spent their whole career with us, and none more so than . Over the past 18 years he has made an outstanding contribution to the Club as a player and as an individual. He will always be remembered by Members and supporters as one of the great entertainers in the game. The Club thanks Ravi and we wish him well as he enters the next stage of his career. He knows he will always be welcome at Chelmsford. On the financial front, you will see in the accounts that the Club made an operating profit of £740,000 in 2019. This was predominantly due to our on field success and the continued growth of our commercial income on both a matchday and a non- matchday basis. In addition we have received a one off payment of £1 million from the ECB as a result of the Cricket World Cup. The Treasurer will go into the finances in more detail shortly.

The proposed development of the ground is still one of our key objectives and the Club is in detailed and positive discussions with the ECB, the planning authorities and architects. You will remember that the previous project was terminated when it became obvious that the developer could not deliver both physically and financially on a programme that was acceptable to the Club. This has been a frustrating period for all concerned but it was the right thing to do. The next stage of the process will be to upgrade the player and spectator facilities in the Doug Insole Pavilion and hospitality areas. We will keep you fully briefed on the progress we make.

During the closed season, a considerable amount of construction has been carried out at the ground. There has been a complete re-configuration of the River Gate entrance, which will significantly improve accessibility both in and out of the ground. Our food and beverage outlets have been increased and toilets facilities created. 12 hybrid wickets have now been installed and new LED floodlights have been erected. These floodlights feature state of the art technology and meet ICC standards, and will allow us to continue hosting international fixtures as well as first class cricket at Chelmsford. This fits perfectly with our objective to become a hub for the Women’s cricket in and we are making good progress in our ambition to be an exemplar county cricket organisation.

The Club recognises that grass roots and recreational cricket is a key element in the future of cricket and continues to work closely with Essex Cricket in the Community, as it works hard to develop new and improved facilities around the region, and particularly in East . Dan Feist is to be congratulated on the development of this side of the business, in particular the opening of the new Leyton Hub last June, with Essex being the first county to meet this key objective set by the ECB. A very well done to all those involved.

The Chairman thanked all Members for their support in 2019 and stated that Membership provides the solid foundation of Essex County Cricket Club and long may that continue. We are determined to build on what we have achieved over the last four years and the Chairman expressed his knowledge of the importance of a successful Essex Cricket to the Membership and all supporters. Finally, many thanks were given to those Committee Members who had supported the Chairman in the past year and who give their time free of charge in serving the Club.

At the last AGM, the Chairman told the Members that in the last 40 years, we had won 17 trophies which was more than any other county. Now there were 19 trophies in 41 years which is still more than anybody else. Although the meeting was the AGM for the year ending last December, the Chairman thanked all those Members who, despite the fact that any cricket that had been played had been played behind closed doors, remained loyal and supportive of the Club. Essex Cricket would not exist without those Members’ continued support.

4. Treasurer’s Report The Treasurer reiterated the Chairman’s thoughts on the weirdness of the past six month, so much had happened and so many changes had occurred that 2019 seemed like a very distant memory. An update was to be shared on the outcome of the Club’s annual independent audit and the salient points relating to the financial performance last year. The meeting was not interactive, but the Treasurer would be able to address questions in the upcoming online Forums regarding the report and the financial outlook for 2020 and beyond.

The Treasurer introduced the headline numbers, as per page 9 of the report, showed a pre tax profit of £742,000 compared to an equivalent loss of £435,000 in 2018. An overall improvement of approximately £1,200,000. The Treasurer explained that he likes to break the headline number down on the basis that the “big number” rarely explains what is going on in any company and needs a little dissection.

The vast majority of the Club’s income and expenditure could be planned with a good degree of accuracy, an example being of the payroll which while climbing, does so with a relatively stable rate and predictable rate and is within control. Likewise, Membership & Ticketing and Sponsorship, in normal years, pre-2020, these items do not move or fluctuate except within certain tolerances. This allows the Club to fairly accurately budget for what is referred to as the operating profit or operating loss. In fact, the number is generally a loss. Put simply, for every £1 the Club generates, we spend £1.10. We argue that this is probably the default model across the first class counties with one or two notable exceptions. In an average year, pre-2020, we would expect to make an operating loss of between £400,000 - £800,000. There are fortunately a number of unpredictable items that come into the equation, which lay outside of our direct control but which nevertheless the Club are stakeholders in; income derived from Test matches, Ashes series, World Cups and Touring teams are distributed by the ECB to the counties. These elements can be lumpy and hard to predict and because of that are generally not factored into the annual budget unless certain that they will occur and be a specific amount of money.

