Continued steady off-field progress, with increased funding and revenue, helped the Ospreys record a profit before exceptional items and interest charges of £143,498 in 2014/15.
- End of year accounts for 14/15 show profit before exceptional items and interest charges of £143,498
- Net figure is a profit of £128,403, compared to a loss of £123,560 in previous year
- Continued improvement in line with business plan and attributed to growth in commercial revenue and funding as well as prudent financial management
- The figure represents a not insignificant turnaround from record net losses of £1.86m in 2011/12.
The Directors of the Ospreys holding company, Llandarcy Park (Ospreys) Ltd, revealed the figures today, which show the business returning a positive end of year figure for the first time since 2007.
The net profit of £128,403 is a turnaround of £251,963 on the previous year when the business declared a net loss of £123,560.
Ticketing revenue and commercial income continued to grow during the financial year, while the new Rugby Services Agreement and European Rugby Champions Cup, developments which the business was at the forefront of, have resulted in increased funding that has enabled the company to invest wisely, strengthening the organisation in all areas; rugby, commercial, administration and facilities, as well as reducing historic debt as per the long-term business plan.
However, the Directors have underlined that the challenges posed by the financial power of its competitors, within the PRO12 as well as in England and France, the resultant salary inflation, and the continued economic pressures within Wales, mean there is no room for complacency.
Roger Blyth, Chairman, Ospreys Rugby, commented:
“It gives me enormous pleasure to be able to talk about the improved off field performance of the business. These figures are the result of the efforts and hard work behind the scenes, across all departments of the organisation, to ensure more prudent financial management, sensible expenditure and growth in income, and are entirely in line with our five-year business plan.
“We saw a number of new commercial partnerships launched during this period, while the new RSA came into effect, providing a new system to reward national squad contribution more fairly, something which will clearly prove beneficial to the Ospreys given our historic over contribution to the national cause.
“The continued improvement in our financial position gives cause for cautious optimism for the future but there remains a lot of hard work ahead. Governance changes within the WRU provide an opportunity for Ospreys Rugby and our partners within Pro Rugby Wales to work closely with the Union over the coming years to ensure that the professional game, along with community and grass roots, thrives.
“A particular focus has to be working as a collective to develop a commercially attractive PRO12 competition that can truly rival those in England and France.
“The Board also acknowledges that the current 2015/16 season, in particular, will pose significant challenges to all areas of the business being a Rugby World Cup year, with the potential impact on crowds, player availability and performance, and commercial revenue.”
