Norwich City post growth in revenues
Mon 17th Oct 2011 | Money & Finance
Norwich City have revealed an increase in revenues and an operating profit of £0.5m in their latest set of accounts.
The results for the financial year ending May 31, 2011 show revenue had increased to £23.1m (£17.0m in 2010 and £18.3m in 2009 - the last Championship year) due to an improved commercial performance across all areas of the business.
With that, Norwich also posted a normalised operating profit of £0.5m (a loss of £1.7m in 2010 and a loss of £4.3m in 2009) with net indebtedness reduced to £16.8m (£20.9m 2010) partly due to the sale of the matchday orange car park.
|
|
£m |
£m |
£m |
£m |
£m |
|
Revenue |
23.1 |
23.1 |
17.0 |
17.0 |
18.3 |
|
|
|
|
|
|
|
|
Trading Cost of Sales |
(8.5) |
(11.0) |
(10.7) |
(11.2) |
(11.6) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Football Expenditure |
(14.1) |
(16.1) |
(8.1) |
(10.2) |
(11.0) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Profit/ (Loss) |
0.5 |
(4.0) |
(1.7) |
(4.4) |
(4.3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
(2.4) |
(2.4) |
(1.6) |
(1.6) |
(1.6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax |
3.1 |
3.1 |
- |
- |
0.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss after Tax |
0.6 |
(3.9) |
(3.1) |
(5.8) |
(5.0) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
3.0 |
(1.5) |
1.2 |
(1.4) |
(0.9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt |
16.8 |
16.8 |
20.9 |
20.9 |
22.9 |
* Excluding exceptional costs
In the accounts, the club stated its key actions taken in the business within the last 12 months include:
- Refinancing of the balance sheet
- Disposal of non-core property assets
- Significant reduction of net debt
- New equity investment to help strengthen squad and improve chance of promotion
- Significantly improved commercial performance of all areas of the business
- Achieved promotion to the Premier League
- Retained football management team and back room staff for 2011/12 season
- Recruited 8 new players in to the squad for the 2011/12 season
- Successfully completed stadium upgrades required to meet Premier League regulations
Norwich have also reported the following target results for next year-end:
• Revenue to increase by at least £40m
• Significantly increased operating profits but cash to be neutral due to the need for debt repayments and investment in assets
• Net debt to reduce by at least a further £6m
City Chairman Alan Bowkett commented: "While everyone is aware of the outstanding football performance last year, I am pleased to report this improvement has continued off the field of play. Revenues and normalised operating profit are up while net debt is down. This trend will accelerate this year."
A full set of annual accounts are due to be posted to Norwich City Shareholders next week. The Club's AGM will be held on Tuesday, November 22.
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