Norwich City Football Club have released their accounts for the financial year ended June 30, 2017.
Key points of note:
Income down to £75.9m (£100.6m in 2015-16) as a result of a season in the EFL Championship (broadcasting revenue down £18.6m).
Operating loss of £2.6m (operating profit of £14.2m in 2015-16).
Loss after tax of £2.7m (profit after tax of £9.4m in 2015-16).
Loss in the year driven by decreased broadcasting revenue.
As at June 30, 2017, external debt, in the form of a bank working capital facility, totalled £1.8m (£2.7m as at 30th June 2016).
Cash inflow in the year of £2.2m, explained as follows:
- Cash generated from operating activities of £1.3m
- Player purchases – cash outflow of £(27.6)m
- Player sales – cash inflow of £29.7m
- Fixed asset spend of £(0.6)m
- Tax payment of £(0.1)m
- Other net cash outflows of £(0.5)m
Compensation for loss of office due to Jez Moxey of £0.7m, following his resignation in February 2017. Compensation due to Alex Neil in line with contractual terms following his departure in March 2017.
Key actions taken in the business within the last 12 months include:
Ensuring financial position remains strong with no external debt despite remaining in the EFL Championship.
Continued strategy of investing spare cash into football, while recognising the financial constraints of playing in the EFL Championship.
Creation of new structure headed by Managing Director and Sporting Director, followed by recruitment of Daniel Farke as First Team Head Coach.
Restructuring football side of Club, starting with the first team following Daniel Farke’s arrival (both playing squad and staff), and continuing more recently with the Academy staff.
Recruitment of 10 senior players (including 2 on loan) in Summer 2017, with 7 released following contract expiry together with sales of 5 players.
Confirmation of Elite Player Performance Plan (EPPP) Academy Category 1 status for the upcoming two years prior to the next audit process.
Continued to work closely with the local community through official charity partner Norwich City Community Sports Foundation, particularly following their recent purchase of land by Norwich Airport to be developed into “The Nest”.
Norwich City Chairman Ed Balls said: “These figures underline the necessity of managing the Club’s cash flow position as we move into a second season in the Championship.
“However, at the same time, the Board has implemented significant change through a new structure at the Club which caters for its long-term stability whilst giving us the best opportunity to push for promotion to the Premier League during the current season.”
You can view the full Norwich City annual accounts HERE.