Newport County to give financial update before AGM after rumours

The Exiles haven’t filed accounts since March last year, which covered the period up to June 30, 2021.

The Argus understands that there are some issues that will come out before this summer’s AGM after they led to a restatement of management accounts.

The last accounts stated that there were net assets of £837,859, a sum largely built up through lucrative cup runs under Michael Flynn.

That figure is set to be significantly reduced but club officials insist online speculation about the situation being perilous are wide of the mark.

County have not responded to rumours while Graham Coughlan’s side were securing their Football League status.

“The key thing has been to make sure any off-field issues, real or imagined, don’t impact the playing side of things,” said director Peter Madigan.

“League Two survival is the most important thing and with a number of things going on we’ve had to knuckle down and get on with things.

“I don’t know where the various rumours have come from and it’s sort of damaging but we don’t want to chase and respond to every messageboard rumour either.”

Rodney Parade, home of Newport County and the Dragons (Image: Huw Evans Agency)

County’s accounts are being audited and with Nick Igoe, an experienced financial consultant in the sports sector who works with Supporters Direct, providing external assistance with the process.

“There are a few things to line up and that is almost concluded. It has taken a bit longer than expected for various reasons but we didn’t want to go half-cock [for an AGM] and not be certain we could answer every question that comes up,” said Madigan.

“We’ve pencilled in June 13 for an AGM when the audited accounts will be out there and we can talk about them going forward, doing a presentation.

“We want to make sure that when we press the button for a date that everything is lined up and all the information is available.”

There have been rumours that County are in debt and even talk of a police investigation but that is wide of the mark, said Madigan.

“We don’t have a stadium, training ground or assets but the club hasn’t got any debts as such,” he said.

“There is a lease associated with the LEDs at Rodney Parade, and we share that asset with the Dragons anyway, while there is a loan outstanding to Les Scadding that was part of the initial takeover and we pay him around £3,000 a month.

“We do have an arrangement with the Dragons to play at the ground and they are an outstanding creditor.

“Then we have the playing budget, VAT, tax and we are up to speed with those, so we don’t have a Bury or Southend situation.”

County have had a number of issues throughout the 2022/23 campaign after both Hoodhill Motor Company, sponsors of the third kit, and Elite, the UK arm of Hummel who had a year left of a contract, went bankrupt.

Harry Charsley in Newport County's new VX3 kit (Image: Huw Evans Agency)

That led to a three-year deal with VX3, the same kit manufacturer as the Dragons, with a successful launch of next season’s home strip that was worn against Crewe on Monday.

County had plenty of off-field change over the course of the campaign with the departure of chairman Gavin Foxall and general manager Nigel Stephenson for health reasons and director Kevin Ward because of a conflict of interest with his role as chairman of Newport Live.

“They left in quick succession and what we did was worked out what needed to be done with a whole raft of things,” said Madigan.

“We parcelled all that up among the remaining board members – and we are not down to the last knockings! – and got on with the stuff to get to the AGM and put everything on the table.

“We are getting things done in a practical way and once the audit and AGM is out of the way, and we have plans and a way forward following that, then we can get to a chairman.

“However, it’s still a Trust-owned business and, while I’m not saying it’s a sinecure, the individual board members do things and that will continue.

“Maybe that doesn’t fit the narrative that we should have a front man but between us we do get things done.”

Miami-based businessman Jon Pratt, who is from Newport, was appointed as a co-opted director in February.

“Jon is in communication with us,” said Madigan. “He hasn’t made an offer for the club or come forward and said he is putting this amount of money in but he has given his thoughts on various things, as all the other directors do.”

County boss Graham Coughlan (Image: Huw Evans Agency)

Manager Graham Coughlan was appointed in mid-October and steered the club away from a relegation battle.

He has admitted that he will have to cut his cloth accordingly next season – and said that the club were unable to match offers for some key men – but plans are advanced for building a squad.

“We have tried to be practical by saying this is what we absolutely can afford and Graham has said he will get on with it,” said Madigan.

“[Head of football operations] Chris Finn’s major focus is recruitment and he has been out there coming up with names.

“I don’t think it’s a secret that he will have to wheel and deal but I would say that Graham and Joe [Dunne, assistant manager] have been fantastic in the way that they have dealt with everything since coming in.”