2023 ANNUAL REPORT

MINUTES OF THE 2023 ANNUAL GENERAL MEETING 55 members’ attention to the accounts of the club for the year ended 30 September 2022, and his written report, contained within the annual report. He also highlighted the Independent Auditor’s Report which stated that in their opinion the financial statements: • Gave a true and fair view of the state of the club’s affairs as at 30 September 2022 and of its surplus for the year then ended; • Had been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • Had been prepared in accordance with the requirements of the Co-operative and Community Benefits Act 2014. There were further matters covered in the Independent Auditor’s Report that members might wish to read, but he could confirm there were no matters reported there which gave any concern. In relation to turnover trends, Mr Ellis began by remarking that the year ended 30 September 2022 was the first full season of normality in terms of restrictions following the Covid-19 pandemic. This year, therefore, provided a useful barometer of the club’s financial performance in the wake of such large-scale disruption.The club’s turnover for the year ended 30 September 2022 (£15.5 million) was a record and was some 10% higher than the previous year – which itself was a record. Mr Ellis also referred to a chart in the Annual Report setting out a breakdown of the turnover for the year ended 30 September 2022. This showed our reliance on high- profile match receipts, as this heading accounted for over a quarter of the turnover for the year. The club’s total income, as shown in the accounts, had increased by 10% – of which cricket income increased by 9%, an increase of £617k over 2021. Commercial income had increased by 32%, which represented very large increases in catering, particularly at the Test Match. Shop sales, meanwhile, had increased by nearly 40%, mainly due to strong sales of Trent Rockets clothing and other related items. Grants, donations and other income had decreased by £530k, of which £447k was the Corona- virus Job Retention Scheme grant received in 2021, but not repeated this year. Grants for community and development work increased by £60k but ECB distributions were down £140k, and this explained the reduction in total of £530k. In total, expenditure increased by £2.5m – a 21% increase on the year to 30 September 2021.The biggest percentage increase was in cricket academy and community & development expenditure – an increase of £260k (37%) on the figure for 2021.This was mainly due to a return to full delivery capacity in these areas, whereas activity in the previous year had still been restricted because of the pandemic. As Mr Ellis had mentioned when discussing income movements, the club had received additional grants of £60k towards these increased costs. Ground facilities and match expenditure increased by £730k, of which light and heat increased by £355k – a 138% increase on 2021.This could have been much worse if the club had not been able to take out a new fixed contract in October 2021 for two years at a rate that was considerably better than the prices in the following months. Rates and water increased by £73k (+173%), because Covid-19 grants were still paid in the year ended 30 September 2021. Administration and commercial expense increased by £1.1m (+27%), with major contributions to this increase from shop, catering and hospitality purchases, which themselves increased by £674k. Mr Ellis went on to discuss staff costs, an expense which was split across all the major expenditure headings in the accounts.This cost had increased by 14%, reflecting normal cost of living increases as well as a large increase in National Insurance costs from April 2022 and a significant rise in the National MinimumWage. Extra employment costs were also incurred as a result of the Test Match being played out over five full days, whereas in 2021 the final day was rained off.We were also able to open the venue to its full capacity at T20 matches in 2022, while restrictions had lingered into 2021. Mr Ellis gave a brief explanation of the financial transition from the profit of £1,911,499 in the year ended 30 September 2021 to the profit of £869,661 in the year ended 30 September 2022, citing increased income from cricket of £617k and a £198k increase in net income from commercial activities. However, there was a reduction in income from grants and donations of £530k and increases in costs of £365k for professional cricket, £259k for academy and community development, £729k for ground and match expenditure and a saving in interest payable of £23k.This resulted in a reduction in the surplus as compared to 2021. For historic context, Mr Ellis then spoke to a slide which showed the surpluses and deficits since the year ended 30 September 2009.The cumulative position was shown by a graph and reflected a gradual increase in reserves, with a large jump last year.The club now had just over £6.7m of general reserves. When considered in four-year cycles, the increase in surplus for the period from 2007 to 2010 showed an average surplus of £50k, increasing to £742k in the last four-year cycle to 2022. The Treasurer explained that the type and frequency of international matches played at Trent Bridge in any one year had a significant impact on the surpluses generated, but this impact was smoothed out over a four-year cycle. By looking at the club’s financial performance over these four-year cycles, it provided a better understanding of how the club’s finances were progressing.