2021 ANNUAL REPORT

31 TREASURER’S REPORT As expected, due to the early-season restrictions on spectator attendance, membership and domestic match receipts were also negatively affected. While these figures were impressive in the circumstances, the return of large crowds for Notts fixtures is eagerly anticipated and crucial to our long-term prosperity. The inaugural edition of The Hundred was the most significant revenue differentiator in comparison to other years.The broadcast fees distributed to all counties bolstered ECB income to above £3m and the addition of four well-attended fixtures added almost 50,000 spectators to our usual levels across the season. In addition to the significant improvement on recent years with regards to income, we also need to consider the changes that were implemented within the cost base of the club which also contributed to achieving the surplus. Given the business landscape we found ourselves within, and with no clear indication of either when or if things would improve, we were forced to act.We consequently took the difficult decision to make roles redundant just before the start of this financial year, which ultimately reduced our committed spend. We also experienced a winter in 2020/21 that led to a great deal of homeworking and enforced closure of large parts of the site for signif- icant periods of time.Whilst there was an inevitable and unavoidable knock-on effect upon some services during those times, there were some financial savings to be made. For example, a brief comparison of electricity usage on site showed that we managed to cut consumption by 42% for the month of November 2020 when comparing it to the previous year. Our finances, therefore, benefitted from a reduced cost base across the majority of the winter months. As a result, our Administration and Commercial costs were £235k lower when compared to 2018 and our Ground and Facilities costs were £255k lower. Whilst the financial benefits are easy to see, the operational challenges we experienced as we scaled up to full- speed during the summer of 2021 are more difficult to show in print. We relied heavily on our workforce to see us through and they did not let us down.That ensured we had the dual benefit of reduced costs, deemed necessary given the infor- mation to hand at the time, followed by a return to full revenue earning capability with very little notice. The balance the club has to strike as it continues to move forward is in assessing which cost savings can continue indefinitely, and which of those savings were actually the result of reduced service levels or increased and unsustainable workloads. A judgement has to be made as to what is acceptable, and significant cost savings with reduced service delivery and stretched employees is not a viable long-term solution. Therefore, the budget for next year has started to build back in some of the necessary resources to allow the club to prosper, maintaining our high standards for delivery whilst targeting another significant surplus. Everyone associated with the club has pulled together and by doing so achieved a positive result that could not have been foreseen for the majority of the financial year. More importantly, our financial wellbeing over the five-year cycle has been vastly improved from where it was at the end of 2020. It is also important to remember that the surplus is retained by the club; it does not disappear. It has been earned and can be used by the club in the future.The fact that the surplus is significant increases the options open to us, rather than restricting them. It can be reinvested in future activi- ties and members can be safe in the knowledge that this process is now unfolding from a position of relative strength. I NCOM E L I N E S 2 0 1 7 – 2 0 2 1 MEMBERSHIP SUBSCRIPTIONS THE HUNDRED DOMESTIC GATE RECEIPTS INTERNATIONAL GATE RECEIPTS HOSPITALITY INCOME CATERING INCOME OTHER INCOME ECB INCOME TOTAL