In December 2019 the Club received £1 million from the ECB from funds received from the fantastic ICC World Cup. In addition, our own strong performance in 2019 winning both the Championship and the T20 competition meant that we received a further £239,000 in prize money. The Treasurer stated that he would love to be able to budget for that every year. The Club had a modest portfolio of investments, managed on our behalf by James Hambro and Partners. Valued at around £1.5 million, the portfolio was viewed as the Club’s financial reserve, to be used as a last resort. Whilst £1.5 million is a large sum of money by anyone’s measure, it was suggested to bear in mind that it is less than 12 weeks of operating costs for the Club. The portfolio changes in value as the global stock markets rise and fall, and any change in valuation from one year to the next has to be reflected in the profit and loss statement. In 2019 the value of that fund increased by over 10% or £160,000 and of course helped increase the reported profit. In 2019, we took the decision to write off the last remaining vestige of capitalised costs relating to the earlier aborted ground redevelopment. This required a one-off loss of £100,000 to be recognised in the 2019 profit and loss statement. In summary, the vast majority of the changes in profit and loss from 2018 to 2019, roughly £1,200,000, can be explained simply through these large one-off items.

Reviewing the balance sheet, represented on page 10 of the report, the Treasurer commented that the balance sheet continues to be healthy. With investments of £1.5 million and cash of bank of £1.3 million. Furthermore as at 31 December 2019, the Club continued to have zero borrowings and zero debt and as of 22 September 2020, there were still zero borrowings and zero debt.

The external audit of the Club performed by RSM UK was described as a good audit, with the only issue of any significance carried over from 2018 being the £100,000 of capitalised ground redevelopment costs which were dealt with by crystalising as a loss, as advised by the Treasurer. It was noted that audit functions do not simply audit the accuracy of the accounts or the report and accounts, a good audit function goes into detail of the actual machinations of how a company operates. They look at the governance structures, the control structures, the risk assessments, and the disaster recovery capacity of the company. RSM had pointed out that while the Club has made progress in developing formal disaster recovery procedures, this is still an area that requires attention. The Committee agreed with the observation, though in terms of operating during times of crisis, this year ranks at the top with the best of them.

In summary of 2019 from a finance and audit perspective, pre-tax profits of £742,000 in 2019 versus £435,000 loss the previous year, a turnaround of £1.2 million was a difference mainly made up of large items such as £1 million from the World Cup, £239,000 in prize money and the investment portfolio increasing by £160,000 against a write down of capitalised costs of £100,000. A healthy balance sheet, cash of bank £1.3 million, reserves of £1.5 million and no debt. The documented disaster recovery procedures were still “underbaked” but continued as a work in progress.

Finally looking forward beyond 2019, one of the most important formal processes to complete each year is the statement of going concern. The principle that the 2019 had been prepared on a going concern basis, this assumes that the company will be able to trade and meet debts as they fall due for foreseeable future. The foreseeable future is defined as a minimum of 12 months from the date of which the accounts were signed. The accounts were signed at the end of August. Assessment of going concern in any normal year for Essex Cricket is a relatively straightforward process, given the stability, simplicity and therefore the predictability of the business model. Because of the virus, the lockdown, the absence of actual cricket, cricket behind closed doors and because of our significant reliance upon funds from the ECB, we have had to be cautious and thorough in reaching conclusions regarding going concern. The signing of the accounts was therefore delayed until late August as opposed to March.

There were two statements in the annual report relating to going concern. The first was the statement of material uncertainty relating to going concern made by the auditors RSM UK on page 7. The second was the going concern statement made by the Club made under note 1.3 in the notes to accounts on page 13 of the report. The Club are very grateful to the Members, business partners, Sponsors and especially the ECB for their support throughout these difficult times. Working very closely with the ECB and our peers at other first class counties, we have undertaken significant financial planning, including multiple and frequent cashflow scenarios, stretching out multiple years. As noted in the Club statement on page 13, the Committee of management have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The important thing to take away was that the level of doubt and uncertainty had gone up significantly from previous years. The Treasurer thanked all Members for their time and reiterated the opportunity for interactive online forums in the coming months and handed the meeting back to the Chairman.

The Chairman concluded by thanking the Members for attending the AGM and advised that the next forum would be held on 06 October, with more forums scheduled through the winter months. The Chairman expressed his hope to return to cricket, with support of the Members, in early April 2021. It was advised that a Bob Willis Trophy Final preview would be premiered on the Club’s YouTube and Facebook channels at 7pm following the close of the AGM meeting, lasting around 20 minutes and featuring discussions with Graham Gooch, Jamie Porter and ahead of the final the following day. The Chairman shared a final message for all to stay safe and take care, as well as again thanking the Members for joining the AGM.

A short video was shared of footage from last season.

The meeting closed at 6:29pm.

John Faragher Executive Chairman Essex Cricket The Cloudfm County Ground, New Writtle Street, Chelmsford, Essex CM2 0PG 01245 252420 www.essexcricket.org.uk [email protected] /EssexCricket @EssexCricket @essexcricket