The audited accounts for the year ended 30th June 2020 have now been completed and have been filed at Companies House.
Despite the early termination of the 2019-20 season and the issues arising, we are pleased to confirm that a net profit of £307,875 has been achieved. This is the third consecutive year that a profit has been reported. The net assets of the club have, as a result increased to £811,871.
The club employed 106 paid members of staff across all areas together with 11 directors who continue to operate on an unpaid voluntary basis.
The following executive summary has been included as part of the directors report within the filed accounts:
The financial statements relate to the 2019/20 EFL League season which was terminated early as a result of the restrictions arising from the Covid-19 related pandemic.
Throughout the year the club has continued to apply a robust approach to managing its finances with appropriate controls in place. This approach ensured that the club entered the pandemic in a reasonable financial position.
The club supported the curtailment of the 19/20 season due to the emerging costs which would have been incurred because of the uncertainty created as a result of the pandemic. Newport County AFC have played an active role as a member of the League 2 Clubs, coming together regularly as a result of the pandemic.
This uncertainty continued in relation to the planning of 20/21 season i.e., start date, potential for crowds and the implementation of a salary cap and at what level, coupled with the contracted playing squad.
The board put in place a simple strategy to navigate through the uncertainty – the highest priority was protecting the club’s cash base. This meant not committing any expenditure until the uncertainty became a little clearer, and to taking appropriate support being offered to support the business community. This came from both the UK and Welsh Governments, in addition to the Football Authorities. These measures and packages included the Job Retention Scheme, Welsh Government and Local Council initiatives.
The board ensured it met all contractual obligations. This included “topping” up all salaries for staff who were placed on furlough. A conscious decision was made to treat all those on furlough consistently.
The directors are pleased that the approach adopted has allowed the Club to retain staff and strengthen its financial position against the backdrop of the pandemic and all its challenges.
The support the club has received throughout the year from supporters, sponsors, partners, Welsh Government, UK Government, Newport Council, and local politicians is much appreciated and has assisted in our strong current financial position.
As we slowly emerge out of the current climate the board recognises that there are undoubtedly some difficult challenges ahead and will continue to manage the finances of the club in an appropriate manner.