Newport County Chairman, Huw Jenkins offers an update to supporters following the release of the annual accounts for the financial year ending June 30, 2023.
As we enter the final month of the regular League Two campaign, I am pleased to deliver my second update on Newport County matters.
It has been just over two months since the EFL approved my majority takeover of the club.
In that time there has been a lot of work going on behind the scenes. That work may not be clearly evident to supporters, but we have made good progress in a number of areas which I will expand on at the end of the season.
The big news yesterday though was the announcement of our latest accounts for the year ending June 31, 2023, and a loss of £913,000.
Obviously, it was before my time at the club, so it would be unfair to comment in too much detail on the results – and the reason for such a loss.
What is evident, however, is that there needs to be serious changes to the way the club operates. Coming on the back of a previous loss of £1.2m, a club of our size cannot afford to lose over £2m in two years. It is simply unsustainable.
Supporters of this proud football club have gone through a period where the club folded and had to return from exile. The journey back to the Football League was a long and arduous one – and I’m sure it was an experience nobody sporting amber and black wants to experience again.
The football club is the heartbeat of the community, and it is vitally important we not only protect it but make it stronger on and off the pitch.
We need to change the mentality, culture and processes within the club. We need to adopt a more business-like approach and attitude if we want to protect the club’s future.
We have a lot of work to do. For example, we need to increase our commercial revenue substantially, which we have started to do. Our LED advertising has seen a major uplift already, while we now have a commercial brochure in place and available (commercial@newport-county.co.uk) for those businesses looking to support the club. We need the help of the local business fraternity to support the welcome financial input from members of the Supporters Trust.
Apart from the playing budget, our biggest expenditure is facilitating the fees associated with playing at Rodney Parade.
While we are grateful to the Dragons for accommodating us at their home, the current costs are unsustainable based on our turnover.
We are currently discussing a new 10-year lease with the Dragons which will hopefully place us in a better financial position moving forward.
We are both in the same position where we need each other and to cut running costs at Rodney Parade to make it a sustainable venue for both codes. It is a big challenge that needs strong and committed control.
Uniquely positioned where it is, Rodney Parade is also vital in maintaining and increasing footfall in the city centre, especially for those retail businesses operating there, so we will also be looking to work with the local Council in ensuring sport in Newport has a bright future. Any help would be appreciated!
The need to improve all sporting facilities for everyone in the Newport area is a massive challenge to both Dragons and Newport County as there seems to have been a total lack of investment in these facilities for many years. Improved sporting facilities would help lift the whole area and encourage staff and players to join our clubs, while also providing new pride and ambition for everyone in the Newport area.
Finally, back to the accounts. As I mentioned earlier, a lot of work has been going on in the background to improve our financial position. A lot of aged debt has been cleared in the last two months and we are on a much better financial position; but strong financial control is still essential to keep the football club on the right path going forward.
Thank you for your continued support.
UTC
Huw
