2023 ANNUAL REPORT

37 TREASURER’S REPORT I NCOM E BY T Y P E (fig.1) Midlands women’s regional team The Blaze, along with a fallow year payment and a facilities maintenance grant from the ECB Infrastructure Investment Fund – both of which were allocated to support the club in the absence of a men’sTest match. Whilst this may look like a material increase year-on-year, it should be noted that ECB core funding has remained static at around £2m for the past three years. Reduced income is clearly a factor this year but, like many businesses, the club is also facing an exponential rise in its cost base that shows no signs of abating.This has and will continue to affect the majority of expenditure lines. Utility costs, insurance and business rates have increased substantially. The national living wage increased by 9.7% in April 2023, and will rise again by 9.8% in April 2024. At this point, the threshold for receiving this wage lowers from 23 years of age to 21, impacting us heavily due to the average age of our casual matchday staff. This not only affects this critically important workforce, but it has a knock-on effect for our permanent staff in an already difficult labour market. Put simply, the rise in the cost base is outstripping the rise in our commercial income which is being exacerbated by the cost of living crisis. This snapshot of increased costs and reduced net income explains how we moved from a pre-tax surplus of £0.87m in 2021-22 to a loss of £0.99m in 2022-23. Notwithstanding the challenging environment, the club has neverthe- less met all of its loan repayments. We continue to reduce our debt held in loans with our Local Authorities, with that figure now standing at £5.3m – which is £3m below our peak of £8.3m in 2018. As we manage our annual financial results as part of a multi-year cycle, we have the resilience to maintain our business in our leaner years. In June 2023, meanwhile, the ECB announced an extensive allocation of men’s and women’s fixtures to be played at Trent Bridge, which includes men’s Ashes Tests in both 2027 and 2031. Allocations were announced for seven years rather than the more common five-year term, which gives us a greater degree of financial certainty and an opportunity to plan. There are no doubt challenges ahead. However, we can look to the future with confidence as we seek to grow and diversify our business, whilst maintaining investment into key areas of our strategy such as women and girls’ cricket, community activity, creating winning teams, developing home-grown talent and creating a welcoming experience at Trent Bridge for all. I NCOM E CAT E GORY £4,533,602 CASH AT BANK AND IN HAND -£823,914 DEFICIT FOR THE YEAR £5,903,050 NET ASSETS F I NANC I A L R E P O RT AT A GLANCE