Gloucester Rugby Announces Fifth Year Profit
Gloucester Rugby has announced an operating profit for the fifth year for the period up until June 30th 2015.
The club increased turnover by 21.3% over the previous year, driven by growth in key income streams, notably with new sponsorships and commercial partnerships, whilst match day and season ticket income remained flat.
Overall, the club’s long term debt was reduced by 18% and profit on ordinary activities before taxation was £286,026, which reflects the fifth year of profit in a row.
During this period, the team transitioned with a new coaching team and an overhaul of the playing squad, making several summer signings. The team also won the European Rugby Challenge Cup.
Gloucester Rugby’s stadium footprint was also increased with the purchase of the former Cooper Cowan car site from working capital.
CEO Stephen Vaughan said: “It was an eventful year, we made significant changes to the structure of the playing department and coaching set up as part of a long term plan to bring success to the club.
“Winning the European Rugby Challenge Cup and only losing one competitive game at Kingsholm in the calendar year are signs that we are moving in the right direction.
“However, finishing 9th in the Aviva Premiership was disappointing to all of us and we are determined that the club starts challenging for Champions Cup Rugby as a minimum going forward.
“From a business perspective, we have continued to work hard both on and off the pitch in a challenging economic backdrop.
“Success on the pitch is what drives us and is why we are here. So it is crucial that we backed that up and invested more than ever before to try to compete with the biggest spenders in the Aviva Premiership.
“This approach, our lack of Champions Cup Rugby and the most competitive market we have ever seen obviously challenges the self-sustainable model, so I am delighted that we have been able to remain profitable due to our performance in driving strong revenue growth.
“We were delighted to agree a new main partnership deal with long term partners Mitsubishi Motors and have engaged with an increasing number of valued partners and sponsors. Hospitality and conferencing remains strong and our loyal club members remain the bedrock of the club.”
Chairman Ryan Walkinshaw added: “Once again, I’m delighted that we’ve been able to deliver another set of positive financial results.
“We continue to demonstrate that you can deliver a self-sustainable business and invest in a group of people that can ensure we compete at the highest level of club rugby, despite the ever-changing and challenging environment we are operating in.
“Our league position in the last few years is below where we expect to be so we’re determined to finish higher up the league table than we have done over the past few years but lifting the European Rugby Challenge Cup was a fantastic achievement and a real reward for our loyal fans.”
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