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Gloucestershire County Cricket Club Limited Registered number: IP28554R GLOUCESTERSHIRE COUNTY CRICKET CLUB LIMITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2014 GLOUCESTERSHIRE COUNTY CRICKET CLUB LIMITED CHAIRMAN'S REPORT FOR THE YEAR ENDED 31 JANUARY 2014 I took over as Chairman at the AGM in April 2013. It has been a challenging first year, but much has been achieved. The first part of our ground development at Bristol has been completed, with the opening of our extended and refurbished Pavilion in August 2013. The second stage started in January with the demolition of the old Mound Stand and the new Stand is due to be completed by early May 2014. Tom Richardson left the Club at the end of August after 12 years’ dedicated service as our Chief Executive. Tom worked tirelessly on the ground development, to provide us with the facilities to retain international cricket in Bristol and the opportunity to increase our year round income. Will Brown took over following a detailed executive search process. Will lives in Bath and is a life-long Gloucestershire supporter, having originally visited the County Ground at a young age with his Dad. Will has a commercial background and has “hit the ground running.” He recognises that if we are to be competing for honours on the field, we must maximise our income off it. Much remains to be achieved in significantly increasing both our match day and non-match day revenues. Our ground development gives us the opportunity to make a real step change, and this is what he and the Board are determined to achieve. We have incurred a deficit of £122k in the financial year ended 31 January 2014. This is extremely disappointing and is clearly not sustainable. The budget for the current year has been based on a very careful review of all our income streams and cost centres. On the field our Captain, Michael Klinger, led from the front and with Alex Gidman, Chris Dent and Hamish Marshall we had 4 players exceeding 1000 first class runs, the first time that has happened since 1995. Our young team acquitted themselves well in the Championship, rising from last place in 2012 to 6th – five more points would have seen us 4th and Northants were promoted with just 1 more win. In limited overs cricket we again just missed making the 40 over semi-finals, by 2 points, but our t20 campaign was disappointing with a last place finish. Will Gidman and Craig Miles, at just 19 years old, were our main wicket takers with 55 and 43 First Class wickets respectively. Our Academy continues to develop exciting young cricketers with 2 players, Miles Hammond and Tom Shrewsbury, winning England U19 caps in 2013 and Kieran Smith representing England U17s. We have consolidated and simplified our membership structure by category and introduced weekend memberships for those who generally can’t get to the ground during the week. We have also introduced our new Premier Club for those members who are looking for the best seat in the ground with extra comforts provided. The first tranche of these memberships sold out very quickly and a second tranche is selling fast. We are very grateful to a former member of the Grace Society who kindly left the Club a legacy of £115k. If you are not already a Grace Society member, please do consider leaving the Club a bequest in your will and joining the Grace Society. I would like to thank all our sponsors, members, Board members and staff for all their contributions to seeking to produce great results and success for our on-field teams. There is much to look forward to, in particular the ODI England v India on 25th August 2014. We have 7 home T20s, two of which we will play at Cheltenham and 4 which will be played on Friday evenings in Bristol, giving a regular ‘appointment to view’. 50 over cricket returns to the fixture list and we also look forward to welcoming back our captain, Michael Klinger, after his hugely successful winter in Australia. I wish you all a warm and dry 2014 season filled with Gloucestershire cricketing success. Roger Cooke Chairman Page 1 GLOUCESTERSHIRE COUNTY CRICKET CLUB LIMITED TREASURER'S REPORT FOR THE YEAR ENDED 31 JANUARY 2014 2013 was a year of transition. In 2012 we completed the deal with Linden Homes and also received a one off payment from the ECB of £200k in respect of the work on the pavilion; in 2014 we will see the benefit of the use of the pavilion for a full 12 months. In 2013 we had neither a deal, nor any one off payment from the ECB, nor the full use of the pavilion. From a financial viewpoint therefore 2013 has been a disappointing year for the club with an overall deficit of £122k. On the income side, gate receipts in 2013 were £26k up on the previous year due to much better weather during the season. However whilst our home T20 game against Somerset, financially our most important match of the season, was a sell-out, the total gate for that match was well down on earlier years due to restrictions caused by the building works at Nevil Road. Membership continued to decline which was disappointing, but this trend will be reversed in 2014, in particular off the back of the new Premier Club. Sponsorship was boosted by a one year deal with our caterers, Centreplate, who contributed a significant figure which allowed us to sign Michael Klinger for the season. Historically BS7 has shown continued growth over a number of years. However in 2013 this growth stopped and the BS7 income for 2013 is almost identical to that of 2012. Finally on the income side we received a totally unexpected, but very welcome, £115k legacy just before the year end. However our expenditure pre-depreciation increased by £271k compared with the prior year, which is why our overall result for the year was a deficit of £122k. Of this additional expenditure, £136k was on the squad (which, as noted above, was partly funded by Centreplate). We incurred costs of £22k on temporary facilities whilst the pavilion was being completed, and energy and cleaning costs were £30k higher. This was also the first full year of our loan from R&SA (which arose from the sale of the land to Linden Homes); interest in the year on this loan was £37k. In addition to this, depreciation rose by £71k as a result of the development of the pavilion As in previous years our biggest financial issue over the past year has been managing our cash position, particularly as we needed to ensure we had sufficient funds to redevelop the Mound Stand; we needed to do this to meet the ECB requirements in order to remain a Category B ground and hence be able to continue to host international matches. Additionally, as can be seen from the balance sheet, we still have borrowings of around £2.5m which will need to be paid off in due course; the most significant of these is the £1.4m R&SA overage payment noted above, which will be repaid over a 15-20 year period. Both the repayment of these borrowings and the interest payments, particularly if interest rates rise, will put considerable pressure on our cash flow for some years to come. Finally I would also like to say thank you to all those who contribute to the finances of the club. This includes sponsors, advertisers, regional committees and volunteers, members (both cricket and BS7) and those who buy tickets and hospitality for our matches, in addition to Bernard Cooke who manages the finances on your behalf. Please continue to support the club as we now build on all the developments which have taken place at the ground over the last couple of years. Tony Elgood Honorary Treasurer Page 2 GLOUCESTERSHIRE COUNTY CRICKET CLUB LIMITED STATEMENT OF THE EXECUTIVE BOARD'S RESPONSIBILITIES FOR THE YEAR ENDED 31 JANUARY 2014 The Executive Board is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Law requires the Executive Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Club and the surplus or deficit of the Club for that period. In preparing these financial statements, the Executive Board is required to: select suitable accounting policies and then apply them consistently; make judgments and accounting estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Club will continue in business. The Executive Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Club and enable them to ensure that the financial statements comply with the Industrial and Provident Societies Acts 1965 to 2002. They are also responsible for safeguarding the assets of the Club and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Executive Board is responsible for the maintenance and integrity of the corporate and financial information included on the Club's website. Page 3 GLOUCESTERSHIRE COUNTY CRICKET CLUB LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOUCESTERSHIRE COUNTY CRICKET CLUB LIMITED We have audited the financial statements of Gloucestershire County Cricket Club Limited for the year ended 31 January 2014, which comprise the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and the related notes.
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