We've highlighted the main points from the accounts which show operating losses have come down by over 50%...
Coventry City Football Club (Otium Entertainment Group) and parent company Sky Blue Sports and Leisure have published the latest set of accounts for the year ended 31 May, 2015.
The financial statements show a significant improvement in the overall performance and financial stability of the business, achieved through the hard work of the staff over the last twelve months.
In order to help fans understand the information contained within the documents that have been filed, please find below the key points from these accounts:
- The total club turnover between June 1, 2014 and May 31, 2015 was £4,763,515 - up from £3,755,049 in the previous accounts covering the 2013/14 financial year.
- During this time, direct operating costs increased from the previous year from £1,110,753 to £1,517,404. This increase in direct costs was very much in line with the growth in turnover driven by a rise in match-day attendance which led to a proportional rise in match-day operational costs, e.g. policing, stewarding.
- The accounts show an annual operating loss of £1,951,233, which has decreased by over 50% from the £4.4 million operating loss (as adjusted for the exceptional charge related to the impairment of goodwill) in the last financial year.
- The directors have produced forecasts which demonstrate the group can operate within its means without reliance on the owners and without any material uncertainties. This has enabled the auditors to remove the emphasis of matter paragraph referring to material uncertainties from the audit report.
- The interest payable – but not paid as it has not been demanded by ARVO (SISU) or paid by the club to ARVO – has decreased from £2.7m to £1.37m year-on-year. This substantial reduction in interest due is attributable to the previous year’s debt for equity swap by the owner.
- In regard to the business performance, the 2014-15 period saw a lift in year-on-year turnover of around £1m due to increase in ticket sales and improved commercial performance.
- Legal costs for the Judicial Review legal actions were not paid by either Otium or SBSL.
- The accounts show a significant on-going investment in the Academy. Under EPPP rules, the club had to commit to a minimum contribution to Category Two Academy status of £512,000. For the period 2014-2015, the club committed in excess of £600,000.
Chairman Tim Fisher said: "The latest set of accounts represent a significant improvement in the financial performance and consequent financial stability of the football club. We are pleased with the continued direction of travel of the club’s financials.
"The directors are pleased to be able to present a set of accounts which are showing a more stable financial footing including the removal of any uncertainties which no longer require the auditors to make reference to.
"The accounts highlight that the football club is financially more stable than ever and clearly illustrates our continued shift away from financial dependence on our shareholder creditor-investors.
“Overall, I'm particularly pleased that the accounts illustrate the clear impact of the necessary combined effort and team work of everyone at the club which has been and remains critical as we continue to drive this club forward."
Executive Vice Chairman Chris Anderson said: "The latest set of accounts give the club a great platform from which to grow on in the future.
"This set of accounts records the progress made by the club in the 2014/15 season and I'm expecting the progress to continue into the next year as our matchday attendances have risen by 40% during the 2015/16 campaign.
“However, the accounts also highlight the need to increase our commercial revenues as they’re crucial to the ongoing turnaround, and success of the club. Work is continuing on delivering a best-in-class football model which has seen significant progress under the stewardship of Tony Mowbray and Mark Venus.
"Our supporters should take great pride in their football club, as significant progress has been made on and off the pitch, and we are working hard to make sure that'll only continue going forward."
Download the accounts for Coventry City FC (Otium Entertainment Group)...
Download the accounts for Sky Blue Sports and Leisure...