County recorded loss to achieve promotion

Newport County's goalscorers Christian Jolley (left) and Aaron O'Connor celebrate with the trophy during the Blue Square Premier League Play-Off Final at Wembley Stadium, London. PRESS ASSOCIATION Photo. Picture date: Sunday May 5, 2013. See PA st

Newport County's goalscorers Christian Jolley (left) and Aaron O'Connor celebrate with the trophy during the Blue Square Premier League Play-Off Final at Wembley Stadium, London. PRESS ASSOCIATION Photo. Picture date: Sunday May 5, 2013. See PA st

First published in Latest Football
Last updated

NEWPORT County AFC made losses of more than £350,000 chasing the dream of rejoining the Football League but the club expects to see revenue streams rocket during this financial year.

The club revealed their finances up to June 30, 2013 to shareholders in an AGM on Monday at Rodney Parade.

The document outlines that the priority for the business was to achieve promotion, an achievement that led to an operating loss (before exceptional items) of £606,032.

However, that loss was offset in a gain of £263,626 resulting from restricting the ‘historic’ debt (largely money owed to former directors) by converting it into shares and cash.

Turnover went up for the Exiles to £1,227,623 after topping £1 million for the first time in 2012 and, interestingly, the Exiles list just £750 as their expense for incoming transfers.

That’s because chairman Les Scadding paid for their two most significant deals, those for Christian Jolley and Conor Washington, as part of a loan that the Argus can confirm is interest free and with no deadline on repayment, totalling £395,959. The Argus has also had it confirmed the money Mr Scadding lent to the club to allow former directors to have their loans cleared is already being repaid to him on a monthly basis.

County fans will also be optimistic as to their turnover for the year, notwithstanding the cost of playing at Rodney Parade being £51,000 in rent compared to £17,000 at Spytty Park.

Revenues were up for the Exiles virtually across the board, with gate receipts increased from £330,904 to £555,677.

Programme sales were up around 33% and ‘other income’ rose from £114,740 to £185,413.

The Exiles boosted their commercial revenue from £76,361 to £115,137 and the Bisley Business Club added an additional £21,176.

Newport’s trip to Wembley for the Conference Play-off Final wasn’t as lucrative as their FA Trophy Final a year previously, netting the club just £69,932 compared to £150,999 in 2012, with television and prize revenue also falling significantly, from £167,330 to £29,000.

The club also announced a total of £110,000 received for player transfers, confirming that was the initial payment from Wolverhampton Wanderers for Lee Evans. However, the Argus understands the Exiles also have other clauses in the Evans deal and actually received a further payment for him recently.

The Exiles are also now dealing with a seven-figure wage budget for the first time.

Playing wages increased in 2013 to £949,964 from £648,188 and staff wages also rose, from £83,535 to £226,177, inclusive of new staff off the field and new contracts from manager Justin Edinburgh and assistant Jimmy Dack.

The company expect to receive increased revenues as a result of playing in the FL in the current financial year. Financial forecasts have been prepared by the directors who are satisfied they are able to meet the new debt repayment terms as well as maintaining adequate capital levels and day-to-day cash flow requirements and operational liabilities as they fall.

“We have obviously since sold Conor Washington and generally, across the board, being in the Football League makes a big difference,” director Howard Greenhaf told the Argus.

“We have moved on massively and that’ll be reflected in the 2014 figures.”

Comments (6)

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11:59am Thu 30 Jan 14

NakedDancer says...

The Commercial and Bisley Business club increase of £59k combined doesn't seem much given that extra paid staff were taken on to generate this. I'd also like to see the details of the main sponsor deal.

Its apparent now that Mr Scadding is loaning the money interest free to the club not gifting it. Not in itself a problem and no criticism intended, his input is vital to County. However, its always worrying if directors are approving borrowing against themselves eg Hammam at Cardiff. I'd like to know what control the County board and in particular the supporters representatives have over loan approvals. It would be better if Mr Scadding exchanged the cash for shares.

County won't get the windfall of player sales every season so they need to move towards operating break even.
The Commercial and Bisley Business club increase of £59k combined doesn't seem much given that extra paid staff were taken on to generate this. I'd also like to see the details of the main sponsor deal. Its apparent now that Mr Scadding is loaning the money interest free to the club not gifting it. Not in itself a problem and no criticism intended, his input is vital to County. However, its always worrying if directors are approving borrowing against themselves eg Hammam at Cardiff. I'd like to know what control the County board and in particular the supporters representatives have over loan approvals. It would be better if Mr Scadding exchanged the cash for shares. County won't get the windfall of player sales every season so they need to move towards operating break even. NakedDancer
  • Score: 3

12:11pm Thu 30 Jan 14

MX47 says...

I would expect that the commercial income will rocket now that we in the football league and we'll see that in next years accounts.
I would expect that the commercial income will rocket now that we in the football league and we'll see that in next years accounts. MX47
  • Score: 2

12:29pm Thu 30 Jan 14

sooty001 says...

NakedDancer wrote:
The Commercial and Bisley Business club increase of £59k combined doesn't seem much given that extra paid staff were taken on to generate this. I'd also like to see the details of the main sponsor deal.

Its apparent now that Mr Scadding is loaning the money interest free to the club not gifting it. Not in itself a problem and no criticism intended, his input is vital to County. However, its always worrying if directors are approving borrowing against themselves eg Hammam at Cardiff. I'd like to know what control the County board and in particular the supporters representatives have over loan approvals. It would be better if Mr Scadding exchanged the cash for shares.

County won't get the windfall of player sales every season so they need to move towards operating break even.
A very good sensible point.
[quote][p][bold]NakedDancer[/bold] wrote: The Commercial and Bisley Business club increase of £59k combined doesn't seem much given that extra paid staff were taken on to generate this. I'd also like to see the details of the main sponsor deal. Its apparent now that Mr Scadding is loaning the money interest free to the club not gifting it. Not in itself a problem and no criticism intended, his input is vital to County. However, its always worrying if directors are approving borrowing against themselves eg Hammam at Cardiff. I'd like to know what control the County board and in particular the supporters representatives have over loan approvals. It would be better if Mr Scadding exchanged the cash for shares. County won't get the windfall of player sales every season so they need to move towards operating break even.[/p][/quote]A very good sensible point. sooty001
  • Score: 2

4:10pm Thu 30 Jan 14

NewportFan73 says...

It will all be worth it if we win promotion
It will all be worth it if we win promotion NewportFan73
  • Score: 0

8:36pm Thu 30 Jan 14

DDDog1 says...

Hit or bust
Hit or bust DDDog1
  • Score: 0

8:36pm Thu 30 Jan 14

DDDog1 says...

Argus censorship at its best
Argus censorship at its best DDDog1
  • Score: 0

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