Norwich City

Club unveil picture for the last financial year

TODAY Norwich City Football Club release their accounts for the financial year ended 30th June 2016.

CLICK HERE TO DOWNLOAD THE FULL REPORT (PDF)

Key points of note:

- Income up to £100.6m (£53.6m in 2014-15) as a result of a season in the Premier League (broadcasting revenue up £41.6m)

- Operating profit of £14.2m (Operating loss of £8.7m in 2014-15 after bonus payments of £11.1m that were conditional on a Premier League return)

- Profit after tax of £9.4m (Loss after tax of £5.3m in 2014-15)

- Profit in the year driven by increased broadcasting revenue as a result of spending 2015-16 in the Premier League

- As at 30th June 2016, external debt, in the form of a bank working capital facility, totalled £2.7m (£0.0m as at 30th June 2015), which has subsequently been repaid post the year end.  The remaining Directors’ loans of £2.0m were repaid during the year

-    Cash outflow in the year of £(4.5)m, explained as follows:
-    Cash generated from operating activities of £8.2m
-    Player purchases – cash outflow of £(22.6)m
-    Player sales – cash inflow of £11.6m
-    Fixed asset spend, mainly at Colney of £(2.1)m
-    Repayment of Directors’ loans of £(2.0)m
-    Tax refund of £2.7m
-    Other net cash outflows of £(0.3)m

-    Compensation for loss of office due to David McNally of £1.4m, following his resignation in May 2016.

	£m 2015-16	£m 2014-15*
Income	100.6	53.6
Operating expenses (excluding player trading)	(85.2)	(62.8)
Player trading	(1.2)	0.5
Operating profit/(loss)	14.2	(8.7)
Interest (payable)/receivable	(1.2)	0.6
Tax	(3.6)	2.8
Profit/(loss) after tax	9.4	(5.3)
EBITDA	38.5	6.4
Closing cash position	(2.6)	1.9

*Comparative numbers for 2014-15 differ slightly from those reported last year as a result of adopting new mandatory Financial Reporting Standards as explained in Note 1(a) of the annual accounts.

Key actions taken in the business within the last 12 months include:

-    Ensuring financial position remains strong despite relegation, due to no debt and relegation clauses in all player contracts
-    New Chief Executive, Jez Moxey, appointed after exhaustive recruitment process over the summer
-    Continued strategy of investing spare cash in to football in each transfer window
-    9 new players were recruited during the financial period being reported on
-    A further 5 new players have been recruited into the squad since the end of the financial year and several senior players have had their contracts renewed
-    Continued to work closely with the local community through official charity partner Norwich City Community Sports Foundation

The Club’s main objective for the current season is to return to the Premier League at the first opportunity.

City Chairman Ed Balls commented: "These figures once again underline the huge gap in revenues between the Premier League and the Championship.

"The Club’s strategy has been and continues to be to invest all available surplus cash into the playing squad, hence maximising the chances of returning to the Premier League at the earliest opportunity."