Guildford Rugby Football Club

News

Treasurer’s Letter – August 2018

Update from the Nick Taft on club’s finances

Following the end of our financial year in June, we now have an updated status on the club’s financial health. The good news is we have an improvement from the last forecast communicated in May – where we anticipated a £34k deficit after all capital expenditure and loan repayments. This figure is now closer to a £20k deficit – but will be fully validated once our accountants RSM have prepared our statutory accounts in the coming weeks.

So although it’s disappointing to end the year in the red, we are heartened that the scale is much smaller than what could have been a much larger deficit – which is down to great efforts across the whole club to control costs and drive revenue streams.

We do though still have a deficit to manage and that is one of the Board’s main priorities to resolve. Our initial approach since December has been to carefully manage costs, whilst investing in the club in areas that will deliver additional revenue and provide long term sustainability – which we will continue to do so in the coming financial year.

2018/19 Season Looking to the season ahead, Liz and I are currently working with age groups and budget owners to finalise their budgets – both from a cost and structure point of view. As mentioned in the last Treasurer’s letter, I am keen to simplify the reporting of our finances to provide more relevant information and insights for members.

As part of these budget updates I would like to share some key points.

Rugby: whilst we retain Senior, Youth and Minis P&L entities, we will now be reporting on the rugby budget as a whole. In the past there has been cross sectional facilities charge that has been a rather arbitrary and sometimes contentious cost – which will now be removed.

Facilitates, Management & Administration: by removing the sectional cross charges we will have greater clarity of what it costs to run, maintain and manage our facilities. Although Broadwater Pavilion Limited, our commercial subsidiary, will still need to contribute for use of the club’s facilities. Overall, it currently costs about £200k per annum to run the club – which is a figure we will now report on to ensure it is more visible throughout the club and closely managed. If any members have ideas to lower or sponsor these activities, please do get in touch.

Shop: the new shop is now established and we have wide range of playing kit and leisurewear arriving from Raging Bull, plus rugby boots from XBlades. Roy O’Brien and his team have been working diligently on the roll out of new kit and making sure we can support the demands come the new season – but whilst also not building large inventories that tie up much needed cash.

Commercial: as previously advised by our Chairman, we are taking a fresh approach to our commercial management and sponsorship activities. The Commercial Committee is now in place with Roy, Emma Swadlo and team leading the market engagements. Whilst we are confident in this approach, we do anticipate that there is a gestation period where the contacts and a credible pipeline need to be created.

We are looking for long-term partners that match the club’s community ethos and culture, which inevitably takes time to develop. If any of our members are interested to be commercially involved in the club, we would love to hear from you – and there are numerous models available that can be considered and discussed; ranging from advertising, sponsorship or commission-based activations.

Catering and Events: Jason, Emma, Ben, Sue, Adrian and the Operations team have reviewing how best to maximise our facilities from a catering and events perspective. We have recently purchased a catering truck to enable quality food and refreshments to be available ‘pitch-side’. We believe this will be a great initiative for providing members better and more varied catering on Saturdays and Sunday – whilst also being an attractive proposition for events. One such recent success was the outdoor cinema showing of Grease – with over 300 people attending. A great achievement in itself, but that we also took over £1,400 through the new catering truck gives great insight into how we can maximise the non-rugby side of our club.

For the financial statement please click on financial statement report

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